HONOUR THY COMPANY

Corporate integrity may be hard to come by, but it’s easy to start a culture of compliance

It doesn’t take long to find dishonest corporate behaviour, even from some of the most trusted brands, as the scandal surrounding Volkswagen AG’s fake emissions data proves. The fallout from the resulting scandals can be extreme, leaving everyone to wonder how companies can be susceptible to such behaviour, especially in an age where the Internet makes even minor transgressions worldwide news.

Susan Hodkinson, chief operating officer at Toronto-based Crowe Soberman LLP and an expert in HR consulting, offers three tips on developing and enforcing a corporate culture of compliance and integrity. READ THE PART As with most HR-related issues, Hodkinson says the starting point is to have an articulated policy that is supported by an education program within the organization. Owners must set out a specific code of conduct/ethics, publish it and then hold education sessions so that employees understand and accept the consequences of not complying with the policy. HONOUR THE CODE Business owners and executives must agree that they are committed to ethical business practices and model this behavior in all business decisions. “Senior management needs to set the tone for a commitment to a business that is driven by integrity and ‘doing the right thing,’ as part of a long-term business strategy,” Hodkinson says. ACT THE PART In the event of a breach of ethics, executives have to act decisively, upholding the commitment to have zero tolerance for ethical breaches, Hodkinson says. A company culture that stresses results and/or profits at any cost might let employees feel that they have permission or even an incentive to push the limits or break the rules in the pursuit of shorter-term results and profits.