SHARED RESOURCES - ORGANIZATIONAL TRANSPARENCY
New Standards for Doing Business Ethically
In a court of law, you're considered innocent until proven guilty. But for most organizations - both corporations and non-profits - it's the court of public opinion where you are guilty until proven innocent.
In an age of high-level consumer and stakeholder sophistication, round-the-clock media coverage, and - let's face it - some pretty questionable ethical decisions on the part of more business leaders than we'd like to think, organizational transparency is more critical than ever. Yes, corporations have the right to produce goods or offer services in return for a profit. Yes, the non-profit sector has the right to increase issue awareness and raise funds to benefit society. But in light of recent scandals and inappropriate actions, the public is demanding a new standard of responsibility and accountability. And only those organizations willing to meet and even exceed new standards will survive.
Frog in the Kettle
No organization sets its course determined to operate above the law. And no organization actually plans to operate above ethical standards, either. But morality is like the "frog in the kettle" story. You know the one. An unsuspecting frog happens to leap into a kettle of water. Happily swimming around the cool liquid, he doesn't notice when a fire is lit underneath. Because the water temperature rises only a degree at a time, the increasing heat isn't very noticeable - until it's too late. And then, he's cooked.
So it is with ethics in business. A tiny indiscretion here. A minor, slightly questionable decision there. And pretty soon, organizations find themselves in hot water, with the media and the public hovering around smelling a bad stew. It may be a lapse in moral judgment. It may be that executive "bunker mentality," when leaders choose to hole up in tough situations. It may even be a bit of elitism when companies forget to consider the opinions of stakeholders or key audiences. But denying the existence of potential ethical problems, or worse, attempting to cover them up when they rear their ugly heads, marks the beginning of the end for many organizations.
The Solution is Clear
So what's the answer? It's rather apparent. To win in the court of public opinion, organizations must be transparent. Got a company problem? Own up to it. Apologize. And make it right. Struggling with ethical issues? Don't deny them. Tackle issues head on, taking responsibility and embracing the accountability demanded by stakeholders, media, and the general public. Either way, be sure to tell everyone the truth - and make it snappy.
But being transparent is not always easy, especially when issues are more cloudy gray than basic black and white. That's why executive training and constant monitoring are key. To live their business lives transparently, avoiding unnecessary suspicion or accusation, employees at all levels (and starting at the head table) must understand the importance of:
- Effective, two-way communication between the business and its publics
- Standard-setting (and keeping) as a preventive measure
- Proactive media relations development on a daily basis, not just during crises
- Anticipatory management to detect and diffuse early warning signs of impending trouble
- Crisis management preparation to stay on the offensive even when forced to defend
- Open, honest and timely information delivery, particularly in crisis situations
Organizations can survive, and even thrive, in today's accusatory fishbowl environment. But it takes a strong commitment, first to the highest ethical standards and then to exceeding those standards through corporate accountability and transparency. Achieving those goals spells success for everyone.
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