More CEOs are learning that what they say, goes – so it better be the right message
Julie Freeman
is the president of the International Association of Business Communicators.
The recent jury verdict in the Enron trial has prompted renewed discussion about business ethics. Last week, the International Association of Business Communicators (IABC) Research Foundation released the latest report on communication and ethics. The study, titled The Business of Truth: A Guide to Ethical Communication, surveyed more than 1,800 communication professionals from the U.S. and Canada on the ethical climate at their organizations.
According to the study, most organizations maintain or practice a generally "healthy" climate for ethical concerns and issues, with 70 percent of respondents agreeing that their organization makes it clear to employees what is ethically acceptable and what is not acceptable. Additionally, 67 percent of respondents agreed with the statement that top management has let it be known in no uncertain terms that unethical behavior will not be tolerated.
However, the research also found that only 61 percent of companies encourage openness about ethical or unethical conduct in their organizations and only 46 percent of companies encourage discussion of moral dilemmas and censurable conduct in their organizations.
The findings from the IABC study highlight the critical role of the CEO or president of a company in instilling an ethical culture in the organization. As brought out by the Enron story, chief executives are accountable for what happens in their companies. It is vital that CEOs embed ethics into their corporate DNA and talk to their employees about ethical issues, but it is equally critical to have open discussion about ethical issues at all levels of an organization.
Here are a few steps that chief executives can take to create an ethical culture in their organization that promotes corporate reputation and discourages ethical wrongdoing.
Train employees about ethics. The first step is to provide training to employees about what is considered ethical behavior. Some actions, like embezzling money are clearly unethical, but an employee may not see that providing inaccurate information on a time sheet or leave slip is also an ethical violation.
Post the company’s code of ethics where employees can see it. Some possible places might be in the company lunch room or on the intranet. Johnson & Johnson, for example, has its well-known credo carved on an eight-foot tall limestone pillar in its corporate headquarters. Keep the code of ethics visible as a constant reminder of the company’s principles and a reference point for decisions.
Provide a "safe" environment for discussion of ethical issues. Once employees have a clear understanding of what conduct is ethical and what is not, the manager must provide a "safe" environment – one where employees are listened to without criticism. In such an environment, employees who see problems with something the company is doing or contemplating doing can ask questions and raise concerns.
Establish a mechanism for reporting ethical violations that is fair to all. Managers also need to establish a mechanism for reporting ethical violations and make it clear that there will be no reprisals on the whistleblower. Of course, it has to be a fair process, so that someone accused of a violation is not assumed guilty until proven innocent.
Hold anyone who commits an ethical violation accountable. Should the evidence demonstrate that an ethical violation has been committed, the employee must be held immediately accountable for his/her actions.
The CEO takes ultimate responsibility for the company’s behavior, but every employee has a responsibility to act ethically and to engage in discussions about ethical choices facing an organization. Though the collapse of Enron through the greed and dishonesty of its executives was a dramatic story, it was not a new one, nor, sadly, a unique one. Preventing – or more realistically, limiting – future Enrons will require a number of strategies. Key to that mix must be open communication about ethics at all levels of an organization.
