Indonesian Political, Business & Finance News

Efforts to Unify Ethics, Performance, and the Potential of Conscious Organisations

| Source: CNBC Translated from Indonesian | Business
Efforts to Unify Ethics, Performance, and the Potential of Conscious Organisations
Image: CNBC

The dynamics of the modern working world often trap corporations in a narrow paradigm of talent assessment. Traditionally, Human Resource (HR) management and organisational evaluation have relied exclusively on two main parameters: performance and potential.

This talent matrix model has long been the benchmark for corporate management. However, in a business interaction space filled with ethical turbulence, crises of trust, and socio-cultural complexity, this conventional two-parameter approach has proven to have footnotes that are sometimes unreadable—or to put it bluntly, forgotten.

These footnotes represent the attempt to ignore the most essential human foundation: ethics. In practice, questions regarding ethical adherence almost always follow evaluations of performance and potential.

Addressing this situation by finding a way out of these limitations is an endeavour that must be undertaken. In the effort to maintain the existence of human resources and organisations, using only two parameters is no longer sufficient. The role of ethics is now the most crucial and urgent element to be prioritised.

A conscious approach to HR and organisations feels the need to build a discourse on ethics as an absolute parameter to guarantee long-scale organisational sustainability. There is a simple way to understand the three pillars of talent that often leave companies feeling uncertain.

Imagine the life of an organisation on a continuous timeline. Ethics is how we live today, penetrating through time. Performance is the record of what we have done in the past. And potential is the promise of what we might do tomorrow. When these three dimensions of time are consciously unified, what is known as Conscious Human Resources and Conscious Organisations is born.

Ethics is About Today Penetrating Through Time

Within an organisation, ethics works like an invisible operating system that determines whether all applications can run. When ethics are strong, trust grows and speed increases. People do not need to expend energy on suspicion, concealing information, or playing politics for safety.

One reason is that ethical adherence provides a clear path in every activity of a conscious organisation. It is both recorded and remembered; it can be said that ethics is the depiction of today through the experience of the past and can be projected into the future (past, present, future).

Leadership expert Simon Sinek explains this with the concept of the ‘circle of safety’. According to him, leaders who maintain ethics today create an environment where employees feel safe to tell the truth, admit mistakes, and ask for help. Within that circle of safety, collective performance grows.

Figures prove that ethics today directly impact performance today. Gallup research found that employees who feel their leaders uphold ethical standards are 60% more likely to be engaged in their work (Gallup, 2023). Furthermore, teams with high levels of trust are 12 times more likely to be engaged in their work (Gallup, 2022). The impact on retention is also very real; organisations with high levels of trust record a 50% increase in employee retention (Gallup, 2022).

Organisational culture expert Frances Frei adds that trust is built from three things that all happen today: authenticity, logic, and empathy. If any of these are missing today, trust collapses today. No matter how high the performance from the past may be, it cannot patch trust that is leaking today.

Performance is an Unfalsifiable Record of the Past

If ethics is about today penetrating through time, then performance is about the past (yesterday, last week, last month, and years ago). Performance is the evidence left behind. It is last week’s sales figures, last month’s recap, projects completed last week, production targets met yesterday, and industrial cases resolved last month.

Management expert Peter Drucker reminds us that what can be measured can be managed. Performance provides us with past data to learn honestly. However, the mistake many companies make is using the past as the sole determinant of the future.

The relationship between today’s ethics and past performance is also financially proven. A study cited by Harvard Business School found that companies with a strong ethical culture experienced a 20% increase in financial performance over five years compared to less ethical companies (Harvard Business School, 2021).

Even in recent long-term research, Ethisphere released the Ethics Premium 2026, showing that public companies included in the World’s Most Ethical Companies list outperformed their global benchmark index by 8.2 percentage points during the period from 1 January 2021 to 31 December 2025 (Ethisphere, 2026). This proves that maintaining ethics today is the best way to ensure that past performance records remain positive.

Additionally, companies with a strong ethical culture report 50% fewer violation incidents compared to those with a weak culture (Ethics & Compliance Initiative, 2022). This means that ethics today reduces the costs of past mistakes that must be rectified.

Potential is a Promise for Tomorrow

If ethics is about today penetrating through time and performance is about the past, then potential is the promise for tomorrow. True potential is not merely an accumulation of static talent or how smart someone is in the present, but rather the dynamic capacity to perform new tasks…

View JSON | Print