Article Summary
The idea of ‘tone from the top’ in corporate leadership, where executives set the example for the rest of the organization, has been challenged by recent corporate governance scandals and questionable CEO behavior. While the concept is laudable, the behavior of some CEOs and other executives often falls short of the values they are meant to champion. The perception of leadership and expectations around conduct and culture have changed, and employees expect strong, ethical leadership from the top. The role of HR directors, regulators, and commercial considerations in setting ethical standards are discussed as potential replacements for the ‘tone from the top’ mantra.
What This Means for You
- Recognize that expectations around conduct and culture have changed, and leaders are held to higher standards by a wider cohort of interested parties.
- Understand the impact of unethical leadership on employee morale and the organization’s reputation, and consider the role of HR directors, regulators, and commercial considerations in setting ethical standards.
- Consider the potential benefits of a ‘tone at the middle’ approach, where middle and/or line managers model and reinforce hallmark cultural attributes, making a bigger and deeper impact on a wider range of workers.
- Remember that leadership is about making tough, often unpopular decisions, and executives are essential for navigating complex ethical landscapes.
- Prepare for the influence of Gen Z recruits, who are more likely to leave if they feel the organization is not living up to expectations of corporate best practice, potentially leading to skills gaps.
Original Post
 
Author: Neil Hodge, Features Writer
The…
Key Terms
- Tone from the top
- Corporate governance
- Executive accountability
- Ethical leadership
- HR directors
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