Do you think about business ethics in the workplace? Are ethics a part of your company culture? Do you find it difficult to ask your employees to act ethically even though you're under pressure to put profits first? Read on to gain a unique perspective by an expert in the field of leadership development.
At a conference in India, Mary C. Gentile, author of "Giving Voice to Values" explained how she and her colleagues discussed business ethics at a conference. Gentile tells the story of one entrepreneur attending her program who spoke up about the fact that many people in India cannot even get a driver's license without offering officials a bribe. This comment lead Gentile to make a stark realization.
She feels that employees already know the basics of business ethics and that workers want to act ethically. The difficultly is that business leaders, colleagues and even customers put pressure on employees to put ethics aside. Profits may drive co-workers, and getting a better deal might provide the impetus for customers.
No matter the source, instead of just talking about implementing a strategy for business ethics, companies must acknowledge that there's a problem. Leadership development should include a plan for conducting business ethically, and it all starts by realizing that unethical behavior exists. If leaders deny this, then any ethics program becomes doomed before it begins.
How to Move Forward
One thing leaders and stakeholders must realize is that strong business ethics actually helps turn higher profits. During the mortgage crisis of 2007 and 2008, Charles Schwab and Company told its customers it chose not to get involved in the bad mortgage securities deals, and it ended up with a much stronger footing during the recession while other companies folded or took losses. When a company acts ethically, people know it and like hearing about it. The trick involves getting the word out to customers. Firms can create a written ethics statement and place it on their website. That way, everyone sees the moral foundation under which the business operates.
Another thing companies can do is to foster a culture of respect for people who speak up regarding workplace ethics. No one needs to feel as if their job is at stake for asking tough questions about doing what is right. In the fallout of the Wells Fargo scandal in 2016, 5,300 employees lost their jobs after they created more than 2 million fake accounts. The accounts bloated Wells Fargo's numbers, and workers said the pressure to create such accounts came from top leaders.
Getting people to talk about ethical topics might mean distancing employees from an emotional situation. Instead of directly asking "What would you do?" leaders and managers must try a different tactic. Instead, ask "How do you think a person should act in this kind of situation?" Companies should also consider addressing ethical issues during meetings to keep the discussion going and encourage employee input.
Proper business ethics starts at the top and trickles downward to lower-level employees. Having a clear mission for your business and people at the top who wholeheartedly represent what the company stands for a great way to start developing moral, ethical leaders in any company.
Photo courtesy of hywards at FreeDigitalPhotos.net
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