Talent Development 8 Compliance and Ethical Behavior

August 27, 2020

The topics of Compliance and Ethical Behavior are part of the ATD CPTD Certification model.

This topic involves a knowledge of laws, regulations, and ethical issues related to the access and use of information. There are numerous statutes that help to safeguard sensitive information, whether that is copyrighted information, patented technology, or personally sensitive data.

The area of ethical corporate behavior is the topic of this article. I have been involved with ethics all my life and have taught different courses on the subject at local universities. I consider ethical behavior to be a subset of trust, and it is simply about doing business the right way.

We tend to rationalize situations when there are difficult choices. We use flawed logic to make something seem right when it really is not. To guard against ethical lapses, we need organizations to build cultures of trust and psychological safety.

The ability to speak up when you see something that does not seem right is at the core of ethical behavior. Unfortunately, in many organizations, the leaders find ways to punish rather than reward whistle blowers.

Leaders who have built up a high degree of trust based on the knowledge that it is a good thing to speak up when something does not seem right have the advantage of many eyes and ears to view each action. If a leader gets off the straight and narrow through some form of rationalization, the individuals will point that out. It is up to the leaders to reinforce this candor by making the whistle blower glad he brought up the problem.

In Rochester New York, we have a group that has been seeking to raise the level of ethics in our extended community by celebrating organizations that are doing great things with respect to ethics.

We call the effort “Elevate Rochester” because by openly celebrating highly ethical organizations we raise the level of awareness for ethics. Our vision is to eventually become the “Gold Standard” in terms of an ethical community.

We have a long way to go, but our program is strong and vital. It involves an annual contest to uncover highly ethical organizations (except 2020 due to COVID-19). The contest starts early in the year by a series of breakfast meetings to encourage organizations to apply for an award we call the “ETHIE.”
Groups then fill out a brief application form that asks for content and examples in the following four areas.

1. Ethical Leadership – we ask the organization to identify the importance of values, ethical standards and moral conduct in all stakeholder relations.
2. Organizational Excellence – to establish and maintain ethical standards and operational processes that are well deployed throughout the organization.
3. Ethical Challenges – this is a description of how the organization deals with ethical issues when they come up either internally or externally.
4. Corporate Citizenship – how the organization gives back to the community and supports the well-being of society.

For 2021, we will be adding a fifth section that deals with how well the organization practices inclusion and equity principles in their work.

Organizations fill out the application, and an independent panel of judges decides which organizations meet the criteria and pass on to the next level of activity, which involves a site visit to witness the degree of deployment of the above areas.

Finally, in the Fall, there is a celebration that mimics the Oscar Awards, thus celebrating the best ethical organizations in our region.

Participating organizations tell us that the organized process is the valuable part of the contest. Getting a glass statue for the trophy case is the icing on the cake, but the real benefit is bringing ethical behavior front and center within the organization on a daily basis.


Robert Whipple is also the author of The TRUST Factor: Advanced Leadership for Professionals, Leading with Trust is like Sailing Downwind, and Trust in Transition: Navigating Organizational Change. Bob consults and speaks on these and other leadership topics. He is CEO of Leadergrow Inc., a company dedicated to growing leaders.



Leadership Barometer 48 Recovering From a Mistake

May 1, 2020

I have always been fascinated by mistakes. As human beings, we share several things in common; making mistakes is one of them. The vast majority of the time we blunder into mistakes innocently.

Obviously, if we could see mistakes coming, we would take steps to avoid them. The mistake is usually like a mouse trap that is sprung on us while our focus was on something else.

The interesting thing to me is how we react after a mistake. It is here that I learned a great lesson in leadership and trust. The lesson came years ago when I was a young manager.

I was in Japan negotiating a deal for some equipment. I had inadvertently left some material on a table while a group went out for lunch. Some of the material would have been damaging to our negotiating position if it were leaked to the other side.

Upon returning from lunch, I realize that I had left things in a state where they could have been copied and later used against us. I did not know if anybody actually did copy some pages, but I felt horrible about my lapse.

Upon returning to the home office in the US, I immediately reported to my boss’s office and said, “Dick, you would never know this if I didn’t tell you, but I made a mistake when I was in Japan this week.”

He looked up at me with a smirk and said, “Whatd’ya do?” I explained my lapse in detail. He said, “You’re right, Bob. That’s not the smartest thing you ever did. The smartest thing you ever did was to tell me about it.”

From that moment on, I felt a much higher level of trust and respect for me in the eyes of my boss. I believe it gave my career a significant and lasting boost.

The key point in the above lesson was that he really would never have known anything about it if I had not admitted the gaff. It was the unprompted admission that spoke much louder than the sin.

Since then I have studied the impact of admitting mistakes for leaders, and come away with some observations.

Let’s suppose that I have gathered several leaders into a room and asked them to answer the following question: “After you make a mistake, in terms of maximizing respect for you, is it better to admit it or try to finesse it?”

Nearly all leaders would say admitting the mistake has a much greater probability of increasing respect. The irony is that when subsequently a mistake is made, most of these same leaders choose to hide it, blame someone else, or pretend it didn’t happen.

The real conundrum is that if you were to tap the leader on the shoulder at that time, you would hear “I did not want to admit my mistake because I was afraid people would lose respect for me.”

This situation illustrates that intellectually, most leaders know how to improve respect and trust after a mistake, but many of them tend to not act that way when there is an opportunity to apply it in the field. It seems illogical.

Perhaps in the heat of the moment, leaders lose their perspective to the degree that they will knowingly do things that take them in the opposite direction from where they want to go. I believe it is because they are ashamed of making a mistake.

When you admit an error, it has an incredibly positive impact on trust, because it is unexpected. This is especially true if you are a leader.

Perhaps this is one of the differences between IQ and Emotional Intelligence. Intellectually, leaders know the best route to improve trust, but emotionally they are not mature or confident enough to take the risk.

When you admit an error, it has a positive impact on trust because it is unexpected. As Warren Bennis in Old Dogs: New Tricks noted, “All the successful leaders I’ve met learned to embrace error and to learn from it.”

Respect is not always increased if a mistake is admitted. For example, here are three circumstances where admitting a mistake would reduce respect and trust:

1. If this was the third time you had made the same mistake
2. If the mistake was so stupid it reveals you as being clueless
3. If the mistake was made in an effort to hurt someone or part of a sinister plot

If you find yourself making these kinds of mistakes, it would be wise to reconsider if you are right for a leadership position at all.

The vast majority or mistakes are honest lapses where something unexpected happened. For these so-called “honest” mistakes, it is far better to admit them and ask for forgiveness than to try to finesse the situation or blame others or circumstances. It is a tangible demonstration of your integrity, and that improves trust.

Bob Whipple is CEO of Leadergrow, Inc. an organization dedicated to growing leaders. He can be reached at bwhipple@leadergrow.com 585-392-7763. Website http://www.leadergrow.com BLOG http://www.thetrustambassador.com He is author of the following books: The Trust Factor: Advanced Leadership for Professionals, Understanding E-Body Language: Building Trust Online, and Leading with Trust is Like Sailing Downwind