Business and Professional Ethics for Executives

Ethics is a challenging topic because it can be interpreted in so many different ways. When people evaluate companies that have committed legal or ethical offenses, people often ponder what might have been done to avoid the carnage. However, when people have some understanding of humanity, it isn't difficult to see why things happen the way that they do. Business executives are still people, and they are vulnerable to temptations. Therefore, the organization that wants to avoid certain moral missteps will put some effort into developing some organizational standards. Here are a few thoughts on creating business and professional ethics for executives.

Recognition of expectations

If organizations are serious about ethical behavior, they will recognize what they expect from their executives. Morality and ethical behavior is fine to discuss, but businesses exist to make money. It is not unusual for parent organizations and corporations to be dissatisfied with how much money is being made. This dissatisfaction is passed down to executives, who are told to make it happen, or else. If an executive feels like they must produce a certain result that cannot be manufactured through moral means, they may turn to questionable strategies for reaching their goals. Overall, every person is responsible for his or her own actions, but companies should still recognize the pressure they put on their people.

Policy for people groups

Sometimes it is best to consider writing particular policies for certain groups of people. This may be a CEO or a management team. While some people might argue that general policies that cover everyone are sufficient, this again acknowledges that people in leadership may experience certain types of pressure. Therefore, writing policies that govern decision-making, finances, and oversight may be prudent so that organizations avoid a "loose cannon" that may cause the company to get into big trouble. Writing policy may include specific dollar amounts, chains of command, and steps to approval.

Accountability and limits

Finally, ethics for executives is often about creating specific boundaries and developing a system of checks and balances. This is related to the idea that policy should be written for specific leaders but it also calls for executives to report to a group of people. Granted, anyone can "spin" their performance or work hard to hide what they are doing, but over time this may be difficult to maintain, particularly if the accountability is more than a group of "yes" people. This also addresses the fact that some organizations don't really want to know what is going on at the top, as long as certain results are maintained. This may be fine to a point, but when the "house of cards" collapses, the Board of Directors can't throw up their hands and wonder what happened.

When it comes to ethics for executives, organizations must assume that to a certain extent there is no person who can be totally trusted. This may be a dim view of humanity but it is a wise and realistic viewpoint that can save organizations from a lot of headaches when executives behave unethically and put the company in danger.