How to instil a strong ethical culture: economic downturns represent an opportunity

Article Type: Abstracts From: Development and Learning in Organizations, Volume 25, Issue 1

Bannon S., Ford K. and Meltzer L.The CPA Journal, July 2010, Vol. 80 no. 7, Start page: 56, No of pages: 3

Reports the results of the Ethics Resource Center’s (ERC) 2009 National Business Ethics Survey (NBES), undertaken every two years to measure how employees at all levels view ethics within their own organizations, in which responses were received from 2,852 employees of US companies. Reveals that: 49 percent of employees observed misconduct, compared to 56 percent in 2007; 63 percent of employees reported misconduct, compared to 58 percent in 2007;employees reported a 2 percent decline in pressure to compromise ethical behaviour, compared to 2007; and employees reported an increase in the ethical culture of their workplace, from 53 percent in 2007 to 62 percent in 2009. Suggests that difficult economic conditions appear to strengthen workplace ethics, and that when the economy recovers, ethics may decline again, so managers and consultants should take steps now to strengthen and support the ethical cultures of their companies. Argues that a strong ethical culture serves as the best barrier against the eruption of a new scandal, and the 2009 NBES found that 18 percent of employees perceived their companies as having a strong ethical culture; more than double the 2007 rate. Concludes that the four essential elements for success are: ethical leadership; supervisor reinforcement; peer commitment; and embedded ethical values.Article type:ViewpointISSN: 0732-8435Reference: 39AX225

Keywords: Business ethics, Corporate culture, Economic depression, Ethics, Organizations, Recession, Surveys, USA