Even if it’s not necessarily against the law, unethical behavior at work can damage a company’s reputation, leading to a loss of clients and workers, and even shutting down the organization. Unethical behavior occurs in many organizations and sectors and is not exclusive to any field or region.
The Cost of Employee Misconduct
According to the Association of Certified Fraud Examiners’ (ACFE) Report to the Nations, a typical company should plan on losing 5% of its yearly sales to fraud.
Following a scandal where staff opened millions of fictitious accounts under the names of real customers without their knowledge or agreement to reach sales targets, Wells Fargo Bank resolved a civil lawsuit for $3 billion.
While check fraud, skimming, and payroll anomalies are more typically an issue for smaller organizations, corruption has historically been the most urgent worry for larger businesses.
Beyond these overt issues, there are also seemingly innocent immoral practices prevalent in practically every office. Unfortunately, there is a good probability that these minor ethical failings will grow into more serious issues.
How to Prevent Unethical Behavior at the Workplace
1. Establish a Code of Conduct
An outline of the behavior and attitude the organization expects is provided to employees and management in a written code of conduct. It explains what actions are to be taken if an employee breaks the code of conduct, as well as what behaviors are inappropriate.
2. Scrutinize and Reinforce the Consequences of Unethical Behavior
When employees behave unethically, business owners must hold them accountable. Start by explaining the regulations to new hires during their orientation meetings. Then, make sure new hires are aware of the repercussions of breaking the rules.
3. Create Checks and Balances
To reduce the likelihood of unethical activity, establish a system of checks and balances rather than placing related duties in the hands of a single employee.
4. Hire the Right Candidates
When hiring staff, many business owners look for people who have the training and experience to demonstrate that they are talented workers and able to handle the responsibilities at hand.
To ensure that candidates will fit in with the company’s culture, employers who want to discourage unethical activity also consider the candidates’ beliefs.
5. Lead By Example
Employees look to their company owners and managers for guidance on how they should act in the workplace. As a business owner, you should base your decisions on ethics and check to see if the people you appoint to leadership positions share those beliefs.
Conclusion
Employees are equally open to constructive influences as they are to the steady degradation of their ethical standards. A gentle prod in the right direction can nudge staff members to be more sincere.
Unsurprisingly, employees tend to be happier and more devoted to their employers when the company acts with greater moral integrity. Additionally, contented workers tend to act more morally, which starts a beneficial loop for your company.