Does an Ethics Oath Make a Difference?

In a previous post, “Corporate Ethics Oath: A Tool For Understanding and Developing Workplace Ethics,” we discussed the MBA Oath introduced at Harvard Business School. In the same post we also discussed creating an Ethics Oath as part of a company’s ethics and compliance initiative. Since writing the post, there have been numerous discussions related to the effectiveness of these types of oaths. In order for these initiatives to be successful, they require support and enforcement from top level management right down to entry level employees. If employees aren’t held accountable for their actions, the opportunity to act unethically increases.

Upholding the Oath

In the post “Preparing for Courage: The MBA Oath,” on the WorkLore blog, the author discusses 10 misconceptions about compromise at work. The author discusses how the MBA Oath combats misconceptions, demonstrating how individual ethics and values can prevail. As outlined in the post “Preparing for Courage: The MBA Oath,” here are the 10 ways in which an ethics oath can help out in compromising situations:

“1.  The oath creates a counter balance to immediate pressures by reminding us of our larger responsibilities and loyalties.

2.  The oath reflects an understanding that we are not inherently ‘good guys’ or ‘bad apples,’ but must all continually pay attention and prompt each other to pay attention.

3.  With its emphasis on individual responsibility, the oath reminds us to consciously choose how we respond to external pressure, even from the top.

4.  The oath increases the chances we will make hard choices from positions of strength rather than ‘caving’ out of fear.

5.  By requiring us to commit to ongoing learning and working with our peers to be accountable, the oath helps us avoid developing blinders and identify issues as quickly as possible.

6.  Putting the oath in practice challenges us to test our assumptions about where we can and cannot differ or influence for the better.

7.  The oath helps us mentally prepare to set limits and keep an independent perspective. Knowing we may need to act with courage one day, we are more likely to build the internal reinforcement system that gives us the freedom and skills to say no when needed.

8.  The tone of the oath invites humility and a focus on serving positive outcomes even when situations require us to hold others accountable.

9.  By inviting us to commit to aims greater than ourselves, the oath increases the chance that we will discover purposes that are intrinsically gratifying and that allow us to actualize our gifts and talents.

10.  By calling out the need to contribute to economic, social and environmental prosperity, and naming the risk of preying on systems of unjust laws or corruption, the oath highlights our responsibility to serve the largest possible understanding of our interests and role in society.”

Accountability

There are many different opinions surrounding the effectiveness of making a pledge to ethics. Some believe signing or stating an oath means making a commitment to uphold the values included in the oath regardless of the situation. Others believe greed will overcome and the values in the oath become compromised for personal gain. There are valid examples to argue each side. At one point in time, Enron actually had a code of ethics in place- look what happened there. Other companies, including Campbell Soup Co. and American Express are continually praised for their corporate ethics codes. However, companies like them do more than just develop an ethics code, they FOLLOW the practices outlined in it.

The difference maker in many of these companies is the tone at the top. Employees are able to take company policies seriously, as they witness firsthand the commitment made by top level executives to uphold the company values. Leading by example and living the desired corporate culture significantly impact employee attitudes towards acting ethically.

Another factor contributing to the success of an ethics oath is accountability. Here are some questions to consider:

• Are the consequences for violating corporate ethics policies actually administered to violators within the company?
• Is every employee held to the same set of consequences for ethical violations?
• Are there existing documents, people or other sources of support available to help work through situations involving ethical dilemmas?
• Are employees given recognition for demonstrating ethical actions or for bringing in the most money?

Evaluating the answers to these questions can help employers address areas of weakness causing an ethics oath to be unsuccessful. If employees know they will not be questioned for making shady decisions or misguiding clients, chances are, their commitment to acting ethically will diminish.