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Implementing Business Ethics

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




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