JBM Consulting
Conducting an Ethics Audit 
April 2010 
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Greetings!  

 
We hear so much about Ethics these days but do we fully understand what it really is and how important it is to our business or success of our organization?  What if I am in compliance...isn't that covering ethics?
 
Ethics and Compliance.   There is a difference. 
 
An organization's "Ethics" focuses on the behavior of individuals.  Compliance is how closely we adhere to laws and regulations.  Can we adhere to regulations without exercising an ethical approach?  Of course.
 
"Ethics Audits" compare internal behaviors to internal guidelines on behavior such as codes of conduct and other ethics related policies. 
 
Compliance focuses on internal behaviors to external regulations.
What Does An Organization Need to Focus On?
 
Simply, the focus is work behavior of each and every employee...from the most senior person (the role model) on down!
 
An organization that manages the behavior of employees on a regular basis is likely to be more in touch with how well they are complying with the ethical standards of that organization.  The performance review process is the most valuable way to determine adherence, as such a process both improves communications and focuses on behaviors tied to performance.
  
It is very important that there is a mechanism for employees to express problems and concerns and managers are able to detect potential issues and appropriately handle them.  If your organization has an HR department, ethics is a topic that the department should ensure is a  focus when writing policies and assisting management with monitoring performance/behaviors related.
 
Ethics audits will ensure that employee behavior is consistent with the organization's code of conduct.
 
Neglecting ethics in an organization can result in severe outcomes.  Loss of faith in the employer by employees.  Morale declines.  Customers and clients will also take note. Customers leave hurting business significantly.  We know that what matters most in life is relationships, being respectful, honest, objective and fair are at the core of good relationships.  To violate any one of these is to put up some red flags and to reduce the credibility of your organization.  Relationships at all levels suffer, the costs are tremendous to any business or organization.
 
So, "put your  money where your mouth is" .  Put the time and energy into ensuring that your written stance on code of conduct and how you expect your organization's employees to behave/function is supported by ensuring the policies are being followed and violations are being handled appropriately.
Some quick tips on handling an effective ethics audit:
  • Compare actual employee behavior to the written guidance for appropriate work behavior provided (clearly) in policies;
  • Ensure your measurement system is tangible such as including ethics goals to each position description and tie it to performance appraisals;
  • Try to conduct audits with the least disruption to the already busy schedules; be clear on the approach you are taking; who will be interviewed; observations that will take place; information needed etc ;
  • While doing this, look for other areas that may need improvements - "kill two birds with one stone"; this type of exercise inevitably results in learning more about other challenges and issues employees are facing providing ample information to consider changes;
  • Communicate effectively before, during and after ;
  • Be sure any and all violations are disciplined appropriately!
 
The very first thing to focus on of course, is what you have in writing.  You must have a policy that clearly supports your values and what behavioral expectations are required of your employees.  Clear, formal communications with training as necessary is always very important! 
 
Sincerely,
 
Jeannine Brown Miller, MA, SPHR Principal Consultant
JBM Consulting
Audits of any type often are best handled by an outside third party professional for more free flow of information and objectivity.  Feel free to contact JBM should you want more information on how to approach an audit.