What Is Ethical Responsibility?

Ethical responsibility in the workplace refers to the duty of boards of directors to align their decisions and actions with moral principles and legal standards. It means staying true to your company’s core values as well as legal and regulatory compliance requirements and ensuring that all workplace practices reflect them.

Elements of ethical responsibility

• Honesty: Always being truthful in communications with colleagues and stakeholders to maintain trust and integrity.
• Openness: Being transparent about operational practices, decision making and financial standing as well as being accountable for your actions.
• Fair treatment of stakeholders: Ensuring all stakeholders, including employees, customers, investors, value chain workers, affected communities and partners, are treated with respect and dignity.
• Disclosing conflicts of interest: Upholding business integrity by revealing any personal or professional interests that would interfere with impartial decision-making,  
• Dedication to sustainability: Committing to ESG principles and practices to minimise environmental impact and promote long-term ecological balance.
• Encouraging a speak-up culture: Fostering an environment where employees feel safe to speak their minds, share ideas and raise concerns about unethical behaviour without fear of retaliation or judgement.
• Accountability: Owning up to your responsibilities, assuming liability for your actions and decisions and rectifying any wrongdoing or mistakes.
• DEI: Promoting diversity, equity and inclusion to welcome different perspectives, backgrounds and experiences.

Why practise ethical responsibility?

• Promoting integrity: When moral values are at the forefront of all interactions and decisions, it creates a foundation of integrity and shapes an open and inclusive culture.
• Fostering trust: Being honest about one’s intentions and actions encourages trust and reliability. The board must be trusted to allow it to make decisions over the strategic routemap for the organisation. 
• Encouraging accountability: Employees feel more motivated to take ownership of their actions and decisions when the organisation stays true to its ethical responsibility.
• Enhancing reputation: An organisation that prioritises ethical responsibility is often viewed more favourably by clients, investors and society and stands out among competitors.
• Reducing legal and ethical risks: Upholding ethical values in all business dealings ensures compliance with ongoing regulations and laws, protecting companies from damages associated with immoral practices and financial misconduct.
• Long-term success: Ethical values promote commitment among stakeholders, improve employee morale and performance and position companies to attract top talent, contributing to sustained growth and resilience in competitive landscapes.

How to uphold ethical responsibility

Code of ethics

Create a strong code of ethics to guide all employees to conduct themselves in a way that aligns with the organisation’s core values. Specify what constitutes unethical workplace behaviour and the consequences for violating ethical standards.

Ethics training

Launch training programmes to teach employees the importance of leading with ethics. Conduct regular workshops to reinforce ethical standards and encourage management and supervisors to lead by example.

Creating an ethical decision-making process

Develop a structured model based on your code of ethics to guide principled decision-making. Employees must identify the ethical issue, gather information to understand the context, consider who will be affected by the decision, assess potential courses of action and then reach a decision.

Open reporting channels for ethical infringements

Establish an anonymous hotline, a dedicated email address or an online reporting system where employees can notify unethical behaviour or concerns without fear of retaliation.

Attributes of an ethical board member

• Team player: Collaborates effectively, values diverse perspectives and prioritises the board’s collective success over personal agendas.
• Loyal: Remains committed to the organisation’s mission, supporting its long-term objectives and fostering a sense of trust among stakeholders and fellow directors.
• Compliant: Adheres to all applicable laws, regulations and organisational policies, ensuring the board operates within legal and ethical frameworks to uphold integrity and accountability.
• Honest: Practises transparency in communication, being forthright about potential challenges and opportunities.
• Open: Welcomes feedback and new ideas and is committed to fostering an inclusive atmosphere where all voices are heard.
• Reliable: Earns the confidence of their colleagues and stakeholders by consistently acting in the organisation’s best interests and maintaining confidentiality when necessary.
• Empathetic: Demonstrates understanding and compassion towards others, valuing the impact of their decisions on employees, clients and the broader community.