Ethics Codes Don’t Make People Ethical 519.5
In the wake of a continual parade of scandals, there has been talk about codes of ethics. I’ve written dozens of codes and have a healthy respect for their value as an element of a corporate culture, but I wince at the unreasonable expectations attached to these documents.
Ethics codes don’t make people ethical. They don’t make bad people good. They don't make people with bad judgment wise. Ethics codes would not have prevented most of the shocking behavior we’ve seen in recent years.
There are two aspects to ethics: discernment (knowing right from wrong) and discipline (having the moral willpower to do what’s right). A code can help define what’s right and acceptable and provide a basis for imposing sanctions on those who don’t follow it, but unless it reinforces an established ethical culture, it won’t do much to assure that people will do what’s right.
It’s proper and prudent to clarify existing laws and establish standards of conduct in areas not governed by them. Ethics codes transform moral obligations into binding rules. For example, it’s helpful to set clear parameters for using e-mail, private information, and company property; hiring or doing business with relatives; and accepting gratuities. In more complex cases, codes can mandate disclosure or certification and forbid or restrict transactions such as loans and reimbursements that could create real or apparent conflicts of interest.
To the extent we need more clarity, we need more codes. To the extent we need more character, we need a lot more.
This is Michael Josephson reminding you that character counts.
