It is more about habits than rules: the formation of character

Creating a purpose-led ‘culture’ is less about rules and codes of conduct and more about a focus on relationships to enable and reinforce positive habits and behaviours.

Over the last 30 years or so many organisations have introduced codes of conduct and ‘ethical’ training courses as ways of safeguarding reputation and mitigating risk through requiring compliance with rules of behaviour, but often these codes do not reflect behavioural norms. As we have seen through episodes such as the VW emissions scandal, the internal environment creates expectations of behaviour, and what skills and attributes are really valued in practice. This prevailing ‘culture’ will shape how any codes of conduct or ethics are interpreted.

The ethical tradition of virtue ethics, an approach that goes back to Aristotle in the West and Confucius in the East, emphasises that as human beings we form habits of behaviour and that there are no rules determining every situation. But equally, there is no sphere of daily life where ethical considerations are irrelevant. We live and work in moral space all the time, and our ethical dispositions develop constantly and build on the tacit knowledge – the wisdom and sensitivity – that we acquire but often cannot articulate. Exercising this “practical wisdom” day in day out, choosing the appropriate response, which will inevitably vary depending on the precise situation, is what builds our character.

Learning and developing these ‘habits’ or behaviours – is about learning to discern and read a situation well, and to develop the reflexes to respond appropriately and act in a ‘purposeful’ way, rather than only following a code of conduct. One analogy is a football game. Becoming a good player is about more than playing responsibly – obeying the rules of the game. It is about honing the skills of passing, tackling, reading the game. In the same way, excellence in business is about far more than adherence to a code. It is cultivating the skills needed and forming the habits so that decisions are naturally made in a way that is true to the purpose of the business, and which respects people.

There will always be dilemmas, especially when there are competing interests at stake and our own perceived self-interest is one – but only one – of them. There is of course a place for rules and codes, particularly in large organisations and in regulated industries, but whilst rules and codes can guide us, they can only take us so far.

• An overarching sense of purpose helps by creating the context within which decisions and dilemmas are resolved
• Positive role-modelling considering the daily dilemmas that managers and employees face and giving them the tools to make good choices will also help to build these habits
• The key is to seek to create a workplace environment where people intervene to regulate their own behaviour and challenge others in a way that builds positive relationships, enhancing a purpose-led approach to business success