ABSTRACT

This chapter proposes an integrated model of managerial integrity linked to a theory of compliance enforcement through relevant organizational governance and external mechanisms. It discusses the problem of defining integrity, compliance, and ethics in relationship to one another. The chapter explicates the proposed integrated model of managerial integrity and compliance. It considers two implications of the model: building integrity-based organizations and "giving voice to values" within integrity-based organizations. The chapter illustrates the integrated model through mini-cases of following two German companies and two Japanese companies that have engaged in documented misconduct: Siemens; Volkswagen, Toshiba; and Mitsubishi Motors. The three important concepts for an integrated model are integrity, compliance, and ethics. The chapter also explains the management implications of the proposed approach to an integrated model of managerial integrity and compliance. The explanation focuses on the General Electric (GE) approach to integrity as a contrast to the four mini-cases.