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Thursday, April 13, 2006 - by Sergio Chiappetta

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Is your organization's leadership making the grade in ethical business practices? If today's leadership were graded solely on ethics, the majority of leaders would pass. However, should tomorrow's organization be content with mediocrity? When individuals accept a leadership role, the employees they lead expect a higher standard of values.

Recent corporate scandals have resulted in more visibility of ethics and leadership. High profile leaders whom have been removed from their leadership role because of unethical behaviors, for the sake of company interest or personal gain, include Phil Condit, former CEO of Boeing, John Rigas, founder of Adelphia Communication Corporation, and Martha Stewart, founder of Martha Stewart Living Omnimedia Inc. Why do some leaders take excessive measures to achieve financial or organizational success?

Talent Management must continue to ask the vital questions. Does the organization have the right leadership? Do those leaders have the necessary talent? Are they ready? What leadership behaviors and values do they bring to the organization? It takes more than just establishing the words of a formal Ethics Program. Leaders in training continue to hear "lead by example", and as training professionals, we see the similarities to parenting. "Do as I say, not as I do" is a phrase many of us have heard before and some of us have said.

How does one identify the acceptable behaviors that organizations abide by and employees live by? Employees need to identify and adapt the appropriate behaviors that stream well with the organization's identified values. By seeing prominent leaders in an organization, public office, or society display unethical behavior, employees and members of society rationalize and justify these behaviors, consider them acceptable, and bring those same behaviors and values into their own value system.

Bad business practices and unethical behavior can become contagious, move quickly through an organization and become the norm. In some cases, leaders are poorly prepared for their new roles and struggle with the transition. Training is an important step, and like anything else in life, needs to be continuous in order to modify the current culture or develop a new one as needed. This involves initial training for all and refresher as required. Human behavior requires a constant reminder of policies and best practices through periodic publications and posting of the vision and values as reminders of what the organization stands for. Programs must deliver and demonstrate commitment, as well as build strong relationships with employees, customers, vendors and investors.

It's important to make training available to leaders by providing classroom and technology based programs. The actual training program needs to be robust and sustaining, which can include case studies and real life company & industry examples on how the organization views and handles various sensitive situations or business concerns. The goal is to provide guidance so as to achieve consistency and high standards in order to tune leaders into company business practices. In addition, programs need to stay fresh. Since business practices change over time, training plans need to be reviewed on an annual basis to stay current and steer leaders in the right direction. Leaders in the organization will feel supported and continue to be responsible and ethical. Training is the key that will prepare people to make the right decisions on the organization's behalf. Leaders need to be able to communicate the direction, vision and values of the organization.

Training is the critical ingredient to achieve organizational goals and business responsibility for the organization. Investing in training will be dollars well spent by theorganization. Ethical leaders are more likely to develop a culture that employees, as well as members of society, want to be associated with. What a leader does is far more important than what a leader says. Lead by example.

Sergio Chiappetta is a Program Manager at Abbott, managing Corporate Employee Development programs for the company. He can be reached via email at s.chiappetta@sbcglobal.net

*Note: This is the author's original submitted article and has not been edited for style and content by ASTD.

Leadership and Ethics

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