In an ever-evolving corporate landscape marked by rapid technological advances and global interconnections, financial results are only one piece of the success puzzle.

In today’s corporate world, achieving just profitability is not enough to succeed. There should be values of responsibility.

Ethical leadership is now a crucial factor in decision-making for all businesses and industries, regardless of size.

It is fundamental to understand that ethical behaviour is not just a matter of moral values, but rather a strategic decision that impacts various aspects of a business, including brand reputation, stakeholder trust, employee morale, and long-term sustainability.

In the current scenario, it has become imperative to cultivate an ethical atmosphere that facilitates comprehensive organizational success.

The Multi-faceted Advantages of an Ethical Organizational Culture

Fostering an ethical culture within an organization offers numerous internal benefits, such as improved employee morale, better decision-making, and risk mitigation. Externally, it enhances the group’s reputation, builds stakeholder trust, and can provide a competitive advantage.

Incorporating ethical practices and values into the culture of an organization starts from the top. When senior leadership prioritizes and models ethical conduct, it establishes a benchmark for the rest of the company to follow. This top-down approach not only establishes clear ethical guidelines but also encourages transparency and open dialogue.

Being transparent isn’t just about leaders being open to their teams; it’s also about creating an environment where employees at all levels feel empowered to voice concerns, suggest improvements, and actively participate in the organization’s ethical journey.

stc: Charting the Course for Ethical Excellence

stc group, an engine of digital transformation, is a leading Saudi Tadawul-listed organization, headquartered in Riyadh, and offers a variety of Information and Communication Technology (ICT) solutions and digital services. The group has over 22,000 employees. The group provides its services across several categories, including telecommunications and digital infrastructure, information technology, cybersecurity, cloud computing, the Internet of Things, financial technology, media, electronic games, and other advanced digital solutions.

stc’s corporate philosophy is rooted in a strong commitment to ethical leadership. The foundation of the group’s Ethics and Compliance program is the stc Code of Ethics, entitled “Integrity takes us forward.” It serves as an overarching document that aims to ensure the Group holds itself and the way it does business, to the highest ethical standards.

A significant aspect of stc’s Ethics and Compliance program framework is leadership engagement and accountability. At stc, both the executive management, which sets the overarching ethical vision, and the middle management, which bridges this vision with employees, play crucial roles in upholding and promoting this culture of integrity. This ensures that the values of integrity and ethical conduct are deeply embedded at every level of the organization.

For instance, during the challenging onset of the COVID-19 pandemic in 2020, stc’s executive leadership played an important role in demonstrating their dedication to the group’s ethical vision. The Ethics and Compliance program was launched during this time, beginning with an Ethical Leadership workshop. Notably, the CEO and executive management participated in person (strictly adhering to all COVID-19 protocols). This hands-on involvement sent a clear message to all employees and leaders about the importance the group’s leadership placed on the program and stc’s commitment to integrity. Inspired by this visible commitment from the top, leaders throughout the group took part in these workshops, making personal pledges to strengthen the culture of integrity within stc.

While this “tone at the top” is important, the responsibility of fostering an ethical culture didn’t stop there. Recognizing the significance of the “tone in the middle,” stc ensured that managers at all levels played an active role in reinforcing these values. This was put into action with the initiation of dialogue sessions, starting from the group CEO’s direct reports and extending to section managers across the group. These sessions not only facilitated open discussions around ethics but also established communication channels for everyone to seek clarity and voice concerns, emphasizing the crucial role middle management plays in embedding ethical values throughout the group.

Adapting Universal Ethical Principles to Unique Organizational Needs

While stc group offers a notable example of ethical leadership, it’s important to recognize that the same processes and structures may not suit every organization. However, the underlying principles of leadership, transparency, accountability, and open dialogue are universally applicable.

Its size or sector notwithstanding, every organization can customize these principles to suit its particular needs, obstacles, and objectives.

The key lies in understanding the core values and ensuring they’re deeply integrated into the organization’s work and culture.

Ethical Leadership: The Modern Competitive Advantage

In today’s business landscape, incorporating ethical leadership principles into corporate practices not only fosters trust but also grants companies a competitive advantage.

As consumers and stakeholders become more aware of an organization’s practices and values, it becomes crucial for organizations to exhibit ethical leadership and accountability. These two factors can serve as key differentiators that set apart an enduring and respected organization from its competitors.