Organizations that do not give attention to ethics are walking through a minefield without knowing it. Just one unethical act by an employee can be highly destructive. An ethical organization holds core values and affirms those values through its strategy, structure, hiring, training, and people processes. The core values must connect the organization in an ethical, affirming way to all its stakeholders—employees, managers, customers, suppliers, community, shareholders, etc.
An ethical culture starts from the top down with managers who make the right choices, model the right conduct, and manage the right culture. An organization committed to ethics has a comprehensive Ethical Compliance Program that applies the ethical values in an intentional way to its employees. An ethical organization does not just comply with the law but goes beyond the law to contribute to all the communities affected by its work. It is a socially responsible organization that wins the admiration of people who work there and the people who live and work around it.
 Benefits
- Increases morale and productivity among employees
- Attracts high quality employees and increases employee retention
- Avoids conflict and reduces conflict among all stakeholders
- Avoids and reduces risk of legal liability
- Increases customer satisfaction and loyalty
- Increases shareholder value—Investment in Fortune’s Ten Most Admired Companies is three times the value of investment in S&P 500 stock index over ten years and Investment in company with commitment to Ethics Code provides twice the value of companies that do not have commitment
Approach
Our approach is directly related to the outcome you are seeking:
OUTCOME: Create and Affirm Shared Values
- Create set of core values through strategic planning group if you do not already have core values
- Conduct focus groups/surveys to review and refine values for conflicts and authenticity if you already have core values
- Create hiring practices to hire people who fit the organization not just the job
- Create orientation for new employees that includes emphasis on values
- Incorporate Values in all Training Programs
- Establish a “values sunset statute”
OUTCOME: Create an Ethical Compliance Program
- Develop a code of ethical conduct
- Appoint a high level officer to supervise ECP
- Establish guidelines for delegation to avoid problems with individuals who might have a propensity for misconduct
- Communicate ethical standards through ethics training
- Establish a system to monitor and report misconduct and enforce punishment
OUTCOME: Create a Socially Responsible Organization
- Apply for a Malcolm Baldrige quality award
- Screen new employees and suppliers for ethical values and strategies
- Incorporate core values into strategic planning
- Connect responsibilities to community to core competencies
Would you like to create a more ethical organization? Let’s Talk
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