Good Business Ethics is Good for Business
Life can imitate fiction
A few years ago the movie, Office Space, introduced us to a view of an office with no sense of humor, no effective management, and no sense of ethics. Office Space continues to be a cult hit. The mere repeat of one of the lines from the movie will bring a laugh or a smile to anyone who has seen it. It reminds many of us of some place we’ve worked. The working environment in Office Space illustrates that unethical behavior begets unethical behavior. Do you trust your employees? Can your employees trust your company? If either answer is “no,” then there are a number of things you need to consider to restore a reputation for strong ethics.
Maintaining ethics—good or bad—has a direct effect on business
The ethical behavior of your company has a lot to do with your ability to attract and retain good employees. It also has a lot to do with the productivity you can expect your employees to perform. Business ethics is generally defined as a moral guideline that regulates the acceptable or unacceptable behaviors. We expect the management of a company to demonstrate honest and straightforward activities as they relate to the employees and the customers of a company. When we consistently find that behavior, we consider the company—however large or small—to exhibit good business ethics.
Who is responsible for a company’s ethical behavior?
Ethics, good or bad, is established at the top. The observed behavior of senior management in their dealings with employees, customers, and even competitors, quickly travels from the top to the bottom of the staff. Ethics, like any form of trust, is hard to establish yet easy to destroy.
Five, top-down company actions to maintain ethical standards of the group should include:
1. Never accept a manager, or any staff member, behaving unethically as it is always unacceptable. Ethically help them to find another suitable position, but do not allow them to function in the role where the unethical behavior was observed. Doing so will condone it in the eyes of others. Others are always watching.
2. Seek out and hire employees with strong ethics, especially in financial accounting, purchasing and customer service areas. Do your part by reading and understanding financial reports.
3. Some business is not worth obtaining if obtaining it means having to do something underhanded. Again, others are always watching. It is worth remembering how difficult it is to establish a trust and how quickly a dishonest action can destroy it.
4. Lead by example. When faced with decisions where the easy solution is not the ethical one, go with the ethical one. Customers, competitors, and employees expect to be treated with honesty. Unethical corporate behavior has become a sensitive issue because so many have lost so much. If you are witnessed doing something unethical, expect the loyalty and trust of all to be affected.
5. Follow by example. Would someone you consider to have high ethical behavior react favorably to your plans or actions? Such thoughts are a good test. What response would you expect from your pastor, rabbi, priest, or even your mom?
Five, bottom-up, 1-on-1 activities that demonstrate ethics to each company employee
1. A simple “thank you” goes a long way to cement good trust relationships and loyalty from your employees. One of the most lasting would be to pen a simple thank you note, personally addressing gratitude, and place it on the employee’s desk or inside his salary envelope.
2. Genuine interest in people is another way to keep relationships secure. Loyalty is a two-way street and showing interest in people by calling them by name and taking interest in their views and ideas is a great start. Keep a notebook handy and whenever you speak with an employee, not only look interested but take notes and respond to comments and requests. Spend some time each day talking to employees about interests other than work.
3. Celebrate. It is important to recognize accomplishments, anniversaries, and special events in an employee’s life, projects, and business–related successes.
4. Get away from the office with your employees once in awhile. Schedule a simple monthly luncheon where some or all (depending on size) can join you in an informal setting to chat about whatever comes up or where you can get open feedback on issues and behaviors.
5. Meet frequently with employees, keeping them informed about company plans and actions. Anything you can do to make employees feel that they are an important part of the decisions and directions of the company has the two-fold affect of both building loyalty and governing ethical directions.
Promotion of ethics becomes a central focus in business
University business degree programs now require full courses in ethics before completion of the degree program. The headlines of almost any newspaper in the world chronicle the aftermath of unethical corporate behavior. The most famous include Arthur Anderson, Enron, and MCI WorldCom. Devious, unethical behavior is not merely the domain of the very large companies; unethical behavior can be found in all levels and in all sizes of companies.
In a recent survey by Robert Half International, a third of the surveyed executives said that the work environment is the most critical factor in employee retention. Pride has a great deal to do with that and pride comes from the respect a strong reputation commands. Placing emphasis on strong ethics increases employee longevity just for that one reason alone.
Employee pride and satisfaction begets strong, ethical behavior. Simply put, employees who have trust in the business dealings of their employers are more likely to stay longer and do better work. Both employers and employees will always win out in the long run.
For more information about how we can help you with your Human Resources and hiring processes, call us at 888-700-8512, request a proposal or contact us.
