Culture, Ethics & Governance: A Leadership Responsibility

Deborah Wilson

How culture drives ethical behaviour and governance

Earlier this month, I was pleased to facilitate a focus session on behalf of OnTalent at the Governance and Risk Management Forum 2025, hosted by the Governance Institute of Australia (GIA). The session explored the following theme: How culture drives ethical behaviour and governance.

When facilitating such sessions or speaking on any topic, I believe that defining key concepts is valuable. Language can be a barrier, people often use the same words to mean different things. So, let’s start at the very beginning.

Ethical behaviour: the moral compass of an organisation.

Governance: the system of rules, practices, and processes by which an organisation is directed and controlled, ensuring accountability to stakeholders and promoting long-term sustainability.

Culture: the way things are done around here.

Let’s pause here. I’d like you to reflect on the following questions, given how important they are:

What does workplace culture mean to you?

How do you feel culture promotes or negates ethical behaviour and robust governance?

How to Build and communicate an accountable workplace culture

There are, of course, many factors that contribute to building and communicating an accountable workplace culture. I focus on four pillars as they capture the essential elements.

1. Clear, consistent standards and expectations that are communicated to employees at all levels

In thriving organisations, people are treated equally. Companies often overlook unacceptable behaviour because a team member is a ‘high performer’. Nothing erodes team satisfaction like inequitable treatment. Standards and expectations must be consistent across the board and communicated to be effective. If people aren’t aware of policies and procedures, they are not likely to meet expectations.

2. Open communication and formalised feedback loops

There’s a reason communication features twice among the pillars. Regardless of how skilled or talented people are, the broader team will likely find itself on struggle street when issues surface if people can’t communicate effectively. Sure, people can have different working styles, but expectations must be established from the leadership team. The most effective leaders aren’t afraid of having difficult conversations. Feedback loops and a process for documentation and record keeping are necessary to have established long before either is required.

3. Safe environments where trust is fostered and valued

Relationship management building is key to any thriving company’s success. No one should feel like they are walking on eggshells in their workplace. Make the time to foster trust and understand what motivates people. We spend many hours at work, but people are more than their job titles and roles. Trauma-informed and safe environments are more than buzzwords and trends. To attract and retain top talent, you must create an environment where people can see themselves growing and thriving in a nourishing environment in the long term.

4. A culture of learning and growth where mistakes can become learning opportunities

I know leaders who measure how many mistakes their team make because they believe experimentation, mistakes and success all go hand-in-hand. I understand that workplaces are using technology, including artificial intelligence (AI), more than ever. However, I believe people will remain key and are required to oversee AI and technology. Human error is inevitable, but organisations can minimise and frame mistakes as learning opportunities. And if mistakes are happening repeatedly and team members aren’t learning from them, team leaders need to have difficult conversations so the real issues can be identified and addressed.

Practical tools to help foster an accountable workplace culture and strong governance

There is a myriad of tools that companies can deploy to help foster an accountable workplace culture and strong governance. They are not ‘set and forget’ measures and should be monitored, reviewed and adapted accordingly. Some commonly used tools include:

  1. Ethics and compliance training programs
  2. Codes of conduct, policies and conflict of interest processes
  3. Formal feedback processes
  4. Risk assessments
Common risk areas

In any workplace, there are pressure points that escalate risk. Some of the most common examples I’ve observed over the years include:

  1. Lack of oversight
  2. High pressure environments where performance is prioritised at all costs
  3. Complex and unclear bureaucracies
  4. Conflicts of interest, which rely on personal judgement and declaration

The above points are by no means an extensive list. However, it’s wise for any management team, alongside a board of directors where relevant, to consider organisational pressure points and take necessary steps to minimise risk. This is the perfect segue to the role of leadership in driving and supporting an accountable workplace culture and strong governance. Leadership teams set the tone by:

  1. Influencing culture through actions and priorities, not solely policies
  2. Modelling ethical behaviour at all times regardless of the situation
  3. Reflecting on their behaviour and taking action when risk is identified

I’ll end with this fitting quote:

"The standard you walk past is the standard you accept."

Deborah Wilson is a Thought Leader and a Career/Leadership Strategist. She takes a personalised approach to strategic career coaching and transitions, mentoring and leadership development. Deborah provides expert guidance for individuals while supporting organisations through change and connecting people and purpose. Call Deborah on +61 403 779 746. www.ontalent.com.au

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