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Organizations often start out making good ethical decisions, but as time goes on and things change, the line separating right from wrong can become blurry, particularly when people are under pressure to achieve results. When this happens, unethical behavior and decision making can become widespread putting the whole organization at risk. In her book, the "Seven Signs of Ethical Collapse," Marianne Jennings identifies seven ethical weaknesses that leaders should be aware of. 

The first is "Pressure to Maintain Numbers." If a business becomes obsessed with meeting financial or production targets good judgment may suffer in a bid to achieve them. Avoid this by ensuring that your people understand your organizations' core values, clearly explain the lines they shouldn't cross and the consequences if they do. 

A culture of fear and silence can mask ethical problems. People may be afraid to speak out in case they're fired or demoted. Others may simply feel helpless or that their concerns aren't taken seriously by bosses. Instead, build a culture of communication and openness. Encourage honest feedback and reward those who call out unethical behavior. 

Jennings calls the third risk factor "Young 'Uns and a Bigger-Than-Life CEO." It can be difficult to change a workplace culture that's under the spell of a powerful and charismatic CEO. Particularly if the senior management team is inexperienced and lacks the confidence to challenge their decisions. So if you are able to affect the hiring of executives think twice before hiring a big name and thoroughly question candidates whose records seem too good to be true. 

A board that's weak because of inexperience and infighting won't be able to effectively challenge unethical behavior. To combat this, keep communications channels open between board members and employees, and appoint board members who are strong enough to stand up for what's right. 

Sometimes a leader's personal interests can conflict with those of their organization. This can lead to unethical decision making. If your organization doesn't already have them, set up policies to deal with potential conflicts from working with relatives to accepting corporate gifts. 

Innovation is a good thing, but when innovation or rapid growth overrides ethics or the law trouble can follow. Just one bad decision can throw an organization off track. If you suspect that this is happening in your workplace communicate your concerns to someone you trust. 

Finally, organizations sometimes give generously to good causes to justify poor behavior elsewhere. Social responsibility and philanthropy are important, but not as a means to ease a guilty conscience. Investigate your organization's attitude towards social responsibility. Ask yourself what motives underpin its social or charitable giving. Are there any connections between your board and the causes it supports that could be considered unethical? 

If you want to learn more about ethical collapse, read the article that a accompanies this video. © 2022 Mind Tools by Emerald Works Limited.