Summary

How can leaders drive long-term success in the face of politicization and global consensus break down?

Anna Triponel

March 21, 2025

Richard Bistrong and Anna Romberg published How to Approach Business Ethics as Global Consensus Breaks Down (March 2025) in the Harvard Business Review that delves into how leaders should act now in the face of the breaking down of the global consensus on ethical issues such as anti-bribery enforcement and corporate responsibility.

Human Level’s Take:
  • It’s not an easy ride out there for company leaders. They are faced with politicization of ethical business conduct, reallocation of public funds, cancelled contracts and significant supply chain disruptions - amongst other signs of the global consensus breaking down.
  • This in turn is placing significant strain on companies to sustain their revenue models and profitability. What might have been a reasonable and achievable forecast a few months ago may no longer look even remotely possible today’s current environment.
  • This reality is both making it harder for companies to navigate business ethics - while making it all the more important to do so
  • Business leaders are advised to put three strategies into place - all of which involve accepting the current reality, leaning in to it, and accepting the need to have challenging conversations with team members.
  • Business leaders - ask yourselves. When it comes to the company’s values, are these ‘wall values’ or do they actually guide daily decision-making at all levels of the company? Don’t take your word for it - since research finds that decision-makers overestimate their own ethicality. Organise small group discussions, surveys, and region- or function-specific assessments to delve into whether there are there underlying beliefs and open secrets that are difficult to discuss but run counter to these values.When it comes to friction, are you addressing organizational differences proactively and sparking healthy dialogue and teamwork? Healthy disagreement and dialogue needs to be encouraged. And finally, are you re-evaluating whether yesterday’s goals and expectations have separated from market conditions, and whether adjustments need to be made? If this does not take place, employees are incentivised to take shortcuts to succeed.
  • Business leaders have a significant role to play to demonstrate leadership, now more than ever. Their long-term success depends on their ability to thrive among the chaos.

Some key takeaways:

Global pressures on companies and their leaders: The authors highlight increased global pressures on companies and their leaders with the current politicization of ethical business conduct. Examples include the U.S. administration’s “pause” on anti-bribery enforcement and its actions against diversity-related programs within and outside of the government. The authors note that leaders may be tempted to signal that their teams can relax their resistance to taking risks to ensure that their company stays competitive. However, the opposite is true: “These cross-currents are a call for leaders to face these challenging realities or risk potential financial and reputational damage. … Confronting these realities and potential perils will require intentional efforts and messaging.” The authors recommend three strategies for executives. By putting these strategies into place, business leaders “can thrive among the chaos and drive long-term success while protecting their organization’s reputation and remaining competitive.”

Know and pressure-test the company’s values: First, the authors underscore the importance of knowing the company’s true values, and pressure-testing them. Corporate values on company websites risk becoming “wall values” if they don’t guide daily decision-making at all levels of the company. Research finds that decision-makers overestimate their own ethicality and fail to recognize the true values and economic motivations that underpin their decisions, and therefore leaders need to be comfortable delving into the practical application of the company’s values. They need to ask questions on topics that are often avoided as part of small group discussions, surveys, and region- or function-specific assessments. Question to ask include whether the company’s values align with what the company does and whether there are there underlying beliefs and open secrets that are difficult to discuss but run counter to these values.

Embrace fiction: Second, in today’s volatile environment, “a lack of friction and discomfort might indicate that uncertainty and anxiety around a course of action aren’t being challenged and countervailing opinions are being ignored.” The authors observe that, when addressed proactively, these organizational differences can spark healthy dialogue and teamwork by normalizing the tension. Leaders need to encourage healthy disagreement and dialogue. It helps for leaders to be clear that disagreements are not about personal conflict (“it’s not about you”) but instead are opportunities to participate in constructive dialogue and problem-solving. It helps to build relationships with people before the crisis happens, so that they adversaries become allies. It helps to pay attention to warning signs that people are being ethically complacent and always consider whether differing perspectives are being ignored or suppressed. (Example: when leaders go into meetings, do they re-validate their own perspectives, or are they open to changing their opinion?)

Health check’ expectations: Companies are facing uncertain futures. Examples include the reallocation of public funds, cancelled contracts and significant supply chain disruptions. This in turn is placing “tremendous strain on organizations to sustain their revenue models and profitability. What might have been a reasonable and achievable forecast a few months ago may no longer look even remotely possible in our current environment.” The authors highlight the risks of this for ethical behaviour: when goals separate from reality, people might take risks that they never even considered in order to succeed. They recommend therefore that leaders take the time to re-evaluate whether “yesterday’s goals and expectations have separated from market conditions.” In parallel, they need to create spaces for employees to voice their concerns, including voicing any incentives to take shortcuts. And leaders need to demonstrate honesty and transparency, so that they model it for the team.

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