Have We All Forgotten How To Behave?
“Behaviour is the mirror in which everyone shows their image”
– Johann Wolfgang (von) Goethe (1749-1832)
In the words of S.F.C. Milsom, Professor at London School of Economics (1964-1976), and one of the foremost thinkers of legal history, he provides a quote worth reflecting on in today’s environment:
“Things so obvious that they go without saying in their own day simply disappear…
So that the differences between the work [the historian sees] and the world he does not see, cannot be checked off by noting changes in the detail, but in the framework [and that] is not something you can set out to look for.
If you stumble upon it because disturbed by incongruities when working within the framework, you must resign yourself to being a heretic.”
Where Is Our Government’s Moral Compass?
As the Prime Minister Boris Johnson, appeared awkwardly and embarrassingly before the Liaison Committee this afternoon (6th July’22), I formed an impression that the PM conceded and accepted that behaviour had been overlooked and unchecked within the Government.
In these trying times of economic instability, political unrest, and war looming, it is important to re-calibrate our moral compasses and remind ourselves of behaviour, because behaviour unchecked at the head of any organization, and not held accountable in the absence of transparency, very much dictates the culture of an organization/institution.
Is Modern Society In A Moral ‘Pickle’?
As the adage states: ‘A fish always rots from the head down’.
I postulate that there has been a change in the framework of modern society brought about by a sudden evolution of globalization, social media, information overload of mundane and meaningless information and a general ‘dumbing-down’.
The current focus upon extreme emotions and sensationalism, and popularity, ignores the importance of face-to-face social interaction and above all, a traditional system of morals and ethics.
Ignoring the ingrained rule of manners and of etiquette, puts us all ‘in a pickle’ so to speak!
The Nolan Principles – Seven Principles of Public Life.
In 1994, John Major established the Committee on Standards in Public Life (CSPL), to advise the government on ethical standards of public life. It promotes a code of conduct named after the first chairman of the committee, Lord Nolan. The Seven Principles of Public Life or the ‘Nolan Principles’ apply to anyone who works as a public officeholder and are as follows:
- Selflessness
- Integrity
- Objectivity
- Accountability
- Openness
- Honesty
- Leadership
I remind the reader of Professor Robert Klitgaard’s explanation (not a theory) of corruption.
CORRUPTION = MONOPOLY + DISCRETION – ACCOUNTABILITY (C = M + D – A)
That is to say – my [square brackets] added, postulating that the Nolan Principles be adopted in the explanatory formula.
Corruption EQUALS
Monopoly [to make a decision]
PLUS Discretion [in choosing with integrity, objectively, honestly, selflessly to make a decision]
MINUS Accountability [which must necessarily include openness/transparency].
The Nolan Principles ought to be inextricably linked in the fight against corruption and adopted in Acts of Parliament to duties of directors, and in the professions.
Where Is The Rule Book Of How To Behave?
Perhaps a rule book of how to behave, should appear as a practice direction within all professions of standards expected of professionals.
In approaching duties of directors, an application of the Nolan principles is perhaps presumed within a framework of behaviour and the approach a director must have in fulfilling duties.
Most certainly some of these Nolan principles ought to be positively adopted in the approach to one’s duties, but it is not always spelled out.
What Of Us, Who Have Forgotten How To Behave?
What is good and bad behaviour in any culture? Within the sub-culture and environment of a business/institution?
There are seven statutory duties of a company director within the Companies Act 2006 at sections 171 to 177. The Nolan principles can be applied to the Statutory duties of the Companies Act.
I leave the reader to decide which Nolan principle applies, simply to exaggerate the point that without a constant check as to how one should behave, and expect behaviour of others, lines become blurred and culture within a business/institution falter:
|
Companies Act Duties: |
Which Nolan Principle(s) Applies? |
|
1. Duty to act within the powers of the company’s constitution |
1. __________ |
|
2. Duty to promote the success of the company (which includes at s172(1)(e) the desirability of the company maintaining a reputation for high standards of business conduct) |
2. __________ |
|
3. Duty to exercise independent judgment |
3. __________ |
|
4. Duty to exercise reasonable care, skill, and diligence |
4. __________ |
|
5. Duty to avoid conflicts of interest |
5. __________ |
|
6. Duty not to accept benefits from third parties |
6. __________ |
|
7. Duty to declare interest in proposed transaction or arrangement |
7. __________ |
The Final Word.
Maintaining standards of acceptable behaviour readily includes self-checking, questioning, being reminded of those standards, and calling out standards of unacceptable behaviour. By not doing so, standards fall, and the rights and wrongs of behaviour become blurred and eventually forgotten.
Professor Rosen is a solicitor-advocate in practice and principal of David Rosen & Co. He is a Certified Fraud Examiner, a member of the ACFE Advisory Council, a member of RUSI, and the Society of Legal Scholars. He is a former strategic director of the Board of the ACFE UK Chapter. He is a full academic Professor of Professional Practice at Brunel University Law School where he lectures one day each week, including his course on morals, ethics, scruples, and quandaries “MESAQ”.
