How to Define Ethical Behavior & Why It’s Important in the Workplace Author: Dr. Thomas Mahan October 17, 2019
The plot of good versus evil, good guys versus bad guys, or right versus wrong has played out in books and movies for ages. It is arguably the most common struggle at the center of narratives of all types. So it should be no surprise that the same struggle is prevalent in corporate environments under the umbrella of ethical or unethical behavior. It’s certainly no secret that the desire to be perceived as ethical is important to organizations as we consistently see narratives surrounding potentially unethical behavior within organizations play out publicly. Headlines frequently peddle allegations of unethical behavior in the workplace which can create public relations crises, operational distractions, financial liabilities and in some cases lead to the total collapse of organizations. Given the severe financial and reputational consequences of unethical behavior, and the mere allegations of unethical behavior, it is no surprise that organizational efforts to prevent, detect and respond to it are consistently scrutinized by stakeholders. The intense scrutiny makes it critical to understand the definition of ethics in the workplace, why ethics are important in the workplace, and the single most important thing organizations can do differently to encourage ethical behavior in the workplace. What is the definition of ethics in the workplace? Ethics in the workplace is defined as the moral code that guides the behavior of employees with respect to what is right and wrong in regard to conduct and decision making. Ethical decision making in the workplace takes into account the individual employee’s best interest and also takes into account the best interest of those impacted. The latter of the definition is often where individual employees struggle to act ethically. Furthermore, ethical behavior doesn’t only apply to individual employees, the organization itself should exemplify standards of ethical conduct. Why is ethical behavior in the workplace important? It is important to understand that ethical behavior in the workplace can stimulate positive employee behaviors that lead to organizational growth, just as unethical behavior in the workplace can inspire damaging headlines that lead to organizational demise. Simply put, organizational stakeholders that include individuals, groups and organizations of various types enter into a relationship with a business organization for that business to protect their interests in a specific way. Therefore, there is a mutual expectation that stakeholders and business organizations act in an ethical manner and in each other’s best interest. A decision to act unethically, by the organization or a stakeholder, can strain the relationship and damage the reputation of the organization. The increased risk of reputational damage and harm from negative headlines is often the catalyst for organizations to promote and encourage ethical behavior and prevent and report unethical behavior. Furthermore, where many individuals are connected to social media with mobile technology, the risk that unethical behavior will cause reputational damage to an organization is arguably much greater that in decades past, as behavior is more easily recorded on video, captured in photos, shared online and propelled into headlines. However, there are benefits of ethical behavior in the workplace beyond the avoidance of reputational harm. An organization that is perceived to act ethically by employees can realize positive benefits and improved business outcomes. The perception of ethical behavior can increase employee performance, job satisfaction, organizational commitment, trust and organizational citizenship behaviors. Organizational citizenship behaviors include altruism, conscientiousness, civic virtue, sportsmanship and courtesy. What can organizations do to encourage ethical behavior in the workplace? The good news is that organizations can take steps to create a good narrative around their reputation by implementing measures that help ensure ethical conditions and perceptions of organizational support are present in the workplace. Many organizations implement reactive systems to report unethical behavior. However, the single most important thing organizations can do different to promote ethical behavior is to implement a proactive employee voice system and use voice of the employee tools to proactively give employees the capacity to be heard. Voice of the employee systems that effectively promote ethical behavior and encourage reporting unethical behavior meet five key criteria:
The challenge is that many organizations implement voice of the employee systems with good intentions, but the voice of the employee tools used are not effective. Voice of the employee tools, like interviews and surveys, that proactively seek to uncover and stop unethical behavior should be conducted:
The struggle between right and wrong amongst your stakeholders and the perception of good or evil about your organization are a constant. And the implications of a perceived ethical or unethical reputation could be helpful or harmful to your business. Your reputation is on the line and your employees provide valuable information when given a true voice. It’s imperative to proactively promote ethical behavior in your organization before you are potentially destroyed by tomorrow’s headlines. The following are examples of a few of the most common personal ethics shared by many professionals: HonestyMany people view honesty as an important ethic. This ethic transfers from an individual’s personal life into their professional life and ensures they are truthful in all scenarios. LoyaltyLoyalty is another common personal ethic that many professionals share. People who have a personal ethic of loyalty demonstrate trustworthiness and fidelity in all of their dealings and can be trusted by others to maintain their loyal behavior no matter the situation. IntegrityIntegrity refers to a person’s commitment to upholding their moral principles in any situation and is an important component of trustworthy and sound relationships both in and out of the workplace. People with integrity are reliable, responsible, and hold themselves accountable for their actions. RespectPeople with sound personal ethics demonstrate respect for those around them both at work and in their personal lives. They respect others’ autonomy, rights, and interests, and do not discriminate based on someone’s religion, sex, or race. SelflessnessPeople who are selfless put others first and do not act in selfish or self-serving ways. They consider the needs and situations of others and prioritize these needs before their own. ResponsibilitySomeone with a strong moral code is willing to take responsibility for their actions and make changes or amends when necessary. |