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How strong ethics can help overcome distrust

By Kirsten Hastings, 16 Feb 17

With perception often speaking louder than truth, Simon Webley, research director for the Institute of Business Ethics, believes preservation of trust within a business, externally and internally, must be a top priority for management.

With perception often speaking louder than truth, Simon Webley, research director for the Institute of Business Ethics, believes preservation of trust within a business, externally and internally, must be a top priority for management.

Speaking out

Perhaps one of the most troubling statistics from IBE’s employee survey is the proportion of UK-based staff who say they have a concern compared with the number that actually raise the matter.

In 2015, this was 45% of the sample. The most frequently cited form of misconduct was people being treated inappropriately, unethically or unfairly. So why do employees not speak out?

The principle reasons mentioned were that they felt it might jeopardise their job, that they believed nothing would be done about it or felt it was none of their business.

The fact that fear of retaliation no longer figures in the top three reasons given for not taking any action is significant.

What other trends have been highlighted by recent surveys concerning ethical behaviour at work?

The introduction of ethical awareness programmes for all employees is a positive sign. Using a code of ethics as a basis for providing guidance on matters not covered by laws and regulations is now well established in bigger organisations. Regular updating of guidance about issues such as the use of social media in and about the workplace and cyber security has been generally welcomed.

Two issues on the horizon that will need more attention are protection of employee and business partners’ confidential information, and evaluating the ethical standards of those with whom you do business, such as the supply chain and potential joint ventures in particular.

The increase, too, in corporate involvement with local welfare and environmental initiatives is being well received both in companies and by the general public.

Listening project

Action is yet to be taken that will ensure staff at all levels and locations can air issues they are worried about – or know about – but currently have little or no means to make their concerns known.

A number of disturbing incidents take place on a regular basis that are not addressed, and some of these erupt into reputation-damaging episodes. Annual staff appraisals or the provision of ‘speak-up’ phone lines that are external to the company are not sufficiently robust ways of identifying and addressing these problems early.

Ultimately, it is clear that the preservation of trust within a business – both internally and externally – must be a top priority for those in management positions at every level in an organisation.

Pages: Page 1, Page 2

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International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.