Ethical Bankruptcy in a Financial Meltdown

Economic pressures, fear of an uncertain economic future, keeping up with the Joneses, entitlement attitudes, and pure unadulterated greed are some of the excuses that have made the workplace more vulnerable to theft. As a result of the worsening American economy, The Wall Street Journal recently reported a surge in employee embezzlement and theft. Paper clips, copiers, office furniture, and billions of dollars taken are samples of the many and varied items employees feel compelled to take for personal use or resale. My niece, an accountant, recently embezzled $160,000 from a Mississippi furniture company. When asked why, she was quoted as having said, “to give my children and husband what they wanted.” An Austell, GA municipal court worker took $121,000 over about a six-year period “to pay bills.”

The mind’s power to rationalize convinces us to believe what we want overriding our moral conscience. To tell oneself often enough and long enough that we need, deserve, have been cheated out of, victimized, are owed, each marginalizes our emotional and moral intelligence. Moral decisions should not be made in a vacuum. In other words, moral dilemmas ought to be made with critical thought and reflection. We are tempted to shut out the voice of conscience when our desires for gratification appeal. When faced with strong temptations of unethical behavior, I’ve heard the voices of my dad and uncle say, “Tommy, you be a good boy now, you hear.” Long deceased, their voices are still clear in the moral conscience of this Baby Boomer.

Within any business, governmental, and non-profit organizations, there ought be a voice to remind people of their moral responsibility. The Sarbanes-Oxley Act (for public companies) and Federal Sentencing Guidelines (for ALL other organizations) call for an ethical culture. This places an imperative for ethics education and training for all in organizations. Obviously, organizational leadership has to first to step up to the plate to make this happen. Being reminded of the consequences of ethical misconduct affirms expectations and multiple costs. What are some ways to increase moral awareness?

1. Compliment associates on good character traits exemplified in their work.
2. Openly discuss ethical dilemmas.
3. Develop and conduct regular training on ethics.
4. Have associates to take turns teaching the ethics learning session.
5. Openly discuss ethical misconduct incidents. This alleviates the much of the gossip and rumor mill, which prolongs disruption.
6. Create an atmosphere of transparency.

No one is one 100% ethical 100% percent of the time. However, it is prudent to be cognizant of behavioral patterns of ethical misconduct. As Deputy Barney Fife stated to Sheriff Andy Taylor, in The Andy Griffith Show,” “Andy, you better nip it the bud right now.” These recommendations and other measures help to mitigate the costs of ethical misconduct for organizations, associates, and families, which can be substantial. The costs of ongoing ethics education are an investment in the ethical culture of your organization.