Business ethics has become and continues to be a popular news topic in today’s world thanks to Enron, Tyco, WorldCom, Adelphia, et al. We have read and heard about the “code or standard of ethics exemption” and where commitments to ethical standards were made to gain business advantage. And now we hear about zero tolerance for unethical behavior. It now appears as if the pendulum is swinging strongly in the direction of zero tolerance for unethical behavior based on reactions to instances of ethical misconduct across the business landscape.
Good business leaders have ethics, character and integrity. To lead and operate an ethical organization, you must create an environment for your people that allows them to operate ethically. Here are ten (10) tips from your strategic thinking business coach on how to build an environment of ethical behavior.
Tip #1: Create and adopt a formal written Code of Business Ethics for your business and distribute a copy to all employees.
Tip #2: Create and implement a formal system to review, update, and enforce the Company’s Code of Ethics.
Tip #3: Communicate the Company’s Code of Ethics and provide guidance and training to all employees.
Tip #4: Commit to ongoing training and reinforcement of ethical behavior and require employees to take an ethics refresher course.
Tip #5: Lead by example and “walk the talk” by following the adopted Code of Business Ethics.
Tip #6: Reward ethical behavior.
Tip #7: Deal with unethical behavior quickly, firmly, and fairly when it occurs. Everyone must be treated in the same fair and impartial manner.
Tip #8: Encourage all employees to take responsibility for their behavior and maintain a strong personal code of ethics.
Tip #9: Designate an ombudsman or other confidential channel for employees to express concerns or report unethical behavior confidentially and without fear of retaliation. Appoint a formal committee to consider ethical issues in accordance with the company’s Code of Ethics.
Tip #10: Promote zero tolerance for unethical behavior.