Workplace Ethics: Employee Misconduct is Risky Business
By Priscilla Kohl | HRTools.com Business Writer
Does an organization have a conscience?
The only way to answer “Yes” to that question with 100 percent certainty would be if it were possible to verify that every employee has a measurable conscience. Pre-employment testing technology has not yet advanced to that level of precision.
So, how can business leaders today develop a collective conscience within an organization? The answer is: Implement a Workplace or Business Ethics program.
Before continuing any further, let’s look at how the Society for Human Resource Management (SHRM) defines ethics:
“Ethics is defined as rules of conduct or moral principles that [serve to] guide individual or group behaviors. The focus in business ethics is an awareness of organizational values, guidelines and codes, and behaving within those boundaries when faced with dilemmas in business or professional work.”
Today business leaders are waking up to increasing demands for strengthening workplace ethics.
At a time when public trust is spiraling downward—because of decades of corporate and financial scandals—many consumers are cynical and skeptical that business ethics exist at all. In fact, increasing numbers of consumers are unwilling to part with their dollars to buy from companies with questionable business ethics.
So, as business owners consider the power and influence of the buying public, many are concluding that they can ill afford to ignore demands for ethics reform.
Most business owners understand the capital value of a glowing reputation, and that business ethics and reputation go hand-in-hand. Employee behaviors that are unethical, immoral and illegal can be very serious and costly to a business. Examples include:
- Embezzlement and misrepresentations (hours worked, etc.)
- Shoplifting or stealing company property
- Sexual harassment
- Endangering the safety and health of co-workers
- Intimidating or abusive behavior (workplace bullying, etc.)
According to the Ethics Resource Center (ERC), a nonprofit, nonpartisan research organization, the state of American business is at great risk due to high rates of employee misconduct.
Published every two years, its 2007 National Business Ethics Survey report states: “In the past 12 months, more than half (56 percent) of employees personally observed conduct that violated company ethics standards, policy and the law.”
Even so, many employers assume that their employees would automatically pass a standard ethics quiz with flying colors. When, in reality, employees come from diverse backgrounds, values and experiences. What is OK to one person can be completely unacceptable to someone else.
For example: One person might think it’s always wrong to walk across a street when the traffic light is red; on the other hand, another person might think it’s OK to cross the street when the light is red, as long as no cars are visible.
Times also call for a re-evaluation of focus. Some ethics programs primarily focus on telling employees what they should avoid, rather than what they should do.
Consequently, higher education is responding to what has been described as an ethics crisis. In fact, there has been an upswing in undergraduate and graduate ethics course offerings and enrollments.
According to a report entitled, “Ethics Education in Business Schools,” the Ethics Education Task Force editors stated that the report is based on a premise: It is time for business schools to renew a focus on and revitalize a commitment to business ethics.
Research reveals that when business ethics are ingrained within the organizational culture, those organizations are more likely to have enterprise-wide participation.
Strategic-minded human resource (HR) professionals and organizations recommend that employers incorporate an ethics component into the employee performance review process.
In a 2008 survey, SHRM found that 43 percent of organizations surveyed said that ethical conduct was part of employees’ performance appraisals. It wouldn’t be a stretch to imagine that most of those 43 percent have, or are close to achieving, a prioritized business-ethics culture.
Of course, organizations are ethical only inasmuch as the employees’ awareness and understanding of corporate ethics expectations influences their commitment to governing their own behaviors.
The point is that employers should specify and communicate ethical boundaries and expectations to employees. Those expectations should be followed up by clearly stated consequences and annual emphasis and training.
Once employees understand and agree to ethical expectations, as outlined in their performance reviews, they will more likely take the employer’s commitment and expectations more seriously. Employees also will better understand how they will be held accountable for meeting their own individual responsibilities and commitments.
Lastly, it’s important to be reminded that according to the ERC and the previously-referenced National Business Ethics Survey report:
- More than half of employees surveyed have observed misconduct in the workplace.
- Compliance is not enough. “Ethical culture is the single biggest factor in determining the amount of misconduct in your organization.”
<p>Today, more than ever before, business leaders are waking up to increasing demands for strengthening workplace ethics.</p>
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