Business Ethics

The most successful people and companies are those who behave ethically. The leaders of a corporation set the tone for ethical behavior, and this determines how employees, customers and competitors are treated. Ethical problems in business are not just a matter of knowing right from wrong but involve looking at business questions from a reasonable, responsible and consistent point of view.

Legality Versus Morality

The legality of an action is determined by law. The morality of an action is determined by ethical rules of right and wrong. Ethical behavior requires following the spirit as well as the letter of the law. An ethical business follows rules and trusts that other businesses and their employees will do the same, despite the fact that some unscrupulous business people take advantage of this trust.

Corporate Image

The reputation of a company is judged by its image in the public eye. One factor of a corporation’s image is the care and upkeep of its building, grounds and offices. Its logo and letterhead also communicate a message about the company.

Business vs. Personal Phone Calls

Each company sets its own policy, either formally in writing or informally by example, regarding personal phone calls at work. Charging personal long distance calls to the company or tying up company phones with personal calls are commonly unacceptable practices. Some companies scrutinize phone bills more closely than others and confront employees about questionable calls. It is best to tell new employees about the company policy when they are hired to avoid embarrassment or questions about your personal integrity. Just because “everybody else is doing it” does not make it right.

Business vs. Personal Office Supplies

Is it permissible to take home paper, pens and staplers? These questions should be answered at the time of hiring.

Sexual Harassment

In 1980 the Equal Employment Opportunity Commission (EEOC) declared harassment such as offensive jokes, leering, ogling, unwanted touches and outright propositions to be a form of sexual discrimination that is forbidden by law. The victim of sexual harassment has a responsibility to complain. You, the employer, must establish a procedure to handle such complaints.

Corporations are held responsible for sexual harassment by their employees (even if top management was not aware of the problem) and could be forced to pay damages. An employer is legally responsible for preventing sexual harassment and providing a harassment-free environment.

Sometimes men are harassed by women and sometimes a person is harassed by someone of the same sex, but most frequently women are harassed by men. There are no objective criteria for determining what is or is not sexual harassment. Some situations are more obvious than others (i.e., “If you don’t have sex with me, you don’t get the promotion or get to keep your job”).

Legally there are two kinds of sexual harassment: (1) unwelcome verbal or physical conduct of a sexual nature that implies having sex is a condition for advancement or employment, and (2) a hostile or intimidating work environment created by sexual jokes, teasing, comments or suggestive posters.

To determine whether sexual harassment is present, ask the following questions:

• Is the action unwelcome?

• Does the behavior continue on a regular basis?

• Is a person’s job at stake if they do not go along with propositions?

• Does it affect an employee’s ability to function at work?

If the answers indicate harassment, there are steps that employees may take:

1. Tell the harasser that the behavior is offensive and that you want it to stop. Be specific about the behavior.

2. Keep a record of the behavior with dates, times and detailed circumstances including names of witnesses.

3. Write a letter to the harasser specifying what is objectionable and why. Keep a copy.

4. Keep copies of positive work evaluations and memos or letters of praise. These records can refute allegations by the harasser that your work was poor.

5. If the behavior does not stop, discuss the harassment with another colleague.

6. Follow the company’s complaint procedure, which usually means reporting the problem to your supervisor. If the person is your supervisor, go to the harasser’s supervisor.

7. If these steps fail, file a formal complaint with the state’s department of labor or human resources, the local human rights commission or the local EEOC office. It is illegal for the harasser to retaliate by firing or demoting you for these reasons.

8. Consider conciliation, such as a transfer to another department. If there is a solid case, the employee may deserve financial compensation.

9. If conciliation fails, they must decide whether it is worth suing. The court case may take years to settle, though, so this should be only a final step.