ETHICS AT WORKPLACE The single most important business imperative All seemed to be going well <strong>for</strong> this 22,000 strong, over $110 bln revenue, blue chip organisation. But then suddenly, everything started crumbling - overnight - Stock price fell to near zero, senior management went behind bars and it seemed that all 'energy' had been sapped out of this once giant organisation. What went wrong ? Simple, top leaders had crossed that thin distinguishing line of ethics. This story has been repeated often and with one certainty - world does not <strong>for</strong>give any institution that mistakenly believes of escaping consequences after infringing ethical standards. Maintaining high ethics is becoming a single most important business imperative. Workplace ethics is a set of ideal and principle that an organisation commits to and ensures that all its constituents adhere unfailingly. This then becomes a set of <strong>for</strong>mal or in<strong>for</strong>mal standards of conduct that guides behaviour at workplace. These standards are partly based on core values such as honesty, respect, and trust often rein<strong>for</strong>ced or demonstrated by the actions of organizational leaders and co-workers. If embedded strongly into the DNA of the organisation, they can help guide high-per<strong>for</strong>mance organizations through the stormiest of ups and downs. While there are certain values that are essential to furthering ethical actions, there is no one magical 'code of conduct' document that applies to all businesses. Ethical guidelines will vary President's Message with the values, culture, processes and the core business of each individual organization. While an accounting group might focus on integrity, confidentiality and obligations to its clients, a baby food or toy manufacturer might emphasize safety of its product. Most organisations will, however, define expected behaviour around financial and personal integrity. An organization culture that encourages employees to raise issues and show courage in confronting unethical or illegal practices without fear of personal consequences builds faith in its uprightness and prevents any suspicious activities from going unnoticed. Progressive organisations provide a <strong>for</strong>um to employees to safely report violation of law or organisation norms. Given many names like "Speak up", "Whistle Blowing" etc they uni<strong>for</strong>mly ensure confidentiality. Some organisations also appoint independent, external ombudsman. Organizations that maintain strong ethical practices invariably attract higher degree of employee loyalty, tending to attract better talent and have higher retention record. A study by Hudson Institute found that 55 percent of employees who describe their workplace environment as ethical are more likely to stay with the same organization <strong>for</strong> a longer period. Ethical failures are rooted in leadership failure. Leading to lack of a corporate culture in which ethical concerns have not been given due importance or, worst still, where these have been compromised <strong>for</strong> some immediate business gains. Most often under the mistaken belief, that these infringements will be covered up and will not be unearthed. A standard of ethical behaviour has to be set and displayed at the top most level in the organisations. Employees are perceptible enough to distinguish stated ethical aims and those actually practiced by the organisation leaders. How these leaders 'walk-the-talk' decides how much adherence to ethical standards gets permeated in the organisation. Corporate leaders have a professional obligation to build and foster a valuesbased culture that nurtures high ethical standards. Only by instilling these values, will they be able to ensure long term sustainability of the organisation. Thus it is by their own conduct that they demonstrate the extent of their commitment. In Indian scenario, some large and reputed organisations have had close brush with ethical violations. In most cases where these organisations have been exposed the negative impact has been immediate and lasting. Though in a few cases, un<strong>for</strong>tunately, by their mega growth some organisations have even managed to gain legitimacy and obliterate their past reputation. Increasing number of companies, in the last decade, have adopted and en<strong>for</strong>ced codes of ethics and on-going educational programs to help combat ethical breaches. Clearly employees have an inherent desire to work in a clean work environment and if they are made aware of the organisations commitment and also the processes of escalation they would rather resort to compliance than turn away from reporting an infringement. Educating the work<strong>for</strong>ce there<strong>for</strong>e is critical, if a culture of high ethical standard is to be evolved. Organizations known <strong>for</strong> non ethical practices not only find themselves in legal entangle sinking millions of funds, but also face challenges in recruitments, employee productivity and loyalty. Ethics matter in business because all internal and external stakeholders stand to gain when individuals, organizations and employees seek to do what is right. A clean image attracts both customers and investors. Though it does not appear on the balance sheet, good corporate ethics are huge assets to any organization. Conduct of senior management and direct supervisors, coupled with positive rein<strong>for</strong>cement <strong>for</strong> ethical behaviour, are major factors <strong>for</strong> promoting ethical standard amongst the work<strong>for</strong>ce. Zero tolerance policy towards infringement further rein<strong>for</strong>ces the seriousness of intent. At the end of the day, it all boils down to sincere intent. If the intent is really to be ethical, people will sense it. Even value it. - Aquil Busrai | <strong>HR</strong>D News Letter | December 2007, Vol.23, Issue:8 10 |
Suryadatta Colour Add | <strong>HR</strong>D News Letter | December 2007, Vol.23, Issue:9 11 |
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