Despite codes of ethics or international frameworks, compliance still remains an issue in the corporate world, with the business press regularly highlighting scandals involving firms that have been tempted to stray from the path. Perhaps leveraging on deeper culture – and the value of integrity – rather than downstream behaviour might be more effective? Studies carried out by Prof. Daniel Malan at Trinity Business School, seem to point in that direction

From an interview hosted by Prof. Adrian Zicari, ESSEC Business School/Council on Business & Society.

Related research:  Malan, D., Taylor, A., Tunkel, A. and Kurtz, B. (2022). “Why Business Integrity Can Be a Strategic Response to Ethical Challenges. MIT Sloan Management Review. Available at https://sloanreview.mit.edu/article/why-business-integrity-can-be-a-strategic-response-to-ethical-challenges/

Adrian Zicari: Welcome, Professor Daniel Malan from Trinity Business School in Dublin, Ireland.

Daniel Malan: Thank you very much.

Adrian Zicari: I would like to ask a question about your recent article in Sloan Management Review, a major magazine for practitioners all over the world. The title of your article is Why Business Integrity Can Be a Strategic Response to Ethical Challenges. Can you tell us why business ethics is such an important factor?

Daniel Malan: Well, I think our research discovered or confirmed that ethics is no longer simply a compliance issue of trying to stay out of trouble. If we look at the ESG world that we’re living in and the major risks that companies face, they all are related to major integrity issues. We interviewed ethics and compliance officers from many large multinationals around the world, and we got the consistent message back that ethics is a strategic issue inside the organisation.

This growing importance of ethics in firms and organisations has led to the appearance of the Chief Integrity Officer role now serving on the executive committee. They’re really part of the C-suite and they address the integrity issues at that level.

Adrian Zicari: Which means ethics can be an issue that makes or breaks a company.

Daniel Malan: Absolutely. Moreover, Integrity Officers also break down silos between different parts of the organisation. And again, because corporate conduct is no longer seen simply as a compliance issue, there is the need to talk to people in the risk division, and in the sustainability division. Increasingly, we see people in this position also taking functional responsibility for some of those areas.

Adrian Zicari: Professor Malan, would you like to give a message to our readers who, after reading this interview, will surely want to read your article at MIT Sloan Management Review?

Daniel Malan: Well, I would really encourage everybody to read it! For those who have responsibility for integrity inside the organisation, I think it provides interesting insight into new and innovative ways in which officers are dealing with this issue. CEOs will also perhaps enjoy reading this to see how these areas are shifting in organisations. For many employees or people who are interested in management in general, it will just confirm again the importance and the strategic importance of integrity in organisations.

Adrian Zicari: Professor Daniel Malan – thank you.

Daniel Malan is a professor in business ethics and the director of the Trinity Corporate Governance Lab at Trinity Business School, Trinity College Dublin. He is the author of the recent book Power and Corporate Responsibility: Dimensions, Purpose and Value, published by Routledge.

Useful links:

• Read Daniel Malan’s MIT Sloan Management Review article Why Business Integrity Can Be a Strategic Response to Ethical Challenges
• Read a related article: Does leader integrity influence employee creativity and innovation?
• Link up with Daniel Malan on LinkedIn
• Visit Daniel Malan’s website pages at Trinity
• Discover the Routledge-CoBS Focus on Responsible Business book series.

Learn more about the Council on Business & Society

The Council on Business & Society (The CoBS), visionary in its conception and purpose, was created in 2011, and is dedicated to promoting responsible leadership and tackling issues at the crossroads of business and society including sustainability, diversity, ethical leadership and the place responsible business has to play in contributing to the common good.  

• Follow the CoBS on Twitter and LinkedIn

Member schools are all “Triple Crown” accredited AACSB, EQUIS and AMBA and leaders in their respective countries.

• ESSEC Business School, France, Singapore, Morocco
• FGV-EAESP, Brazil
• School of Management Fudan University, China
• IE Business School, Spain
• Keio Business School, Japan
• Monash Business School, Australia, Malaysia, Indonesia
• Olin Business School, USA
• Smith School of Business, Canada
• Stellenbosch Business School, South Africa
• Trinity Business School, Trinity College Dublin, Ireland
• Warwick Business School, United Kingdom.