An Organization That Cares

 

Ethical misconducts could not only affect the image of the company, but also its profitability. I have read in an article that JPMorgan Chase paid the federal government $13 billion last fall—the largest corporate settlement in U.S. history—to settle charges involving conduct that prosecutors say contributed to the mortgage meltdown. The bank acknowledged that it made serious misrepresentations to the public about numerous residential mortgage-backed securities.

Ethical lapses tend to snowball. Once employees see others breaking rules without repercussions, they may believe it's OK for them to do so, as well. Or they may get fed up and leave the company. In short, a culture where misconduct is tolerated—or, worse, encouraged—could result in higher turnover, lower productivity and, ultimately, a diminished reputation and profitability. Embezzlement stories are not uncommon especially to big corporations who does not have a strong compliance policy. Though these embezzlement acts, bribes and extortions, insider trading, are all extreme examples, there are also actions and behaviors that compromises workplace ethics. In these cases, management should enforce an organization that is people-centric, promotes respect and integrity, an organization that cares.

A caring organization exhibits better economic performance than mainstream organizations. These caring, multi-stream organizations are focused on the people’s welfare, thus cultivates the full potential of all employees that can lead to maximized company performance and profit. I had an experience once where my manager did not treat his direct reports with dignity and respect. He was leading the team through coercion and force. This did not only affect my, and my colleague’s work perspective, but also affected our self-esteem and eventually, our personal life. This is when I realized that leadership is not all about dictatorship and use of coercion, it’s about inspiring people, especially your direct reports, to do your responsibilities with excellence while preserving integrity and promoting respect.