From the TPG Home Office The state of ethics in America
Dear ,
Last week I was preparing to moderate an Ethics Panel for the Institute of Management Accountants Heartland Conference here in Tulsa, OK. The educational conference was attended by almost 300 auditors, accountants, and compliance professionals from many different industries.
In preparing for the conference I reviewed the latest statistics from the Ethics Resource Center. Unfortunately, there is more bad news than good news in the ethics arena.
According to the ERC's latest national survey, the ethics landscape is treacherous. According to ERC's president, Dr. Patricia Harned, corporate America is at great risk. More than six years after Enron and other corporate ethics scandals, businesses of all sizes show little, if any, meaningful reduction in their enterprise-wide risk of unethical behavior. In other words, we are ripe for another major corporate scandal. Just look at these statistics:
One in eight employees experiences some form of retaliation for reporting corporate misconduct.
Many employees do not report what they observe because they are fearful about retaliation and skeptical their reporting will make a difference.
The number of companies that are successful in incorporating a strong enterprise-wide ethical culture into their business has declined since 2005.
Only 9% of companies have strong ethical cultures.
56% of employees personally observed conduct that violated company ethics standards, policy, or the law.
The following are the top three observed ethical violations:
Conflict of interest - observed by 23% of employees
Abusive or intimidating behavior - observed by 21% of employees
Lying to employees - observed by 20% of employees
On the bright side, there has not been a better time for those of us in the positive people practices movement to be alive. It pays to be nice. It makes sense to be open, honest and transparent with employees. Trust, integrity and respect are making a comeback because the best and brightest people will gravitate to the companies who develop great working environments.
And yes, an ethical working environment is one enormous part of being a great workplace.
To Your Success! kevin kennemer the people group
Improving Our World One Workplace at a Time
Welcome to Evil Inc. by Kevin Kennemer, SPHR
If a company's leadership has intentions from the beginning to operate a fast-growing business in an unethical
and illegal manner, while maintaining a positive public image, I have
observed one possible sadistic model that can be successful, at least
on a short term basis.
The CEO needs to be a well-liked, mild-mannered, suave, polished and
articulate business person. His second in command, on the other hand,
should be a domineering, short-tempered, intimidating, executive bully
who doesn't take no for an answer. It's his way or the highway and he
drives the truck that runs over you. The second in command essentially
takes direction from the CEO and barks out orders and creates fear
across the organization.
The second in command is seen as someone to be feared and most
people will never cross him nor question the direction of the company,
even if it is unethical or illegal. All this while the CEO looks like
the good guy and the company is considered an excellent corporate
citizen. It's the corporate version of good cop, bad cop. Dr. Jekyll
and Mr. Hyde in the C-Suite. This leadership model is confusing to
employees on the inside but the public never notices the sadistic
practices of the operation.
Welcome to Evil Inc.
According to the 2007 National Business Ethics Survey published by the Ethics Resource Center,
the second most observed ethical violation is abusive or intimidating
behavior observed by twenty-one percent of employees. That means one
out of every five employees routinely observe the use of abusive or
intimidating behavior in the workplace.
Ethics & Workplace Bullies Dr. Gary Namie, founder of the Workplace Bullying Institute, will be in Tulsa, OK on Thursday, October 23 to speak to the Oklahoma Business Ethics Consortium
According to the Workplace Bullying Institute, 37% of American workers, an estimated 54 million people, have been bullied at work. The health affects on targets of bullies is devastating while many employers look the other way. According to the Institute's research, in 62% of the cases, when made aware of bullying, employers worsen the problem or simply do nothing, despite losing an estimated 21-28 million workers because of bullying. Is this the ethical response employers should take?
Dr. Namie is a pioneer and one of the foremost
authorities on Workplace Bullying in the world by virtue of the Workplace
Bullying Institute he directs, and the websites, precedent-setting research,
including the WBI-Zogby survey, books, work with employers, as
well as over 700 media appearances including the Wall Street Journal,
New York Times, Washington Post, Business Week, American Bar Association
Journal, Today Show, Good Morning America, and Howard Stern.
Workplace Bullying: An American Business Moral Dilemma Tulsa, OK - Marriott Southern Hills Thursday, October 23, 2008 11:30 a.m. - 1:00 p.m. Only $25 per person and includes lunch!
The Telecommuting Imperative from the Harvard Business Review Editor's Blog
It's amazing how old attitudes persist in the face of all evidence and reason, isn't it?
I recently ran across a press release from Korn/Ferry International with the headline, "61%
of Executives Surveyed Believe Telecommuters are Less Likely to Advance
Compared to Employees Working in Traditional Office Settings" Though
the survey is dated from 2007, and "more people are telecommuting, I
doubt that overall attitudes have changed much in the interim," said
Korn/Ferry managing director Jeff Hocking. "A lot of executives
consider work a contact sport."
This is ridiculous. In an age of crazy fuel prices, too many
employees are pouring too much of their disposable income into their
gas tanks. Many fear they can't keep up with expenses. When people are
worried, it's hard for them to focus on their projects.
Nevertheless, an unbelievable proportion of managers hang on to the
entrenched idea that an employee who is out of sight is somehow less
worthy than someone who is. It's time for these executives to get past
their control issues.