Companies of all sizes should implement business ethics based on sound policies that dictate the do’s and don’ts of employee actions, a labor and employment attorney said.
“You want to start with a corporate culture that focuses on ethical and professional behavior,” said Randall Snapp, an attorney with Crowe & Dunlevy in Oklahoma City. “The culture should include how you handle situations when they come up. You want a culture that promotes ethical behavior. People simply talking about ethical problems won’t get the job done.”
Snapp made his presentation Feb. 18 during a Zoom meeting with the Tulsa Employee Benefits Group.
Key components of a solid business ethics policy involve anti-discrimination and anti-harassment, reporting and grievance policy, non-retaliation and social media behavior.
The ethics policy should also address relationships between the company and its vendors, contractors, the bidding process and business expenses. Other critical issues involve a gift policy, business expenses, a gift policy and conflicts of interest that might include outside board positions and outside ownership interests in other companies.
“You can’t have undue harassment or lavish gifts from a vendor,” Snapp said. “That presents an ethical issue management would have to deal with.”
In today’s business climate, acceptable behavior can be debated, which is the reason for a companywide policy on ethics.
“The norms for acceptable behavior for one person may not be acceptable to another. You need policies as clear as possible following socially acceptable norms,” Snapp said. “There’s a lot more scrutiny and judgement than there used to be. There are statutes that address some issues and company policies that address others. It’s important to establish and follow those policies. The actual policy is the one that is enforced or not enforced.”
Company policies should be clear, concise and to the point, and never leave room for interpretation, he said.
Company management should consider several factors within the organization to promote sound business ethics. Some of those include development of a system that recognizes accomplishments, a method for selecting employee promotions, hiring practices, the company’s decision-making process and the response to threatened litigation.
Employees should recognize there are protections for people who report wrongdoing on the part of any company, Snapp said. Oklahoma protects whistleblowers who suffer adverse employment actions for reporting conduct that is in violation of public policy or refusing to perform an act that is in violation of public policy. The term “public policy” is defined in state law.
Snapp said in his PowerPoint presentation that most people make ethical decisions to avoid punishment or to receive some reward. Still, others make sound judgement calls so they can be responsive to family, friends or bosses, and to be a good citizen.
Ultimately, Snapp said, the goal for any company is to have a profitable, ethical business. In addition, he pointed out, issues may arise when short-term profits are placed ahead of long-term ethical decisions. But in the end, long-term sustainability and growth depend on solid ethical business practices, Snapp said.
Snapp referred back to an age-old thought when people face an ethical dilemma.
“Would you be proud to tell your mother or father about your decision?” he asked. “And would you care if your decision and the repercussions ended up on Facebook, Instagram or Twitter?”