LINCOLN MALI: SA is crying out for ethical leaders

SA finds itself in a crisis of ethical leadership, in which skilled, talented people in positions of power or influence have lost their way. These may be leaders from different backgrounds, including business, politics religion and sport. We need to ask ourselves why this is happening, and how we can build more ethical leaders for the future.

We have read in the media about senior businesspersons, auditors and politicians who have been accused of crimes ranging from fraud and tender irregularities to money laundering and embezzlement of funds. Over the three years of the Zondo state capture inquiry we were appalled by revelations of corruption and greed by reputable local and international companies, which we assumed would and should have known better.

These scandals have arisen from various factors such as a sense of entitlement and privilege, an egotistic mindset, the drive and desire to win at all costs, finding unethical options the easiest route, a sense of untouchability or invincibility, the tendency to rationalise bad choices, as well as a toxic combination of sociopathic, psychopathic and narcissistic leadership behaviours.

While it is the law that tells us what we can and cannot do and therefore sets minimum standards of behaviour, it is often said that ethics set maximum standards. The saddest part of our leadership crisis is that those companies and executives accused of wrongdoing have failed to differentiate between law and ethics.

Harvard Business School professor Bill George argues that leaders who lose their way are not necessarily bad people but rather people who lose their moral bearings and succumb to temptations. He makes the point that few people go into leadership roles intending to cheat and break the law, yet everyone has the capacity for such actions unless they stay deeply grounded. After all, people have grappled with the conflict between good and bad since the beginning of time.

To become ethical leaders everyone should examine why they want to be in a leadership role: is it for the power, adulation, potential wealth or prestige that comes with the position, or for the more noble cause of wanting to serve? American leadership scholars and academics James Kouzes and Barry Posner describe the qualities to which leaders should aspire: “Each leader must place the people at the centre, be responsive to their needs, respectful of their wishes and accountable to them.

Reflect worth

“This requires us as leaders to be selfless in our contribution, inclusive in our decisions, humble in our behaviour and inspiring in our actions. If we do this, our joy will not be in how exalted we may be; how elevated our positions are, how much wealth we can amass, and how much power we can have … it must come from a deeper and special place, where others benefit, grow, or prosper because of our actions.”

The question we need to ask ourselves is how we go about building ethical leaders for the future. We need to teach young leaders that the outward, conspicuous demonstration of wealth does not necessarily reflect their worth. We must guide young leaders to understand that it is rather the intrinsic values of integrity, trustworthiness, honesty, service and selflessness that define them.

The way to teach this to young leaders is by adopting these qualities in our own leadership roles, and providing them with role models. The adage that “a fish rots from the head” demonstrates how people, either immediately or over a period, take on the characteristics of their leader. It is therefore essential that the actions of credible and inspirational leaders are consistent with their messaging, and that they “walk the talk”.

We also have a responsibility to be more discerning in our choice of candidates for leadership positions. We should not only choose those people who make the biggest profits for a business, but leaders who show human qualities such as empathy, compassion and sympathy. Once a defective leader is in place, to rationalise its bad choice an entire organisation must lower its standards and gradually the values of the individual leader become, by default, the collective values of the organisation.

The organisations that will thrive are those with a more balanced scorecard and an “ethical soul”. Their leaders will not only be concerned with profit or maximising shareholder value but will be measuring their organisation’s performance on many levels, including the environment, society, employees, customers and suppliers, and the short- and long-term scenarios. We should measure the success of a company not simply by the profit that it makes, but rather its “shared value”, which looks at its benefit to society.

Inner courage

We need leaders who nurture a culture in which people are comfortable to speak openly and honestly to one another and without fearing for their safety. Until we have more of these leaders, I salute the whistle-blowers who have the courage to speak out against unethical practices in companies despite huge pressure to look the other way.

It is critical that everyone, when faced with a decision of whether to act or not, has the inner courage to do the right thing and to act in accordance with our conscience, even when threatened with losing our jobs, friends, political affiliation or our material possessions. It is this courage SA desperately needs.

We all have a duty to pave the way for leaders who are driven by values of truth, integrity and respect for others, and to encourage and support those who have already embarked upon this journey. SA is crying out for ethical leaders who are able to build their workplaces and communities on a foundation of high moral standards. Let us all be the change we want to see.

• Mali is CEO of Lesaka Technologies, formerly Net1 Southern Africa. This is an adaptation of a speech he gave at Wits Business School’s “100 Minutes of Business Talk” event in celebration of the centenary of Wits University in September 2022.