Building an Ethical Company

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By Blake DuBose and Mike DuBose

In the current recession, being profitable and saving money are top priorities for many companies. Leaders are pushing staff to perform beyond their limits with fewer resources, and as they struggle to find shortcuts, employees may feel pressured to behave unethically.

Most of us would say that ethical behavior means doing the right thing and being honest. Many think of a famous C.S. Lewis quote: “Integrity is doing the right thing, even when no one is watching.”

Even in dire times, ethical people retain their morals. Recently, Addie Mack at Columbia Classic Lincoln called to tell us that we had overpaid a car lease by $1,000! He could have easily neglected to say anything, hidden the overpayment, and kept the money, but instead, he chose to do the right thing. Needless to say, we were impressed!

How can you, as a leader, build a company culture full of honest, ethical people like Addie?

Practice being ethical: One cannot simply say one day, “Our company is going to be ethical!” and expect everyone to comply. It takes a lot of effort, time, modeling from leaders (and each other), and consistent behavior to create such a work culture. Leaders must also make it clear that unethical behavior by anyone within the organization is unacceptable.

Establish your values: We debated what ethical behavior should look like as a company and incorporated these ideas into our strategic plan. We have posted our values on our walls and frequently refer to them while making decisions. Encourage all leaders to put any choices they make through your organization’s value screens first.

Create an open, candid environment: Leaders and staff should be able express their concerns about anything—including unethical behavior—without fear. Everyone should face the facts, even those that are brutal. Leaders should encourage staff to confront them (tactfully) if they feel that the company is doing something wrong.

Employ outstanding, ethical people: Screen out the bad eggs through tough hiring practices. With help from a committee, take all candidates through several interviews and psychological profile tests. Probe deeply to identify character weaknesses, and examine their backgrounds very carefully, looking beyond just the references they provide.

Imagine it in print: Visualize what you are about to do splashed on the front page of the newspaper. Would you like for God, your minister, friends, spouse, children, relatives, employees, and others to read that article? If not, don’t do it.

Don’t cause stress: Our team leaders are keenly aware that we have to make a profit to pay the bills, but we don’t run people into the ground trying to keep the money rolling in. We believe that this results in happier employees who work smarter, not harder.

Take only what you need: To ensure that our staff has the resources to do their jobs effectively and with reasonable stress levels, we take out only modest company profits and reinvest the rest into the business. Taking care of your staff pays healthy dividends!

Teach others to value happiness: Help your staff to understand both who they are and how to appreciate others without trying to place them into boxes. Everyone is different and we must exhibit patience and love for those who do not think like we do.

Solicit solid advice: Have a few trusted advisers who will give you candid feedback about potential choices and the resulting problems and issues. Don’t solicit advice from those who will tell you what you want to hear; rather, ask those who will look at the situation from different angles and tell it like it is. Then, LISTEN!

Terminate employees who are unethical, immoral, or do not fit into your culture: You simply do not want the wrong staff in your company because they can start problems and spread negativity. To make things worse, your best employees may get fed up and leave!

Make commitments with caution: Think carefully about the decisions and promises you make to ensure that what you say is what you do. Always “underpromise and overdeliver.”

Create a company and culture that are about more than just making money: Our companies’ purpose is to create opportunities to improve the lives of our staff, customers, and the less fortunate. Thus, we organize volunteer opportunities for staff during work hours and give away large donations to deserving charities.

Be humble and teach teamwork: Emphasize the value of humility and discourage selfish people who seek attention by bragging. Stress “we,” not “I” and share credit and rewards when possible. Ensure that everyone gets kudos and a serious pat on the back regularly. Look for things employees do right, especially ethical behavior, and reward them.

When your folks make mistakes, don’t zap them: You want to be a patient teacher and model of good ethics. Holier-than-thou leaders do not usually inspire ethical behavior in others—they just turn people off. Guide and coach staff in a caring way to make good, fair decisions, with the ultimate goal of it coming naturally to them.

If you don’t feel good about something, reconsider! If you feel knots in your stomach, wake up in the middle of the night, or find yourself feeling worried or guilty about a decision, be careful! Reevaluate the choice and ask yourself if it is truly the ethical way.

Ask for God’s help: If you are spiritual, seek a higher power to help you overcome your human nature and desire to do evil.

Admit wrongs: When you slip or fail, admit it and ask for forgiveness. We all make mistakes, but only great leaders reveal them, use them as learning opportunities, and build on them.

Employ the Golden Rule: Simply put, treat people like you want to be treated. Do what you know is right rather than catering to a lust for power, greed, or money. As John Maxwell wrote, “You can go for the gold, or you can go for the Golden Rule.”

The bottom line: Great companies are filled with ethical people and steered by leadership that is not solely profit-focused. Emphasize high quality standards, but be satisfied with a little less of the green stuff and a lot more humility.

In his book Street-Smart Ethics, Clinton W. McLemore says, “Ethics, like laws, exist to bring out the best in us and, in the process, to assist society and perhaps even to advance civilizations.” Personally, we find that inner peace and contentment pay much richer dividends than a whopping cash flow. It is an investment that will benefit you, your staff, your family, and your company more than you know!