Corporate Ethics – Ensuring Business Stability

by Lily White
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For businesses to reach financial stability, good morale and client satisfaction, corporate ethics must be a guiding policy for all involved.

Have you ever heard of the old saying “with friends like that, who needs enemies”? That is just the case where employees, managers or others working in a business are jeopardizing corporate ethics. Many corporations entrust great confidential, important issues and financial responsibilities to employees that could destroy not only their business, but also their customers. If the employees of a business are not ethical and loyal the results can be devastating.

Corporate ethics has come to the surface over the past several years with many fraudulent transactions. When managers are skimming off the top or conducting unethical actions with shareholders, customers or other employees it is sometimes difficult to detect. Others such as employees may keep quite about what they know for fear of losing their job or worse. In the past it has been so bad that those practicing the criminal or unethical behavior have threatened to hurt the employee if they speak up. Of course there is a “whistle blowers” law for protection, but law enforcement can not with them 24/7. Many of these people have families and fear not only for themselves, but also their families.

The business itself can suffer from the loss of clients/customers, financial issues and risk having to shut down operations when employees lack corporate ethics. Theft is not the only problem or behavior that can risk the businesses stability either. The treatment of clients/customers, their personal information and business dealings can also cause detriment to the business. That is the exact reason that many corporations have been implementing ethics training for all employees. There are many companies and individuals that will work on sight to teach employees and managers how to remain ethical, report violations and not fear in doing so. These topics may seem black or white, but they are often not that easy. There are several different issues that are commonly feared by those blowing the whistle. This person that they are “telling” on may be a family member, friend or boss and that can make the decision that much harder.

Corporation’s should make sure that they have a clear cut policy about reporting illegal or unethical activity. It is important that employees understand that by doing the right thing that they will not be sold out or punished for protecting the business. Low level employees are not the only ones that jeopardize corporate ethics, and the corporation should keep that in mind. This can be handled by requiring all employees to undergo ethics training and having a reporting system for them all, not only lower level employees. There should always be a second in command that employees can bypass their immediate supervisor to ensure they always have someone to report to. That way there is less of a chance of an employee remaining quite.

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