Effective ethics management is sound business practice. Employee morale rises; the final performance is improved, its corporate image is improved; and clients choose to do business with companies that adhere to high standards of ethical conduct. One of your key administrative tasks is to persuade employees to accept the ethical values of your organization. Here are some points to consider …
1. Understand the benefits of ethical conduct.
All key parties benefit from ethical conduct within the organization. Employees who have confidence in your management contribute to the prosperity of your organization. By contrast, in an unethical climate, employee productivity declines, creativity is channeled into finding ways to personally benefit from the business, loyalty declines, and absenteeism and staff turnover increase. Clients prefer to associate with and remain loyal to companies that adhere to codes of ethical behavior. Shareholders get up to fifteen times the return of companies with a dedicated commitment to ethical conduct. American research in the 1990s identified companies in all industry sectors that had outperformed their peers. The only common quality among these companies was a demonstrated commitment to their stated values.
2. Focus on ethical conduct.
When referring to codes of conduct, the term “ethical conduct” is more comprehensive and more meaningful than “ethical”. The best ethical values and intentions are relatively meaningless unless they generate fair, just, and observable behaviors in the workplace. Ethical conduct focuses on demonstrated conduct, not just telling.
3. Develop a code of ethical conduct.
The best way to handle ethical dilemmas is to prevent them from occurring in the first place. The process involved in developing a code of ethical conduct helps to sensitize employees to ethical considerations and minimize the likelihood of unethical behavior occurring. A process is described in Developing a Code of Ethical Conduct on page 18 of the Ethics e-book.
4. Promote the process.
When it comes to managing ethics and, in particular, developing an ethical code of conduct, the journey is as important as the destination. Codes, policies, procedures, and budgets are important. So is the process of reflection and dialogue that produces those deliverables. Whenever possible, use group decision making to actively involve participation and ownership of the end result.
5. Link ethics to other management practices.
The development of a code of ethical conduct should not occur in isolation. Creating a statement of values, for example, should occur as part of a strategic planning process. A link to ethical conduct fits perfectly with this process. Similarly, any discussion of personal policies could also reflect ethical values that apply to the culture of the organization.
6. Demonstrate ethical practices.
The best way for you and your organization to earn a reputation for operating ethically is to demonstrate that behavior is the most important way to stay ethical by being ethical. And the best publicity your ethics management program can get is everyone’s commitment to it. Be prepared for an increase in the number of ethical issues to be addressed. As staff become increasingly aware of the importance of ethical management, it is to be expected that more issues will be identified. As Helen Vines says in ‘The Core of Good Business’ (HR Monthly, June 1999):’ The most damaging thing is for management to draw up a code of ethics, or a statement of value, and model a different kind of behavior. ‘
7. Assign roles and responsibilities.
The approach will vary by organization, but a suitable structure could include the following:
• An ethics management committee, representing the entire organization, with responsibilities including the implementation and administration of an ethics management program. The creation and monitoring of a code of ethical conduct would be part of that overall program.
• An ethics officer who ideally should be a senior executive but not from HR or the Legal Department. Must be trained in workplace ethics and have ultimate responsibility for managing the program.
• Demonstrated participation and support from top management. The staff and the Board must ensure that top management takes ethical conduct seriously.
8. Identify and model industry benchmarks.
An increasing number of companies live to match practices with advocated values. The Soul of a Business (Bantam, 1993), for example, is an account of how ethical considerations guided the day-to-day operations of the American company Tom’s of Maine. One of the declared values of the company was its commitment to the health of the environment. Therefore, the company used glass containers instead of plastic, although plastic was cheaper to buy, label and ship. Tom’s of Maine is also committed to supporting its regional economy. Only when he couldn’t buy a resource in his local area would Tom’s go further. This demonstrated commitment to the proposed values contributed to the growth and profitability of the company and inspired others to follow suit.
