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

Business Ethics - blah, blah, blah. There's no such thing. There are only ethics. They stem from your values, attitudes and beliefs. Since people make up corporations and organizations, it's their values, attitudes and beliefs that get brought into these environments. How they match up is a measure of performance.

The 2007 National Business Ethics Survey was released last month and guess what? They're Baaaaaack! Problems are back and at pre-Enron levels. The study reports that only 9% of companies in the U.S. have strong ethical cultures. Is yours one of them? Over 50% of employees surveyed said they saw ethical misconduct of some type and were afraid to report it for fear of retaliation or that reporting would not result in any organizational changes.

What has failed in the past?

Hotlines - they don't work. If employees want to report violations, they prefer to do it to someone they know and feel comfortable around. The challenge? What if the person they are comfortable with is involved in the infraction?

Having or conducting business practices that are not congruent with your organization's values creates conflicts and involves ethical decision making on the part of employees. Do what's right or do what will generate revenue and profits?

Heavy handed ethics penalties. The "off with your head" mentality doesn't foster individuals wanting to do the right thing. It fosters fear.

Creating values, posting them in the break room or on your web site and calling your organization an ethical or values-based business.

Creating a culture that is ethical or Values based should not be treated as a single event. This will involve engaging a consultant to come in and conduct an initial assessment to determine the culture climate. This will also involve a series of training conducted as workshops, seminars, teleconferences and other means for leadership, staff and employees. Clearly established objectives, measures and values will be set forth with responsibilities for both the consultant and the company in order to achieve the desired outcome.

What will work?

Establish clear values and your organizational code of conduct.

Interpret those values for your employees.

The Values you reward are the behaviors you can expect.

Hire, promote and develop a succession plan that is congruent with your organization's values.

Show employees that reporting makes a difference and provide multiple safe havens for reporting.

Now is the time to begin establishing your organization's true competitive advantage in the marketplace. How much is this costing your business in terms of lost employees, lost sales, slowed production, employee conflicts, reduced communication and a myriad of other areas with financial implications?

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