Creating An Ethical Workplace May Not Be Easy, But Is It Critical? Yes, It Is

In today’s difficult business environment, it can be easy to overlook ethical dilemmas in the workplace out of sheer exasperation. But when a company makes the effort to treat employees in a fair and consistent manner, it can reap the benefits of having employees who internalize the company’s high ethical values as their own.

What would your employees do if they thought no one was watching? We’d like to believe that they would behave honestly, ethically and with the best interests of the company at heart. Unfortunately, human nature being what it is, there’s always a chance that, when you’re not paying attention, a (hopefully) small percentage of people will try to get away with something on the company’s dime.

It may be something relatively benign, like adding an extra few minutes to their lunch break here and there, or it may be something much more serious, such as someone in accounting padding vendor checks to get kickbacks.

Unethical behavior isn’t just black and white.

There are many shades of gray, and there may be an entire spectrum of unethical behaviors plaguing your workplace.

You may have a manager who is pushing salespeople to peddle a shoddy product instead of reporting the known product faults to engineering. She might think she’s doing you a favor by getting rid of the merchandise languishing in the warehouse, or she might have her eye on a fat bonus check at the end of the quarter. Either way, her behavior can be defined as unethical.

Perhaps there’s a supervisor promising overtime to the loading dock employees just to get the job done, knowing full well that the overtime will not be paid. When a dock employee finds her week’s paycheck is short, she might start intentionally damaging shipments to retaliate. It’s easy for company morale and ethical behavior to tank faster than you’d think. It rarely stays static — it’s likely to fluctuate — or even snowball.

In an article for Harvard Business School Working KnowledgeCarmen Nobel wrote about the telephone conversations professor Eugene Soltes had with Bernie Madoff (who was serving a prison sentence for his giant Ponzi scheme). One of Madoff’s quotes reads, “It wasn’t like I was being blackmailed into doing something, or that I was afraid of getting caught doing it … I, sort of, you know, I sort of rationalized that what I was doing was OK, that it wasn’t going to hurt anybody.”

Ethical behavior is vital in organizational excellence.

Without ethical behavior, it’s much too easy for the slide down the slippery slope to begin.

To encourage ethical behavior in the workplace, it’s important to create a tangible definition of what ethical behavior is and what it is not. With mergers, transfers and new hires, there is no way to know what prior standard of ethical behavior was expected. Give some time and thought into how the company values are communicated to each and every employee.

The Ethics & Compliance Initiative’s 2018 report, “Building Companies Where Values and Ethical Conduct Matter,” found that “Employees who agree that their managers and supervisors talk about the importance of ethics are almost 12 times more likely to believe that their organization encourages them to speak up.”

No matter how honest you believe your staff to be, there is always the chance that someone will be tempted to push the limits of ethical behavior. However, when you embed a check-and-balance arrangement into critical procedures, the odds of anyone doing so diminish.

If an employee does manage to break your trust by acting unethically after being informed of the company’s code of behavior, carry through with the consequences. If Sally pads her expense report and nothing happens to her as a result, the message sent to her colleagues is that it’s OK to lie about the cost of their mileage, too. If instead, Sally is reprimanded for such an action, employees will know that your company is serious about upholding its ethical commitments.

Don’t forget to show appreciation for those who exemplify the values your company strives to live by. Recognition of these individuals reinforces to the group at large your commitment to ethical behavior.

One of the best ways to discourage unethical behavior is to lead by example. If the management team displays model behavior, the rest of the staff can readily see what is expected of them.

Ensure there is a written code of conduct for all employees that everyone, from the top down, is aware of. Have a company mission statement that specifically mentions the priority placed on ethical behavior and living the stated values.

It’s easy to simply hire the candidate that best matches the tangible qualifications for the job. He has a related degree, years of experience and has worked with the department’s software. But, what are the candidate’s values? Is he honest? Is he fair with customers and co-workers? Can he readily own up to his own errors? I believe it’s important, now more than ever, to hire with an eye towards applicants who show ethical tendencies.

Ethics training can be a valuable addition to the orientation presentation. In this forum, proper attention can be given to the company’s stance on nondisclosure of proprietary information, the posting of negative comments on social media and even on the particulars of the sexual harassment and interdepartmental dating policies.

The bottom line is that unethical behavior can and will eventually undo any company or any individual. It’s worth the time and effort to create an ethical workplace for everyone.


This article has previously been featured on Forbes

 

Why Cultural Intelligence Matters (Even If You Never Leave Home)

Cultural intelligence, also known as CQ, is the ability to connect with others and work effectively in multicultural situations. Some people seem to have an innate ability to observe a new culture as an outsider, but act and react in a manner that shows they have been able to interpret the unfamiliar and successfully incorporate it into their own actions and behavior.

In 2003, P. Christopher Earley and Soon Ang brought this idea to the forefront with their book Cultural Intelligence: Individual Interactions Across Cultures, in which they explored effective ways to help companies and employees discover how to think globally and integrate themselves in the international arena. It espouses the benefits of being able to assimilate into new and various cultures harmoniously without the usual friction between people from disparate nations.

With effort, almost anyone with an open mind can expand their cultural intelligence. Some seem to be more suited for the task than others. Earley and Elaine Mosakowski explained in Harvard Business Review that “people who are somewhat detached from their own culture can more easily adopt the mores and even the body language of an unfamiliar host. They’re used to being observers and making a conscious effort to fit in.”

Even individuals without an innate talent for CQ can learn the skills that will allow them to participate more effectively on an international stage. The four main factors to consider when building your cultural intelligence capabilities are: CQ Drive, CQ Knowledge, CQ Strategy and CQ Action. Your enthusiasm to acquire knowledge about a new culture is your CQ Drive (also known as motivation). People in each culture have had their beliefs, behaviors and values shaped by that culture. Learning these aspects of the nation and its philosophies relates to your CQ Knowledge (cognition). Taking into account what you have learned about the culture and factoring it into your strategy is an example of CQ Strategy (metacognition). Being able to act appropriately and accordingly in a range of culturally diverse situations is an example of CQ Action (behavior).

Why is this important to global performers, international companies and even companies who are solely based in one country? If your organization is international, it is obvious that the opportunities for personnel from different cultures to cooperate effectively will show measurable benefits in performance, employee satisfaction and the bottom line. According to Ang, having high cultural intelligence is associated with myriad outcomes for an individual, including a more culturally diverse network, boosted job performance, improved results in cross-cultural negotiations, and better decisions in cross-cultural situations.

For example, if you work for a company that is only based in the United States, you may not have to consider international cultural diversity. However, cultural intelligence will still give you a considerable edge in your performance. Consider your own location, division or department as a single culture. Although you may have a colleague working in a different office performing the same job, consider that while you are on the West Coast, he is on the East. Though the company you work for is the same, his location has a different culture than your own. Upper management at his location may have different behaviors, different time constraints and different expectations of their employees than your own office. You are effectively interacting in a cross-cultural situation. Once you apply your CQ skills, imagine how many differences could be ironed out and how many difficulties could be avoided simply by realizing that although every location is part of the same company, they are not cookie cutter versions of your location.

Now that you understand the concept, you can see with fresh eyes that even your own singular location is a cross-cultural enterprise. This has the potential to lead to misunderstandings, miscommunications and problems. Each department has its own culture, its own customs, its own language and its own hierarchy.

For example, consider that the engineering department wants to add a new feature to an existing product because they think it will make a vast improvement. They may not even have considered what the accounting department will have to say about it, such as “What cost will it add to the bottom line?” or “Can the company charge more per unit because of the improvement?” The sales department might be in a quandary on how to upsell the customer to this new and improved version. All the while, the manufacturing department is wondering how they will tackle the problem of integrating this “improvement” into the production line. They may even feel blindsided that their input wasn’t consulted at the beginning.

To drill down even further, one department in one location by itself can benefit from applying your improved cultural intelligence. Getting to know your teammates can be valuable for something as seemingly innocuous as ordering a group lunch. Do you know who on your team is vegetarian and why? Are there some members who have religious or allergen-related dietary restrictions? It really is important not to be the manager who just orders pepperoni pizza for everyone and thinks everything is fine.

Increasing cultural intelligence is a benefit to anyone. It takes effort to build your CQ skill set, but think of the positive benefits and the boost it can provide to your career. The more you understand the cultural differences between the parties participating in the business venture (and the more you can demonstrate your ability to be fluid between those parties), the more poised you are to become the company’s go-to person for cross-functional and, perhaps, international assignments.


This article has previously been featured on Forbes

 

Leading with Ethics

In today’s high-visibility world with the constant social media avalanche, it’s more important than ever to ensure that, as a leader, your ethical message is consistent. Anyone out there can talk the talk, but if you don’t truly believe in the importance of ethical behavior in your business career, it will become apparent to your employees, your peers and to the people occupying the C-suite.

If you’re searching for the answer to the ongoing dilemma of how to nurture an environment of trust, accountability and respect in the workplace, start with practicing ethical leadership in all levels of management.

To be an ethical leader, you must demonstrate ethical behavior — not just when others are looking, but all the time and over time. Consistently doing what’s right, even when it’s difficult, should be an integral part of a leader’s makeup. If you behave in an ethical manner when you’re in the spotlight, but avoid responsibility, cut corners and value profit above people behind closed doors, it is inevitable you’ll be found out.

The negative effects of failing to uphold ethics-based leadership and behavior are legion. A recent example is longtime financial institution Wells Fargo. Because of years of unethical sales practices, they were ordered to pay $185 million in fines in 2016 for the creation of 2 million accounts that were unauthorized by customers. With a deeper investigation of the sales practices in place at the time, which were questionable at best, it was found that some employees were actually fired for reporting this egregious corporate behavior to the company’s own ethics hotline. This “cross-selling” fiasco not only cost the company in fines, but more importantly, in the loss of its ethical reputation.

If you model ethical behavior, you can have a positive effect on your organization — even if you only start with your own department or team. The trust that ethical leadership builds is infectious. When you consistently act in an ethical manner, you’ll earn respect, and your integrity will serve as a model for others in the organization.

Being an ethical leader isn’t easy, and sometimes it’s unpleasant. Terminating an employee who cuts corners or uses company property for personal projects is necessary, but not enjoyable. To maintain your integrity is paramount, and acting ethically across the board is essential. As Andrew Leigh, author of Ethical Leadership: Creating and Sustaining an Ethical Business Culture points out: “To be an ethical leader is indeed to be different. This kind of leader acknowledges the complexity of running a responsible business, yet tries to do it anyway.”

When you and your organization do the right thing consistently, employees know. They have proof that management acts with integrity, which makes them much more likely to feel heard when expressing concerns — a valid anxiety for those afraid to rock the boat. According to the 2018 Global Ethics Business Survey by the Ethics and Compliance Initiative, “Employees who see evidence of proactive communication and workplace trust are 15X more likely to think that their company measures and rewards ethical conduct.”

When a company effectively communicates the organization’s culture, values and beliefs, it tends to promote high standards for honesty, integrity and fairness. These concepts have to allow for open and honest feedback from your team, your division and even from your own managers. When leaders build that level of trust and camaraderie, colleagues can feel comfortable sharing the good and the bad. Ethical leaders should actively encourage candor, thoughtful dissent and diverse opinions from all sectors of the company.

Having a good and genuine example to follow gives employees the confidence to deal with their own ethical dilemmas, both work-related and personal. When they observe management promoting reward systems that are based on company values and ethical conduct, they understand the organization’s commitment to actually walk the walk.

As Ann Skeet, Senior Director of Leadership Ethics at the Markkula Center of Applied Ethics, explains in an article, “Ethical leadership creates an environment where the goals and values of people working in the organization align with its mission.” If a leader is committed to ethical behavior, he or she should be able to make the decision that’s best for the company — even if that decision is against the leader’s best self-interest. It’s often a case of choosing the greater good and putting your own ego aside.

The path to being an ethical leader isn’t free of pitfalls. Skeet cautions, “Falsely identifying decisions as monetary or business decisions when they are ethical ones, working too quickly to allow for moral reasoning, or asking people to act when they are tired or scared are all tendencies that can lead to ethical missteps.” If leading with ethics is not something your prior employers valued highly, it may take practice on your part to become comfortable with this level of transparency, honesty, and collaboration, but the future benefits are well worth the effort.

As novelist, dramatist, critic, and essayist John Berger pointed out: “Without ethics, man has no future. This is to say, mankind without them cannot be itself. Ethics determine choices and actions and suggest difficult priorities.”


This article has previously been featured on Forbes

 

Why Psychological Safety Is Necessary For A Competitive Advantage

The concept of psychological safety, according to William A. Khan in his 1990 paper on personal engagement and disengagement at work, is “being able to show and employ one’s self without fear of negative consequences of self-image, status or career.”

The actual term was coined as early as 1999 by Amy Edmondson but popularly cited from her 2002 paper on the subject. She explains, “In psychologically safe environments, people believe that if they make a mistake, others will not penalize or think less of them for it. They also believe that others will not resent or penalize them for asking for help, information or feedback. This belief fosters the confidence to take the risks described above and thereby to gain from the associated benefits of learning.”

It has become readily apparent in today’s technologically intensive and rapidly changing business landscape that conditions that will support the psychological safety of all employees in an organization are necessary for ongoing success. Despite this, there are companies out there that haven’t yet embraced this philosophy.

Have you ever worked for an organization that had no intention of providing even cursory psychological safety? If you haven’t, you probably know someone who has.

I know a manager who worked at an international company for three years. This organization proclaimed its values were diversity, truthfulness and trust. Posters in the hallways promoted this, and performance reviews were graded on it.

Unfortunately, it was, for the most part, a myth. When the results of the annual, center-wide, “anonymous” survey came out, middle management was routinely criticized for the dismal employee ratings for the statement, “I trust management, and feel safe expressing my ideas and concerns.” Then middle management was chastised a second time for the dismal survey ratings they gave upper management for the same statement.

Upper management never seemed to understand the irony: Middle management was being routinely reproved for expressing their ideas and concerns in an anonymous survey. Despite the obvious remedy of listening to employees without inflicting repercussions, upper management never made any attempt to solve this ongoing problem.

Elbert Green Hubbard said, “The greatest mistake you can make in life is continually fearing that you’ll make one.” Without psychological safety in the workplace, it is all too easy to become discouraged and simply move on to a hopefully more supportive organization. Employees now have the benefit of obtaining instant information on a place of work from the internet. With employee review sites such as Glassdoor, Indeed and FairyGodBoss, it’s easier than ever to get a preview of what a company’s culture is really like, as opposed to what they claim to be like on the “About Us” page of their own website.

If a firm is truly interested in fostering innovation, teamwork and accelerated productivity, there are steps they can take to foster an environment of psychological safety.

Understand that mistakes can and will be made without fear of retribution or consequences. Mistakes simply need to be acknowledged. They can then be used as a springboard for new ideas.

Make sure everyone is heard. Do the same three people voice all the opinions or ideas at every meeting? Encourage wider participation. Reticent team members may need encouragement to speak up. They may only feel comfortable answering a direct question. In meetings, no one is allowed to interrupt or belittle another speaker. Opinions and ideas are valuable and may come from the most unlikely members.

Encourage questions and feedback. Are you unconsciously doing or saying something that is impeding the process?  If no one feels safe speaking up, you’ll never know.

Develop trust between participants by sharing. Team members can relate to personal stories, triumphs and challenges. Forming a group bond is important in developing a cooperative environment that encourages participation.

Active listening is important to really hear what the other team members are trying to convey. This is no time to be checking the calendar on your cell phone. It’s OK to ask questions or request a clarification on a participant’s idea. Be open to hearing opinions other than your own.

Diversity in mindset is necessary for success. If everyone on the team thinks the same, there is no impetus to try anything new or different, and stagnation will be the result. Having a team that includes different viewpoints is essential for innovation.

If your organization doesn’t have a culture of psychological safety, it can be a big change to implement, and a bit daunting. There are many good books and articles with information on the subject that can offer ideas and support for converting the mindset of your organization. The results of providing a safe and supportive organizational culture can be amazing.


This article has previously been featured on Forbes

 

The Benefits Of Cognitive Diversity

Now more than ever, companies are learning to cherish the valuable input created by fostering cognitive diversity in their organizations. Cognitive diversity is the inclusion of people who have different ways of thinking, different viewpoints and different skill sets in a team or business group. Many of these same companies have already realized the benefits of encouraging diversity in age, gender and ethnicity for years but are perhaps new to the idea of cognitive diversity.

Unfortunately, there are still holdouts that tend to hire employees who think alike. Perhaps they want to hire an exact replica of “Ted” from accounting because he was so good at his job. Or, there are managers who feel comfortable hiring people who graduated from their own alma mater. There are even those who attain a new position with a new employer and then proceed to hire their former colleagues from a previous employer, one at a time, until the old team is all back together.

There is no doubt that people feel comfortable surrounding themselves with others who have business styles similar to their own. Unfortunately, when you get more of the same, what you end up with is … more of the same. Lack of innovation can lead to a slow, painful death in any organization. Sara Canaday writes in a recent article on the subject for Psychology Today, “A culture that encourages (explicitly or implicitly) conformity of thought breeds stagnation and imperils a company.”

It would seem on the face of it that more viewpoints, varied experiences and different ways of approaching a common problem would be preferable to a team of “yes men,” but old habits die hard.

In the Harvard Business Review, Alison Reynolds and David Lewis wrote: “Colleagues gravitate toward the people who think and express themselves in a similar way. As a result, organizations often end up with like-minded teams.” After studying the subject for several years, they point out that unfortunately, “This lack of cognitive diversity has two impacts. First, it reduces the opportunity to strengthen the proposition with input from people who think differently. Second, it fails to represent the cognitive diversity of the employee population, reducing the impact of the initiatives.”

It may not be easy to overcome these natural tendencies but it can be accomplished. First and foremost, teams, management, and organizations as a whole must not stifle “different.” They need to encourage it. By realizing that there is a positive measurable correlation between teams who embrace cognitive diversity, and teams who exhibit high-performance levels, companies can improve their productivity by inspiring management to provide a robust level of psychological safety for their employees. For cognitive diversity to be successful, the organization needs to make it “safe” for associates to try new things in new ways without fear of repercussions.

An important part of the progression is the role that management (or the designated team leader) plays in the process of harnessing the power of cognitive diversity. If the leader continues to allow each team member to play the part they find most comfortable, the group may be missing out on a wealth of energy and participation.

For example, if one team member is naturally upbeat and easily falls into the “cheerleading” role, the ongoing repetition of this optimistic behavior may eventually annoy some other team members who begin ignoring his input. If one member is analytical by nature and wants to paralyze other members with mounting facts, figures, and research, her input may not be heard after a time.

One method to avoid this role stagnation is to shake things up by assigning different roles to different team members by project or by milestones during the timeline of the project at hand. The team as a whole will still be getting an assortment of input to stimulate their ability to innovate, but getting a certain type of input from a different individual can wake up the process and allow participants hear something fresh.

Another way to leverage the synergy of multiple viewpoints is to encourage building relationships with other teams, other departments and even people from other companies in similar fields. Working in the vacuum of your own division’s structure can cause a groupthink condition. By exploring how others face similar challenges, it’s possible to see the strengths and the weaknesses of their methods. These newfound insights can be used to bolster your own team’s successes.

If you really want to jumpstart your team, initiate some innovative brainstorming and look at things from different perspectives for creative solutions. Find some people who aren’t afraid to be different and aren’t afraid to disagree with you.


This article has previously been featured on Forbes