Modeling Ethical Behavior

As a child, our parents or guardians teach us the difference between right and wrong in order for us to be able to function as good stewards within our society. In order for people to get along and function without too much difficulty there must be some rules in place that governs their behavior. So is it within an organization, there must be some rules of acceptable behavior to ensure honest business dealings with not only the members of the organization, but also with the community in which the business interacts while providing a product or service. Having morals within an organization is crucial to the success of the company because the community that receives benefits from the company must see a picture of trust, compassion, and caring from the organization in order for the community to continually provide patronage and this calls for ethical behavior on the part of all organizational members. So how do you define “ethical behavior?” I am sure if you ask two or more people you will not hear the same distinct response because what is ethical to one may be unethical to another. In general, ethical behavior is what a specific culture accepts as right or wrong. As an example, in some cultures, it is customary to arrange marriages for members of the family whereas in other cultures people will frown upon this practice, as individuals wish to choose their own marriage partners!

In an organization sense, the best place to start practicing ethical behavior by demonstrating what is acceptable as right or wrong is at the top by senior management. It is imperative that senior managers not only demand ethical behavior in the organization by all employees but also practice it in their daily interactions so that the employees observe the behavior and emulate it. When employees see managers displaying ethical behavior they are more likely to display the same behavior because they too want to be in alignment with company protocol or the organization culture. When personnel within an organization practice ethical behavior it has a positive effect on the morale of the employees and that can help in keeping them motivated because they realize the actions of the managers are above board. But what happens when a manager does not practice ethical behavior? The business world is replete with examples of managers who may have given the appearance of behaving ethically but did not. As an example, Ken Lay of Enron, his actions ruined the company and lost millions of dollars in employee and individuals’ financial investments by giving the appearance that there was a specific amount of funds on the books when in fact they were not. Another high profile example is Bernie Madoff who convinced investors to invest their private funds in his company to only lose millions of dollars in life savings in an effort to only support his high profile life style. This type of management behavior is not only bad for the organization but the economy as a whole as the effect creates a ripple throughout which hurts the small investors who have worked their entire lives trying to create a decent living.

As you step into your management role, the internal and external organizational environment will at times test your ethical behavior and you must withstand the pressures to violate the trust placed in you by virtue of the position you hold. Will you practice ethical behavior on a regular basis? Most people will naturally answer yes. However, there is an assumption that you will do right when you know your actions are being watched. But a better test for you is will you do what is right when no one is around to observe your actions? Until next time, I am Dr. Anthony Spivey, keep thinking BIG!