How to Foster a More Ethical Work Culture

What is more shocking, to know that a 2019 Gartner study found nearly 60 percent of employees have witnessed unethical conduct at work–or that most didn’t report the unethical conduct?

When we think about this, is it surprising or not? Considering today’s competitive landscape, macro and microeconomic conditions, and fears of scarcity, companies and employees are constantly bombarded with pressure to cut corners and do whatever it takes to succeed.

Maybe a manager changed how hours were reported to save on overtime costs, or a supervisor switched the dates on an invoice so it would look like the food was fresher than it was. Maybe there was a known software glitch that executives covered up and planes crashed, or maybe the major CPA firm misstated financial statements, resulting in millions of people being hurt. Maybe you would have reported it, or maybe you would have seen this activity and said nothing. 

Sometimes, being a team player means keeping your mouth shut and not rocking the boat. However, your company’s culture doesn’t have to be this way.

As an attorney, law professor, and long-term business leader, I’m passionate about business ethics. I advise companies and teach courses on how to build a stronger ethical culture at work.

This is what you need to do to start building an ethical company culture.

Company Culture

First, what do I mean by company culture?

When I say culture, I mean the values and behaviors exhibited in the company. Values are what the company thinks is important, and behaviors are the actions the company employees perform based on those values. Culture is what drives your organization in crisis, more than anything.

Imagine your company’s culture as a pyramid. Strong corporate values form the base. These values inform everything people do. They support employee engagement, customer satisfaction, and, ultimately, company success. 

When employees believe in your company’s core values, they’re more likely to be engaged, productive, and deliver exceptional customer service.

How do you begin building an ethical work culture?

It doesn’t happen after writing a mission statement or holding an all-hands afternoon workshop. It’s not about foosball, kombucha, or “We are Amazing” written in big letters in the hallways. Building an ethical culture takes years and requires continuous effort to foster and nurture the values of the company. 

Here are some key steps for you and your company to build–and maintain–a top-ethical workplace:

• Align mission, purpose, and values. Be sure your leadership and everyone on your team knows and aligns with your Mission Statement, the company’s purpose, and the core values of the company and culture.
• Develop a code of ethics. Leadership needs to clearly outline its values and expectations for conduct, including decision-making. The Disney Company, Intel, and Dell provide great examples of ethical codes.
• Lead by example. You and your management must consistently demonstrate ethical behavior. If your leaders aren’t promoting these values and behaviors, you can’t expect employees to do them.
• Promote open communication. Encourage employees to voice concerns and offer suggestions. Communication is the key to a sustained ethical culture. Remember, nearly 60 percent of employees don’t report misconduct. If it’s not spoken about, then it will be difficult to change the culture.
• Empower employees. Give employees the resources and authority to act ethically. When they see misconduct, they can intervene to stop bad behaviors and promote good ones.
• Recognize ethical behavior. Celebrate employees who demonstrate strong ethical conduct. Positive reinforcement is a great way to sustain an ethical culture.

It’s never too soon to start building an ethical culture. The sooner you do, the stronger the foundation will be for your company.