Michael Josephson Commentary
Josephson Institute  >  Commentary  >  Can Corporate Ethics Programs Do Any Good? 549.4

Can Corporate Ethics Programs Do Any Good? 549.4

Lots of companies are focusing serious attention on the issues of ethics and values -- and lots of people think it’s a waste of time.

The skeptics argue that you can’t teach ethics to adults. By the time they’re in the workplace, they’re either ethical or not.

It’s a plausible argument, but it misses the point.

The purpose of a corporate ethics program is not to make people ethical but to increase the likelihood that they’ll act ethically. This is definitely achievable. In today’s environment, failing to do what can be done to protect a company from employee misconduct is irresponsible.

The objective of a corporate ethics program is to establish a business culture in which it’s easier to do the right thing than the wrong thing and where concerned coworkers and vigilant supervisors repress illegal or improper conduct that can potentially endanger or embarrass the company.

An organization can further improve its ethical track record by assuring it has clear and credible statements of values and standards of conduct. When supplemented with quality training, those values and standards can clarify expectations and reduce misconduct resulting from ignorance or misinterpretations of laws or company policies.

A firm that wants to strengthen its ethical culture hires for character and trains for skills. It takes background checks seriously, screening out employees who lack the moral compass or strength to resist temptations and weeding out those who lack moral commitment or judgment during probation. And during performance reviews and promotions, it assesses ethical attributes like trustworthiness, responsibility, and respectfulness. Only people who are comfortable living up to high ethical standards are retained or promoted.

This is Michael Josephson reminding you that character counts.

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Comments

I worked for a major oil company based in LA for 25 years. My respect and love for the company died when a middle manager stole $1.2 million, and to CYA, upper management blamed and punished the underlings of the crook. I happen to be one of them. Their logic was "you should have seen what was happening."
There is no ethics in business today, only CYA at anyone's expense. This incident cost 5 honest people their careers.

So greatly appreciate all you do.

It seems to me the basic structure of corporations makes ethical behaviour dubious when the owners are millions of disconnected stockholders expectant of quarterly returns, C.E.O.'s are getting unimaginable wealth, and all the workers want the gold ring or know they will not achieve it nor be honored for long service.

Just a thought,

Yours Farmer Bill

I still believe your core character is set as a child. Ethics by forced conversion or punshment isn't going to last, or it will be an act.

You can't make an dishonest soul, honest. Although I think you're usually right on, I respectfully disagree on this one.

Deception and backstabbing is the status norm for most work places today. Ethics and integrity doesn't please the boss. Deceiving the boss by saying what they want to hear (sucking-up) is the way of doing business, that is what pleases the boss, that is the way up the career ladder.
Those that are ethical and honest that cannot succumb to the deception are shunned as loose cannons and trouble makers. Deceptive people don't want to hear the truth.
Practice makes perfect, I agree that if ethical training is the norm ultimately it will be practiced. The same works for deception.

I will never understand how anyone can get up in the morning and look in the mirror when they have done something dishonest. I have taken the scripture that says that we need to do our work as unto the Lord. I believe each person should have someone that they are accountable to. I appreciate the fact that there is someone who looks over my shoulder and checks behind me. No one should have to shoulder all of that alone. It leaves a place for questions of their character, regardless of how honest they may be. I may handle a lot of money and have a lot of cash pass through my hands, but I am not a signer on the bank account, which I feel is good. This way I am never put into a compromising position, or asked to do, or am tempted to do anything unethical. God has blessed me in my job and I give Him total Glory.

To the skeptics: While I agree that character is unlikely to change due to corporate ethics programs, I think the point is that such programs can help to create a corporate culture where those individuals who lack the required character traits are not implicitly supported by those looking the other way, or explicitly nurtured by being rewarded for behaviors that, say, generate revenue despite their immorality. Many companies have sought to cultivate such cultures, and the success stories are powerful and numerous.

I really appreciate what you do and the things you teach. I haven't always been the best person in the world, but when I started turning things around I found out that it wasn't the so-called "bad guys" I had to worry about it, it was the so-called "good guys."
I worked for one of the largest security companies in the world. My project manager started out by lieing to me about some clearances and was continually putting me in compromising positions at work. I confronted him on several occasions and finally complained to upper management.
The head of Employee Relations said, "If he lied to you, why didn't you just quit?" Numerous hotline attempts were ignored and the same executive said, "We can't answer all of them." I filed complaints with another supervisor who took it to the Branch Manager for me. I asked her two months later if she was going to address any of the issues. She said she'd told my Project Manager to talk to me about it, she didn't know why he didn't. She had basically assigned him to investigate him and then forgotten all about it.
Finally my project manager sent me continuing education materials for our state licensing and told me how to date them to qualify. It meant falsifying the documents by backdating them. I refused and reported it to the state agency that licenses us. They said they couldn't do anything about him, but they had spoken with the head of training and he would tell the manager that it was against company policy to backdate documents. Within a week and a half of filing the complaint with the company and the State all my overtime was cut and I lost almost a third of my salary and soon my home.
Mr. Josephson, I seem to remember somewhere you said that in order to be honest you had to be willing to lose. (I think it was a P.O.S.T. training video.) But warn people that they also need to be prepared to lose.
Because he was the employer, it is assumed he would never lie and he would never falsify documents, etc. And that is who future employers believe. I've seen it over and over.
And the worst part is that people who I know are good people tell me to give up my future goals and do something else. I'm up against people who are too powerful. That's the most depressing part. People talk about perseverance, but when you try to keep going against the odds, standing up for what you really believe in, they just think you're stupid and wasting your time. --

A group policing itself is always more effective than management staff policing the group. I believe that line staff and first line supervisors can do a lot to set the ethical standards for any organization. This is why ethics training is useful. Ethics training helps prepare employees with options for action when they are faced with on-the-job ethics situations. Law enforcement agencies provide this training why shouldn't corporations.

I have read the pros and cons from readers about ethics training. I conclude that ethical discussions are personally beneficial because they help clarify what I think about issues and increase my awareness of the many nuances in our dilemmas.

I was in a situation recently that required an ethical choice. As I pondered the pros and cons, I found myself reflecting on some examples and principles from your commentaries. Your words provided a wonderful guideline in helping me come to my decision.

May I express my appreciation for your commentaries and for the wisdom you so generously share with all. Your newsletter is a weekly regeneration for me.

I just read Joel’s post.
Wanted to express my condolences for the personal challenges you seem to now be facing, by the way of your awesome integrity. It is frustrating to hear of the monetary things you have lost that do ultimately affect a lifestyle. This won't make things any easier, but I was really proud to hear of your consistent effort to be sure you aligned with your own standards and took control of who you choose to be in this life. It was remarkable to hear that you are strong enough of a person to make others aware when they are making a conscious decision that is wrong. I feel like this will be a staple in a better future for you. Best wishes!

Michael - you seem to do an amazing job of helping people find and remember their strength where it could easily be forgotten. Seeing Joel's appreciation for you and what he was able to do is incredible.

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