National Public Radio examines how good people can act unethically, using a small business example. Over the past decade or so, news stories about unethical behavior have been a regular feature on TV, a long, discouraging parade of misdeeds marching across our screens. And in the face of these scandals, psychologists and economists have been…
How one individual’s experience changed the nation. In the late 1970s, Goodyear hired Lilly Ledbetter to work as a supervisor at its tire factory in Alabama. Ledbetter was the only female supervisor at the plant, and remained so for the nineteen years she worked there. She received a Top Performance Award for her work in…
How to build and sustain an organization whose employees are happy, motivated, and ethical remains one of the most complex, elusive questions confronting business leaders. Organizational culture is determined by the interaction of systems, norms, and values, all of which influence behavior. Much discussion of organizational culture still focuses on structural changes to corporate governance…
Don’t underestimate this group’s power as a vocal force for transparency and change. Over the past few years, household-name companies have experienced employee petitions, strikes, and walkouts over a range of issues, including strategic investments and partnerships, sexual harassment, immigration, and pay and benefits for contract workers. For companies accustomed to thinking about stakeholder engagement as an external-facing exercise, the…
Stakeholders are critical to your organization…but who are they? We often hear about stakeholders, but there is some confusion about who, exactly, these people are. Stakeholders are those individuals and organizations that your company impacts. Stakeholders can be divided up into internal stakeholders and external stakeholders. Internal stakeholders Internal stakeholders are easier to identify than…
Many businesses have no formal ethics or compliance program. These organizations may see such a program as unnecessary or high-cost. But ethics and compliance yields many benefits to businesses. They improve company reputations. Studies show that organizations with programs are more successful. And an effective program attracts the kind of employees you want — and…
The Federal Sentencing Commission sets standards for sentencing for federal crimes. Because companies can also break the law, the Commission also developed guidelines for how to sentence organizations: the Federal Sentencing Guidelines for Organizations (FSGO). Companies can face penalties from fines to operational requirements. But the most talked-about portion of the FSGO is what it…
What happens when a business breaks the law? In many cases, a regulatory violation results in a fine or some additional penalties, such as increased oversight. But some cases are large enough that the company involved is brought before a federal judge and sentenced. Obviously, a business can’t go to jail. But sometimes, individual executives…
Q: Are compliance and ethics really that different? A: I would argue that compliance and ethics are unique disciplines; however, because both are designed to manage human behavior, it is easy to see why the two are so often conjoined. First, many organizations “house” their ethics departments under the larger compliance umbrella. Companies do this for…
Use this diagram as a way to frame and make ethical decisions. There are many recommendations for how to go about decision-making. But instead of “going with your gut” next time, consider trying this ethical decision model: Start by realizing you (or your business) faces a decision with ethical implications. Then, identify stakeholders who might…
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