An ethical culture shapes how people in an organizationthink and behave. It is made up of shared values and principles that guide them toward common goals.
How can I understand my organization's ethical culture?
Start with its Code of Ethics. The code communicates the behavior expected of each person, explains what is not allowed and the possible consequences, and expresses the organization's identity.
An organization without a Code of Ethics may put its operations and growth at risk. The document helps clarify its direction.
How can it be put into practice?
Ethical culture reflects leadership's commitment and the responsibility shared by everyone to do what is right and meet organizational goals within the law.
The Code of Ethics records the principles, but everyday actions must communicate and reinforce them. A common mistake is saying one thing and doing another. Tolerating retaliation or impunity after reports, using euphemisms, or setting conflicting goals sends confusing messages about expected conduct.
Communicating ethical culture repeatedly is not easy at first, but it can be learned.
Culture is learned and relearned. The more consistently an organization practices the corporate ethics it seeks, and the clearer and more practical its values and guidelines, the better its people can understand them.
Three keys to corporate ethics
Three elements help put ethics into practice:
Code of Ethics and Conduct
The code should include a message from senior leadership stating its commitment and purpose, along with commitments expected of employees, suppliers, and customers.
Ethics hotline
An ethics hotline lets people seek answers to questions they might otherwise hesitate to ask, helping clarify what is and is not appropriate.
Ethics pulse surveys
Regularly assess how people understand the ethical culture. The results show whether messages are clear and which areas need better explanation.
Organizations that want to improve need an ethical culture that is clear, transparent, and practical.
Keep the energy and vision behind the organization you want to become, and bring that vision to life every day.