Solid Ethics Yields A Solid Bottom Line

David Rodbourne

Director of Programs
Minnesota Center for Corporate Responsibility

Too much to do, too little time! Sure, ethics is important, but where do I find the time, the people and the resources? Besides, we’ve already got a code of conduct.

Of course, the big error in this line of thinking is the idea that ethics is an add-on, something extra. If there is any lesson in the headlines, it is that ethics is an integral dimension of your business and your capacity to make a profit. In the 1980s we learned that being competitive cost, quality and customer service were the building blocks of success. The 1990s have taught us that success also requires trustworthiness and integrity.

• Successful employers get beyond equating ethics with a code of conduct by pursuing seven key implementation principles:

• Ethics is a fundamental management process, not a statement on the wall.

• Success hinges on specifically identifying where a business is at risk. Times change. Industries change. Issues change. We need to keep pace.

• Even small businesses create organizational systems or incentives that conflict. Do the messages we give out in hiring, sales incentives, customer service, performance reviews and daily behavior align or diverge? Do they support our values or undercut them?

• Ethics is not a once-a-year exercise. One employer talks about being "severely intentional" in bringing ethics and values up at all kinds of meetings. It is a regular agenda item keeping their standards front and center.

• We need to know if we are on-track. Are we working up to our ethical standards? Some companies conduct regular audits; some use ethics hot lines. To ensure confidentiality, some ask their outside auditors to carry out this function.

• Prevention and education must be part of the package. Problems may arise because good people make mistakes or lack appropriate information. Regular training and communication that is specific to the business’s practices and relationships are important.

• Leadership is critical. Senior business leaders need to be visible and vocal in setting standards.

The Minnesota Center for Corporate Responsibility (MCCR) has developed a new service, called the Ethics and Integrity Service, to assist employers in taking practical steps to design and implement an effective business ethics strategy. The service is confidential and will be tailored to the client’s business requirements. For information about the Ethics and Integrity Service, call MCCR at (612) 962-4120.

By David Rodbourne, director of programs at the Minnesota Center for Corporate Responsibility. This article was originally published in the University of St. Thomas's Graduate School of Business MasterPiece newsletter - Spring 1998 edition.

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