What are the key elements of an effective business ethics program? For more than twenty years as an ethics author, ethics speaker and ethics consultant, I have arrived at seven areas that every program should stress. At the outset of this post, I would say that as a business ethics speaker who has a keen interest in corporate social responsibility, that as good as any program may be designed, periodic reinforcement and review is mandatory.
What are the Key Elements of an Effective Business Ethics Program?
- Ethics Training – In my career as a business ethics keynote speaker and consultant, I have been constantly surprised by the number of employees, in industries across the board, who have no grasp on what a commitment to good business ethics looks like. I am not singling out new employees, but long-standing employees. Ethics training must be in place for everyone.
- Focused Obligation – Key executives, the entire “C-Suite,” must be as committed to an ethics program as the interns and the new hires. No exceptions. If rules are in place, they must be in place for everyone. It is a focused obligation and a contract with the program.
- Whistle–blowers – How will the organization respond to poor ethical behavior? If there is harassment of any kind, accounting fraud, legal fraud, bribery, substance abuse, workplace bullying, etc. who is responsible for handling and thoroughly investigating the complaint? Will there be guaranteed confidentiality? What will be done about it, if true?
- Ethics declaration – What is the statement and position of the organization? If it is written and acted upon in daily practice, what does it look like? If the organization declares corporate social responsibility and business ethics, how is that spelled out and who buys into it?
- Monitoring of the program – This is an important, two-part point. Is there an appointed ethics committee across all functions (marketing to manufacturing to transportation, etc.) to review complaints? Secondly, is there a tracking program in place to ensure that everyone gets treated equitably? The CEO must be as open to scrutiny as a line-worker in manufacturing.
- Third party oversite – the key elements of an effective business ethics program must be contingent on a formal or “unceremonious” review. It asks, “How are we doing and what do we need to improve?” If the organization has done a good job, for example, an absence of sexual harassment and bullying in the executive area but incidents are up in manufacturing or construction, then the program is failing employees; if a whistle-blower was “identified by unauthorized people” and received retaliation of any kind, it is a systemic failure that must be addressed with strong consequences.
- Reporting – Company-wide ethics reporting should be available to every employee in the company. Obviously, violators shouldn’t be identified, but it closes the loop of the overall effectiveness of ethics training. The key elements of an effective business ethics program should include a signal of sorts to reflect upon the overall effectiveness of the business ethics program.
As an ethics consultant, keynote speaker and ethics book author, I know that the implementation of an ethics program might bring about a shift in company or association culture. It may make certain people uncomfortable.
However, this is business ethics for 2022 and beyond. The world is demanding the addressing of issues from a prohibition against pollution to respecting the rights of the trans community. No organization can afford the disgrace and the reputation of being unethical. As an ethics speaker, I must share many organizations are long overdue for a change of mindset.
An ethics program will make your organization stronger and better. Embrace it!
LEAVE YOUR COMMENTS!
