LESSON 2 a Challenges to Ethical Behavior jproduction paying attention to ethics makes good business sense. We create goodwill gur companies and enhance our chances of success when we meet our scugonsand treat customers, colleagues, and subordinates fairly and honestly. Ghial behavior is important in the workplace, whether it’s an office, a factory, Bpeardroom, or a construction site, Everywhere business is conducted, ethics raters ‘When we hear the word ethical, several ideas come to mind, most notably pod (versus bad) and right (versus wrong). Many professions and corporations have developed codes of ethics to address their unique business situations. By developing a code of ethics, an organization sakes it clear that employees and members cannot claim ignorance as a defense for unethical conduct. In general, the proper role of corporate management in promoting business ethics involves clarifying and enforcing expectations, listening toand respecting diverse views on various issues, acting consistently over time, and creating an atmosphere free from harassment and inequality. A professional code of ethics sets a standard for which each member of the profession can be expected to meet. It is a promise to act in a manner that protects the public's well-being, A professional code of ethics informs the public what to expect of a ‘company and its employees. What is Ethical Behavior? Whats ethical behavior? Is itbased in religion or is tbaséd only in the secular ‘world? Let's look at some definitions from various sources and then go from there, Dictionary.com defines ethics as a system of moral principles: the ethics of a culture. The rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, profession etc.: medical ethics; Christian ete, So according to the dictionary, ethics is not necessarily based in religion but ‘an be based there. Certainly different faiths, whether one is Jewish, Christian °rIslam or some other faith there are beliefs in moral principles that could be “sidered ethical behavior. 247Black's Law Dictionary defines ethics as “a consensus of expert opinion a, the necessity of professional standards,” They (Black's) also define ethics in terms! of behavior and guidelines among the members of a profession / professions organization and theie duties towards one another, clients and the public Ais would be a definition that we are all familiar with in our profession lives. But is there more to it than that? Let’s look at what others throughout history have said Aristotle defined ethics as “practical wisdom”. Why practical? Because j “volves an action (behavior) both at the individual and societal/corporate les Aristotle also believed that ethics related to what should or should not be does with regard to the things are good or bad for an individual. He also said “we seu Stusying in order to know what virtue is, but to become good, for otherwise there would be no profitin it” In other words, we have to “practice” it for lacks « better term. It requires action on our part, Ethical Behavior at Work sa term “ethical” can be nebulous and open to interpretation. Many people S2y that its one of those things that you know when you see it or the lack st Because it can be difficult to define, its essential for leaders to be specific wines they say that they expect ethical behavior from their employees. More devine uldelines can help everyone get on the same page. Generally, ethical behavior is doing the right thing and adhering to Professional standards, While this definition isa good start, it doesnt give sp. Buidance: That why its essential tohavea codified set of ethical standards er voxs business. This code can help to provide employees examples of moral, quandaries tney may face and ideas about how to handle these situations, If you sre part of # professional association in your industry, this can be a great resource. Many of these organizations have guidelines that you can use. However, you may need to embark on a do-it-yourself journey for your ethical guide, Creating Your Own Code of Ethics If you can't find an industry-specific code of ethics or you don't agree with what you see, you can build a code of ethics yourself, Consicies why you want 10 record your stancarco/in ie fal placed youbaseti MMT Ae ae, cocomert should help guide employees in difficult situations, outline repercussions (ot ctbleal violations andl cresiea Polite coinetny eulncehvetteas Gite « opde of ethics that will help your business thrive.F jle your industry may have unique ethical considerations, there are a few whi | ‘last all codes should address, For example, your writen system should hides cide what to do if «confi of interest arses, Furthermore na fuidelines should discuss topics like social media, client privacy, privacy for proprietary information, handling cash and submitting expenses. four code of ethics should also clearly outline a protocol for when things All employees should know who to tell if they witness unscrupulous Spor. Furthermore, they should krow what will happen after they report i bajo and that you wil protect ther from retaliation Be transparent about Row Ae process will work, Be sure to involve your human resources team in these decisions. ‘Don't expect to come up with everything on your own. Instead, seek input rom people throughout the organization. Any employee may have the ideas you fo make the right code of conduct. Once you have your code of conduct, Fonte afraid to revise as necessary, Setting aside time each year to revisit your gostsand rules can help keep your company ethical How to Teach Employees Ethical Behavior While defining your expectations in a written code of ethics is an excellent star, it is not the only thing great leaders should do, Unfortunately, 60 percent ‘funethical conduct in the workplace involves a manager. Since both company culture and behavior come from the top down, it's essential to turn this trend around. All managers within your organization should display ethical behavior whether or not someone is watching. 1. Ethical behavior starts with you. It can be downtight impossible to get your ‘employees to act morally if they see that you do no such thing. After all, itis, difficult to take someone's advice seriously when she doesn't take it herself 2. Regular training for all employees. Sometimes, youmay nothave the expertise to address a specific ethical question. You can hire people who spend their lives studying and teaching these subjects, Furthermore, ongoing training. ‘an provide updated insight as the world changes. For example, the rise of social media has caused new ethical considerations for people in healthcare and other information-sensitive industries, With the new potential for HIPAA violations and information leaks, social media has become a hot topic in the business ethics world. 3. Enforce your rules. Employees who violate your company's ethical standards should face appropriate repercussions, Sometimes, that may mean redirection ‘or a verbal warning. For extreme violations, like sexual harassment or theft, you may need to let the person go or even take legal action. Either way, sticking, 249fate consequences outlined in your code of ethics shows how serio, ined your business, ‘4. Recognize integrity when you see it. Sometimes, it can be Gifficult to may, the right decision or even know what the ethical choice is. When YOU seo a 4 employee choose that path in the face of adversity, be sure to Praise her, o,. ifits only ina private conversation. ® pen and honest communication i key to creating an ethical busines jy find your business ata crossroads of if expectations change, leaders shou, make sure to talk to subordinates about the evolving situation Similac, managers need to ensure that all employees feel comforta unethical behavior that they witness, Since about half ofall pr ‘improper behavior each year, this practice can help you identi ble reportin, fofessionals sex fy problems Fe likely to sic, For Oample you can offer incentives through nudge" programs, These Plans is for a specified time limit, like a month or a quarter, and reward employees wh, exhibit certain behaviors in that time, Nudge programs can help everyone ‘new habits and feel lke they are working toward something How to Hire Ethical People Examples of Unethical Behavior Corrupt behavior can take many forms, but there area few immoral behaviors that come up frequently, Perhaps the biggest Culprit is the misuse of company time Same People may not realize that checking social mek: and making personal calls while on the clock is an ethical vilation, but it can be. Furthermore, some people Search for new jobs or work their sda husti while gr the job. 250KO eas unfortunately, abusive behavior is also a common immorality in the apace. This behavior can take many upsetting forms, such as racism, | egibiay. sexual harassment and emotional abuse. If you se this taking place |] Bier business, is important to address i immediatly. You should contact |] agente to lear about your options for recourse. You can evoid some of these a ‘with regular training and a zero-tolerance policy. ‘Theft is another all-too-popular form of unethical behavior. Whether the |] employe takes products, forges checks or lies about thei travel expenses, it is Sah Furthermore, employee thet is criminal. Open communication can help |] Tre that witnesses to these crimes feel comfortable coming forward, owntalls of Unethical Behavior ‘Business owners who allow unethical behaviors to run rampant risk ruining ‘their businesses. While some effects are obvious and immediate, others take time land destroy the company slowly. For example, you may stopemployee theft from immediately costing your business money, but an abusive employee can cost you ‘even more in the long run. One-way unethical behavior can hurt your business is by causing legal troubles. If you ignore blatant abuse, for example, you could end up facing a negligence lawsuit from the victim. Likewise, an accountant who cooks the books might save the business money initially, but that action could lead to significant legal trouble for all involved. Immoral behaviors can also affect your employees in ways that hurt the bottom line. Afterall, the best employees with high moral standards will often leave ‘company that does not meet those standards. As such, breeding a negative and unscrupulous culture can keep top talent out and give the business high turnover. Furthermore, the employees who do stay may feel defeated and unmotivated, which can suppress product If news gets out that a company has sketchy professional practices, it can spell disaster for the bottom line, With more consumers paying attention to company ethics, one news story about improper behavior can sink a small ‘business (Mackenzie, 2018). 251