(Part 2 of an ongoing series)
As a business and organizational ethics speaker, ethics consultant and book author, I have always been interested in the impact a sense of ethics has on employees. In talking about business ethics and corporate social responsibility most HR professionals like to dwell on the measurables e.g., leadership, culpability, governance and even a commitment to safety.
While the areas and measurements above are important, there are lesser talked about impacts that clearly affect the answer of what is the impact of ethics on business. I would like to touch on a few of those issues with this post.
Some dynamics of a business with a positive ethical impact
- Allegiance – We may call it “Loyalty,” but I call it a sense of allegiance between an ethical company and its ethical workforce. Following the pandemic, some unethical companies were decimated by workforces leaving jobs. Especially being affected were unethical organizations with poor benefits, disrespect for employees and management characterized by reactive rather than responsive and authentic management. The attitude of those upon leaving the organization is generally, “They were never good to me, so why should I care about them?” It is a statement of allegiance and surprisingly, salary has little to do with it.
- Equity and esteem – How does the organization view the broadest spectrum of their employees? It is not only a matter of ticking off boxes, but in placing value on employees within those boxes. Whether issues of race, religion, sexual orientation and/or disability, what is the organization’s track record in terms of promotion, respect, a lack of litigation and overall fairness? For example, the number of women in an organization (while important) must only be celebrated only if there has been zero tolerance for sexual harassment and abuse throughout all departments.
- Is the organization reasonable? Business entities are increasingly relying on outside sales agencies, contractors and part-time employees in addition to numerous vendors. How is the organization seen by those who are “outside” the salaried workforce? In terms of the corporate face, is everyone treated in a reasonable and timely manner?
- Concern – Concern is an intangible and yet, it is often a reflection of an ethical (or unethical) organization. How does an organization treat its stakeholders, customers, employees and the community in which it lives?
- Is the organization authentic? Does the organization communicate in a clear and balanced fashion? Or, does it only relate good news or omit negative discovery? Whether a new, neighborhood coffee shop or a multi-national pharmaceutical company, balance in all things, all news, good and bad, is the most desirable state.
- Who takes the credit? The hallmark of an unethical organization is when management takes credit for the work of others. It is a sure-fire marker of poor ethics. Conversely, an organization that elevates and celebrates its work teams says a great deal about the empowerment and ethical behavior of a company.
- Environmental track record. What is the impact of ethics on the environmental record of a company? Has the company been involved in environmental litigation? Has it polluted or disregarded environmental laws? Has it knowingly put its workers at risk?
To be sure, there are many other hallmarks of an ethical company. Positive, ethical behaviors manifest themselves in everything the organization does internally and to the outside world. An ethical workplace is ultimately a positive and empowering place to work.
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