Business leaders have always focussed on financial results. While this is important, in recent times, leaders are increasingly being held responsible for poor behavior, social purposes, investor relations. All employees when they join an organization sign a code of ethics but they do not imbibe an ethical code of conduct in the employee.
Business leaders need to be more proactive, inspire their workforces, and stay ahead of ethical evolution.
Lead by example
Leaders, who are role models to set the ethical tone, must openly and directly embrace integrity. If they cut corners, don't follow rules, ignore bad behaviors it gives everyone explicit permission to behave the same way. On the other hand, leaders must openly and directly talk about integrity, embrace it as part of the culture, and do the right thing even if it huts the business.
In a crisis, everything a leader does gets amplified. The true test of a leader may happen any time, and he has to stand firm and be committed to the right principles or risk losing the team's trust forever.
Make ethics code your own.
The code of ethics should reflect input from a broad selection of employees and be based on the company's core values, location, culture, and industry practices. Do not have too many rules and have clear guidance on how to handle them so there is no ambiguity when it is applied by employees.
Do not outsource integrity. Do not depend too much on the legal team who will focus exclusively on protecting the company from liability. DO not depend on open sources of an integrity checklist. Create your own.
Talk about your code of ethics
It is not enough to have it on paper and expect it will occur naturally. Leaders must talk openly, explicitly, and regularly about its importance. Start with the orientation when a new employee is onboarded, by talking about company values and ethics with real-life examples. this sets the tone and has a lasting impact.
Make sure people know how to report violations
Too many employees are not aware of how to report violations or what to do when they need to report violations or when they observe somethings that are against ethics. Also, be transparent about how the investigation process works. The silence breeds suspicion, distrust, and an environment where employees are not comfortable using the process. Companies should make it straight forward to report violations easy and clear. Create a culture that celebrates employees who report problems, welcomes bad news, and raises ethical questions.
Demonstrate the consequences
Violations must be investigated, and fair treatment must be given in a transparent manner. Leaders and top performers cannot enjoy immunity. Even in companies with robust systems, employees may be skeptical that reports will be acted upon and this sort of culture codes erodes trust and discourages everyone from reporting violations.
One way to counter this is to build transparency into the process. Publish regular transparency report gi ing data on the number of reports, types of complaints, investigated, outcomes. This will help confidence in the process and build trust.
Repetition matters
Integrity cannot ba one in a year affair in an email or newsletter. Repetition matters. Be creative. Ask your team member to make posters, videos about ethical rules, and get leaders to participate. make an integrity minute part of the company meet or have a game show with the seniors and leaders facing tough imaginary unethical scenarios and how they solve them.
Make ethics a dimension of your business in addition to the usual cost, margins, supply chain discussions. The key is to create an environment about ethics through repetition and adopt an environment where values are top of mind both in words and deeds.
Integrity is a double-edged weapon. lapses can spark employee rebellion customer reaction and government intervention. However, when handled correctly it inspires employees, builds trust with customers. Create an environment in which it is openly embraced by leadership and woven into the fabric of the company culture.
How to Build a Company That (Actually) Values Integrity
by Robert Chesnut HBR July 30, 2020
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