Is That Really Ethical?

Ethics is rarely discussed unless we are being scolded or threatened by litigation, but ethics has to do with being a great place to work and gaining commitment from employees because they trust managers and other co-workers and they care about doing the right thing. Trust comes from knowing that, while mistakes may be made, decisions and actions are based on values and ethics.

Is it important to you that:

•  You are ethical?
• All managers in your organization are ethical?
•  Employees are ethical, and
• Employees believe that top management is ethical?

It should be important to you if you want to be trusted and your organization to be successful. Some research on employee perceptions:

• Recruiting: 81% of employees will recommend their company to potential recruits if they agree management upholds ethical standards. Only 21% recommend the company if they disagree.
• Motivation and Retention: 93% of employees who agree that the head of their organization sets a good example are satisfied with their organization. Only 31% are satisfied who disagree.
• Avoiding Risks and Minimizing Costs: Employees who trust and feel respected by their leaders are more likely to follow policies, avoid abusing benefits such as sick leave and the workers compensation system. They are much less likely to have destructive conflicts and sue the company.
• Profitability: Nearly than ten times the numberof studies have shown a positive correlation between ethical and financial performance.

 I was once called in to do teambuilding with a dysfunctional team that was loaded with conflict. Rather than take a “feel good” or goal-setting approach, I interviewed team members individually and found that the root of the problem was the supervisor didn’t walk her talk. She would tell the team not to do something and then would repeatedly do it. She would keep information secret but would pry into what employees were writing in emails to each other. She would set as a ground rule that staff should not share personal information while others were working, and then go into lurid detail about her weekend romps. She wouldn’t notice that people’s nonverbals were shouting, “Too much information!” Training could have helped. Feedback could have helped.

She lost her job, but that is not always the result when managers behave as if they don’t need to lead by example. However, sometimes they are not coached, disciplined or fired. Sometimes they are let go, but aren’t told why. So they repeat the pattern someplace else.

Like any unsafe practice, not holding some to a common standard is a risk that should be challenged respectfully but firmly. Too many people “go along to get along” and the culture communicates that it’s okay to compromise principles and to view policies as suggestions. Managers may be held to a higher standard but employees need to know clearly what is okay and not okay, and that written rules as well as rules of decorum will be taken seriously.

But ethics are more often sensitivity to the situation rather than a clear right versus wrong. Before doing ethics training, state government held a retreat at Salishan Resort and decision-makers thought it was the most responsible thing to do. The state had a rule to go with the lowest bidder and got a very low bid from Salishan. You can argue that there are lower cost alternatives the planners were ignoring, but they also ignored how this headline would look on the front page of the newspaper, “State managers treated to posh resort.” A lot of trust was lost due to that ill-considered decision

First impressions are much more powerful than complex explanations. We need to be conspicuously fair and ethical, avoiding even the appearance of taking advantage of the situation. Once trust is broken, explanations seem like cover ups.

Leaders embolden employees when they demonstrate, teach and reward practices such as:

• Keeping promises, along with a tendency to under-promise and over-deliver.
• Providing structure, training, check-ins and support to make doing the right thing easier.
• Soliciting feedback and reinforcing those who tell the truth
• Building a strong organizational culture where each person feels accountable for doing what is best.

If you want to explore what some think are innocent practices that are ethically risky and that damage relationships and reputations, consider viewing or showing the DVD “Ethics for Everyone,” available for free rental to Cascade Members by calling Cascade.

Rationalization is normal. Ethics requires repeatedly raising people’s consciousness about the wisest actions in complex situations.

Glen Fahs, Leadership Facilitator at Cascade, was for years the President of the Oregon Ethics Commons.