Work Ethic and Corporate Ethics in the Modern Workplace

Introduction: A Changing Business Landscape

At one time it may have been possible, if inhumane, to run a business like the Robber Barons — on sheer fear, power, and control. If a person incorrectly followed directions, made too many mistakes, or did not put in numerous extra hours, he or she was expendable. Someone else could easily take that place in the factory.

In these days of quickly changing times and technology, increased globalization, international competition, and demanding customers and suppliers, managing with an iron fist does not produce the necessary results. A dog can be beaten so many times before it bites its master. An insensitive and harsh employer can only push employees so hard before they do their best to bring the company and its owner down. On the other hand, employees who are treated fairly, with empathy and respect, will be loyal and work as a team to see the business succeed.

Similarly, during the industrial age in early America, many jobs required a work ethic that was limited and somewhat different from the characteristics necessary in today's service and information age companies. If people do not aspire to and maintain ethical behavior at work, they cannot be surprised when their actions bring them down as well.

Perhaps situations such as Enron might have been overlooked in the past, but today such behavior is unacceptable. Newspapers and numerous websites now have sections specifically addressing corporate ethics — or the lack thereof. According to a 2005 study published by the National Association of Colleges and Employers (NACE), in which over 1,000 employers nationwide rated the importance of a variety of skills and qualities, honesty, integrity, and communication were the skills most desired in employees.

Corporate Ethics Priorities and CEO Perspectives

It is a different world in the workplace, where the old saying "what goes around, comes around" is being proven over and over. Today, more than ever before, it is critical for personnel and management alike to have a superior work ethic. Without it, companies and industries will struggle and perhaps fail completely as productivity falls short of what is required to reach goals and attain success.

Companies are increasingly recognizing these changing needs. The Business Roundtable Institute for Corporate Ethics surveyed CEOs of large corporations to determine the most important corporate ethics issues facing the business community. According to the CEOs, the five most important ethics issues, in order of priority, are: (1) regaining the public trust, (2) effective company management in the context of today's investor expectations, (3) ensuring the integrity of financial reporting, (4) fairness of executive compensation, and (5) ethical role-modeling by senior management.

The research also found that 81 percent of CEOs believe that standards for corporate ethics have risen in the wake of recent controversies, and 74 percent say their businesses have made changes in how ethics issues are handled or reported within the last two years. Modifications cited most often include enhanced internal reporting, communications and compliance procedures; ethics hotlines; and greater board oversight. The CEOs' specific top-priority plans include establishing a framework for business decision making that integrates ethics.

There is a greater emphasis on ethics, but employees still hold different ideas about how business ethics should be defined. For example, a recent survey in Management Today (2005) showed mixed results. Nearly one-half (49 percent) of workers surveyed said it was wrong, and nearly one-half said it was right, to bring home pens from work. Although many individuals see it as their prerogative to take home office supplies, others would deem this not only unethical but an act of white-collar theft as well.

Defining Work Ethic and Its Core Characteristics

It is very difficult to define ethics, because ethical standards vary significantly. A work ethic is a recognized norm of behavior that promotes personal accountability and responsibility for the role and duties one performs. It is based on a belief that work has fundamental value. Work ethics are normally associated with people who work hard and do the best job possible — though, here again, many gray areas exist.

Studies have found that the many characteristics of work ethics can be defined using specific terms such as interpersonal skills, initiative, dependability, and — most importantly — empathy and honesty. Interpersonal skills encompass the behaviors, habits, attitudes, actions, appearance, and words that affect how people get along with others. It is easy for a person to believe he or she has strong interpersonal skills: "Don't I have a lot of friends? Don't I get along with everyone?"

However, when looking more carefully at one's interactions — especially in a work setting — it is possible to identify areas where improvement is necessary. Perhaps a person does not perform well on teams because he or she has difficulty compromising and following best practices. Or perhaps the individual becomes very shy in group settings and allows others to do all the talking.

Initiative is an important work ethic quality, since companies require individuals who are self-starters and can work as independent contributors without constant supervision. This demands not only knowledge and time-management skills, but also integrity and trust. Employers similarly need to know they can count on their workers to be dependable and to follow through on their commitments.

Conclusion: Ethics as an Ongoing Practice

Asacker, Tom. (2004). Ethics in the workplace: The best strategy — start with honesty with others. Business Mexico, 14(11), 40–42.

Do the right thing. (Work ethics). (2005). Management Today, 54.

Freeman, R. Edward. (2005). Create a new story about business: We have a unique moment to make a lasting difference in corporate practice. This is a moment we must seize. Directors & Boards, 29(3), 22–28.

NACE. (2005). National Association of Colleges and Employers. Retrieved September 30, 2005, from http://www.naceweb.org/press/display.asp?year=2005&prid=207