Who is going to lead us out of this crisis?

An excellent article by Adele Ferguson in The Age, Saturday September 12, citing the move by Rio Tinto Board to take actions against three top executives, is a lesson for all organisations, both large and small. She noted further that a number of well known and not so well-known organisations had lost key executives after becoming engulfed in behaviour that did not meet community standards.  This has led to a crisis of confidence in many Australian institutions.

Ms Ferguson adds, ‘The day companies could get away with blaming systemic failures or flawed corporate governance on a few bad apples, errors and other lame excuses dreamt up by PR Teams are all but over’.

During my Leadership workshops I am often asked; ‘Has Corporate Culture become worse in recent times as the pressure for profit at all costs becomes more morally and ethically superior to earlier periods?’

I am unsure of the answers to those questions.  History tells us of earlier Workplace Practices that were both ethical and supporting while at the same time other workplaces were not much better than slave labour, environmentally irresponsible and were avaricious.

I think what has changed is societies’ expectations of the obligations of organisations to meet socially responsible, ethical and environmental standards.  Since the 1800’s we no longer accept the poking of small ten-year-old boys up chimneys!

In 2018, I participated in a National Conference in Canberra in which these higher expectations were clearly spelt out.

The Symposium titled; ‘Regenerating Integrity and Trust in Australian Institutions, where delegates from Business, Unions, Academia, Journalism, and Governments were of one mind.

Following the breathtaking examples of corporate malfeasance, it was time Australian Institutions ‘lifted their game’.

It was up to the leaders of Australian institutions, including Government and Corporations, to lead us to a more sustainable and ethical future. Boards and CEO’s not only have the power to do so, they are paid often grossly excessive salaries to be in such privileged positions.  In fact, the ABS has been reported as finding CEO’s salaries are over one hundred times the average salary in the country.

As Adele Ferguson concluded in her article, ‘It raises a bigger issue about Boards in Australia and the flawed governance too many of them oversee. There is too little accountability, too little transparency, still far too much reliance on bonusses linked to financial incentives and too much Corporate box ticking’.

The times are changing and we now expect our leaders to lead with integrity, clear vision and ethical behaviour.

The leadership model which has stood the test over many generations now outlines the four conditions created by a leader:

1. A shared understanding of the environment
2. A shared vision of a better future
3. A shared set of values
4. A shared feeling of power

This is not ‘management speak’ or the latest fad. It is what authentic leaders actually do!

So, who will lead us out of this crisis?

Penned by:

Robert J Re

13/10/2020