The Nexus of Culture, Ethics, and Leadership: Driving Lasting Change for the Strata Sector
In today’s rapidly evolving business landscape, the strata sector faces increasing pressure with choices as to how it operates. This challenge is immediate and significant. Implementing ethical practices is critical to future success and goes beyond mere policy changes or compliance measures. To truly transform behaviour, we must recognise the pivotal role of organisational culture and the critical importance of leaders with strong moral character.
As President of SCAQ, I make no apologies for drawing attention to this topic, it is an area where there can be no compromise.
Throughout my career, I have learned that organisational culture and leadership serves as the foundation upon which ethical behaviour is built. It encompasses the shared values, beliefs, and practices that guide employee actions and decision-making. When ethics are deeply embedded in this cultural fabric, they become an intrinsic part of how business is conducted, rather than a set of externally imposed rules.
To cultivate an ethical culture, organisations need to be proactive. They need to consistently reinforce ethical principles through actions, communications, and reward systems. This can be done in a number of ways such as the recognition of employees who uphold ethical standards in challenging situations, such as a strata manager who successfully mediates a complex dispute between owners. It could also mean integrating ethics into performance evaluations or creating safe channels for reporting ethical concerns. By doing so, ethical behaviour becomes the norm rather than the exception.
However, culture change doesn’t occur in isolation. It requires leadership – and not just any leadership, but leadership rooted in strong moral character. Leaders with integrity, empathy, and a genuine commitment to ethical principles are essential catalysts for cultural transformation. Consider a strata committee chair who prioritises transparency in all decision-making processes, or a property manager who consistently ensures fair treatment of all owners, regardless of their influence or property value. These leaders serve as role models, demonstrating ethical behaviour in their daily actions and decisions.
Leaders of good character also possess the courage to make difficult decisions that prioritise long-term ethical considerations over short-term gains. They understand that building a reputation for integrity can be a powerful competitive advantage in an era where property owners and investors increasingly favour responsibly managed communities.
Our sector is now looking to our leaders who possess the character traits and moral compass that will help the industry continue to serve our communities well. We need individuals with a proven track record of ethical leadership. The focus should be on leaders who have consistently demonstrated their ability to navigate complex ethical dilemmas, balance diverse stakeholder interests, and maintain transparency in financial management and decision-making.
The synergy between a strong ethical culture and character-driven leadership creates a virtuous cycle. As ethical behaviour becomes ingrained in the organisational DNA, it attracts and retains individuals who share these values, further reinforcing the culture. This, in turn, supports the development of future ethical leaders from within the organisation.
Achieving lasting change in ethical behaviour requires an holistic approach that recognises the interdependence of culture and leadership. By fostering an organisational culture that prioritises ethics and developing leaders of strong moral character, strata businesses can navigate the complexities of today’s world while maintaining their ethical compass. This not only enhances their reputation and stakeholder trust but also contributes to more harmonious communities, increased property values, and a more sustainable and equitable strata ecosystem.
To drive this change, it’s worth considering in your own businesses:
Conducting regular ethical culture audits
Implementing engaging ethics training programs
Establishing clear, practical ethical guidelines
Encouraging open dialogue about ethical challenges in team and community forums
By taking these steps, we can build a strata sector that not only meets ethical standards but sets new benchmarks for integrity and responsible management.
In September 2024, SCAQ is hosting a Principals’ Retreat that will focus on these issues to continue the conversations on ethical leadership and how we can, together, better understand what this means for strata and the expectations of the market in a challenging environment.
It’s also important to understand that ethical behaviour and leadership require daily tending as standards change. It is not ‘set and forget’. The standards of yesterday are not what will be accepted today, and we must be cognizant of those shifts and ensure we are meeting current standards and expectations.
Andrew Davidson
SCAQ President
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