ETHICS IN THE WORKPLACE

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1 ETHICS IN THE WORKPLACE Gwen Ruff, SPHR SVP, Strategic Planning and Employee Services Columbus Water Works In an ideal workplace, structures and relationships will work together around core values that transcend self interest. Core values will inspire value creating efforts as employees feel inspired to do what is right, even when the right thing is hard to do SHRM Foundation Shaping an Ethical Workplace Culture According to the Ethics Resource Center s 2013 National Business Ethics survey, 41 percent of US workers reported they had witnessed or observed unethical or illegal misconduct on the job. Not all these incidents were major infractions Creates a culture that tolerance for such behaviors is acceptable The result is an organization with high turnover, lower productivity, increased costs, and poor morale 1

2 What is Ethics? The values and the culture in all interactions and relationships It is the moral compass Based upon a defined plan and strategy Continuously evaluated, monitored and communicated throughout the company Reflects honesty, integrity and transparency Customer Service Ethics Defines the quality of the services received by customers, which is directly aligned with the behaviors and actions exhibited by all employees. Not only for front line office staff who deal directly with customers, but each and every employee should be aware of the organization s commitment to ethical behavior. Is the core of workplace culture culture is unique to each organization Strong ethics are essential to successful business operations Basic principles by which we live good lives Ethics encompass work organizations, home, education, community and political relationships Workplace ethics should reflect organizational goals 2

3 Ethical clarity results in trust between managers, employees and customers Positive results of an ethical climate: Increased employee satisfaction Compliance with legal guidelines Better organizational commitment Reduction in turnover and retention of top performers Ethics is NOT: Feelings Religion Compliance with the law Following culturally accepted norms Social and natural science Organizational culture Often abstract and difficult to measure More than the written policies and vision statement Includes employees interaction with each other and customers Organizational dress codes Organizations should strive to create an environment in which it is easy and expected to do the right thing. 3

4 Real integrity is doing the right thing, knowing that nobody's going to know whether you did it or not. Oprah Winfrey Assessing your organizational culture Ethical content Ethical operations Ethical individuals Assessing your organizational culture Ethical content identification of organizational values, such as integrity, honesty, professionalism and accountability. Example: What is your organization s mission statement? Values? Are these concepts communicated and visible throughout the organization? 4

5 Assessing your organizational culture Ethical operations Identification of how well the organizational values and policies regarding ethical behavior are in alignment with daily operations. Example: Who makes the organizational decisions for exceptions to policies? (customer care, human resources, finance) How are pay practices and promotions managed? Assessing your organizational culture Ethical individuals Evaluate and identify how well the organization holds individuals accountable for ethical behaviors. Ethical character in leaders is crucial in fostering trust and having improved operational performance. Example: Are organizational leaders fair, respectful, and trustworthy? Is the tone for ethical behavior established at the very top of the organization? What are the policies and practices for operating side businesses? (Avon, plumbing, contracting, etc.) Shaping an ethical culture The glue that holds all relationships together including the relationship between the leader and the led is trust, and trust is based on integrity. Brian Tracy, motivational speaker and author Managers and leaders at all levels within the organization should establish the expectations for employee behavior; provide training and educational opportunities, and ensuring accountability for appropriate behaviors. 5

6 Keys to shaping an ethical culture Employee involvement at all levels in the identification of training needs and the development of the training program Provide proper training which focuses on increasing awareness of ethical behaviors and identifying specific expectations for behavior Education and training should identify clear criteria for ethical behaviors Develop an ethics checklist to keep all employees accountable. Keys to shaping an ethical culture Communication about ethical and unethical behaviors, as well as the consequences for noncompliance, should be provided to all employees on a regular basis Create a culture of transparency Conduct ongoing evaluations of the organization s culture, either by use of a climate or engagement survey Establish clear expectations, guidelines and policies Scenario 1 George, a customer service representative, is working after normal business hours to finish an important project. He realizes that he is missing customer information that is in an that was sent to his co worker, Sandra. George goes into Sandra s office, only to realize that she is gone for the day. He sees her logon password taped to her computer on a sticky note. He decides to log into her computer and resend the with the spreadsheet to himself. When scrolling through Sandra s inbox, George sees a multitude of s where Sandra is soliciting donations from vendors for her son s baseball team. If he reports what he has seen, he would have to admit to violating the company s information technology regulations by logging into Sandra s computer. If he confronts Sandra about her violation of the company s solicitation policies, he would also have to reveal the source of his information. What does George do in this situation? 6

7 Scenario 2 You and Brenda are attending the GAWP Annual Conference in Savannah and decide to ride together. When you arrive at the hotel for check in and Brenda presents her AARP card, she is provided a $50.00 per night discount on her stay. The first evening of the conference, you and Brenda are invited out to dinner by a consultant, who picks up the tab. This also occurs on the second and third evening of the conference, so neither you nor Brenda had any expenses for the dinner meal. When you return to the office after the conference, Brenda advises you that she is claiming the maximum per diem per day (which covers three meals), mileage, and the full hotel registration and expenses. She asks you to do the same so that your expense reports will match. She explains that she is having financial difficulties due to her son s illness and the extra money would help pay some outstanding medical bills. She also reminds you how hard you both work and that the company did not provide a COLA this year, and that you both deserve to be compensated extra for the trip. Conclusion Everything employees may say or may do, sends a message to our customers The tone established by top management has a vital role in influencing the culture of an ethical workplace In the perfect workplace, policies, procedures and relationships are in alignment in such a manner as to promote what is right for the customer and the organization, rather than support individual self interests Consistency in ethical behaviors builds stronger relationships with our employees, customers and the general public. Building strong ethics in an organization is a constant process Conclusion In any moment of decision, the best thing you can do is the right thing. The worst thing you can do is nothing. Theodore Roosevelt ( ); 26th U.S. President 7

8 National Business Ethics Survey - Santa Clara University Markkula Center for Applied Ethics Society for Human Resource Management Foundation Shaping an Ethical Workplace Culture (members only) EthicalWorkplaceCulture.aspx Moral Foundations - Civil Politics - Questions? Thank you!!!! Gwen Ruff, SPHR gruff@cwwga.org