Acting with integrity. Personal integrity and the ability to engage in ethical
decision making and behavior are the foundation for organizational integrity
and trust (Hyman, Skipper, & Tansey, 1990). Trust, although important to
organizational well-being at all times, is particularly necessary following a crisis. When stakeholders perceive that an organization is at fault for a crisis, for
example, stakeholders often experience that as a betrayal. The need to regain
the trust of those stakeholders is crucial to the recovery stage, and a leader’s
ability to act with integrity is an important mechanism for rebuilding that trust.
Simons (2002) coined and defined the term behavioral integrity as the perceived pattern of alignment between a person’s words and actions. As James
and Wooten (2006) observed, audiences are more forgiving of a leader when
they believe that the leader’s actions in response to the crisis are consistent
with the initial communication about the crisis. Conversely, when words and
deeds are inconsistent, leadership is presumed to lack integrity. For example,
if a firm initially denies responsibility for a crisis event and subsequently
enacts behaviors that suggest at least some degree of culpability (e.g., fires an
employee alleged to be involved in the crisis), senior leaders are likely to be
accused by audiences as lacking behavioral integrity.
Following WorldCom’s financial scandal and the filing of bankruptcy, acting with integrity was a priority for the firm’s leadership. The way in which
the firm attempted to behave with integrity was through revamping its corporate governance. The new CEO actively participated in the process for board
selection, establishing independence between the board of directors and top
management, ensuring a system of checks and balances
Acting with integrity. Personal integrity and the ability to engage in ethical
decision making and behavior are the foundation for organizational integrity
and trust (Hyman, Skipper, & Tansey, 1990). Trust, although important to
organizational well-being at all times, is particularly necessary following a crisis. When stakeholders perceive that an organization is at fault for a crisis, for
example, stakeholders often experience that as a betrayal. The need to regain
the trust of those stakeholders is crucial to the recovery stage, and a leader’s
ability to act with integrity is an important mechanism for rebuilding that trust.
Simons (2002) coined and defined the term behavioral integrity as the perceived pattern of alignment between a person’s words and actions. As James
and Wooten (2006) observed, audiences are more forgiving of a leader when
they believe that the leader’s actions in response to the crisis are consistent
with the initial communication about the crisis. Conversely, when words and
deeds are inconsistent, leadership is presumed to lack integrity. For example,
if a firm initially denies responsibility for a crisis event and subsequently
enacts behaviors that suggest at least some degree of culpability (e.g., fires an
employee alleged to be involved in the crisis), senior leaders are likely to be
accused by audiences as lacking behavioral integrity.
Following WorldCom’s financial scandal and the filing of bankruptcy, acting with integrity was a priority for the firm’s leadership. The way in which
the firm attempted to behave with integrity was through revamping its corporate governance. The new CEO actively participated in the process for board
selection, establishing independence between the board of directors and top
management, ensuring a system of checks and balances
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