Introduction to ethics and culture

There has been an increased focus on corporate ethics and reputation in recent years. This has significant implications for our understanding of, and approach to, behaviour both in the boardroom and throughout an organisation.

Poor ethics can have a detrimental impact on an organisation and its stakeholders. Conversely, there is a growing recognition that good ethics can be positive for an organisation. The binary concept of ‘ethics or success’ is giving way to the perspective that ‘ethics and success’ is not only possible but necessary in order to operate in a positive and sustainable way.

The focus on ethics has been well represented in the latest iterations of governance codes globally. For example, Principle 4 of the Code for Sports Governance states that:

Organisations shall uphold high standards of integrity, promote an ethical and inclusive culture, and engage in regular and effective evaluation to drive continuous improvement.

The Code explains that:

Having the right values embedded in the culture of the organisation helps protect public investment and also enhances the reputation and effectiveness of the organisation, earning stakeholder trust.

This inclusion in codes and framework documents shows an appreciation of ethics as a primary governance consideration.

However, even with a governance code focus on ethics, there is no guarantee that organisations will actually behave more ethically, gain greater public trust or generate an enhanced reputation. When considering how to develop more ethical behaviour and to role model an appropriate culture for an organisation, there is a growing appreciation that ethics do not come from simply ticking boxes.

At its simplest, ethics is a system of moral principles. Ethics affect how people and organisations make decisions and behave.

The authors of the Final Report for the FIFA Governance Reform Project said in 2014:

There should, however, be little doubt, that the reason for inappropriate conduct can usually be determined. It is almost always a combination of personal greed, a breakdown in systems and controls and a lack of ethical and moral culture within an organisation.

All three reasons in the quote relate to ethics and behaviours. In this section, we shall look at a broad range of areas of ethical concern within modern sports in general and within individual organisations that you need to know and manage.