Is a code of ethics effective?

In many of the organizations that I work with, I have spent numerous hours assisting them in defining their code of conduct and code of ethics.

By definition, a code of conduct is a list of behavioral requirements designed to support the company's code of ethics.

My personal belief is that, as various companies are forced to grow and compete at an ever-increasing rate, with ever shrinking margins the need for aggressiveness in marketing, is increasing the size of the gray area in everybody's business code of ethics.

Ethics is not simply a matter of following the letter of the law. There are many things that are legal that I would consider unethical.

Ethics is simply learning what is right and what is wrong, and choosing to do the right.

Doesn't that sound simple? We teach it to our children and yet in the midst of an organizational crisis or under extreme pressure, we rationalize ourselves into believing that a lapse of ethics will be better in the long run for companies.

Human nature dictates that we will always do what is comfortable. What is comfortable is not always correct, yet we repeat the act over and over again. The key to a change in behavior is changing your acclamation of comfort to properly align with what is truly right. This is what a properly structured and enforced code of ethics does.

A code of ethics simply provides and encourages a level of comfort and support  for doing the right thing.

I have seen properly managed codes of ethics and their accompanying codes of conduct strengthen floundering companies. 

A properly managed code of ethics will allow you to focus all of your team's efforts in the same general direction. Enforced ethics programs help maintain a moral course during times of transition or turbulence.

When people or organizations are in times of change, it is far easier to lose your ethical and moral compass. As your organization loses a moral compass the Enron effect will begin to occur. Many people currently being prosecuted for financial fraud never intended to defraud the public. They entered the business in the correct frame of mind, but lost sight of their ethical compass. In their minds, they were still performing in the best interest of the company. However, without a strong managed code of ethics, these people drifted off course; in many situations, destroying their personal lives and their organizations. 

In my church, we have a saying: “Do what is right and let the consequence follow.” I have tried my best to live the embodiment of this. Because of this, I have upset certain people. Many thought that I was limiting their organizational creativity. In truth, I was merely advising them of the long-term consequences of their actions. 

When companies and the leaders of those companies do not do what is right, the consequences not only affect themselves, but affect all who are dependent on that company. By losing their ethical compass, they are injuring their stakeholders, employees, themselves, and worst of all the customers and vendors who depend on the services that they provide.

Over a month ago I posted a link on my blog to a business code of conduct page. There is nothing outrageous in this pledge. It stated simply that you do what is right and place your customers’ needs ahead of your own. Not one other person was willing to publicly endorse this. I received many private messages and e-mails in support but for some reason nobody would take a public stance.

Why is that?

Are we sure that as an industry that's we are following the correct ethical compass?

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