Welcome to the August edition of One Month to a More Effective Compliance Program. In the month of August, 2023 we will consider the role of Human Resources in a best practices compliance program.
Creating an ethical culture in the workplace is essential for any business. Not only does it ensure that employees are making the right decisions, but it also helps to protect the company from potential legal and financial repercussions. But how do you create an ethical environment?
HR can play a key role in this process. They can provide employees with the tools and resources they need to make ethical decisions, such as a personal network for informal guidance and the opportunity to consult with advisory functions. Additionally, HR should support employees who want to do the right thing and ensure that those who speak up are not discriminated against or held back from promotion.
Written protocols are also important for the detection and prevention of unethical behavior. Companies should consider if their compensation system is based on performance or something else, and ensure that incentives are not driving behaviors that are counter to long-term success. Bonus payments and executive share schemes should not be based on short-term business metrics, and cross-cultural differences should be taken into account.
Leadership also plays an important role in creating an ethical culture. Senior leadership should set the tone from the top and reward ethical behavior, while also seeking out diverse opinions and breaking down silos in the corporate organization. Additionally, a speak-up culture should be encouraged to ensure that unethical behavior is not tolerated.
Finally, employees need to understand the organization’s underlying culture in order to make ethical decisions. Companies should ensure that employees have the tools and resources they need to make informed decisions, and that they are not pushed too much change from the top, too quickly and too frequently.
Creating an ethical culture in the workplace is essential for any business. By utilizing HR, written protocols, and leadership, companies can ensure that employees have the tools and resources they need to make ethical decisions. This will help to protect the company from potential legal and financial repercussions, while also creating an environment where employees feel supported and empowered to do the right thing.
Three key takeaways:
- Beware of the three obstacles to creating an ethical culture.
- What really matters in your company?
- A speak up culture will improve the operational performance of your business.
For more information, check out The Compliance Handbook, 4th edition, here.
