Why Ethics in 2000? (Excerpt from January/February 2000 Circuit)

Why is there such an emphasis on ethics -- and why now?

The Ethics Resource Center recently addressed this question. Their analysis determined for every organization these are specific and timely reasons why it is appropriate to pursue an ethics initiative, and of those reasons, four common themes emerge.

  1. The Moral Imperative. Most senior managers are concerned about doing what is right. Moreover, most organizations prefer to operate in accordance with a set of commonly identified universal values. Values cited as "universal" include: honesty, integrity, promise keeping, fidelity, fairness, caring for others, respect for others, responsible citizenship, pursuit of excellence, and accountability. Organizations often write these precepts into their stated operational values. It is then up to the organization to operate consistently and predictably in accordance with stated values.
  2. The Pragmatic Imperative. There is a wealth of evidence suggesting that good ethics equals good business. In terms of quality, customer service, employee relations, vendor relations, regulatory relations and public perception, the benefits of ethical dealings regularly make their way to the bottom line. The rewards for ethical dealings are both real and measurable. There is also ample evidence that indicates employee behaviors and productivity are directly related to employee perceptions of fairness and integrity within the organization.
  3. The Legal Imperative. When the Federal government issued a new set of sentencing guidelines for ethics violations, emphasis heightened sharply. Most striking among the features of the guidelines are the government's effort to encourage effective ethics programs and the staggering fines prescribed for violations -- fines go as high as $500 million. Potential fines can be significantly lowered, however, in exchange for a good faith ethics management program and cooperation with authorities.
  4. The Perceptual Imperative. Organizations operate in the public arena. Therefore, perceptions held by the public and key stakeholders provide the fourth reason for an interest in ethics. If an organization is perceived as ethical, the organization will be regarded more favorably. This does not imply ethics programs are insincere. Rather, it recognizes a positive result of doing what is right.

Commonly accepted values and themes do not guarantee ethical behavior. Nor does their existence assure two people in identical circumstances will make identical choices. As a result, the real value in creating an ethics program is that it brings choices to a conscious level and defines a formal system through which the organization can ensure its values will be applied with consistency and predictability.

To obtain information on the ES3 Ethics program, contact Donna Davis, director of Ethics & Business Conduct, at (410) 765-5546. To report suspected violations of policy or law, call the Ethics OpenLine at (410) 765-1919 or toll-free at (800) 247-4952.