JOSÉ LUIS Peralta Barbano, Eng’s Post

Great article from IESE Business School about integrity in organizations. The article defends that the best way to avoid "dishonest conducts" is not just defining what "not to do" but rather "to encourage the desired positive behavior" that leads to greater integrity to all. Professors Joan Fontrodona and Pablo Sanz give us the following keys to foster positive business culture: - Action plans. Besides drawing the red lines never to be crossed, the action plans should also include an aspirational element, encouraging all individuals to improve personally as well as professionally. - Objectives. They must be consistent with the other dimensions, so that progress is measured in more than just economic terms. - Proactive support. Proactively support people in behaving ethically: employees should be given decision-making frameworks. - Tone from the top. The senior management team has to set the tone from the top: first, by articulating the values and ethical conduct; and second, by setting the example. - Codes of conduct. Senior managers should formulate a code of conduct, which gives clear guidelines for respecting and upholding the company’s stated values. - Training. This needs to be offered, not just on the subject of ethics specifically, but to make sure that all company training programs on any business topic contain an ethical piece. - Incentives. To promote ethical conduct, management systems and incentives must be carefully conceived so as to avoid potential conflicts of interest, perverse incentives and unintended consequences. - Controls. There should be adequate monitoring and control mechanisms in place to take the pulse of interpersonal relationships and other dynamics that could affect performance. - Culture. Finally, the corporate culture needs to be ethical, both inside and outside the organization. This entails explicit communication so everyone is fully informed. It also involves rethinking people’s work habits and office spaces to maximize personal responsibility and collective development. https://lnkd.in/gfZzCGCz #iese #integrityinbusiness #culture

Did you know that 78.5% of consultants are fake? 🤔 This alarming statistic highlights the importance of discerning true professionals from impostors. Here are 8 reasons why many so-called consultants fail to deliver real value: 1. Lack of Ethics: They have no ethics or never took an ethics course. 📚 Without a strong ethical foundation, they can't truly serve their clients' best interests. 😔 2. Client's Interest Not a Priority: They don't prioritize the client's interest. 💼 Instead, they focus on their own gains, leading to subpar outcomes for their clients. 📉 3. No Improvement in Client's Condition: They do not improve the client's condition. 📉 Genuine consultants should leave their clients in a better position than before. 💪 4. Fear of Upsetting Sub-Contractors: They are scared of upsetting sub-contractors instead of protecting their client. 🤷♂️ This misplaced loyalty compromises the quality of their service. 🤦♂️ 5. False Representation: They falsely misrepresent themselves as consultants while they're only designers. 🎨 This deceitful practice undermines the integrity of the consulting profession. 🤥 6. Antiquated Mindset: They are antiquated and old in their mindset. 🕰️ Innovation and adaptability are crucial in today's fast-paced world. 🌐 7. Failure to Listen: They don't listen to the client. 👂 Effective consulting requires understanding and addressing the client's unique needs. 🗣️ 8. Vested Interests: They have a vested interest in the product they suggest, such as AV and IT vendors, and get paid kickbacks. 💸 This conflict of interest leads to biased recommendations that don't serve the client's best interests. 😡 Let's strive to uphold the true standards of consulting by prioritizing ethics, client interests, and genuine improvement. 💪🚀 #Consulting #BusinessEthics #ClientFirst #TrueConsultants #Integrity #Professionalism

In today’s world, trust is invaluable. Integrity is the foundation of any successful business. High ethical standards build trust that is difficult to earn and easy to lose, shaping how a company is perceived both internally and externally. When integrity guides decisions, it creates a sense of pride and belonging within teams. Employees feel part of something genuine, and this trust extends to clients, partners, and the community, fostering a reputation built on respect. But is it as easy as it seems? Ethical choices may seem challenging or costly at times, but they lay the groundwork for sustainable growth and long-term impact. Companies that prioritize fairness and honesty naturally attract like-minded people, building a culture of authenticity and shared values. At its core, integrity is about how we act every day. When businesses lead with ethics, they inspire loyalty, strengthen relationships, and build legacies that endure. A strong team driven by these principles is the true measure of a company’s strength. #Teamwork #TCTerrytex #Trust

Have you considered how your business's ethical standards could influence your consumers? The importance of integrity is often overlooked, but it’s time to prioritize it.  Integrity is more than just honesty and transparency, and respecting professional boundaries; It's about delivering on promises and having the courage to communicate challenges when they arise. Leading with integrity fosters a culture of trust within the organization. Not to mention, it also significantly influences consumers' perceptions and responses towards the company. Additionally, consistent ethical performance not only enhances your reputation but also acts as a catalyst for improved business performance. In today’s cut-throat competition, can organizations prioritizing profit over integrity afford the risk? Regular self-reflection on integrity is key to remarkable growth.  Reflect, learn, and lead with integrity #EthicalBehavior #IntegrityInBusiness #ProfessionalIntegrity

Businesses must harness the power of ethics which is, assuming a new level of importance and power required for growth with sustainability. The thing is, continuity of strategic direction and continuous improvement in how you do things are absolutely consistent with each other. In fact, they are mutually reinforcing. #BecomeaBetterYou #LCCI

Integrity Redefined? All my life, I have learned and taught that leadership comprises two essential elements: competency and character. Without integrity, there is no foundation upon which true leadership can stand. Donald Trump’s re-election, however, has raised many questions on this premise, challenging the traditional understanding of integrity in leadership. While we still demand high standards of integrity in corporate leadership, it seems that we have offered political leaders a blank check, tolerating conduct that might be questionable in the corporate environment. In the corporate world, integrity remains a non-negotiable trait. Leaders are expected to uphold ethical standards consistently, and breaches of trust can lead to dramatic falls from grace. The collapse of Enron is a prime example: when its leaders were found guilty of fraudulent accounting practices, the company’s failure was swift and severe. Similarly, leaders of companies like WorldCom and Lehman Brothers faced severe backlash for unethical behavior that ultimately resulted in corporate failures. Corporate integrity, therefore, is a matter of both legal requirement and moral obligation, reinforcing the company’s reputation and ensuring long-term stability. Political leadership, however, appears to operate by a different set of criteria. Political leaders are judged by their ability to connect with constituents, deliver on promises, and champion specific causes. Donald Trump’s re-election reflects this shift: despite numerous controversies surrounding his conduct, a significant portion of the electorate saw his policies and vision as aligning closely with their own views. The criteria for integrity in corporate and political leadership now appear to diverge sharply. Corporate leaders are held to strict ethical standards, with transparency and accountability acting as pillars of good governance. Any significant ethical breach can lead to loss of investor confidence, legal penalties, and swift removal from leadership roles. Political leaders, however, face different consequences. As long as political leaders are perceived as authentic and true to their constituents’ interests, personal conduct may become a secondary concern. So, integrity is now viewed very differently in these two leadership models. In corporate leadership, integrity is uncompromising, essential for maintaining trust with stakeholders and ensuring the organization’s future. In political leadership, integrity is often seen as alignment with public sentiment, even if it means compromising on ethical standards. This shift, however, raises serious questions about the role of integrity in leadership. Something is wrong somewhere; your opinion?

🌟 Upholding Integrity: The Essence of Doing the Right Thing in Business 🌟 "The time is always right to do what is right." – Martin Luther King Jr. In the complex landscape of modern business, the path of integrity isn’t always the easiest, but it’s undoubtedly the most rewarding. Here’s why: Building Trust and Credibility: "Trust is the glue of life. It’s the most essential ingredient in effective communication. It’s the foundational principle that holds all relationships." – Stephen Covey. Research by Edelman reveals that 81% of consumers say that trusting a brand to do what is right is a deciding factor in their purchasing decisions. By consistently doing the right thing, businesses foster trust and credibility among customers and stakeholders. Sustaining Long-Term Success: "Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful." – Albert Schweitzer. While shortcuts may offer temporary gains, sustained success lies in doing what is ethically and morally sound. According to a study by EY, 89% of investors believe that a strong sense of purpose drives long-term business success. Mitigating Risks and Reputational Damage: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently." – Warren Buffett. Unethical practices can lead to severe repercussions, including legal ramifications and reputational damage. The Global Business Ethics Survey found that organizations with strong ethical cultures experience 50% fewer misconduct incidents. Inspiring a Culture of Excellence: "The supreme quality for leadership is unquestionably integrity. Without it, no real success is possible, no matter whether it is on a section gang, a football field, in an army, or in an office." – Dwight D. Eisenhower. By prioritizing integrity, businesses inspire a culture of excellence where employees are empowered to make ethical decisions and contribute to the greater good. In today’s ever-evolving business world, let’s remember that doing the right thing isn’t just a choice—it’s a responsibility. Let's lead with integrity, shaping a future where business success is synonymous with ethical leadership. #EthicalLeadership #IntegrityInBusiness #BusinessSuccess

In light of recent corporate scandals involving companies such as BHS, P&O, and Carillion, the Institute of Directors is urging the government to initiate a consultation on a voluntary Code of Conduct for directors. This Code of Conduct aims to uphold ethical standards and promote transparency in business practices. It's a positive step towards ensuring accountability and trustworthiness in the boardroom. Read more here: https://hubs.li/Q02LzzNJ0 #Directors #CodeofConduct #EthicalBusiness #EthicalLeadership

EY's 2024 #GlobalIntegrityReport is out, showcasing progress in corporate ethics despite tough economic and geopolitical climates. The good news is that overall integrity standards appear to be improving. However the report also highlights a widening gap between what leaders say and what they do when it comes to acting with integrity.   As Andrew notes, in today’s environment, acting with integrity is vital for building trust among employees, customers, suppliers and investors. And it starts with people. Companies have an opportunity to improve dialogue across all levels, create a ‘speak-up’ culture, and provide effective training. But it’s also crucial that, as leaders, we step up to tackle these issues and to uphold our commitment to integrity in the business world.   #MarketInsights #EYForensics #BetterWorkingWorld

I wonder how many companies can truly say they would score 6/6? Although this is presently a consultation paper, it provides a good insight into the standards expected by company directors by the Institute of Directors (IoD), but when you look at some of the recent company scandals we have seen it is clear that many are not meeting their director/officer obligations! By way of example, the evidence we have heard during the public inquiry looking into the Post Office scandal, including the conduct of external law firms that are registered companies, suggests scores of 0/0! Principle 1 - leading by example - demonstrating exemplary standards of behaviour in personal conduct and decision-making. Principle 2 - integrity - acting with honesty, adhering to strong ethical values, and doing the right thing. Principle 3 - transparency - communicating, acting and making decisions openly, honestly and clearly. Principle 4 - accountability - taking personal responsibility for actions and their consequences. Principle 5 - fairness - treating people equitably, with no discrimination of bias. Principle 6 - responsible business - integrating ethical and sustainable practices into business decision-making, taking into account societal and environmental impacts. I wonder how many senior executives in companies involved in recent scandals are members of the IoD, and use this membership as a way of giving them credibility to obtain and hold senior positions? As I recently said in another post, you can have all the rules and regulations you like, but if the culture of a business and its leadership isn't right, it is likely that meeting standards will just be seen as a 'tick box' exercise, especially when pressure is put on the generation of income/profits! Any thoughts?