| "The ethics of a business are whatever the | | | | example. Anything less is sheer hypocrisy and will |
| top-dog says they are." | | | | inevitably lead to changes |
| - Bryce's LawINTRODUCTIONWe hear a lot | | | | in behavior.It is simply not sufficient to issue |
| these days about the deterioration of ethics in | | | | platitudes as to what is and what isn't ethical |
| business, e.g., graft, | | | | behavior. The manager must follow-up and |
| corruption, cheating, favoritism, skimming money, | | | | assure ethical behavior is implemented |
| etc. This has resulted in a public | | | | accordingly. In other words, we shouldn't just |
| relations nightmare for business. If consumers do | | | | "desire" truth and honesty, we |
| not trust a company, its a matter | | | | must "demand" it. If one person gets away with |
| of time before it goes out of business. This is | | | | an indiscretion, others will surely |
| supported by recent studies that give | | | | follow. As such, when writing out a code of |
| evidence there is a correlation between business | | | | conduct, be sure to stipulate the |
| performance and ethical practices | | | | penalties for its violation.The success of a |
| (see the Institute of Business Ethics). Basically, | | | | business ethics program is ultimately measured by |
| the Institute's study suggests there | | | | how well it |
| are long-term benefits associated with enacting | | | | becomes ingrained in the corporate culture. As |
| an ethics programs. Such studies | | | | we have discussed in the past, |
| and recent corporate snafus (e.g., Enron) are | | | | corporate culture pertains to the identity and |
| impetus for companies coming to | | | | personality of the enterprise. All |
| grips with ethics in the workplace.There are | | | | companies have a culture; a way they behave |
| essentially two considerations for devising an | | | | and operate. They may be organized |
| ethics program in | | | | and disciplined or chaotic and unstructured. Either |
| business; first, knowing what your ethics are, | | | | way, this is the culture which |
| and, second; implementing them | | | | the enterprise has elected to adopt. What is |
| in a consistent manner.INTERPRETING | | | | important is that in order for an employee |
| ETHICSThere is little point in my telling you what | | | | to function and succeed, they must be able to |
| is ethically right or wrong. You already | | | | recognize, accept and adapt to the |
| have an interpretation of this. But let us | | | | culture. If they do not, they will be rejected |
| understand what influences our interpretation | | | | (people will not work with them).The intuitive |
| of ethics; our interpersonal relations with others, | | | | manager understands the corporate culture and |
| such as our family, friends, neighbors, | | | | how to manipulate |
| fellow workers, as well as the media. Ethics is | | | | it. Changing the Corporate Culture involves |
| learned more than it is taught. It is based | | | | influencing the three elements of the |
| on observations of the conduct of others, people | | | | culture: its Customs, Philosophy and Society. This |
| we like and respect as opposed to those | | | | is not a simple task. It must be |
| we do not. It is then up to each of us to | | | | remembered that culture is learned. As such, it |
| interpret these perceptions from which we will | | | | can be taught and enforced. For |
| base our conduct and behavior. The point is, we | | | | example, a code of conduct is useful for |
| act on our perceptions, however accurate | | | | teaching, as is a system of rewards and |
| or inaccurate they may be. Another influential | | | | penalties. Designating people to act as watchdogs |
| factor are our own human frailties of | | | | of the culture can also be useful, |
| competitiveness, love, greed and ambition. But | | | | but be careful not to create a climate of |
| then again, this goes back to | | | | paranoia. Ultimately, as a manager, you |
| interpersonal relations.Let us recognize that ethical | | | | want to create a culture that promotes the |
| behavior is interpreted differently from person to | | | | ethical behavior you desire.For more information |
| person. What | | | | on "Corporate Culture," see now live in strange |
| one person may consider right or wrong may be | | | | socioeconomic times. 40-50 years ago we |
| different for the next person. The objective | | | | normally had one parent staying home to raise |
| in business is to implement a uniform form of | | | | the kids. Now it is commonplace |
| behavior thereby instilling consumer | | | | to find families where both the husband and wife |
| confidence in a company | | | | are working and paying |
| overall.IMPLEMENTATIONWriting a corporate code | | | | less attention to their children, thereby relegating |
| of conduct is in vogue today as a means of | | | | their parenting duties to |
| articulating the | | | | teachers and coaches. In other words, the family |
| ethics of a business. Such codes are proudly | | | | unit, which is the basic |
| displayed on web sites and in corporate | | | | building block for learning ethical behavior, is |
| brochures more for public relations than anything | | | | becoming severely hampered.In business today |
| else. True, they are useful for | | | | we have a "fast-track" competitive mentality |
| disciplining an employee for an infraction of the | | | | which does not |
| rules, but I do not see them as an | | | | encourage a spirit of teamwork but, rather, |
| effective way of implementing an ethics | | | | more rugged individualism. Nor |
| program. Understand this, regardless of what | | | | does it promote employee loyalty. Further, we |
| the code of conduct states, the ethics of a | | | | now live in a society that |
| business are whatever the top-dog says they | | | | encourages people to go into debt, thereby |
| are. Too often I have seen companies say one | | | | causing financial tensions.Bottom-line, ethics is |
| thing, then act another, e.g., | | | | about people and trust. Consequently, we should |
| Enron.Printed codes of conduct are nice, but we | | | | be |
| have to recognize that it is one thing to | | | | sharpening our people skills as opposed to |
| enact legislation, quite another to enforce it. As | | | | avoiding it. We don't need more |
| stated earlier, ethical behavior | | | | maxims of how we should conduct our lives; we |
| is based on observations. Regardless of what a | | | | need to lead by example. As |
| code of conduct says in print, ethical | | | | such, we need more role-models and heroes |
| behavior is based on the relationship of superior | | | | than we do paperwork.Let me close with one last |
| and subordinate worker | | | | thought on how ethics impacts business; there |
| relationships. If a subordinate observes an | | | | is probably nothing worse in business than being |
| indiscretion by his superior, in all | | | | caught in a lie, particularly |
| likelihood it will be emulated by the subordinate. | | | | by a customer. Any trust that there may have |
| This phenomenon occurs | | | | been before disintegrates |
| top-down in the whole corporate chain of | | | | immediately and business is lost. In this day and |
| command. If it breaks down anywhere | | | | age, there is something |
| in the corporate hierarchy, it will become visible | | | | refreshingly honorable about a person where |
| to the subordinate layers and | | | | their word is their bond. Ethics |
| potentially create a "trickle-down" effect. This | | | | just makes good business sense.Tim Bryce is the |
| means the boss has to be a role | | | | Managing Director of M. Bryce & Associates |
| model for ethical behavior; they must | | | | (MBA) |
| "walk-the-walk" as well as "talk-the-talk." If | | | | of Palm Harbor, Florida and has 30 years of |
| they do not, it will not go unobserved by their | | | | experience in the field. He is available for training |
| subordinates. Managers, therefore, | | | | and consulting on an international basis. He can be |
| should avoid the "do as I say, not do as I do" | | | | contacted at: Copyright © 2006 MBA. All |
| phenomenon. They must lead by | | | | rights reserved. |