How to promote a code of ethical conduct
If ever you needed convincing of the importance of a code of ethical conduct, the events surrounding the collapses of several global and national organisations in 2001 and 2002 should have done so. Enron was America’s seventh-largest company at the time, and HIH was one of Australia’s largest insurance companies. Their failures helped to focus attention on the need for ethical conduct by everyone in an organisation. This renewed emphasis means that you need to be prepared to respond to questions from your employees and stakeholders. Here’s some information to help in your preparation...
1. Define ‘ethics’ clearly.
Ethics in the workplace is values management (there are those, of course, who believe that values can’t be managed), achieved when desired values are prioritised; appropriate workplace behaviours are aligned with those values. Business ethics defines responsibilities in relation to business dealings and social issues. A code of ethical conduct, a more appropriate term than ‘ethics’, helps to ensure that, when people are struggling in times of crisis and confusion, they are not tempted to divert from a strong moral code.
2. Know what ‘ethics’ is not.
Detractors will be quick to point out that what people say and what they do can differ quite significantly. And their comments are justified. The Chairman of the Board and Chief Executive of US energy giant Enron, for example, continued to espouse the virtues of ethical conduct while cashing in more than $US1 billion in stock before its crash. These responses to frequently-made comments will help your cause:
- ‘Ethics is a just another fad.’ There is nothing faddish about ethical conduct. Business ethics is a management discipline linked to practical applications.
- ‘Business ethics is a new form of policing.’ Business ethics has been around for thousands of years, but since the 1960s has received more attention at the corporate level.
- ‘A code of ethics will end up as another door stop or dust collector.’ A code of ethical conduct is an organic instrument affected by organisational and social change.
- ‘A code of ethics is management’s way of separating the goodies from the baddies.’ Ethical conduct in the workplace requires all staff to work together to help each other remain ethical and to work through ethical dilemmas.
- ‘Ethics in the workplace is an attempt by lawyers to generate more fees out of business.’ A code of ethical conduct can be developed independent of legal help. Intervention is required when unethical behaviour is detected.
- ‘Ethics is a social responsibility not a business one.’ Ethical behaviour rarely changes with context. A person who behaves unethically in one situation is likely to repeat that behaviour in other situations.
3. Promote the benefits.
It is likely that you will need to promote the importance of ethical conduct in your workplace. In doing so, you can support your case by considering such benefits as:
- Attention to ethical behaviour in the workplace is a sound business practice. Recent events have made people even more aware of the importance of ethical conduct by everyone in the organisation. Staff also expect that a code of ethical conduct will impinge upon policies for workplace health and safety, equal employment opportunities, and sexual harassment.
- A code of ethical conduct helps to promote high morale. It provides clear directions about what is acceptable and unacceptable. People respond positively when they know where they stand on issues that affect them.
- A code of ethical conduct promotes teamwork. When people are pulling in the one direction on issues of mutual ethical concensus, teamwork is enhanced.
- A code of ethical conduct helps people to grow and find meaning in their work. Staff act with confidence when they know what behaviours will be supported. They know also that they can have input to ongoing changes to the document.
- A code of ethical conduct can prevent potential problems before they occur. The process followed when developing a code of ethical conduct should consider scenarios that can lead to uncovering potential problems.
- Ethical behaviour is linked to all aspects of an organisation’s day-to-day operations. Whether it’s quality improvement, strategic planning, or collating and using information collected by the balanced scorecard or six sigma, a code of ethical conduct encourages people to be more sensitive to their own and others’ behaviours.
- Ethical behaviour promotes a strong public image. Customers choose to do business with organisations that adhere to advertised codes of ethical conduct.
- Ethical conduct has a major effect on an organisation’s culture. People experience at first hand how their values and actions contribute to their organisation’s culture.
