Leaders with a higher developed emotional intelligence, have a vastly greater understanding of the issues of ethics and compliance.
So what are Ethics and Compliance?
Compliance is following the law and is something that is required by legislation. Ethics determine what people do or how they behave in each situation. A human being’s personal ethics determine standards of right and wrong. Ethics is doing what is right regardless of what the law says. It is also discretionary effort or going beyond what is required. It could also be going the extra mile if necessary. Personal ethics influence decisions on behaviour in situations both inside and outside of the workplace. These behaviours are based on personal beliefs and values.
The Benefits of Managing Ethics and Compliance:
Ethical leaders comply with all legal requirements and are less likely to be fined or sued. • Consumers are more likely to support a business with a reputation as an ethical organization. • Companies with ethical values improve their communities. • Ethical procedures save organizations from accidentally violating the rights of employees or consumers. • Employees’ personal moral standards will improve at an ethical business. • A fair working environment facilitates teamwork and productivity. • Successful financial business practices are reinforced by ethical business practices. • Established ethical guidelines will lead a company in times of change and stress. • Ethical companies retain employees and save money in turnover. • There is personal satisfaction in doing the right thing.
Making Ethical Decisions
We should always attempt to make ethical decisions for the good of everybody.
It is possible, however, for two ethical people to make different decisions in a situation.
In business, it is important that people understand ethical dilemmas and the ethical decision-making process.
Decision making gets made in the following manner: Information gathered, information assessed, the decision on type of action, action is taken.
The Process In Making Ethical Decisions
Determine the ethics of a situation: Does the decision affect a group or have legal ramifications?
Gather Information: Learn as much as possible about the situation and get the point of view from all parties involved.
Evaluate Actions: Make different decisions based on different ethical standards.
Test Decisions: Would you be proud of this decision if it were advertised?
Implement: Implement the decision and evaluate the results.