Goodwill hunting

Entrepreneur, July, 1998 by Gayle Sato Stodder

In any business, developing and preserving ethics is an ongoing process - and an imperfect one. And while it's not necessary to cover every base and perform flawlessly in every situation, it is important to try.

"I think about how I'm going to feel when I'm my mother's age - and my grandfather's age," says Wilson. "What will I think of the decisions I've made? How will I feel about the things I've done? If I can't feel [proud], what good is it to have made a lot of money? It's in everyone's long-term interests to appreciate what they're doing and to feel good about what they're accomplishing here. Otherwise, what's the point?"

RELATED ARTICLE: BATTLE OF THE SEXES

Do women have higher ethical standards than men? In general, yes. That's according to two University of Alabama business professors whose complex analysis of past research revealed some interesting differences in the ways that men and women perceive unethical behavior.

Dr. Deborah Crown, associate professor of management, and Dr. George R. Franke, associate professor of marketing, found that on average, men and women go into the work force after college with different perceptions about ethics. Differences are most pronounced among college students and gradually decrease with work experience until, after being in the work force for about 21 years, the differences practically disappear.

OTHER FINDINGS:

* Women were more likely to perceive rule-breaking as unethical. However, men were no more likely to break rules than women.

* Men were more likely to recognize ethical problems involving money than those involving nonmonetary issues.

* Ethical standards rise over time: "Junior workers may cross an ethical line without even realizing it," says Franke. "With work experience comes a better understanding of what is appropriate and inappropriate behavior."

* There's more agreement than disagreement: Ethical perceptions of men and women overlapped by 84 percent.

RELATED ARTICLE: CODE OF CONDUCT

The fines against corporations found guilty of violating laws regarding ethics are hefty under current federal sentencing guidelines. However, the fines can be reduced substantially if a company has an effective program in place before a violation occurs.

Although there's no formula, the government has issued recommendations on the components that make up an "effective" compliance program. The recommendations, as summarized by Victoria Wesseler, president of Ethics and Compliance Strategies in Indianapolis, are:

* The development of standards and procedures reasonably capable of reducing the prospect of criminal conduct;

* Appointment of a senior-level individual within the company to monitor standards and procedures;

* Care taken to prevent hiring individuals with a propensity toward criminal misconduct;

* Communication and training regarding standards for all employees;

* Monitoring and auditing the system, including an internal mechanism for employees to report violations;

* Consistent reinforcement of standards;

* And, in the case of a violation, timely responses to curtail the activity and prevent future occurrences.