How a Corporate Moral Compass Can Drive Ethical Culture
I’ve blogged a lot in the past, but there’s something special about writing your company’s first blog as a startup. It starts you down a path of establishing a public corporate persona and an introspective journey on leadership. When we founded ETHIX360, we decided that one of the things we wanted was to be “that company” we always wanted to be a part of. I know that sounds simple, but it’s not always easy to be a company that builds products and sets the standard as products we would want to use ourselves and products that unleash unique value to our clients. A company with a culture we would wish our friends and families to be part of and that has a lasting positive impact on all with whom we interact. A company with a moral compass demonstrated by ethical conduct in the way we treat others.
As our name implies, we are in the ethics business. I believe that alone means we must hold ourselves to a higher standard regarding transparency and conduct. Ethics, morality, and culture are the underpinnings of the heart of any organization. Culture needs to be driven from the bottom up just as morality needs to be driven from the top down, and ethics become the standards that measure culture and morality. Like a three-legged stool, an organization lacking a positive culture, morality, and ethics will eventually topple.
Ethical behavior can and should be measured by organizations. In fact, in some industries or countries, it is required that you do so. I think that should go a step further and become a litmus test when deciding where you work and with whom you do business. To touch on just a few of these considerations, let’s consider the following:
Green Business
Amid the Great Depression, FDR said in 1937, “We have always known that heedless self-interest was bad morals. We know now that it is bad economics." As a result, organizations of all kinds have begun making a gradual and powerful move toward sustainability as they recognize increasing convergences between economic and environmental interests. One increasingly popular accelerator used by high-profile companies like Walmart is to engage employees in helping to achieve sustainability goals.
Several years ago, Brighter Planet embarked on a nationwide employee engagement survey to uncover insights into the extent and nature of employee sustainability programs. After crunching, sifting, charting, and interpreting 30,000-plus data points collected from 1,055 survey-takers, it was disappointing to discover that most employers have only just begun interacting with employees around sustainability and that their efforts leave much room for improvement.
Respondents represented a diverse set of demographics, organizations, and job roles. They perceived themselves as more environmentally inclined than most Americans and, across the board, are enthusiastic sustainability cheerleaders for philosophical reasons. However, they overwhelmingly viewed their organizations’ interest in sustainability as saving money, one-upping competitors, or retaining employees. Although 86 percent said their employer promotes employee sustainability in some arenas, only 14 percent rated their engagement tactics as effective.
This should raise legitimate questions from customers, suppliers, employees, and candidates alike... is the company’s sustainability program blue trash cans for paper, bottles, and cans, or a serious measured effort to reduce their carbon footprint? Is their environmental impact improvement theoretical or established? How receptive is the company to input from third parties regarding their environmental impact?
Code of Conduct
Most companies of size have now established a code of employee conduct, and hopefully, it is viewed as more than just a boilerplate. However, the words and spirit of these codes too often are not supported by technology allowing constituents to report violations in a way that encourages open and complete communication, transparency in investigations, and protection from retaliation.
For example, the demographics of the workforce are changing as more and more millennials enter. This impact alone affects culture and climate. So it begs the question, does the organization have a hotline/incident management system to protect itself or to genuinely improve its environment, culture, and transparency? Too many times, it is the former – meeting a regulatory need. When it is the latter, is technology in place to encourage the interaction of the workforce?
There are several signals and signs that can help - for example, does the system in place support not only reporting but ongoing communication with anonymous reporters? Can a reporter use any technology to interact with the process, including texting, the web, a call center, and even email? We all know that when you consider all constituents, from baby boomers to millennials, all those demographics have preferred ways to communicate comfortably. To support and encourage employee communication, systems should provide all of the technology – and language – options necessary to make that reporter feel comfortable and confident in the process.
Beyond the system visible to the reporting constituency, does the case management system limit the number of users interacting with the system by charging fees for simple access by case managers, investigators, and case reviewers? Companies that are serious about allowing systems that manage reporting and case management to be a positive experience and a comprehensive solution need to ask these questions of their provider. After all, a code of conduct with robust incident reporting and case management is just talking the talk and not walking the walk.
Stacking Up!
Finally, benchmarking became a buzzword in GRC a few years ago, and essentially (and sadly), that is where it still sits for far too many firms. Without robust data analytic components, companies have no idea how they stack up against their peers. Generalized demographic benchmarking pales in comparison to being able to see yourself against true peers who match your size, industry, and geographic footprint. This should matter to you if you are a supplier – what is the ratio of supplier allegations of fraud or bribery? To prospective employees – how do they measure up against their peer group regarding sexual harassment or workplace violence per thousand employees over the past few years?
A company with a moral compass and strong culture and climate will embrace ethical reporting systems and look critically at trends and benchmarking to make their organization a better place to work, a better source for their customers, and a better partner to their supplier. Moreover, they will live their code of ethics and not just use it for poster content in the breakroom. After all, when it comes to the heart of the company, ethics matters.
The ETHIX360 blog brings you weekly updates on all things human resources and compliance.
MEET THE AUTHOR
J Rollins is the co-founder and CEO of ETHIX360. J is a well known leader and innovator who has served on senior leadership teams ranging in responsibility from Chief Revenue Officer, Chief Marketing Officer, SVP of Product Strategy and Chief Operating Officer.
ABOUT ETHIX360
At ETHIX360, our goal is simple: to provide an affordable, flexible, and comprehensive answer to employee communication, policy management, corporate training and case management on issues related to corporate ethics, code of conduct, fraud, bribery, and workplace violence.
