Monday, January 19, 2009

Ethics - Not Just Stealing Pencils


by Don Harkey

When I was in college studying engineering, all students had to take a course on Ethics. I remember thinking how stupid the concept was. We are being required to take a course telling us not to steal pencils from work. Unfortunately, I didn't get much else out of the course than "don't steal pencils from work" and a "pass" grade (interesting that an ethics course is "pass"/"no-pass").

As I started my career, I quickly learned that ethics is a much deeper topic than I had realized. Its not just about stealing pencils from work or taking an hour and a half lunch break. Its about protecting your character even when the current around you pushes you the wrong way. Often times ethics requires action over inaction.

I don't think our young professionals entering the workforce are prepared for the decisions they will have to make and for the fact that they will make the wrong decisions from time to time. Part of the reason for this is that most people make enough of the wrong decisions that they become numb to the "right ones". Let me explain.

I have seen a lot of outright corruption in my career (a LOT more than I would have expected). However, this is actually not the most common form of unethical behavior. Crooks almost always get caught. The type of unethical behavior that I see as being extremely common occurs when an individual surrenders their judgment to an organization. Let me give you an example.

An employee is filling out an accident report. The supervisor points out to the employee that if they use too strong a language, the corporation will come down on them and they will get in trouble. The employee "softens" the description of the incident for two reasons: 1) the supervisor basically told them to and 2) if the darn company wouldn't come down so hard on them, they could report the truth. The employee has falsified their testimony and has blamed the company for "making them do it".

I'll give another example. A salesperson is given a bonus if they can sell a certain amount of product within a quarter. The salesperson is barely short of the target and really needs the bonus to help pay for some medical bills. The salesperson has a customer who is wavering on making a purchase. He calls the customer and offers a huge discount if they make the purchase immediately. The employee made a decision for the company based on their individual need.

These practices are so common that many people might argue with me whether its ethical or not. I have had high-level people in organizations tell me that "its just way its done".

Why is this happening? First of all, the commonality I see for this type of behavior is a justification. The person justifies their actions, usually by pointing out a flaw in the organization or people around them. "If they wouldn't base my pay on sales, I wouldn't have to do this" or "If others weren't doing this, I could compete without making these types of decisions". They basically dismiss their decision as something almost out of their control.

Another commonality in the behavior is that it is simply easier. It is easier to go along with the currents of an organization that encourages (intentionally or not) unethical behavior. A supervisor asking you to "soften the language" on a report may not even be consciously aware that they are asking you to lie. Pointing it out to them is tricky because people like to think they have high character and because the right decision will likely make their job more difficult as well.

My advice for organization leaders is simple. Structure your organization in a way that rewards character. Do not give bonuses based on individual performance targets. Beware of practices that limit the flow of truth within your organization. Set up a culture of cooperation (not competition) amongst your employees. Establish a clear common vision. Most of all, make the types of decisions that you want your employees to make. They will likely follow your lead. My experience is that while ethical decisions may be painful in the short term, your reputation will become your most valuable asset in the long term.

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