Setting the Tone at the Top of Honesty and Integrity Within a Company
According to Katja (2010), “Ethics is the code of values and moral principles that guides individual of group behaviour with respect to what is right or wrong” (p. 32). To establish rules, goals and work processes is not enough for a manager to take a business to a successful level. But it is necessary to become a reliable leader that portrays a healthy, compromised culture with which standards can be set.
Not doing so could bring future obstacles when meeting objective, as well as decreasing productivity within the company. For that, according to Fulmer (2004), former CEO of Johnson & Johnson, Ralph Larsen, know that part of the DNA’s company has really boiled down to one core thought: ‘personal responsibility’ (p. 311).
Vulnerability Within the Internal Control Environment
Finding that sweet spot between becoming a great leader and a reliable figure but also being part of a compromised working team that is expected to meet financial goals, is what can make a poor manager unstable. So if the on that is on the top stumbles or leave all those values apart, then all its people in charge will surely do the same. At that point it will be harder to go back to a controlled environment; so it is essential to attach to that suitable culture and live it from day one, in every action performed.
05 - 2019 Article for Livingston Research
Flomer, R. M. (2004). The Challenge of Ethical Leadership. Organizational Dynamics, Vol. 33 (No.3), pp. 307-317
Katja, K. M., Lipicnik, B. & Tekavcic, M. (2010). Ethical Leadership. International Journal of Management & Information Systems, Vol. 14 (No. 5), pp. 31-42