Ethics is becoming a BIG issue again in organizations. The evidence includes…
- Sam Bankman’s cryptocurrency company’s collapse – “...a place full of conflicts of interest, nepotism, and lack of oversight.”
- The failure of Silicon Valley Bank (SVB) after risky and unethical behaviors lead to deceit and manipulation, including their leadership dumping stock in their own organization right before the collapse.
- The brutal deaths of George Floyd and Breonna Taylor, and Tyre Nichols at the hands of police officers who engaged in unethical and abusive practices and behaviors.
- Wells Fargo recently reaching a $3 billion settlement after employees opened millions of accounts without customer consent to boost their financial portfolio artificially.
- Volkswagen managers cheating on emission standards inspections.
- And let’s not forget that the Enron mess was one of the largest public ethical scandals ever and that it led to the imprisonment of several members of its leadership group and Congress enacting additional oversight of financial reporting through the Sarbanes-Oxley (SOX) Act.
What is Ethics
Ethics are the moral principles guiding a person’s behaviors or how they conduct activities within a society, profession, or organization. In business, ethics refers to setting standards for morally right and acceptable behavior and decision-making. In society, it is doing good and avoiding harm to others.
The Belmont Report by the National Commission for the Protection of Human Subjects of Biomedical and Behavioral Research in 1974 identified three basic principles for ethical behavior: 1) Respect for persons; 2) Beneficence – securing a person’s well-being; and 3) Justice.
These principles have been further defined and expanded for business to include:
- Honesty
- Fairness
- Leadership
- Integrity
- Compassion
- Respect
- Responsibility
- Loyalty
- Law-Abiding
- Accountability
- Transparency
- Environmental Consciousness
Because the law cannot cover every situation, ethical policies and practices in society, associations, businesses, and other professions are designed to enhance legal standards. For example, ethics in banking requires an awareness of how the behaviors and practices of a financial institution can affect society and the people within it. Ethics creates guide rails for making decisions to reduce harm or compromise on acceptable principles.
When unethical behavior is uncovered, the entire organization is scrutinized and vilified. Damage from the employees’ standpoint and the whole organizational structure must be managed and repaired ethically. The organization must be rehabilitated so that its most important assets – its culture and employees – can refocus on ethical behavior, leadership, and decision-making.
Ethical Behavior as a Core Value of Respect in the Workplace
Codes of Ethics are tailored to individual societies, businesses, and professions. They outline acceptable behaviors that are beyond government control. Ethical behavior in each discipline or culture may differ where universal values and morals do not exist. Still, underpinning every ethical decision, you must find respect. Doing what is morally right for the society or business in which the decision is being made and reducing harm by everyone in the organization are the ultimate goals of ethical behavior and respect.
When an organization is genuinely ethical, the Code of Ethics must be seen and accepted as a core value that guides every business and people management strategy. In addition, every employee, from the janitor to the CEO, including contract employees and businesses, must use the organization’s ethical standards as a guide to making decisions in their daily work. This sets the foundation for a respectful, honest, ethical workplace that can thrive for many years.
By Captain LaPonda J. Fitchpatrick (Ret.), SHRM-SCP, ACE, ASC, EDICT©, IDI® www.trainingfortherealworld.com
