Ethics in the Workplace

Author: Natalie Rhoden

We’ve all heard these rules to live by: Don’t hurt, don’t steal, don’t lie, and the more famous “Do unto others as you would have done to you.” In our personal lives most people try to follow these rules. Ethics are often thought of by many as something that is related to the personal side of life and not to the business side. In some businesses, having ethics may actually be frowned upon. This is usually due to the fact that business is about doing what’s best for the bottom line and not always about doing the right thing.

It is commonly understood that there are ethics and then there are workplace ethics. Often we don’t stop to realize that there is no difference between personal ethics and ethics in the workplace; ethics are the same whether at work or in personal life.

After all, ethics are about making choices that may not always feel good or seem like they benefit you. Ethical choices are the “right” choices to make and are examples of rules to live by.

Practical Impact

Executives typically want the answers to two key questions about ethics in their offices: “How do workplace ethics apply to practical goals of my organization and the work of my employees?” and “Is there reliable data to support these assertions?” The Ethics Resource Center (www.ethics.org), a nonprofit organization, assists leaders to impact their organizations by identifying ethical risks and establishing systems to emphasize higher standards for business conduct.

The Ethics Resource Center annually conducts a National Business Ethics Survey (NBES) – a rigorous telephone survey of 1,500 U.S. employees. The NBES findings are encouraging for organizations that have an emphasis on positive workplace ethics. For example, employees have high expectations for ethics within their organizations. Nine in ten respondents say that they “expect their organizations to do what is right, not just what is profitable.”

This suggests that most employees are not cynical about ethics at work, encouraging news when considering the implementation or development of ethics initiatives as the long term success of any program rely on the active support of employees.

Formal ethics programs and informal ethics practices were shown to affect certain key outcomes. Employees who work in companies with active ethics programs who observe leaders modeling ethical behavior, and also observe the application of values such as honesty, respect and trust applied frequently at work, report more positive experiences that include the following:

·         Less pressure on employees to compromise ethics standards

·         Less observed misconduct at work

·         Greater willingness to report misconduct

·         Greater satisfaction with their organization’s response to misconduct they report

·         Greater overall satisfaction with their organizations

·         Greater likelihood of “feeling valued” by their organizations

Findings of Concern

The NBES uncovered a substantial gap between senior and middle managers and lower-level employees. A consistent finding with management was the perception that their organizations have a positive ethical environment. This conflicts with the perception of lower-level employees however. This suggests that executives may underestimate the importance of specific ethics issues and concerns facing employees.

This disconnect may also position executives to fail to address these issues adequately within their organization’s ethics programs. Therefore it is important for executives to include input from employees at lower levels in the development of ethics programs and to continue to seek out their input and feedback on a regular basis.

In addition to the communications gap between employees and executives, one in three employees believe that their coworkers will perceive them as “snitches” if they report misconduct. This is roughly the same proportion of employees who believe that management will see them as “troublemakers” for reporting ethical concerns. A key element to take away from this discovery is the need to address and eliminate retaliation systemically, at the management and peer levels throughout the organization.

Questions Answered

Let’s go back to our two key questions: “How do workplace ethics apply to practical goals of my organization and the work of my employees?” and “Is there reliable data to support these assertions?” There are a variety of practical reasons for executives to focus on workplace ethics and reliable data that supports these efforts. The NBES findings consistently link ethics programs to more positive organizations outcomes and increased employee satisfaction.

It would be naïve to suggest that an emphasis on ethics will improve the work environment and solve the company’s problems overnight. In many cases a well developed and organized effort to target key ethical issues sends an important message. It tells employees that your organization is moving in a positive direction, one that is positive for them as individuals.

Establishing an Ethics Program

Establishing an ethics program is not an exact science. As with any organizational program, it will involve the input and cooperation of many people. The effectiveness of any organization’s approach will depend on characteristics that are unique to its culture, the leadership styles, proper planning, and so on. Since some people may be uncomfortable talking about the issues of ethics it can be helpful if management first asks, considers, and then responds to the following questions:

·         Why might good people in this organization do unethical things?

·         What are our organization’s values?

·         Have we adequately articulated these values internally and externally?

·         Does our organization have written ethics policies, procedures, or structures?

·         To whom is our organization accountable?

·         What do we mean by “success”?

·         Does the leadership of our organization support the idea of an ethical workplace?

With the feedback obtained by discussing the questions above, management will have a better idea of the perceptions their employees have on how the company is performing ethically.

In the end, it’s all about beginning with our personal and collective understanding of ethics. The second step is awareness of, and solutions to, questions concerning ethics as applied to the workplace. Many universities are now heavily applying the teaching of ethics to their curricula. Graduates of these programs take this information into the workforce with the understanding that solid, positive ethics need to be applied there as well as in the private sector.

In a perfect world, corporations will be better able to avoid embarrassing scandals that appear and reappear in both national and world-wide news scandals. Small businesses will be able to keep and attract more clients and customers. Negotiations between businesses could be accomplished with increased consideration for the other company. This is something for which we can all strive.

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