Code of Conduct - Ethics Crisis in Business is on the Rise

Business Ethics - blah, blah, blah. There's no such thing.- Creating values, posting them in the break room or
There are only ethics. They stem from your values,on your web site and calling your organization an
attitudes and beliefs. Since people make upethical or values-based business.
corporations and organizations, it's their values,Creating a culture that is ethical or Values based
attitudes and beliefs that get brought into theseshould not be treated as a single event. This will
environments. How they match up is a measure ofinvolve engaging a consultant to come in and conduct
performance.an initial assessment to determine the culture climate.
The 2007 National Business Ethics Survey wasThis will also involve a series of training conducted as
released last month and guess what? They'reworkshops, seminars, teleconferences and other
Baaaaaack! Problems are back and at pre-Enronmeans for leadership, staff and employees. Clearly
levels. The study reports that only 9% of companiesestablished objectives, measures and values will be
in the U.S. have strong ethical cultures. Is yours oneset forth with responsibilities for both the consultant
of them? Over 50% of employees surveyed saidand the company in order to achieve the desired
they saw ethical misconduct of some type and wereoutcome.
afraid to report it for fear of retaliation or thatWhat will work?
reporting would not result in any organizational- Establish clear values and your organizational code
changes.of conduct.
What has failed in the past?- Interpret those values for your employees.
- Hotlines - they don't work. If employees want to- The Values you reward are the behaviors you can
report violations, they prefer to do it to someoneexpect.
they know and feel comfortable around. The- Hire, promote and develop a succession plan that is
challenge? What if the person they are comfortablecongruent with your organization's values.
with is involved in the infraction?- Show employees that reporting makes a difference
- Having or conducting business practices that are notand provide multiple safe havens for reporting.
congruent with your organization's values createsNow is the time to begin establishing your
conflicts and involves ethical decision making on theorganization's true competitive advantage in the
part of employees. Do what's right or do what willmarketplace. How much is this costing your business
generate revenue and profits?in terms of lost employees, lost sales, slowed
- Heavy handed ethics penalties. The "off with yourproduction, employee conflicts, reduced
head" mentality doesn't foster individuals wanting tocommunication and a myriad of other areas with
do the right thing. It fosters fear.financial implications?