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Organizational Culture, Ethical Standards and Workplace Behaviors Are Inter-Related Studies Show That Improper Ethical Behaviors in the Workplace Are A National Problem Affecting You And Your Company. The deterioration of ethical behaviors in the workplace affects everyone. Ethical issues in the workplace have not only become more significant but more frequent cutting across all types of organizations. These issues have surfaced not only in large organizations like Enron and Merrill Lynch, but also smaller, local companies, non-profits and at all levels of government. Ethics is a very broad term frequently used to deal with matters of morality as well as behaviors unique to a group. As we use the term, we are referring to the behaviors associated with a group. Relevant examples include "medical ethics" or "legal ethics" which are norms of behavior specific to these groups. It can also mean behaviors associated with working for a particular company or institution. At the broadest level, ethics can apply to behaviors associated with a community or society. If we examine ethics in a broad context such as being a citizen of the United States of America, we can see that there are certain human behaviors that can be hurtful to the interests of other members of the group or society. Social behaviors require certain constraints to promote and advance the common good. Those behaviors that promote the common good or at a minimum do not detract from it we refer to as ethical. Individual human behaviors that harm the common good or impinge on the rights of others we refer to as unethical. Understood in a positive and constructive way, ethical behaviors flow from a responsibility we have to members of our individual groups-society at large, our communities, our families and the various venues of communal, human activity. If we behave as if we have no obligations or responsibilities to the good of the group, our behaviors can become destructive and harmful. It is important to recognize this as we, as members of our own groups, make value judgments about the behaviors of others. We frequently describe these behaviors as ethical or unethical. Whether these behaviors are moral or not is not the focus of our concern. We are concerned with understanding the common good and acting in a way that is consistent with supporting and upholding it. Our entire society today is engaged in discussing and evaluating behaviors that seem to permeate all venues of human behavior in negative and harmful ways. The very recent financial malaise that has engulfed domestic and international markets of banking and commerce can be understood and judged variously arising from criminal, unethical or irresponsible behaviors or are a combination of all three. We also must understand the role that irresponsible behaviors play today in assessing the state of the common good. As members of our individual groups, we have an affirmative responsibility to uphold the good of the group and not act in ways that undermine or demean these interests. It is only in this way that we can understand both positively and negatively the consequences of our individual behaviors. Actions have consequences. We are human beings with the ability to choose. Choices therefore come with responsibilities and some of our choices have very serious and detrimental consequences. It is the sum of these recent and well publicized assaults to the common good that have captured our attention and demands our positive response individually and collectively. Ethical Risk Risk usually arises from ignorance, not unpredictability. If you can define your risks, you can limit them. Surprises may be fatal to your business. Ethical risk can be defined as the incidence and reporting of misconduct in the workplace. As shown in the studies described below there are relatively high incidents of misconduct and a low incidents of reporting. This indicates a high probability of numerous ethical risks in business, non-profits and government making each sector vulnerable to negative consequences including public scandal. National Resource Center National Studies The National Resource Center has conducted a series of longitudinal surveys of the employees of companies, non-profits and government. The latest studies were conducted in 2007 and reported that the top misconduct behaviors observed were:
Participants in similar surveys taken in previous years reported very similar findings but also included the withholding of information and discrimination. In the latest National Business Ethics Survey more than 50% indicated that they witnessed acts of misconduct. More than two in five indicated that they did not report what they saw. Study of HR Professionals Another study jointly published in 2008 by the Ethics Resource Center and the Society for Human Resource Management (SHRM) of over 500 professionals in human resources management found:
While HR professionals say that they are their organizations' primary resource for dealing with ethics-related issues and creating ethics policies, they do not feel that they are truly part of the ethics infrastructure. Instead, they are asked to "clean up" situations caused by improper behavior. This is a clear indication that in many cases the management of positive ethical behavior is notably absent. Societal Issues Are Costing You Money Every organization has an internal culture that affects the behavior of its workforce and its internal and external communications. Much of this culture originates from a company's leadership and is influenced over time through the company's Mission, Vision and Values. The management and workforce are also exposed on a daily basis to the external environment. Every person and institution has been touched or influenced by these issues affecting the culture in which we live. If you agree that societal issues impact individual behavior then you must agree that the external environment affects you and your company. As a result what is ethical or not can often become unclear. Ethical issues that surface in your business can not only affect your bottom line through direct costs but have associated indirect costs as well. The direct costs are reflected in turnover, recruiting and training as well as lost business opportunities. Public scandal and lawsuits could make direct costs even greater. Indirect costs that are normally associated with poor ethical behaviors are reduced morale and productivity, the latter in the form of sloughing off at work and absenteeism in the form of real or perceived illness. There is another cost that is associated with public scandal or publicity from lawsuits as a result of bad workplace behaviors. The loss of a good reputation as a business or business person can become a very real cost and possibly the costliest of all. |
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ABO Resources 1032 Matador Drive SE Albuquerque, NM 87123 505 291.9935 info@aboethicsresources.com |
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Organizational Culture, Ethical Standards and Workplace Behaviors Are Inter-Related |
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