Launching and Enforcing a Code of Ethics in Organizations

Code of Ethics and Its Organizational Foundation

The code of ethics underpins everything else in an organization. Its values are embedded in some of the most important organizational documents, such as the vision and mission statements. The code of ethics is less about abstract ethical theory and more about behavior, so it exerts a strong influence over how people interact with each other — that is its primary focus. The subject matter of the code — mentorship, diversity, respect, and learning — represents universal values, and organizational members should guide their behaviors in accordance with those principles.

The mission statement is, in many ways, a rewording of the code of ethics, which highlights how important the code is to the organization. Mentorship, respect, diversity, and learning are all key elements of the mission statement, and they are all underpinned by the philosophies embedded in the code. Because so much of the code consists of actionable items, the organization is well equipped to use it in governing behavior. As such, it is important that the code of ethics, along with the mission statement, be effectively communicated throughout the organization.

Launching the Code of Ethics

In any established organization, it is necessary to formally launch a code of ethics. Kaptein and Wempe (1998) note that organizations already have an embedded code of ethics grounded in organizational policy and culture. The motivation for a written code is mainly to remedy the insufficiencies of that implicit code. In some cases, an implicit code can lack clarity and contain inherent contradictions; developing an explicit code helps to remedy this. However, because the organization is already functioning under an implicit code, there will need to be a process of reconciliation between the new and existing codes. This process must be supported by senior management.

The code will need to be communicated frequently through multiple media — both in writing and verbally — and frequently referenced by management at all levels. If there are known inconsistencies between the new code of ethics and the existing organizational culture, management must be honest about this, since those are the areas requiring the greatest effort to explain how things will change and what that means for expected norms of behavior. A strong focus on the message through repetition, explanation, and preferably through other icons of effective communication — slogans, acronyms, and buzzwords — can prove effective in bringing about behavioral change in a relatively short period of time (Goodman & Truss, 2004).

The code should also have its champions throughout the organization. These are people who believe strongly in the code and its value to the organization, and who have been tasked with identifying and overcoming resistance. Ultimately, people are creatures of habit, and any change imposed from an external source can require an adjustment period, even when the change is positive. It is necessary that there be people within the organization who understand the code thoroughly, can help others see its value, and can address pockets of resistance or specific implementation issues that might arise.

Enforcing the Code

The first thing to recognize about this code, given the items it contains, is that it is positive-oriented. It is not a code of ethics built around prohibitions. As such, it benefits from a positive approach to enforcement. The goal is for people to value the code and to live by it, embedding it into the organizational culture. A system of rewards for adherence to its tenets would be valuable — for example, recognizing individuals who excel at mentorship or divisions that successfully incorporate a high level of diversity. It is also important that these expectations be built into job descriptions and that employees be evaluated on aspects of the code. That creates financial and career incentives not merely to follow the code, but to uphold and promote it as an essential component of the organization (Mayhew, 2016).

This does not mean that negative reinforcement should be absent. Certain aspects of the code are serious in nature, and a violation could be disastrous. In particular, the code governs attitudes and behaviors related to diversity. Because the law addresses discrimination directly, the organization should prescribe clear consequences for those who approach any grey area — most such issues are settled out of court or in civil court and can expose the company to significant financial risk. Even something like respect requires clear guidelines: employees need to understand what constitutes respectful behavior and what the consequences are for failing to demonstrate it.

Conclusion

The research on codes of ethics highlights several key issues: training, leadership, and enforcement. The key to making a code of ethics take hold is recognizing that an informal code already operates in most organizations, and that introducing a new code of ethics is fundamentally a change management process. The organizational change literature recommends training and visible leadership commitment. Given the importance of mentorship in the code, it makes sense to deploy ethics champions throughout the organization — ethics mentors who can help implement the code within their respective areas. It is also evident that a strong orientation toward positive enforcement will lead people to appreciate what the code has to offer and give them greater incentive to embed it into their everyday thinking.

This approach appears to have the best chance of seeing a new code of ethics embedded quickly into organizational culture. It requires leadership to repeat and clarify the message consistently, but following the principles of organizational change and communication should allow implementation to succeed.

References

Dean, P. (1992). Making codes of ethics real. Journal of Business Ethics, 11(4), 285–290.

Goodman, J., & Truss, C. (2004). The medium and the message: Communicating effectively during a major change initiative. Journal of Change Management, 4(3), 217–228.

Kaptein, M., & Wempe, J. (1998). Twelve Gordian knots when developing an organizational code of ethics. Journal of Business Ethics, 17, 853–869.

Mayhew, R. (2016). How to enforce a code of ethics through rewards. Houston Chronicle. Retrieved April 20, 2016, from http://smallbusiness.chron.com/enforce-code-ethics-through-rewards-11023.html