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Corporate Ethics


   

The Myth
Whether a company is ethical and a good corporate citizen is of little concern to most of its employees

The Findings
The ethics of their employers are of great importance to the large majority of workers. Except for gangsters and other sociopaths, people don't feel good about a day's work that requires lying, cheating, or stealing. And, people don't want to work for companies that act that way. The authors of The Enthusiastic Employee find that there are four main sources of pride in a company, all of which reflect different facets of a single attribute -- excellence:

  • Excellence in the organization's financial performance

  • Excellence in the efficiency with which the work of the organization gets done

  • Excellence in the characteristics of the organization's products, such as their usefulness, distinctiveness, and quality

  • Excellence in the organization's moral character

People want to work for an organization that does well but also does good. Roughly speaking, the first two of the factors listed relate to doing well (working for a business that is profitable and well run), and the latter two relate to doing good (providing something of real value to its customers and conducting its business ethically). "Excellence" means that employees want their companies to do very well and a lot of good. The four aspects of excellence are, of course, interrelated. It is difficult to produce excellent long-term financial results without providing value to customers, or to succeed for long with unethical business practices. There is considerable research evidence that a strong moral component in corporate behavior is certainly not inconsistent with long-term business success and, in fact, appears to significantly contribute to it. Thus, the pride that employees feel working for a good corporate citizen is reinforced by their pride in the business success such citizenship helps to achieve.

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