It seems that almost every day we hear about another organization facing ethical challenges. These stories raise important questions about the power of culture, and how employees construe that culture.
I believe the CEO plays the crucial role in creating a sustainable organization -- one that achieves its financial and stakeholder metrics -- by “owning” an organization’s culture. While there are many aspects that contribute to culture, it is fundamentally the responsibility of the CEO to set the tone at the top. That tone filters down and becomes the tone throughout the organization.
In my experience, having a positive, high-performance culture begins with strong ethical values at the core. This pairing of culture and values can go a long way in creating a framework for employees to operate within, which keeps the organizations on track, including with achieving sustainable metrics. When organizations do get in trouble, it can be a reflection of the failure of the CEO to have a big enough megaphone to amplify and communicate the organization’s distinct culture and values.
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