May
23
Ethics is not an easy path, in most cases, nor is it a path taken by businesspersons without thought or consideration. That is not saying that ethical decision-making is complicated (although in some cases it may be confusing and culturally complicated, and we shall think through that), but even decisions that are not complicated are not always easy courses to take. Let’s take a close look at some of the kinds of situations and events that may arise in the ethical daily travels of a businessperson and consider whether the right choice is easy, or not. As a side thought, remember that some ethical and moral decisions are small in the grand scheme of business, but those decisions, like a dripping faucet now, can become a flood later.
Decisions that do not overtly attract moral condemnation, but nonetheless contain value judgments and may be considered more or less ethical across cultures, are made every day in organizations throughout the globe, for instance, think about these decisions, shall I call in sick to have a day off, or, should I use the office telephone to make a private call?
Ethics in business is serious whether we speak about stealing from one’s company, doing personal business on the corporate clock, or rigging the accounting process to hide (or at least try to hide) a multi-billion dollar corporation financial scandal. Is there a dilemma in the businessperson’s life surrounding ethics and integrity, or have we made it seem so, and in fact is there always a right choice available?
The point is, as Drucker noted in 1974, any means can be justified if the end is determined to be for the overall good. We will examine several issues; the perspective of clarity and precision versus flexibility, top-down influence versus bottom-up influence, substance versus process, confrontation versus compromise, and tangible versus intangible. In most cases, research shows that the best choice (at least in business environments like the United States) is to have a corporate code of ethics (integrity), and in the larger corporate enterprises, there is usually a compliance division with a hotline, and webpage. This is the best arrangement for a business, and if the top leadership has given thought to the matter, there should be no confusion, or complication in the matter of ethics/integrity.
In CSO Magazine, March 2004 edition, a Chief Security Officer wrote anonymously about a scattered approach in the corporate environment that did not comprehensively define or guide the corporate body in the area of integrity and ethics. If this individual reports a situation that is a reflection of the condition of this important matter in corporate America, then the situation may be that the Enron fiasco is doomed for repetition.
Ethics and integrity in business would seem to beg for a well-defined, and fully trained (and regularly reviewed) corporate code of ethics/integrity. Should integrity be focused from a top-down perspective or can it be driven from the bottom-up? It seems the prevailing thought is that it is best driven from the top down. One could certainly agree that either an executive, or an executive sponsored committee writes policies and procedures at departmental level, and then the HR training directorate normally provides the written guide and training to the corporate body.
Cultural issues will confuse and provide a bit of complication in the matter of ethics and integrity. The debate over child labor has been a contentious and difficult matter, with the arguments rising about the need for a family to survive even if that survival comes in part by a working child. In addition, the use of prison labor brings the debate over rehabilitation and instilling a strong work ethic, and can there be harm in a company accruing some benefit from that labor.
Change in this cultural ethical confusion has begun as following the Asian financial crisis many Asian businesses are rethinking their ethical stances and applying a system of governance that is clearer, and more professional, which several management researchers indicate is modeled on Western business practices.
Sometimes there is difficulty in decision-making where ethics is concerned due to confusion since a practice may be ethically problematic and legal today, but then the law may change tomorrow rendering that business practice both illegal and problematic ethically. What must the course of action for the manager and the company be at this point? It is a conundrum that many companies must face as BP did in the early 1980’s by making a corporate choice to act more responsibly in relation to the environmental area.
Clarity and precision are fine goals for the ethics and integrity of a business and they encourage improved communication and understanding as to context, tone, timing, and reference points. The final question is how to implement the better practices once they are decided? Here are a few methods that may assist in ensuring clear policies, goals, and the code of ethics are well communicated; peer discussion groups, regular or ad hoc stakeholders’ discussion groups, appropriate information and decision-making systems, and training for managers in necessary ethical decision-making competences. Certainly this is a start, many of the questions and struggles around this business ethics area will be resolved by personal decisions within the mind of the individual worker. Yes, it is a start, but there is a ways yet to travel.
Ken Wallin is a retired US Army Officer, and a Senior Project Management Professional. He has more than 35 years leading in both military and consulting positions. He currently is working on his PhD in Business Administration specializing in International Business at Northcentral University in Arizona. His website is www.press-go-now.com and he specializes in the theme Leading and Team-Building
May 23, 2008
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