Bringing the Code of Ethics to Life
Nightly Business Report
Thursday, February 22, 2007
SUZANNE PRATT: In tonight’s commentary, why a company’s code of ethics needs to be more than just a document. Here’s Myron Kandel, president of the New Hampshire Initiative for Corporate Responsibility and Investor Protection.
MYRON KANDEL, PRESIDENT, NEW HAMPSHIRE INITIATIVE FOR CORPORATE RESPONSIBILITY: I recently took part in an all-day seminar on business ethics conducted by Franklin Pierce College in New Hampshire attended by two dozen business and civic leaders from the region. One of the professors leading the discussion flashed a set of ethical principles on the screen. It was really impressive. That must be a good company, I thought. Then he startled me and the others by revealing that that code of conduct was established by, of all companies, Enron, which, of course, is now the poster boy for corporate criminality.
The point was driven home. A set of ethical principles can be only as good as the paper it's printed on, if it’s not implemented in everyday behavior, from the top down as well as the bottom up. That’s why I believe such codes, no matter how explicit and elegantly phrased they may be, must be living documents that can inspire much more than lip service and casual signatures. My contention is that companies must keep their codes up to date and make sure that executives and employees are fully aware of them. Most companies conduct periodic reviews of such matters as sales, profits, production and personnel. But how many conduct ethics reviews or bother to reaffirm their organization’s values and beliefs? It's one thing to espouse ethics, it’s more important to practice them. I’m Myron Kandel.