The Ethical Road to Success
By Betty Penny
When we build an organization, we are really building our own beliefs and values into our company structure. Our organizations are, after all, a reflection of ourselves. As such, we wouldn’t go around stomping on our competition, bad-mouthing or bullying the smaller companies and destroying potential client relationships would we?
Do you remember the old Sunday school discussions on being fair and having ethics? Today, ethics may seem to have gone by the way side but most businesses do have a code of ethics, written right into their mission statements, as well as into their corporate literature. If they do not, it should be the responsibility of the owner, manager or business consultant to establish a code of ethics. Usually codes of ethics reflect the nature of the corporation’s business.
A code of ethics is actually established through an examination of the company, its mission statement and its employees. It can be long and extensive in its approach or short and to the point. The choice is really up to the business owner. A code of ethics or standards of conduct and similar statements of corporate policy and value have actually become more common in today’s working world. Today, over 90% of all major corporations carry some form of public policy or code of ethics standards. The reasons for this is clear when one considers that codes of ethics help companies to increase public confidence, stem the tide of regulations, improve operations and even respond to transgressions.
Public confidence is achieved through codes of ethics when they are shared in company literature such as brochures or sales and promotional materials. Potential clients feel they can trust the company more when they see statements of ethical business built right into the literature of the company. Aside from just saying it, the company must also literally “live up” to it. It is hoped that when a code of ethics is written, and the business educates its employees as to its practice, that it becomes a self-regulating mechanism.
So how does a code of ethics stem the tide of regulation? With a code of conduct achieved, validity to the government is also achieved by demonstrating that the organization is on the “up and up”. Few businesses adopt a code of ethics without having proved the code to be true first. In this way the government is more apt to stem the tide of regulations surrounding the particular industry, if the industry shows the government that they are ethical and fair to customers.
Larger organizations require a code of ethical behavior simply because they have outgrown the days of openly discussing how employees treat customers, shareholders, potential clients, fellow employees and the general public. Many organizations have become more decentralized and they require a central and consistent message across the organization about what the organization stands for – thus a code of ethics. Even if you are a company experiencing growth, it is worth developing a code of ethical behavior as it keeps the message clear to new and old employees.
Having an ethical message is extremely helpful when a company comes under fire for some action or when a miscommunication happens. As a response to transgressions having a code of ethics offers defense in the face of either internal or external forces transgressing, ethics aid in the response. The caution is of course, to be truthful and honest, and ensure what you are stating is true.
Aside from ethics, social responsibility dictates that the smallest family unit to the largest corporation is responsible for the behavior of its members and will be accountable for their misdeeds. Like the old adage states, “What goes around, comes around”. Many organizations now have social committees, participate on community based projects, and actively demonstrate their “social responsibility”.
All of this is of course, for the betterment of society and the longevity of the business. For without ethics and social responsibility, as Ralph Emerson would say “the lengthened shadow of an organization would be much shorter indeed”.
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