adminperformance solutions consulting firm, and Paul J. Voss, who is Ethics Practice Leader with the same firm, provide these questions.
How should we relate ethics to other performance metrics in the company?
Executives should know that research demonstrates that ethical companies are more competitive, profitable and sustainable than unethical companies.
The challenge for the ethical leader is therefore to find that connection and reveal it to the firm.
For example, studies by the United Kingdom-based Institute of Business Ethics in 2003 and 2007 — “Does Business Ethics Pay” — established a positive relationship between business ethics and financial performance.
Have we considered developing a
company code of ethics and offering business ethics training to all of our employees?
Business executives should understand that developing a code of ethics and offering business ethics training to staff are two key functions upon which an ethical culture can be built.
With the right ethical skills, employees are able to resolve ethical dilemmas and make ethically sound decisions in their day-to-day duties.
Training in business ethics must be viewed as an overhead cost and be made a permanent feature of the training calendar of every business.
What is the relationship between exercising sound business ethics and retaining great talent?
A company that has sound ethical practices and encourages ethical behaviour amongst its employees tends to attract and retain more skilled staff than unethical firms.
Research supports this point and it has proven that employees are generally willing to work for organisations that have sound ethical cultures than those that have poor ethics.
Do we regularly conduct corporate ethics risk assessment to determine our exposure to major ethical damage?
Ethical exposures include employee theft, fraud, accounting irregularities, deliberate employee disregard of company policies and procedures, incentives given to staff to go the extra mile in achieving set performance targets which in most cases have perverse or unethical elements, etc.
Companies should never encourage unethical behaviour by rewarding, intentionally or unintentionally, improper workplace behaviour.
How can leadership be proactive in the area of ethics, culture and corporate citizenship?
Leaders need to own and shape the culture of the firm as much as they manage things like product quality initiatives.
Research identifies several characteristics predictive of ethical outcomes and these include management credibility, promoting upward communication, and
perceived senior management support by employees.
What tone should executive leadership set regarding corporate ethics?
Setting an example is just one part of the executive’s responsibility.
What leaders say, think and feel affects the tone as much as their actions.
Mistrust, cynicism or indifference from top leadership can erode employee confidence in management instructions.
What does management need from the board of directors to enhance and buttress corporate ethics?
Managers and employees who see top leadership as unconcerned and unethical will discount any directives about ethics that come from them.
Who is driving the ethics initiative in
the company?
Company leaders should know that ethical companies do not happen by accident.
Companies need to put in place ethics management processes and designate internal ethics drivers who supervise the ethics effort.
Does the company have consistency and congruency of message between and among the board members, CEO and
senior management in terms of ethics and culture?
All leaders need to be on the same page. There should be agreement on the form of corporate ethics model the firm wants to implement and what should be done to make it work.
What are the roadblocks in the firm that discourage the implementation of ethical practices, and standards?
Most people in the organisation want “to do the right thing”. Yet the firm’s approach sometimes does not advance ethical values.
Instead it encourages staff to use unethical shortcuts to achieve organisational goals.
- Bradwell Mhonderwa is an ethics coach and trainer with the Business Ethics Centre. Send feedback to [email protected],or visit www.businessethicscentre.co.zw, or call 0772 913 875
Online Reporter