Given the economic climate of ongoing challenges, it would seem logical that corporate ethical scandals are ripe to increase. In reality, problems with ethics have no “ideal” conditions. “Evidence suggests that lapses in business ethical behavior are not confined to hard times, but seem to occur with equal vigor in prosperous times as well.”
In the first part of this two-article series, we identified ethical red flags. Here, we look at what key practices allow companies to thrive ethically:
1) Get off the tiger while it is little. The memorable comment of Ramalinga Raju from part one of this story was that the ethical dilemmas leading to the collapse of his company Satyam became like being on a tiger he could not get off without being eaten. This illustrates a core truth. Unethical actions grow quickly beyond management. Therefore, as soon as you notice a discrepancy at any level, put the energy into correcting the root problem instead of on staying in the saddle of the growing tiger.
2) Take the time to consistently question practices. “Close the door, hold your calls, clear your head, and think hard about where you, your training programs, and your organization fall in the realm of ethical behavior. How prepared are you and your colleagues to deal with an ethical crisis? A business without ethics is a business at risk.”
3) Have a simple ethical approach that is memorable, yet comprehensive. For example, “Perceive, Probe, Protest, and Persist” is the 4-P approach that could have prevented the Enron “epic disaster.” This model represents staying aware of ethical problems, thoroughly investigating them, speaking out, and being determined in finding solutions. Another model is based on a 4-layer pyramid. The base is ethical awareness. Next is ethical reasoning, then ethical action, and, at the top, ethical leadership.
4) “Wear Ethical Glasses.” Whatever ethics approach the company takes, there has to be a genuine culture of “doing the right things right” that it is not just lip service. “People need to be wearing their ethical glasses to see moral dilemmas in their midst.” There must be tools like a “common language and method of sorting through the courses of action open to them when an ethical problem occurs.”
5) Ensure employees at all levels are valued and respected. Companies have to ask hard questions of every process and person in the organization. “With what degree of respect do company executives consider ideas that pose ethical issues and resolutions when implementing those ideas will result in a loss of revenue?” People throughout the organization must be part of every solution to every problem. “Ethical leadership is not reserved only for those at the top; rather, it is a quality held by individuals and organizations with the moral courage and diligence to talk and walk ethical values. That is what is meant by individual and institutional integrity.”
In summary, red flags wave and whistles get blown. The events in between and after make the difference between the survivors (who responsibly conduct the difficult ethical work of all organizations) and those whose demise is sadly proclaimed in huge headlines.
