How To: Create the Right Corporate Culture

These are the scandals that sell newspapers: stories about Enron, New York Gov. Eliot Spitzer, and steroid use in baseball. That’s why today’s definition of what is ethical in the workplace is an “easy question that is tough to answer,” says Robert M. Torok, managing director of RSM McGladrey, an accounting, tax and business consulting firm.

Defining and establishing a corporate culture that adheres to an appropriate ethical code affects all companies, large and small. Most companies are in denial, believing headline-making problems could never happen to them. All too often, they are proven wrong.

Ethical behavior in the workplace is symptomatic of how people are trained at their job, as well as their personal beliefs, says Torok. The onus is on top-level management, those setting the tone for ethical behavior. “If they live on a day-to-day basis promoting ethical and moral business practices, they become the teachers,” he says. The workers, in turn, will mimic the appropriate behaviors.

This ethical code, the establishment of corporate specific dos and don’ts, provides a workplace guideline for everyone in the company, affecting a broad base of decisions.

The establishment of the ethical code should begin on Day One of every new hire. Human resources should provide a guidebook with examples of appropriate or inappropriate behavior. Larger companies should annually conduct conversations or webcasts reinforcing the message. Companies with operations outside the United States should evaluate what is appropriate in that culture and determine whether that code of ethics matches their company’s established corporate ethical code.

“Start with your corporate mission statement,” Torok suggests.

“Filter down through your strategic plan,” he says. “Address the areas where you are the most vulnerable, taking away the issues where people are put in the position where they may be vulnerable.”