So they need to see that your internal reporting system is trustworthy. Once established, companies can provide ongoing training to highlight the importance they place on ethical behavior, and to maintain employee awareness of it. Founder Values. An ethical tone creates the basis for standards of behavior that become part of the code of ethics. The research shows that across numerous criteria—from how often employees say they observe misconduct, to how often they report it, to how much they fear retaliation, and so forth—the more managers talked about ethics, the better employees rated their company’s culture. Ethisphere recently published a report looking at the role managers play in promoting a speak-up culture. Remember, however, that a code of ethics is worthless if top management fails to model ethical behaviors. This could mean that different locations will have different cultures. Organizational culture is created and maintained by the beliefs values and behaviors of higher management. This includes ensuring rules are enforced and finding opportunities to discuss ethical dilemmas in daily business. These workshops and programs help to highlight the importance that the company places on ethics in addition to giving staff the tools to understand what is and is not ethical behavior. Offer Formal Ethics Training. Develop clear ethical values—honesty, respect, fairness; whatever fits your organization. 4. Share. When managers actively reward their staff for displaying ethical and desired behaviors, it is more likely that their team will repeat these. Put them in the Code of Conduct, in a place of prominence. Critical ways of improving company culture are ensuring that there is no bias training and setting the right organizational tone. An Ethical Organization Understands Its Goals – If we know we are going to create an ethical culture rather than talking and writing policies about an ethical climate, we will be better able to allocate resources, create dynamic relationships across departments, better reward performance and set more attainable goals. When you view “building an ethical culture” from that perspective, suddenly several tasks rise to the top of the priority list. Reinforce the Behavior You Want, and Don’t Reinforce the Behavior that You Don’t Want. Ethics is about behavior. The headline read, 'Fudge Follies on Freeway 5.' Since the financial crisis in 2008, there has been increased public attention to the ethics of organizations with which people do business. For example, as much as we all love a strong internal reporting system, most employees report their concerns to managers. During the … These are referred to as codes of conduct. Most employees also take their cues about how to behave from managers. Take slavery, for example. An organization in which leaders demonstrate ethical behaviors sets standards and clear expectations for how their employees should act. So, if the organizational culture represents “how we do things around here,” the ethical culture represents “how we do things around here in relation to ethics and ethical behavior in the organization.” Formal training will always be important; employees will always need to know what the law says about bribery, or privacy, or collusion, or whatever else comes along. So. So ethics and compliance programs must work with middle managers on what those practices, norms, and expectations are, and how to base them on the company’s ethical principles. First, appreciate the strong connection between building an ethical culture and building a culture of trust. The linkage between culture and compliance is that culture drives ethical behavior. 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