You are fairly new to a job as a human resource leader. Anxious to learn all you can about the organization and
make a difference. You jump in, meeting everyone and understanding how the business works.
You discover an issue. It’s not a small issue. It is an ethical dilemma that can cause your organization serious problems legally as well as send off red flags in the public eye. If left unaddressed the organization could experience extensive fines, its tax exemption status could be challenged (for non-profits), and key decision makers could face possible prison time.
The more you research the situation the more restless nights occur. You get up in the mornings with a growing pit in your gut. You know that taking on this ethical dilemma will not be popular among powerful decision makers in your company. Trying to correct the problem could lead to your sudden job loss. But still you know that doing nothing means acceptance.
What do you do?
- You need your job and nothing has happened to the organization all this time anyway. You could be wrong. Stay silent.
- Gather facts and educate. Sit down with your boss and educate him/her on the implications of staying with the status quo.
- The company created the problem they can fix it on their own. Find another job and go away quietly.
- There are no such things as ethical dilemmas in the workplace. It is all leaders job to follow laws, policies and procedures.
This is a tough one. Sadly this situation is not made up.
The unfortunate truth is professionals get thrust into situations such as this more frequently than we may ever know.
According to the PwC's 2020 Global Economic Crime and Fraud Study:
- 45% of companies experienced fraud in the past 24 months
- 6 is the average number of frauds reported per company
- $42 billion in losses
While some ethical issues may not always be an outright legal violation and fall into the dreadful gray area it still could result in losses in revenue, customers, and employees. Ethical issues may include bullying behaviors, ignoring organizational policy and performance expectations, lying such as taking credit for someone else’ work, or calling in sick when well, favoritism and so on.
Tips to implement a refreshing new glow within your organization despite what is going on around us:
- Make truth telling okay. Retaliating including dismissing people who are known for standing up for what's right sends an unfavorable message to your employees. Protect those who stand up for what's right even if unpopular.
- Open up multi-channels of reporting concerns. This includes varying departments and people who receive the concerns. For example if all concerns go to the legal department and the department has a reputation of retaliation you are in trouble of putting a biased chill on reports. Mix it up.
- Checks and balances. If there is no fraud department leaders should be willingly open to having another department review procedures and protocols.
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