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• Moral Dilemmas: Choosing between two Step 1 – Acknowledge that you slipped and avoid
undesirable outcomes can be particularly rationalizing the behavior.
difficult, requiring careful deliberation and Step 2 – Take corrective action.
judgment. Step 3 – Forgive yourself and commit to not
repeating the mistake.
“During my journey, I have observed how
individuals, including myself, occasionally justify “This doesn’t always mean you will succeed the
unethical behaviors under the pretext of a greater next time, but you will be a shade better than
good,” Mr. Venkatesh reflects. “Rationalization before,” he adds.
can become a tool for self-deception, allowing one
to accept unethical actions without guilt. One of Ethical Leadership in Internal Control
the most concerning aspects of ethical failure is and Auditing
hypocrisy—professing ethics without genuine intent.
Using collective terms such as ‘we’ instead of ‘I’ can
sometimes dilute personal responsibility, making it As an Internal Control Manager, Mr. Venkatesh’s
commitment to ethics has significantly shaped his
easier to conform to unethical group behavior.”
approach to governance and compliance. Some of
the ethical practices he follows in his role include:
Lessons Learned from an Ethical Journey
• Recognizing that audit findings are not
Through experience, Mr. Venkatesh has uncovered personal attacks but opportunities for
several profound insights about ethics: improvement.
• Avoiding bias and unfair judgments when
• Ethics Promotes Innovation: Ethical assessing audit points.
constraints push individuals and organizations • Offering genuine appreciation to stakeholders
to develop creative solutions that align with for their cooperation and commitment to
moral principles. compliance.
• Ethics Does Not Always Guarantee Success: • Understanding that mistakes often stem from
Acting ethically does not necessarily lead to external pressures rather than deliberate
immediate rewards, but it fosters long-term misconduct.
credibility and trust. • Ensuring audit points are not exaggerated for
• Ethics Is Holistic: One cannot compartmentalize self-interest or undue advantage.
ethics into separate spheres of life. Ethical • Emphasizing empathy in professional
behavior must be consistent across personal, interactions and avoiding unnecessary
professional, and social dimensions. escalations and accusations.
• Ethical Leadership Is About Practice, Not • Refraining from making unwarranted
Preaching: The most effective way to inspire negative statements about internal controls
ethical behavior in others is by setting an without substantial evidence.
example through one’s own actions. • Giving due credit for commendable
• It Is Easy to Slip Back into Unethical Ways: performance and positive changes
When this happens, it is crucial to return to implemented during assessments.
Inner Governance: • Focusing on collaborative problem-solving
rather than merely identifying deficiencies.
• Publicly acknowledging and appreciating
remedial actions taken during audits.
• Encouraging team members to adopt these
ethical behaviors in their own professional
conduct.
These principles have not only enhanced the
effectiveness of his role but have also contributed
to a culture of integrity within the organization.
Ethical leadership fosters an environment where
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