Integrity: A blueprint formaking it strategic

The Governancedimension to ESG isoften relegated to third
place in corporate
strategy. However,ethics, complianceand the attribute ofintegrity can be used topowerful effect to prevent
risk, boost employee
commitment andmeaning, and become astrategic tool. Researchfrom Prof. Daniel Malan,Trinity Business School.
© ESSEC Business School - 1298561122 - November, 2022 - Cover photo: © XtockImages - Not printable file.

Related research: The Rise andRole of the Chief Integrity Officer:
Leadership imperatives in anESG-driven world, World Economic
Forum White Paper 2022.

ISBN: 978-2-36456-241-7

An alliance with a purpose

EAESP

THE 3 Ps IN A CoBS PODPERCEIVE

with a set of key takeaways

PROJECTwith food for thought: on yourself, yourorganisation and the wider context

PERFORM© The Council on Business & Society 2022, an alliance of leading business schools dedicated to educating tomorrow’s responsible leaders.

www.council-business-society.org

Printing authorised. No editing or re-dissemination allowed except with prior agreement from the Council on Business & Society.

Contact: tom.gamble@essec.edu

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by putting it all into practiceusing action tips

PERCEIVE

with a set of key takeaways• The Forgotten G in ESG: Out of the 3 dimensions, Environmental, Social, andGovernance, used for evaluating corporate behaviour, Governance is often
neglected by companies even though it holds a strategic advantage of improving
an organization’s environmental and social commitment execution.
• Including pillars of sustainability and governance across all departments will help
companies deal with the complexities in a firm; especially considering how radicallythe expectations of society are evolving and how businesses are expected totake a stance on social, environmental, and sometimes even political issues.
• Prof. Malan’s research reveals that external stakeholders, such as Investors,
are also exerting pressure on a company to go beyond meeting their legalcommitments and engage in lobbying and sustainability initiatives.
• In recent times, appointing a Chief Integrity Officer to oversee thecompany’s efforts and commitment to integrity is one of the most evident
steps taken to foster a moral compass in the organization.
• While CEOs are expected to deliver near-term outcomes beneficial
for the financial performance of the company, CIOs, along with theirintegrity team, can autonomously provide an unbiased external
perspective during important discussions concerning integrity.
• Benefits of incorporating integrity into strategic initiatives: prioritizing the wellbeing of your employees as opposed to cost-cutting can strengthen their loyalty
towards the company, saving hiring costs and strengthening external reputation

Read the full articleaccompanying thisresearch pod, andothers, in Global
Voice magazine #23• Based on interviews with the senior management of some leading companies, it isevident that companies must shift from the traditional approach centred aroundprofit and growth to a more holistic one aimed at understanding the underlying
reasons behind situations posing a threat to the integrity of the organization.
• By employing the strategic approach, companies can nudge employees to navigate
through grey areas using their judgment and go even further by establishing an advisoryboard to provide support to employees when they need to make important decisions.

Integrity: A blueprint for making it strategicPROJECTwith food for thought• What kind of ethical dilemmas do you face in your role? Do you have enoughknowledge/guidelines provided by your company to navigate through them?
• For instance- Deciding whether to offer a corporate gift toa loyal client of the company can overwhelm an employeewith the burden of making an ethical choice• To what extent do you think you and your team follow ethical workplace
practices beyond meeting legal obligations? If not, what more can you do?
• Who shoulders the responsibility of ensuring a culture of integrity within theorganization? How is the team respected or feared by other departments?
• In your organization, to what extent does the person responsible
for compliance and integrity have the autonomy to take decisions
without being influenced by profit and performance?

Thoughts

Integrity: A blueprint for making it strategic

PERFORM

by putting it all into practice
CHECKLIST
Improve communication amongst departmentsby setting up regular meetings dedicated solely tosharing progress to increase transparency.
Nominate or call for volunteers to act as ‘Integrity Champions’during these meetings. Option: Nominate on a ‘revolving basis’to ensure that a maximum number of employees are involvedin the process and take ownership of integrity/transparency.
Conduct a survey to revisit your company’s code of ethics
and identify what changes need to be made.
Develop an interactive framework with informationthat can be directly put into practice by you and yourteam members. Make it concise, achievable and timebound (use the SMART model as a guideline).
Facilitate employee participation in the process of developing thecode of conduct and include their suggestions to make sure that theprinciples and norms are relevant to their roles and will be respected.
Identify ways in which compliance/integrity teams canwork closely with the CSR/sustainability departments tounderstand the view of stakeholders on how the organizationis addressing social and environmental issues. This would
also ensure a broader coverage of matters ranging fromdata privacy to the carbon footprint of the company.
Take conscious efforts to include members from diverse
skills, cultures, and professional backgrounds in theintegrity function as well as in other teams.

Integrity: A blueprint for making it strategic

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