ethics | On Leadership!

Every two years, the Ethics Resource Center releases their latest national survey on the state of ethics in the US. There are indications that we may have permanently turned the corner on misconduct related to unethical behavior. Yet, there is still work to be done on retaliation as it remains at a high level.

Perhaps the message is simple: Continue to focus on ethical behavior while increasing efforts on creating ways for people to report ethical issues in an environment free from retaliation.

Or, even better yet as a client put it: “Don’t let up on the gas pedal. And watch your dashboard more often–trusting warning lights when they light.”

I encourage you to read the entire report. The following are highlights:

Misconduct witnessed by U.S. workers is now at historic lows (41% report observing some form of ethical misconduct), and it is down in all categories including the pressure to compromise standards.

2000: 55%
2003: 46%
2005: 52%
2007: 57%
2009: 49%
2011: 45%
2013: 41%

24% report misdeeds are committed by senior management (C-level, VP)

63% report some form of questionable misconduct, boarding on unethical behavior (slightly down from past surveys):

26% report misconduct is ongoing in their organization—is routine
12% report wrongdoing is essentially company-wide and known

Retaliation against employee whistleblowers continues to be high at 22%–that equates to 6.2 Americans (based on Bureau of Labor Statistics population numbers)

69% supervisor intentionally ignored or treated differently (new this survey; all others were down)
59% got ‘cold shoulder’ from other employees
54% were excluded by manager/supervisor from decisions/discussions
49% were verbally abused by manager/supervisor
47% promotion or raise was not given
43% were verbally abused by co-workers
38% almost lost their job
33% experience some form of harassment either online or at their home
29% hours or pay were cut

Training and awareness seem to work (these percentages are at their highest)

81% provide ethics training
67% include it in performance measurements
74% communicate wrongdoing internally
2/3 have positive ethics cultures with strong policies, enforcement, and communication and there is a 60-percentage point difference in companies with weak-to-strong cultures

Top 5 observable misconduct (all represent a decrease from previous surveys):

Abusive or intimidating behavior 18%
Lying 17%
Conflict of interest 12%
Violating company internet use policies 12%
Discrimination 12%
One area was new to the report: falsifying invoices, books, records at 4% reporting it

What gets reported varies from the above list. These represent those ethical issues which actually get reported formally in the organization. Note that the first 4 represent a decrease while the last two represent an increase from previous surveys:

Inappropriate gifts or kickbacks 36%
Violating company internet use policies 37%
Lying 38%
Improper hiring procedures 39%
Falsifying invoice, books, records 40%
Violating contract terms with customers or suppliers 59%

The majority of reporting is done through internal channels. Only 20% report through an external channel such as a third-party agency or department–usually a governmental or regulatory agency. Internally, people report to:

Person’s supervisor 82%
Upper management 52%
HR 32%
Ethics office 15%
Legal 11%

So what do you think of Snowden?

Whistleblower, Traitor, Hero, or Scoundrel?

This current situation seems so easy, right? And, of course, not to mention the emotional fervor it has created among those who might say “whistleblower and hero” or those who say “traitor and scoundrel”.

Oh but that is government and politics. It will never happen to any of us.

Yet, today nearly half (45%) of us observe some form of ethical wrongdoing in our workplace or even in our volunteer work, social organizations, or religious institutions. This can take the form of stealing, harassment, abusive behavior, poor quality, lying, or other nefarious activities.

The good news is that such problems will be reported by two-thirds (65%) who see it. And guys, we have some work to do. Women report it more often than men.

Of those who report, most often it is reported to their direct manager or supervisor. In other cases, it is reported to a senior manager. This accounts for 66% of all reports. Clearly, those in leadership and management positions have both a responsibility to act as well as a responsibility to enforce.

So what gets reported? The following scenarios are reported most often:

sexual harassment
theft, stealing
abusive behavior
health violations
poor quality
substance abuse

Do those who report receive a parade, plaque, or platitudes from leadership?

Well, guess what. Sometimes leadership and co-workers, instead, retaliate by excluding the person from work assignments, activities and decisions. It can even lead to verbal abuse and threats of job loss. Does this happen often? Studies show that 22% report some form of retaliation.

Ok, so what can leaders do?

Encourage reporting. Investigate appropriately, objectively, and thoroughly. Avoid retaliation, even protecting people from it.

But perhaps the most important thing leaders can do is to create an environment and culture that operates ethically—one that includes mechanisms to report without retribution.

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Tag Archives: ethics

National Ethics Report: Have we turned a corner?

Whistleblower, Traitor, Hero, Scoundrel