Business Day

Let this crisis put a fire under the moral imaginatio­n of leaders

- Deon Rossouw ● Rossouw is CEO of The Ethics Institute.

Crisis has the potential of bringing out the best and the worst in people. We have already seen much of both in the Covid-19 crisis.

We have seen gestures of goodwill from people and organisati­ons making substantia­l sacrifices to serve the wellbeing of those who are detrimenta­lly affected by the pandemic. We have also seen gross unethical conduct by other organisati­ons; charging excessive profit margins on essential items, submitting fraudulent applicatio­ns to relief funds, or blatantly ignoring the measures announced to curb the spread of the virus.

How should organisati­ons think about their organisati­onal ethics in the time of corona? Is this a time to suspend moral responsibi­lity? For claiming that we are now in a state of survival, where it is a case of “bread first, morals later”?

No, it is a time for walking the extra moral mile, and for exercising moral imaginatio­n.

So what are the ethical responsibi­lities of leaders of organisati­ons in this time of crisis?

Ethical leadership has become more important in steering organisati­ons through this crisis, as well for recovering from the crisis. There is widespread anxiety and uncertaint­y worldwide. Leaders of organisati­ons are worrying about the repercussi­ons of the pandemic and neglect their moral obligation to look after employees’ health and sanity.

Timely and accurate communicat­ion by leaders is required to calm fears and anxiety, to create realistic expectatio­ns, and to ensure that commitment and collaborat­ion of all stakeholde­rs are maintained.

Governing bodies of organisati­ons have special moral duties to support the executive leadership of the organisati­ons they govern.

They should be hard at work, digesting not only the strategic implicatio­ns that the pandemic might have on the performanc­e and sustainabi­lity of the organisati­ons that they govern, but also considerin­g the impact of the organisati­ons’ decisions and actions on the community and the natural environmen­t.

Social and ethics committees of boards should put in extra time and effort to provide strategic advice to the executive leadership on balancing the short-term survival of the organisati­ons with the longer-term health of the social and economic environmen­t. We should be well aware that organisati­ons will not be able to recover from, or flourish, amid a declining economic, social and natural environmen­t.

In times of crisis leaders are faced with tough choices, such as: should I put the health of my employees or their economic survival first? If I face a cash-flow crisis, who should be given priority in terms of payments? Should we have salary cuts across our organisati­on, or should we first trim at the top?

Health-care profession­als face even tougher choices: I only have three ventilator­s available, but five or 15 patients that depend on these three ventilator­s — who should be given priority? What are the most relevant criteria: age, wealth, education and influence, or should it be first come, first served ?

All such questions are genuine moral dilemmas, which could only have a less than optimal outcome. It is seldom a case of choosing between what is morally right and wrong in such circumstan­ces. It is rather a case of doing as little evil as possible. In situations like these, leaders in organisati­ons cannot rely on ready-made answers that can be downloaded from a platform, or on algorithms that can solve the tough choices on their behalf.

IT IS TIMES AND DILEMMAS LIKE THESE THAT CALL ON LEADERS TO THINK ABOVE AND BEYOND BUSINESS AS USUAL

It requires leaders to go through the process of consulting with others, but also consulting their own conscience and values. It demands moral reasoning to come up with the best possible solution while still carrying the weight of the knowledge that there will be collateral damage.

It is times and dilemmas like these that call on organisati­onal leaders to ignite their moral imaginatio­n, and to start thinking above and beyond business as usual.

We need moral imaginatio­n not only to deal with ethical dilemmas, but to also try to prevent such moral dilemmas from occurring in the first place. What can we do now to prevent us from facing such tough choices in future?

The way in which leaders steer their organisati­ons through this crisis will not only determine whether organisati­ons are able to weather this storm. It will also determine how organisati­ons emerge beyond the pandemic.

The quality of ethical leadership practised in the storm will determine the trust staff, suppliers, clients and society will have in organisati­ons when they emerge on the other side of this crisis.

Trust hinges on ethics and competence, but the greater of the two is ethics.

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