We should have seen it coming

We knew there would be a corruption scandal around the Paris Olympics when the city was selected in 2017. This is not a jab on Paris. It happens with every Olympic event.

We also know that sales professionals who are paid only on commissions and required to meet unreasonable targets are almost certain to cheat and lie. We know this the minute we create the incentive program.

What else is your organization doing today that clearly points to a compliance failure in the future?

Crisis and change

We know that people don’t like change.

Which is why employees, and often leadership, resist when a company tries to improve its ethics and compliance program. “Our learning modules have always consisted of 40-minutes videos with real actors. Don’t change that.”

So meaningful change typically happens only after a crisis. A crisis that perhaps was occasioned by the prior resistance to change.

Right and wrong

Socrates used to say that “nobody does wrong willingly.”

He simply meant that when people do wrong, they think they are right. If they thought otherwise, they wouldn’t do it.

And so it goes with those who engage in wrongdoing in the workplace. They think they are right. Because it’s funny. Because the company owes it to them. Because their family needs the money. Whatever the reason, they feel justified.

This is why it is so important for management and leadership to understand why people engage in wrongdoing at work. No amount of policies and controls will stop people who believes they are right. We must convince them that they are wrong.

And we must be right about that.

Who do you serve?

The ethics and compliance function exists to serve all employees in an organization.

As such, it should pay more attention to the feedback it receives from the rank and file than to the demands it gets from the executive population (which is often less than five percent of all employees).

Transparency as a multiplier

I have visited the facilities of Ben & Jerry’s in Vermont and Heineken in Amsterdam. Both offer a tour that shows you how the product is made, and they give you a taste at the end (actually, Heineken gives you a taste in the middle and at the end). I’m convinced that the ice cream and the beer taste a little bit better because of the tour.

What these companies don’t offer is a tour that shows you how decisions are made. Imagine if we could see how Heineken compensates their farmers, or how Ben & Jerry’s treats their employees. Assuming they do it fairly, their product might taste even better (even though it’s a placebo effect).

Few companies show you how they make ethical decisions. In fact, few companies are transparent even with their employees. To me, that’s a missed opportunity. An employee who is proud of their leadership is more likely to go the extra mile.

Price vs. cost

When deciding to buy a car, too many people focus on its (sticker) price, not its long-term cost (fuel, insurance, maintenance, repairs, storage, etc.). The cost far exceeds the price.

Similarly, wise leaders understand that the cost of non-compliance far exceeds the price of compliance.

HT to Seth Godin, 16 Feb

Easing the pain

If you have an unpleasant interaction at work today, try this: assume for a brief moment that the words you are hearing or reading are not the real message. Look for the real motivation behind the words. Assume positive intent.

Perhaps there is nothing more below the surface. But very often the jab comes from a person who is suffering through no fault of your own, and they see you as a safe place to offload their pain.

Looking at it this way will allow you to measure your response.