All too often, newspaper and Internet headlines about Southeast Michigan recount tales of public and private corruption. From top elected officials and Fortune 500 companies to everyday workers and small neighborhood businesses, our region appears caught in an intractable quagmire of unethical behavior.
One may think knowing the difference between right and wrong would be enough to stay on the straight and narrow; however, such knowledge is most useful in identifying the path of ethical behavior in a very competitive business environment. The more difficult task is staying on that path without straying down unethical and/or illegal shortcuts in pursuit of bigger contracts, increased accolades, faster promotions, and greater profits.
Being self-interested, a tough competitor, driven to win customers, and shrewd in one’s business practices are all ethical behaviors. However, when perceived low visibility is coupled with an opportunity for high reward, how will an employee respond to a worker willing to accept less than the minimum wage in cash payments; or a request for personal remuneration to secure a government contract; or questions about the quality of goods or services in a face-to-face sale?
Most workers’ response will reflect their business ethics. Business ethics are the rules principles, morals, special duties, obligations, and sense of fairness used by a business to resolve various problems, dilemmas, and/or issues that arise within a commercial context. Though internally based, businesses can systematically impact ethical outcomes through their employees by embedding business ethics into their business culture and processes, which serve as external guides and constraints for employee behavior.
Given the current landscape, now is the time to be proactive and take action to influence your workers toward productive competitive behavior. Whether through informal and formal communication, training, compensation structure, recognition programs, workshops, peer-to-peer mentoring, auditing, and information systems technology (among other things), using some effective process to instill business ethics in your human resources would be a wise investment. This is especially true if we are to change both the reality and image of Southeast Michigan business, which change starts with the business in the mirror.
Venable Law, P.L.L.C. provides legal counsel on the ethical considerations facing businesses, government, and individuals; as well as workshops on business ethics for board members, executives, and employee groups.
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