Unfortunately, employee misconduct is not uncommon. Disgruntled workers breach their companies’ codes of conduct all the time. Whether by misusing company time, taking credit for others’ work or harassing their colleagues — among many other examples — disgruntled employees raise many ethical issues in the workplace.
Despite the pervasiveness of such behavior, employee misconduct sometimes goes unreported for a variety of reasons. Colleagues may feel threatened by their unscrupulous coworkers, or they may fear backlash for “tattling.” Still others might simply choose to look the other way to avoid conflict. Either way, misconduct causes a great deal of disruption in workplaces.
The Global Business Ethics Survey is conducted by the Ethics & Compliance Initiative (ECI), and shows that 49% of U.S. employees have witnessed misconduct that violated their organization’s ethical standards. Rates of reporting the misconduct have risen to an all-time high of 86%. Unfortunately, retaliation rates have skyrocketed along with the increase in reporting, with 79% of U.S. employees reporting retaliation.
So what, exactly, can employers do to mitigate employee misconduct while alleviating fears of retaliation for those who witness it? While there is no simple answer, there are some methods of addressing ethical issues in the workplace.
Most large companies enforce codes of ethics that clearly state the definition of, and the punishment for, employee misconduct. These documents provide information about a company’s mission statement and philosophy, and they define the standard to which employees must hold themselves
However, companies should revisit these codes of ethics from time to time to accommodate new trends and changes in national practice. When it is time to update the code, managers should solicit buy-in from their employees to get insight into the issues people “on the ground” face every day. By including everyone in this process, managers and executives demonstrate the value of the entire team.
At some point in your career, you’ll likely encounter situations that present an ethical dilemma – issues that seem to force you to choose between two viable options that clash with your personal values. Learning to recognize and handle these sensitive moments is an essential skill for every employee.
Follow this 7-step approach to help you speak up and take action when faced with ethical challenges
1. Repeat Back and Clarify the Situation
When first presented with a directive that raises ethical questions, avoid an immediate negative reaction. Instead, paraphrase the request back to confirm you understand all relevant details and implications.
This gives you time to carefully process the situation before responding It also allows your manager to hear the order repeated back, sometimes leading them to reconsider the approach
Example: “Let me make sure I understand what you’re asking. I should submit this financial report excluding the losses from last quarter, even though that will make our growth appear higher than it was. Is that correct?”
2. Ask Ethical Questions
Next, ask targeted questions to flush out any ethical issues and understand the rationales at play. Important questions include:
- Is this action legal?
- Does it comply with company policies?
- How could it impact various stakeholders inside and outside the organization?
- Does it align with our company and personal values?
- What precedent or example could this set if others did the same?
Asking thoughtful questions demonstrates your desire to do the right thing, not just blindly follow orders. It also surfaces critical issues leadership may be overlooking in their directive.
3. Focus on Your Manager’s Best Interests
When responding, assume your boss has good rather than dubious intentions. Frame your concerns in the context of protecting them and the organization from potential negative impacts.
You can say something like: “I want to make sure I’m not putting you or the company at risk here. Have you consulted legal on this? I’d be worried about the liabilities if something went wrong.”
Positioning yourself as looking out for your manager’s best interests helps avoid stimulating a defensive reaction to your questions.
4. Suggest Alternative Solutions
Rather than just raising problems, propose other options that could achieve the same aim in an ethical manner. This demonstrates you’re a creative problem-solver, not just naysayer.
For instance: “Instead of excluding those losses from the report, what if we kept them in but explained them in a footnote? That would provide more transparency for readers.”
Generating constructive solutions Marina Luo instances where speaking up about ethics is justified, such as:
- Illegal requests like falsifying financials, lying to regulators, or violating trade controls
- Actions that directly harm customers, vendors, or the public
- Breaches of confidentiality or data privacy
- Cases of harassment, discrimination, or unsafe work conditions
When core ethics or laws are on the line, employees have a responsibility to shine a light on the issue through proper channels.
6. Escalate Situations Through Proper Channels
If raising concerns directly with your manager doesn’t resolve the situation, consider escalating through appropriate internal channels. These could include:
- Your manager’s boss or the executive leadership team
- Relevant cross-functional leaders such as Legal, Compliance, Finance, etc.
- Human Resources – especially for discrimination, harassment, or retaliation concerns
- An anonymous ethics or compliance hotline
Escalation should always follow proper protocols and the chain of command. Also document your actions and retain evidence in case of future investigations.
7. Blow the Whistle as a Last Resort
If internal reporting fails to correct an ethical breach, external whistle-blowing to regulatory authorities or the media may be the only recourse left. However, this should be a last resort, only used when:
- Substantial public interests are at stake
- Internal channels have been thoroughly exhausted
- Proper procedures have been followed
- You have irrefutable evidence of wrongdoing
Whistle-blowing often comes with major personal and professional cost. Consult an employment lawyer before taking this step.
In Summary: Doing What’s Right Isn’t Always Easy
Speaking up about ethics is situationally complex and often emotionally challenging. Use this 7-step process to thoughtfully navigate tricky dilemmas at work. The right approach can help resolve issues while protecting both yourself and the organization.
While doing what’s right isn’t always easy, maintaining your personal integrity is worth the difficulty. As the saying goes: “The only thing necessary for the triumph of evil is for good men to do nothing.”
Provide Resources and Education
When business leaders amend their codes of ethics, they may see pushback from employees who refuse to change. More often than not, this results from employees not understanding how to implement these changes. However, just because they may have a tough time adjusting to new practices does not mean they are completely incapable of doing so.
Employers must provide educational opportunities for all employees in order to successfully implement policy changes and set goals for senior leaders and managers. This may include literature or multimedia presentations explaining the importance of the changes, “icebreaker” games that demonstrate acceptable behavior or workshops with experts in the ethics field. Employers and employees alike can become more familiar with advanced business ethics through Texas A&M University-Corpus Christi’s online Master of Business Administration program.
The same ECI study showed that this kind of policy education has a dramatic effect on workplace misconduct, reducing misconduct rates to 33%. And the stronger the culture of ethics, the greater the impact.
Employers can effectively implement these programs by explaining the rationale behind them, including what necessitated the changes, how they will improve employee relations and how they will benefit individual workers. When employees actually understand the importance of ethics in business culture rather than simply going through required motions, they are more likely to fully comply.
Ethical Dilemmas at Workplace | With REAL LIFE Examples
How to handle an ethical dilemma in the workplace?
In this article, we explain how to handle an ethical dilemma in the workplace, offer tips for the process and define what an ethical dilemma is. Here are seven steps for how to handle an ethical dilemma in the workplace: 1. Analyze what’s at risk Weigh the pros and cons of what’s at risk in the scenario to help you determine what steps to take.
How do you deal with workplace ethics issues?
In the workplace, a manager’s decisions might affect employees, customers, suppliers, creditors and shareholders. These are the stakeholders of an organization. Identify alternative courses of action. Every dilemma affords more than just one opportunity. The cautious handling of workplace ethics issues can resolve personal and business dilemmas.
How do you resolve an ethical conflict in the workplace?
The best approach to resolve an ethical conflict in the workplace is to prevent it from happening in the first place. This means to have a defined core set of values; ethical standards (code of ethics); strong compliance function; and ethical leadership. When conflicts do occur a defined process helps to resolve it in an effective manner.
How do you understand ethical dilemmas?
Understanding ethical dilemmas involves recognizing conflicts between moral values, such as confidentiality and honesty. The guide advises reflecting on personal core values and gathering information to make informed decisions. It emphasizes identifying ethical principles at stake and considering the consequences of actions.
