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Navigating the New Ethical Landscape: Higher Ground with Alison Taylor

On a recent edition of the SBR Authors Podcast, I recently had the opportunity to visit with Alison Taylor, a renowned figure in the compliance and ethics community, about her new book,  Higher Ground. Alison has one of the most diverse professional backgrounds of any person I know in compliance. She is a Clinical Professor and Executive Director of Ethical Systems at NYU Stern School of Business. This blog delves into the key points discussed during the podcast, shedding light on the evolving landscape of business ethics and the challenges of maintaining an ethical culture today.

A series of intriguing transitions mark Taylor’s career. She began her professional journey with editing, consulting, and political risk roles before spending twelve years in corporate investigations. This period saw her working with Control Risks, leading investigations across the Middle East, Africa, and the Americas. Her work included due diligence, FCPA investigations, and background checks when FCPA enforcement gained significant momentum.

In 2015, Alison transitioned to the field of sustainability. She joined a non-profit organization to consult with multinational corporations on climate change, human rights, and corporate responsibility issues. Since late 2019, she has been part of the faculty at NYU, first running a think tank called Ethical Systems and now adding on as a full-time faculty member. Alison’s broad experience across different business ethics and sustainability domains gave her a unique perspective, ultimately leading to her book, Higher Ground.

Taylor’s shift from corporate investigations to sustainability and ESG highlighted a fascinating disconnect. While both fields aimed to define what it means to be a good and ethical business, they approached the issue very differently. The language, concepts, and philosophical foundations varied significantly between the two. This disconnect inspired her to explore why these two disciplines, despite their common goals, needed to communicate more effectively with each other.

Higher Ground aims to bridge this gap. Taylor sought to provide clarity for those grappling with questions about business ethics and the role of businesses in society, especially for senior leaders who may need deep expertise in both compliance and sustainability. The book is designed to guide readers through the complexities of these topics, offering a path forward in an increasingly chaotic business environment.

Writing a book is challenging, and Taylor’s experience was no different. She initially thought of herself as not a morning person but quickly realized that her most productive writing time was in the early hours of the day. She found that she could only manage about three to four hours of effective writing each day, after which her productivity declined. This disciplined approach helped her balance writing the book with her full-time job and teaching responsibilities.

The process took about two years and involved multiple rewrites and restructures. Taylor described it as an emotional roller coaster, with periods of satisfaction followed by moments of doubt. Despite the challenges, she completed the book, providing valuable insights into the evolving field of business ethics.

Taylor chose to open her book with the story of Starbucks and its labor rights issues. Despite being a leader in sustainability and labor rights by many measures, Starbucks faced significant reputational challenges over its stance on unionization. This example illustrated how a company could excel in ESG metrics yet still suffer reputational damage due to specific strategic errors.

Starbucks, known for its favorable treatment of employees and leadership in sustainability, faced backlash from students, investors, and employees over its anti-union stance. This contradiction highlighted the complexities of maintaining an ethical reputation. Alison used this case to demonstrate that reputational risk is not a linear accountability mechanism but more like a funhouse mirror, reflecting the unpredictable nature of stakeholder perceptions.

Taylor emphasized the importance of honesty and focus in building stakeholder trust. In today’s polarized environment, companies are often caught between unrealistic expectations from the left and the right. She argued that companies need to be more honest about what they can and cannot achieve, focusing on a few strategically important issues rather than trying to address every concern.

She suggested that companies conduct materiality assessments to identify the most relevant issues and concentrate on these areas. Companies can build more sustainable trust with their stakeholders by aligning their actions with their strategic priorities and being transparent about their limitations.

Taylor discussed the importance of aligning rules and policies with the broader business culture. She noted that compliance efforts often fail when there is a disconnect between stated values and actual behavior or when there are different rules for senior leaders and other employees. Successful compliance programs require the support and engagement of the entire organization, not just the compliance department.

She also highlighted the need for compliance and ethics teams to work closely with other parts of the business. By integrating ethical considerations into the overall business strategy, companies can create a more coherent and practical approach to compliance and corporate responsibility.

With five generations now present in the workplace, Alison explored the challenges and opportunities of engaging a diverse workforce. Younger employees are more likely to be concerned with climate change and diversity and expect authenticity and accountability from their employers.

Taylor also noted that younger employees often push for change, while resistance is more common at the senior levels. Companies need to find ways to harness this energy and passion and use it to drive positive change. This involves creating mechanisms for employee voice and encouraging open debate about ethical issues.

Alison Taylor’s Higher Ground provides a thoughtful and comprehensive guide to navigating the complex world of business ethics and sustainability. Her insights from a rich and varied career offer valuable lessons for companies striving to build trust and maintain ethical cultures in an ever-changing landscape. By focusing on strategic priorities, aligning actions with values, and engaging a diverse workforce, businesses can rise to the challenges of today’s ethical environment and positively impact society.

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SBR - Authors' Podcast

SBR – Author’s Podcast: Alison Taylor on Higher Ground

Welcome to the Sunday Book Review and the Authors Podcast! Don’t miss out on this episode of SBR-Author’s Podcast, where Tom sits down with well-known compliance maven Alison Taylor on her new book, Higher Ground.

Alison Taylor is an established professional with a wide-ranging background in editing, consulting, political risk, and corporate investigation. Her career has seen her dedicate twelve years to corporate investigation, where she honed her skills in FCPA, due diligence, and network analysis, even leading investigations across multiple continents.

After 2015, Taylor redirected her career towards sustainability and ESG, advising on climate change, human rights, and corporate responsibility for major multinational companies.

Alison’s diverse and extensive professional journey, including her current role as a faculty member at NYU and director of Ethical Systems, a think tank, coupled with her authorship of “Higher Ground,” has shaped her perspective on the interplay of compliance, ethics, sustainability, and corporate responsibility.

These experiences have enabled her to provide valuable clarity and insights for senior leaders navigating the complex landscape of business ethics.

Key highlights include:

  • Navigating Business Ethics in Sustainability Practices
  • Navigating the Emotional Roller Coaster of Writing
  • Leadership Alignment with Stated Ethical Values
  • Ethical Decision Making for Business Sustainability
  • Ethical Innovations in Compliance and Ethics

 Resources:

Alison Taylor on Linkedin

Higher Ground on Amazon.com

 Tom Fox

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Daily Compliance News

Daily Compliance News: September 19, 2023 – The $2111 Per Hour Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

  • Is your lawyer worth $2K+ per hour?  (Reuters)
  • From a smoking break to a weed break? (NYT)
  • Boards looking more critically at CEO behavior. (FT)
  • US Treasury Sec wants to tackle Nigerian corruption. (Bloomberg)
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Great Women in Compliance

Alison Taylor-Everything She Says is Gold

Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley.

Alison Taylor is one of Mary’s favorite thought leaders. After last appearing on the show in 2020 with Lisa, we invited Alison back to hear about her latest project, a book you’ll hear about and her latest musings on ESG including challenges for companies and what Alison is predicting about the future of ESG – you won’t want to miss it!

We ask Alison who she would give an ethical award to up until this point in 2022 and we think you’ll be in agreement with her thoughts on this leader who has exemplified tone from the top.

 The GWIC team sends their thanks for all of the well wishes received for their milestone 150th episode last week.

The Great Women in Compliance Podcast is on the Compliance Podcast Network with a selection of other Compliance related offerings to listen in to. If you are enjoying this episode, please rate it on your preferred podcast player to help other likeminded Ethics and Compliance professionals find it. You can also find the GWIC podcast on Corporate Compliance Insights where Lisa and Mary have a landing page with additional information about them and the story of the podcast. Corporate Compliance Insights is a much appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance” (CCI Press, 2020).

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.

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Innovation in Compliance

Role of Ethics in Business Culture with Alison Taylor


 
Tom Fox welcomes Alison Taylor on this episode of the Innovation in Compliance Podcast. Alison is the Executive Director of Ethical Systems, a collaboration between leading academics in behavioral science, systems thinking, and organizational psychology. She joins Tom to talk about ethics and how it relates to ESG, stakeholders, corporate culture, as well as what place Gen Z and Millennials have in this discussion surrounding ethics and compliance in the future.
 

 
Ethics & ESG
The roots of ESG are ethical in themselves. Alison explains to Tom that the basis of ESG is that businesses ought to do good, and do no harm. “ESG really tries to deal with everything that’s beyond compliance…that companies should not just not break the law, but they should do stuff about climate change and human rights and that kind of thing,” she adds. ESG has a say about what businesses should and shouldn’t be doing in society. The problem in recent times is that ESG is more so related to the profit side of business and not what stakeholders care about. When ethics and ESG are treated in relation to the business case, they are treated as metrics and not important corporate social responsibility.
 
Ethics, Stakeholders and Culture
Tom asks Alison to explain whether a conversation about ethics can be had across a broader group of stakeholders. “The idea that a company could perfectly reflect the ethics and values of every one of its stakeholders is totally ridiculous,” she begins. What leaders should think about instead is the impact they have on their stakeholders. “Rather than talking about what we should and shouldn’t do, a conversation could be that companies should manage the negative impacts that they have on their stakeholders and try and enhance the positive ones,” Alison remarks. Another important thing for leaders to think about is if their organizations have a culture where employees don’t feel safe to bring up ethical issues. The best ‘speak-up’ program won’t be worth anything if your users don’t utilize it.
 
A Place for Gen Z and Millennials
Tom asks Alison to elaborate on where she sees the roles of Gen Z and Millennials in driving the discussion about ethics in the future. “Younger generations want a meaningful career, and they care much much more whether a business is ethical or unethical,” Alison states. If companies want to attract young people, they have to perform ethically and be known for doing so. Younger generations are much more tech-savvy, so if a business is operating unethically, they are going to leak that information via Twitter, Instagram, and Facebook. This can be detrimental to a companies’ public reputation. Shutting down ethical discussions internally is not the way for businesses to go when hiring younger generations. “If you think [that if] you can shut down this conversation, you’re gonna shut down internal conflict – what you’re actually doing is just pushing this outside and making it way worse,” Alison stresses. 
 
Resources
Alison Taylor | LinkedIn | Twitter
Ethical Systems
 

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The Ethics Experts

TEE Environmental Social & Governance Bonus Episode 000: Allison Taylor