Evolutionary ethics.

Your level of commitment to an ethics program in large part defines your association ethical outcomes.

In recent years, much has been written about the need for government and business entities to develop and implement organizational ethics programs. In response to the increased public awareness and focus that ethics has garnered, some associations have instituted highly visible and effective programs of ethics that reflect a genuine institutional commitment to promoting, inspiring, and rewarding the ethical behavior of its employees and members. Curiously, some associations have totally ignored the need for such programs, while others have publicly indicated their commitment to ethics but have done little or nothing to demonstrate it in a meaningful or tangible manner.

What commitment, if any, has your association made to advancing ethical behavior and conduct within the association itself as well as the industry, profession, or interest group it represents? How do your association's employees and members demonstrate this commitment?

Level of commitment

A variety of ethics programs exist that are easily categorized into six distinct levels.

Level 1. This most basic level is characterized by an association's commitment to certain stated principles or values such as honesty, compassion, and fairness. The commitment is memorialized in a written statement that is distributed to the association's members, who are then asked to embrace and reflect these ethical principles in their behavior. No formal pledge to follow the principles is requested. No ongoing staff support for the program occurs once the principles have been distributed. Hence, the commitment is rarely evaluated and revised. There is no mechanism to investigate alleged violations, and no formalized disciplinary process exists.

Level 2. The next level is characterized by a written behavior-specific code of conduct that an association's members are urged to follow. The code clearly sets forth the dimensions of ethical and unethical conduct. It is widely distributed among the members of the association and is generally known to exist. There is some staff support for the program, but involvement is limited to modest awareness and basic educational efforts. No requirement exists stating that the members need to follow the code as a condition of continued affiliation with the association. No enforcement mechanism to ensure compliance is in place; nor is there a procedure to investigate alleged violations.

Level 3. At the third level, an ethics program includes a behavior-specific code of conduct that the association's members are required to follow as a condition of membership in the association. Knowledge of the ethical principles often must be demonstrated prior to admission as an association member. This is accomplished by successfully passing a written test or completing certain educational requirements. Staff support for the ethics program is readily available, and ethics education is a regular component of association conventions. A standing ethics committee investigates ethical complaints against members. Violations of the code result in discipline ranging from probation to expulsion from the association.

Level 4. At the fourth level, an ethics program embodies all Level 3 attributes and has a proactive ethics committee that pioneers a variety of initiatives throughout the association. The program has a comprehensive and well-coordinated promotional campaign that may include activities such as a regular ethics column in the association's magazine, an ethics advisory service, Web site space devoted to ethics-related information, and a recognition program for exemplary ethical conduct of its members. Staff support for the program is extensive.

Level 5. At Level 5, the program includes all Level 4 components and incorporates elements that are designed to prevent internal fraud, scandal, corruption, litigation, and misconduct. These elements include ethical standards and procedures that are mandatory of all employees of the association; a high-level manager of the organization who oversees and ensures compliance with the standards; mandatory training programs on ethics; regular monitoring and auditing procedures - a system whereby employees can report suspected ethical violations without fear of retribution; and a record of consistent and appropriate discipline of those who violate the organization's standards and procedures.

Level 6. At the highest level, a Level 6 ethics program includes all Level 5 components plus a board-level ethics committee that provides general oversight of the association's overall ethics program; a specific code of ethics for the governing body that addresses conflicts of interest, appearances of impropriety, abuse of office, and interference with daily management of the organization; a written statement of the association's core values that are to be reflected in all decisions of the board and management of the association; and an annual organizational ethics audit of the association's practices and procedures.

The Level 6 ethics program reflects the highest commitment to ethics that an association can make. It embodies program elements that address ethical behavior for association members, staff, and directors. The program's activities are dual in nature. They are balanced between detection, investigation, and discipline of unethical behavior and the promotion of responsible conduct. At Level 6, ethics is an authentic priority for the association.

Gaining momentum

A number of professional associations - such as the American Bar Association, American Medical Association, and American Psychological Association - have Level 4 and 5 ethics programs, and a few associations are striving for Level 6. In corporate America, the ethics movement is growing and evolving at a rapid pace. Hundreds of organizations are at Levels 5 and 6. These entities usually have full-time ethics officers who devote themselves to promoting ethical conduct and behavior throughout the organization.

The ethics trend is also growing within the government sector. The United States Office on Governmental Ethics coordinates ethics investigations and programs for federal agencies. Similar ethics offices exist at state levels throughout the nation.

The growth of ethics programs can be traced in part to the concerted efforts of certain defense industry contractors who banded together after widespread public reports of fraud and corruption hit the industry in the 1970s. The voluntary ethics initiatives promulgated by these contractors launched the beginning of the corporate ethics movement. In 1991, the movement gained momentum when the United States Sentencing Guidelines went into effect. These guidelines - part of a larger piece of legislation - provide significant incentives for organizations to design and implement effective programs of ethics and compliance. The result has been an increase in the number of organizations that have made a commitment to ethics and to developing programs that reflect ever higher levels if commitment.

Lack of commitment

Despite the growth and popularity of the ethics movement, many organizations resist and refuse to implement an effective ethics program. Resistance occurs at both the staff and board levels.

Staff resistance to developing an ethics program can occur for a number of reasons. First, the chief executive officer may mistakenly believe that the organization already practices good ethical conduct and thus has no need for an ethics program. Second, the executive may be fearful that an ethics program will expose or reveal organizational deficiencies or questionable practices for which he or she will be held accountable. Third, the staff executive may not be knowledgeable about the benefits of instituting an ethics program. Fourth, the executive may lack the vision required to move an organization upward in its level of commitment to a program. Finally, the executive may purposely keep the association's volunteer leadership uninformed of the ethics movement as a means of retaining control of the organization.

As for the association's board, resistance is generally the result of a lack of knowledge about ethics programs and how they can protect an organization from fraud, scandal, corruption, and litigation. On occasion, resistance at this level is because of the involvement of the governing body itself in questionable activities.

Getting with a program

If associations are to become active participants in the ethics movement, association staff must take a leadership role in articulating to the association's volunteer leaders the need for a formal ethics program. Once the need has been communicated, the governing body must make a formal and authentic commitment to design and implement an appropriate ethics program. The commitment must be adequately financed and supported by board-level involvement in the planning, development, implementation, and management of the program.

One of your first priorities is education. It is helpful if the group charged with planning the program becomes familiar with various options, models, and alternative approaches to conducting an ethics program. A second priority is assessing the organization's internal ethical climate. This can be done in several ways, including focus groups, surveys, and an ethics audit. This information will help the planning group make informed choices about the nature and scope of your ethics initiative. It's critical that the ethics program have a defined purpose, vision, goals, and benchmarks as well as a regular review and evaluation component.

If your association's staff members have not yet brought the issue of ethics to the forefront of the association, the board can certainly take a leadership role. Board members should not hesitate to ask for a briefing concerning the status of the association's ethics program or to solicit staff recommendations for improving the program and increasing the association's level of commitment.

The benefits of having an organizational ethics program range from preserving the public's confidence in your association to preventing fraud, scandal, corruption, and litigation to enhancing the overall performance of the association. Are you willing to take on this challenge and develop the steps that will allow your association to obtain these rich rewards?

Louie V. Latimer is an ethics and compliance consultant based in Colorado Springs, Colorado. E-mail: [e-mail].