In the contemporary business landscape, where every action is subject to scrutiny and the stakes are high, legal leaders occupy a pivotal role. They have evolved beyond merely being the gatekeepers of compliance; they are now instrumental in cultivating ethical corporate cultures within their organizations. Robert Chesnut, former general counsel and chief ethics officer at Airbnb, provides insightful strategies on how legal leaders can convert the concept of integrity from a superficial term into a powerful, actionable force that influences company culture and drives business success.
1. Transform Integrity Into A Daily Practice Beyond Policies
One of the most innovative yet effective strategies proposed by Chesnut is to integrate integrity into the daily fabric of the organization, rather than relegating it to a set of dusty policies. At Airbnb, integrity was not just documented in a handbook; Chesnut and his team introduced the concept of “Integrity Yetis,” a fun, creative initiative designed to acknowledge employees who exemplified ethical behavior. These awards were not mere tokens; they became celebrated symbols of pride among staff. Picture an employee being publicly recognized for their courage in addressing a colleague or even a senior leader regarding a minor breach in security protocols. Such recognition not only celebrates ethical behavior but also inspires others to embody these values, fostering a culture where integrity is pursued rather than merely complied with.
Chesnut’s experience illustrates that when integrity is woven into daily actions and celebrated openly, it becomes a fundamental aspect of company culture. This approach shifts the focus from enforcing rules from the top down to nurturing an environment where ethical behavior is noticed, appreciated, and emulated by everyone.
2. Create A Network Of Ethics Champions Throughout Your Organization
Another enlightening lesson from Chesnut’s work is the impact of decentralizing the responsibility for ethics. Instead of confining the ownership of integrity to the legal department, he advocates for establishing a network of “ethics ambassadors” across all levels of the organization. At Airbnb, these ambassadors were not high-ranking executives but rather mid-level employees from diverse departments who volunteered to promote integrity within their teams. This strategy serves a dual purpose: it democratizes ethics, making it a collective responsibility, and it places ethical decision-making closer to the actual business operations.
By empowering these ambassadors, organizations enable employees to take on the role of integrity stewards. They become the go-to individuals for addressing ethical questions and dilemmas, nurturing a culture where ethical considerations are integral to everyday business discussions instead of being treated as afterthoughts or handled solely during crises. This network not only aids in identifying potential ethical challenges early but also reinforces the idea that ethical behavior is essential to every role, not just a concern for the legal team.
3. Assess Integrity With The Same Precision As Business Performance Metrics
One of the most groundbreaking insights from Chesnut revolves around the necessity of measuring integrity with the same rigor applied to business performance metrics. Initially, this may seem counterintuitive—how can one quantify something as abstract as integrity? However, Chesnut compellingly argues that without measurement, management becomes impossible. At Airbnb, metrics included the number of integrity-related inquiries from employees, engagement levels with ethics training programs, and responses to ethical dilemmas presented.
By quantifying these behaviors, Chesnut’s team could effectively monitor the vitality of the company’s ethical culture and pinpoint areas needing improvement. Furthermore, this approach provided concrete data to demonstrate to the board and other stakeholders that integrity is not merely an abstract ideal but a quantifiable and manageable aspect of the business. This emphasis on metrics reframes the conversation surrounding ethics from being a soft, optional quality to a crucial business competency that significantly influences the bottom line.
Embrace Integrity As A Key Strategic Asset For Your Organization
The key takeaway from Chesnut’s experiences is unmistakable: integrity must be regarded as a vital strategic asset rather than merely a compliance obligation. It involves fostering an environment where every employee feels empowered and responsible for contributing to the ethical framework of the organization. Legal leaders are ideally positioned to facilitate this transformation, but it necessitates a shift in perspective—from being rule enforcers to becoming champions of a vibrant corporate culture.
What steps can you take as a legal leader to cultivate this culture of integrity? Begin by embedding ethical behavior into daily business practices, empowering employees at all levels to champion integrity, and rigorously measuring it as you would any other key business function. For a deeper understanding of how to enact these strategies and explore additional innovative approaches to instilling corporate integrity, be sure to watch the full conversation with Robert Chesnut on “Notes to My (Legal) Self.” This discussion offers valuable insights into converting integrity from a mere policy into a practice that significantly influences both company culture and overall business success.
Olga V. Mack is a Fellow at CodeX, The Stanford Center for Legal Informatics, and a Generative AI Editor at law.MIT. Olga embraces legal innovation and has dedicated her career to enhancing and shaping the future of law. She believes that the legal profession will emerge even stronger, more resilient, and more inclusive by adopting technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She authored several influential works, including Get on Board: Earning Your Ticket to a Corporate Board Seat, Fundamentals of Smart Contract Security, and Blockchain Value: Transforming Business Models, Society, and Communities. Currently, she is working on three upcoming books: Visual IQ for Lawyers (ABA 2024), The Rise of Product Lawyers: An Analytical Framework to Systematically Advise Your Clients Throughout the Product Lifecycle (Globe Law and Business 2024), and Legal Operations in the Age of AI and Data (Globe Law and Business 2024). You can follow Olga on LinkedIn and Twitter @olgavmack.
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