Ethics Policies Need Work.

Ethics Policies: All BarK No Bite

DESPITE THE GROWING number of ethics programs in today's organizations, ethical misconduct is still prevalent, casting doubt on the quality of programs currently in place. A recent KPMG survey on ethics in the workplace reveals that more than 75 percent of working adults had observed violations of the law or company standards in the 12 months preceding the study. Findings also indicate that illegal or unethical activities among workers directly impacts a company's competitive advantage and market share. Of those surveyed who said that management wasn't fully committed to ethics programs, 79 percent wouldn't recommend their company to recruits, and 60 percent wouldn't expect their customers to endorse the firm to potential customers.

Similarly, the 2000 National Business Ethics Survey (NBES), conducted by the Ethics Resource Center, reveals that one in three American workers witnessed behaviors that violated either their organizations' ethics or the law within the last year. The study identifies the most frequently observed misdeeds as lying, withholding information, and inaccurately reporting actual time or hours worked. According to two thirds of the respondents, pressure from supervisors, top management, and coworkers contributes to unethical choices. Also consistent with KPMG's findings, the NBES study claims that employee perceptions of a company's commitment to ethics affect overall behavior and morale.

Both studies' findings support the fact that an organization's dedication to ethics programs and to promoting ethical behavior sends a positive message to employees and encourages ethical behavior within the organization. The survey responses indicate that a positive environment prevails when workers can report unethical behavior without retaliation and when guilty individuals are disciplined. Also, because the example set by top-level employees influences others, the surveys claim that organizational leaders must be models of ethical behavior.