Question

What are some of the best practices for improving an organization's ethical climate?

Answer 1

1. Develop a code, and make ethical performance a strategic priority. A relevant code of ethics, conduct or similar policy that sets clear objectives, standards and expectations is a key requirement for ethical performance. A code needs to be supported by a focus on ethical performance in wider decision making.
2. Set the tone from the top. Senior management teams must show leadership and be seen to live the organisation’s ethical values. Only once that happens can employees get in step and ensure the whole organisation lives those values.
3. Engage, communicate and train your staff. Engage staff and other stakeholders such as suppliers, investors, regulators and consumer communities, through effective and informative communication. Good, regular and consistent communication and training will help to embed an ethical culture.
4. Provide support routes for staff. Organisations need to develop clear routes for reporting suspected fraud and violation of company policies on ethical behaviour. Too many organisations are weak in this regard and must adopt a zero-tolerance approach.
5. Measure effectiveness of your ethics programme. To ensure best practice, organisations need both to measure their ethical performance and to foster open discussion.