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Six Steps to an Ethical Business Culture

April 22nd, 2008 @ 9:32 am

15 Comments

Categories: Ethics, Office Life, Personal Conduct, Workplace

Tags: Culture, Ethics, Business Ethics, Litigation, Policies And Procedures, Leadership, Management, Business Operations, Human Resources, William Baker

A recent white paper from Allegiance, a company which provides what they call Enterprise Feedback Management, attempts to outline a plan for creating an ethical business culture in six steps:

  1. Establish an enforceable code of conduct.
  2. Initial and ongoing training.
  3. Regular communications.
  4. Anonymous reporting hotline.
  5. Enforcement/Action.
  6. Rewarding employees that live the culture.

If you follow these steps, as Allegiance COO Greg Heaps says in this article, your company “will be rewarded with the risk of less risk, less fraud, less litigation, and happier employees.”

On the whole, this sounds like a sound plan, as reasonable as any paper plan can be before you get into the messy deal of implementation. With one exception - this last concept of rewarding employees that live the culture.

Do we really need to reward those who behave appropriately with a treat? When did we become puppies who sit, or kids who do their homework? The reward of ethical behavior is to keep your job and continue advancing your career. If you behave ethically, I commend you. But you don’t deserve a cookie.

Or am I wrong? Should ethics be rewarded? Or is it to be expected? We punish those who cross the ethical line. Should we then reward those who walk it?

Agree with me, or argue against me, in the comments section. I’m very interested to hear what readers have to say on this issue.

Have an ethics issue you’d like to see discussed here? Email wherestheline (at) gmail.com

 
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  •  
    1

    Rose913

    04/22/08 | Report as spam

    Business Ethics

    I'm actually feeling alienated for being ethical at work. Recently I was denied an interview for an acctg. managerial position because I lacked a degree. However, I was three months' shy from receiving my degree and have 19 years with that dept. It became known to me that the person who was promoted to the managerial position was a close ally to the director of the acctg dept and he was being taken care of because he was about to lose his job in a different dept.

    At the same time, I was groomed by the acctg controller and hiring manager who vouched and encouraged for me to apply. They both realized that I did not have my degree at that point in time, and said that my years of experience proved my capability to be promoted.

    Needless to say, I thought it was unethical of upper management to cancel my interview the day before it was scheduled and complained to Human Resources. As of now, I've been told that my job is now phasing away at an indefinite time.

    The accounting director who vouched for the other employee who was not qualified for the managerial position has put me in a vulnerable spot of being laid off now.

    I'm still pursuing this situation with Human Resources and am at a limbo of what my options are at this point.

  •  
    2

    FMurphy

    04/22/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    I agree with you I have to say. For example, if you don't break the law, do the Police come to your door with a card saying ...Well Done, you didn't break the Law!! I think most of us know that if you break the Code of Ethics there are going to be reprecussions. For the majority of us, this stems from learnings in our early childhood. I'm wondering what analysis was done on how employees felt when they were rewarded with obeying the code of ethics? Was anyone confused by it??

  •  
    3

    Geoffrey James, Sales Machine

    04/23/08 | Report as spam

    Oxymoron?

    Gee, the term "Ethical Business" some how reminds me of "Executive Intelligence", "Happily Married" and other sundry oxymorons.

  •  
    4

    stevewillson

    04/24/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    It's too bad that many people seem to think that Business Ethics is an oxymoron. Having been in several businesses, some large and some small, in executive and non-executive positions, over the past 30 years, I have found most businesses to be very ethical.

    Maybe I've been lucky. I also think that the publicity surrounding the excesses of some senior management in public companies has given the impression that "this is something that everyone does". It's simply not true.

    Perhaps if we rein in the excessive salaries that a few C-level execs take home, we can help to correct perceptions.

  •  
    5

    pshellhaas

    04/24/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    I say reward for anything or everything that is recognizably beneficial to the company, whether directly related to performance or not. Afterall, ethical conduct is a part of the company culture and is often as important as performance. Recognition and awards are right up there near the top of Maslow's needs pyramid, and are important motivational tools particularly in high performance, knowledge based industries -- which is the direction that work is going these days. Perfomance appraisals and performance related pay are often weakly executed and controversial. Ethical business conduct rewards may be even less so -- since who wants to criticize someone for getting an award for promoting the company culture (if it's got one of any note).

  •  
    6

    drasla

    04/24/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    Rewards? On what planet?

    Anyone who has ever faced having to become a "whistleblower" in real business life, knows the horrible price of "doing the right thing".

    Think about it. What whistleblower has ever achieved hero status in our culture? Who fared better, Monica Lewinsky and Linda Tripp or Bill Clinton? You can bet that the former two have plenty of regrets.

  •  
    7

    chris@...

    04/24/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    I agree. The reward for solid prinicples and ethics in the work place, more often than not, is long term success and a clear conscience. If people are driven to act with principle because of a dangled "reward" might they not be prone to act unethically for a greater reward? Maybe a little lie will be OK if there is a bigger bonus that goes along with it than the little reward offered for honesty?

    Think about this. "Hey Mary, thank you for not lying to me this week. Here is your reward for telling the truth." Or maybe this; "Thank you Bob for not stealing the ten dollars I left on my desk. Here is $5 for your ethical behavior."

    Shouldn't ethical behavior be the table stakes simply to keep one's job?

  •  
    8

    Karen#1

    04/25/08 | Report as spam

    RE: 6 Steps to an Ehtical Business Culture

    I agree that ethical behavior should be expected but not rewarded because you should not be in the position if you are unethical. I have worked with several companies where I have seen unethical behavior overlooked which is frustrating. It is great to have a code of conduct, etc... but the way to reward the ethical employees is to deal with the unethical ones.

  •  
    9

    ladhunt

    04/25/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    The problem, as I see it where I work, is holding those people accountable who are NOT ethical. Require them to step up to the plate or move on. There is nothing that drags an entire company down more than a few bad apples who are not being required to hold to the high standards outlined for us. We have a Code of Ethical Conduct which states, among other things "Each person's behavior on the job reflects his or her commitment to ethical, respectful and honorable behavior . . . treating others with fairness, dignity and respect; and doing the right thing." It also says that these standards apply to everyone. The bad apples who get away with bad behavior only do so because their supervisors allow it. I would say that companies need to make sure they have leaders in their company who have high ethical standards and who require their employees to follow suit. A bad manager will "breed" bad employees and it never ends. The good employees will leave that department after a while.

    I'm obviously one of the ethical ones or I wouldn't be writing this particular post. I don't need treats or extras to do my work and maintain ethical behavior although it is nice every once in a while to receive that kind of acknowledgement. When a company does something above and beyond for me when it's not expected, I tend to work happier, feel better, and my dedication to them increases. I'm not just there to do a job and get a paycheck. Now I feel REALLY appreciated and WANT to do even better. It's my thought that if those "bad apples" as I like to call them, saw me performing at a high level (which is required anyway) and was reaping some additional benefits, would they not be tempted to step up their own performance? The ones on the fence post might. The truly bad ones need to be culled out and that's all there is to it.

    Lea

  •  
    10

    CBragg

    04/25/08 | Report as spam

    Rewards for Culture Alignment

    You may not need to reward those that align with the "published" culture but you have to counsel, discipline and or dismiss people that don't align.

    I work with a few top tier executives who openly "blow off" what we tell our customers and employees about our values etc. It's like a cancer in that their unchecked attitudes give anyone else a reason to act the same way. End result? Meaningless words and statements in a frame hanging on the wall AND, a failing company.

  •  
    11

    Bebedo

    04/25/08 | Report as spam

    Why not reward good behavior?

    If there is a verifiable benefit to the organization, what is wrong with rewarding good behavior?
    We don't need more of the same thinking to motivate us.
    We need creative and original concepts.

    Someone asked if the police would come to your door for being a model citizen. Why not? How about a tax break/credit for years of lawful behavior because you are not the one creating the need for the system?

    You get rewarded with lower insurance rates for years of safe behavior. Why not get rewards for years of lawful bahvior? Why not for years of ethical behavior?

    Why are you so negative in your thinking that you only want to punish bad behavior, but not support integrity, honesty, and ethical behaviors?

    Ken Lay and friends were very much rewarded for UNethical behavior -- until they got caught. We all probably can rattle off names of people who have risen after unethical behavior. It shows that unethical behavior can very much be rewarded. We need to lead by example and show that the type of behavior that should be rewarded IS rewarded, publicly acknowledged and commended, and held as the standard for doing good business.

  •  
    12

    frank@...

    04/25/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    When our children young ??? around 7 and 5, my wife and I faced some challenges getting them ready in the morning. It started to really get ugly and I caught myself starting to raise my voice ??? and stress levels. We solved this by offering incentives, for them these were small treats for their on time performance. The problem evaporated because the proper behavior became the focus, not some abstract cloudy concept ??? this is basic human nature.

    In an ideal world we would all act in the best interest of the organization, but the ideal is not real ??? offer the incentive, this far outweighs combating negative behaviors with discipline and punishment.

  •  
    13

    apinedao

    04/28/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    The ethical behavior have to be related to the values of an individual, not as an behavior looking for economic rewards. An ethical behavior always will be rewarded at last, with profesional recognition, trust, confidence, and indirectly become a economic reward, but the money can't be the thing that moves a person to the ethic. Since you give money for ethical behavior ther is no way back, you can't suspend the rewards.

  •  
    14

    dippaulie

    04/30/08 | Report as spam

    Shall Reward for ethical behavior

    I can't think of a reason for not to reward for good behavior in any organization.

    An establishment gets success in right path accomplished by the right people with right attitude within the organization. A motivative environment encourages good energy, and indirectly it diminished bad attitude of other people. This is my strong believe! There are various strategy of reward a company can establish in order to motivate ethical behavior. It shall contains tangible and intangible value of rewards simultaneously.

    Punishment shall be the last choice when motivation failed. An organization shall allow self-discipline action and this of course with the fundamental guide of ethical value and code of conduct being paneled and converse clearly within the organization.

  •  
    15

    papa0s0

    12/08/08 | Report as spam

    RE: Six Steps to an Ethical Business Culture

    i think step #4 is very important, especially in big companies so the lazy workers and problem causers can be weeded out. i wish step #6 was more prolific at my work :/
    -jack @

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