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If Ethics Matter So Much - Why Do Half of Us Stand Idle When We See An Ethical Lapse?

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Paul Pelletier Project management key note speaker, author, corporate lawyer, and executive| Paul Pelletier Consulting Vancouver, British Columbia, Canada
The statistics are in; according to a survey conducted by VitalSmarts, 63 percent of employees regularly witness both minor and major ethical infractions, yet they report only half of that unethical behavior. Why?
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Rolf Dieter Zschau Business Analysis & Solution Lead| Volkswagen Group Charging GmbH Unterschleissheim, Germany
Sounds harsh, but maybe a deep unconsious, very engraved reason: never bite alpha if you don't want to / are not able to become leader of the pack. And: Messenger of bad messages is to be beheaded - in so many groups/companies (in spite of the talk about "ethics matter" - even or escpecially in those groups/companies). And another one: don't throw dirt into your nest / don't raise dust in your nest - the rest of the flock will kick you out (even if it is not your dirt/dust).

As we are still in the very early stages of man's evolution these rules are very deep engraved in our nature. We are still apes and as such pack animals. Sorry to say that we do think that we left that stage behind - but only our tools changed, not our nature. It takes enourmous energy to overcome that nature - that's the reason so little numbers come up with the reports.
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John Herman . Us, Aa, United States
Agree with Rolf. Despite great efforts in America to protect "whistleblowers", adverse actions against those who speak up are still happening. In addition, the new global economy and work environment can cause people to wonder if practices that are considered unethical, in say America, are considered common and accepted in, say, Arabia, Albania, Armenia, or Australia. PMI has gone to great lengths to try to define an international Code of Ethics for Project Managers, but local customary actions are still probably prevalent.
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Justin Wortley Project Manager| Quicken Loans Detroit, Mi, United States
It's not only happening in business, it happens in the real world. Dateline NBC used to do a pretty interesting series called "What Would You Do" where they would stage pretty morally reprehensible things using actors (leaving children in the car, berating derogatory things at muslims) in order to see if bystanders/witnesses would step in and do something - and the majority do not. I'd have to agree with Rolf, that people don't want to take ownership of responsibility. It's easier to ignore it and keep on walking for most.
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Hilarie Hartung Business Programs Manager| IBM Atlanta, Ga, United States
Simply, it is the Culture of the Organization that determines whether an employee is comfortable enough to be "that person" that brings about attention to "that issue". Not all companies have the desire or capability to provide a secure and safe place for someone to raise the red flag. Even if there is some anonymous means to report an unethical infraction (we all know what is illegal, right?), how do you know for sure that there is no boomerang effect and you get found out for being "that person"? There are companies that will look like they have a place for you to report but anyone who has been at that company long enough knows the internal culture is completely opposite (unless you were going to quit anyway would you bother). Sadly that report reflects the landscape of some current corporate structures, either too focused on business(revenue) and not focused on reputation (a brand you can trust).

The only way to improve and change the 63% to a lower number is for there to be a transformative effort by those companies to setup Ethics Council, be supported by all top leaders and management that no one is exempt and everyone is held by the same standards. Those standards must be defined , communicated and accessible by every employee. If business is international then provide case studies of what tricky areas to avoid (as we know different countries operate differently in business and can be confusing to interpret). And knowing that the employee has a safe haven to say what the concern is, with no worry or retribution, only then can culture of trust be enabled knowing that you can raise a concern, whether true ethical issue or not. Sure, all of this costs money and you will not see results overnight, however if company is concerned about longevity and competitiveness don't you think your future customers want to know if you are an ethical company?

There are companies that will "walk the talk" meaning there is an overt outreach to educate/train how to safely report ethical infractions, communications channel setup to report and stay anonymous, community of focals to turn to for assistance, and a defined path for that person to "do the right thing". A standardized approach to maintain a culture of ethics with a complete training program is a great start (since it meets compliance with federal regulators), however, if you want your company engaged in true ethical culture it must be ingrained at a personal level with your teams management and employees, to "norm the behavior" top-down by the leadership exemplifying the actions with the words on what behavior is acceptable and bottom up with management to their teams. Ethical leadership in action. Perhaps long term a company seen as being trust-worthy and ethical will gain better talent and retention of like-minded trusting employees boosting productivity, competitiveness, creativity, innovation (and what company would not want to be known for that?).
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
What does means ethic from the point of view of those statistics? What does means ethical infractions? Is that meassure taking into consideration the organization code of ethics? Or what?. Unfortunatelly, in my humble opion, ethic has become a buzzword in the last year. At that is not good beause the importance that ethic has in human behaivor.
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Sungjoon Park Coral Springs, Fl, United States
Everybody has different way to think of his or her attitude to deal with ethical issues. Without clear definitions of roles and responsibilities to deal with ethical issues, it may hard to expect him or her to report ethical issues in a certain way. It may also be hard to blame for not reporting.
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1 reply by Paulus Shiikwa
Jul 07, 2016 5:06 AM
Paulus Shiikwa
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I agree Sungjoon. And that can be eliminated with the establishment of an Ethics Council as highlighted by Hilarie.
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Raj Kaushik Markham, Ontario, Canada
The world is made up of leaders and followers/workers. Unethical acts can be committed by both. But speaking against the unethical practices takes a clear conscience and boldness. You can't speak against something that you are (or ever have been) also a part of.

A majority of people fall into "indifferent category." They just want to live a normal life - just don't want to go beyond. A girl was hacked to death at the busy railway station and no one dared to intervene. People in general are afraid of retaliation in future.

When you find out that your employer or someone you know is doing something legally unsound or ethically dubious, you may find yourself in a difficult situation. That inner moral guide may tell you to report what you know. Only few people have courage to do so and we should be proud of this category.
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Michael O'Brochta, PMI-ACP, PMP CEO| Zozer inc. Roanoke, Va, United States
And yet, the PMI Code of Ethics and Professional Conduct requires every PMI member to "report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct." Maybe one day, more PMI members will take the required action when they witness both minor and major ethical infractions - I sure hope so.
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Alankar Karpe Project and program management, Speaker and mentor | Wipro Bangalore, India
This is a big picture regarding organizational culture. Culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and do their jobs and even their ability to report breaches. Members of organizations make judgments on the value their organization places on these characteristics, and then they tend to adjust their behavior to match this perceived set of values so that they can survive and thrive within their organization. These characteristics are Risk, Innovation, Precision, Achievement, Fairness, Collaboration, Rule and Competition. If the organization support the fairness, collaboration and rule people are more likely to report to breaches. If the organization places more value on competition, achievement, people often don’t see a value in reporting breaches.
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Paulus Shiikwa Founder & Principal Consultant | Alice Consulting (in the making) Windhoek, Khomas, Namibia
Jul 06, 2016 2:29 PM
Replying to Sungjoon Park
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Everybody has different way to think of his or her attitude to deal with ethical issues. Without clear definitions of roles and responsibilities to deal with ethical issues, it may hard to expect him or her to report ethical issues in a certain way. It may also be hard to blame for not reporting.
I agree Sungjoon. And that can be eliminated with the establishment of an Ethics Council as highlighted by Hilarie.
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