Everyone thinks they are ethical until they’re not. Executives must understand the nuances of ethical behavior in order to avoid unintentional infractions and harmful missteps that can result in costly lawsuits or even jail time. For example, while it may seem harmless at the time, accepting tickets to sporting events from vendors can easily lead to charges of bribery if the relationship becomes one where payments are expected in return for decisions made on behalf of your organization.
The Importance of Ethics in Corporate Culture
While ethics training is important, it’s not just a legal defense. If you’re on your way to a leadership position or are a leader in your organization, ethics training is even more crucial because of how important it is for leaders to be ethically-minded. It is crucial that corporate executives implement ethics and compliance measures at every level of their company; if they don’t, they could face both long-term and short-term consequences. And ethics training can’t be just a “check-the-box” approach. That’s boring and ineffective!
Why an Executive Ethics Program Is Vital
There’s a quote from Henry Ford that says, If you think you can or think you can’t, either way you will be right. Ford was talking about automobile manufacturing when he said it—but it applies to every industry. An ethical framework is crucial for ensuring best business practices are observed at all times and by all employees. Whether by executive mandate or regulatory compliance, ethical training can save your organization time and money.
What Executives Need From Their Ethics Program
Ethics training for executives should help them develop better judgment, a sense of moral obligation and a feel for what’s socially acceptable. But more importantly, when executives understand what motivates well meaning people to make unethical choices, they can often detect an issue before it becomes a problem and stops the unethical (and sometimes illegal) action in its tracks.
Ethics Training is a Legal Defense
Ethics training is one of many ways that executives can ensure their business is doing everything it can to avoid unethical behavior. Failure to address ethical dilemmas and misconduct could result in damaging lawsuits and fines, so creating an environment where employees feel comfortable reporting ethical violations is critical for companies looking to reduce legal risks. Ethics training does not only benefit a company’s legal defense, but it also helps build a culture of trust and transparency that can boost productivity and employee retention.
Let’s move past “check-the-box” ethics and compliance training and create something meaningful and legally protective.
