Ethical leadership starts at the top of the organization. Middle management then follows the lead of the top executives. Leaders who make it clear that ethical behavior is not a training program but rather the way the company operates tend to have a more successful culture that fosters trusts and respect. It takes a strong leader to ensure that ethical behavior is prevalent throughout the organization and carried throughout middle management.
Compliance Ethics Vs Legalities
Ethical behavior goes beyond legalities. Middle management that simply discusses ethical gray areas with each other without addressing it directly fosters mistrust and lack of respect from other employees. Companies that truly have an ethical mission and follow it through in actions and words tend to draw higher quality employees and experience lower turnover. Turning a blind eye to one unethical situation causes a lack of trust and respect from the rest of the team and fosters a dysfunctional culture that’s counterproductive. It’s easy to find an excuse not to report questionable behavior.
Hold Everyone Accountable – No Exceptions
Employees who pride themselves on getting away with borderline behavior are typically the biggest culprits in your cultural decline. The longer this behavior is allowed by turning a blind eye, the more damage that is done. This is especially true in a hierarchical work environment where lower level employees don’t have the power or internal network to feel safe uncovering the truth. The higher level managers protect each other for fear of being implicated. They’re also rewarded with promotions for their loyalty to higher level managers. According to the 2013 Business Ethics Survey, “60% of misconduct reported involved managers.”
High profile employees who tend to hire inexperienced employees have an even greater need for monitoring so they don’t exploit the vulnerabilities of those who are new to the workforce. This is especially important as millennials are entering the workforce. They look up to senior management to learn what’s acceptable behavior. According to tnwinc.com, there are warning signs:
Top 3 Red Flags:
Don’t sweep unethical behavior under the rug. Insecure managers tend to resort to questionable behavior to protect their position and salary. They feel threatened by others’ skills and knowledge and are desperate to retain their stature with senior leadership. The majority of employees are already aware and experiencing the negative consequences of your inaction. Lower level employees rely on top executives to do the right thing. If top executives don’t take action with middle management, there’s high turnover throughout the organization. Your company’s reputation and financial standing is at stake.
The fact that managers’ behavior is in question is a reflection of the corporate environment. It may be time to refresh managers’ skills on ethics and compliance and make some changes in middle management.
Is it time to update your corporate compliance training program?
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