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Answer to Question #62764 in Other Economics for Lucy

Question #62764
Identify and explain five methods of encouraging ethical behaviour in an organisation.
Expert's answer
Here are five methods of encouraging ethical behaviour in an organisation:
1. RECRUIT AND HIRE WELL
How often have you heard "We need to recruit board members of affluence and influence"? I contend that if the portfolios of board members don't include wisdom and integrity, their affluence and influence often translate into a liability rather than an asset. And the record shows many an organization enduring much pain because of poor (for lack of a better word) board leadership.
2. EDUCATE STAFF ABOUT WHAT'S AT RISK
Believe it or not, many people don't understand what's at risk if they don't perform their jobs in an ethical, accountable manner. And ethical lapses are easy to make, especially when the corporate culture gives a wink and a nod to unethical behavior.
3. BE TRANSPARENT ABOUT YOUR FINANCES
Ever since Deep Throat told Bob Woodward to "follow the money," scrutiny surrounding financial malfeasance has only intensified. Be sure that you can account to your funders for how your organization spent their money; better yet, how their gifts made a difference in helping you achieve your mission.
4. SPEAK TRUTH TO AUTHORITY
Create a corporate culture in which employees feel free to speak truthfully to management.
5. LEGAL SHOULD NOT BE THE LITMUS TEST
There's a difference between what's legal and what's ethical, and it is up to an organization's leadership to understand what that difference is.

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