What are workplace ethics, and why are they important?

Workplace ethics are the principles and values that influence how employees and leaders behave. Common ethical principles include integrity, respect and honesty. Ethics can also help guide operations, decision-making and interpersonal relationships.

Strong workplace ethics are important because they:

• Encourage equal treatment: Ethical practices can help promote the equal treatment of all employees. They may also prevent favoritism , create a welcoming and inclusive environment and help reduce unconscious bias.

• Promote healthy relationships: By fostering respect and compassion, workplace ethics can encourage positive relationships and establish healthy professional boundaries.

• Contribute to better productivity: Workplace ethics can encourage employees to work efficiently. For example, when trust is established, workers are more likely to trust their colleagues, which can lead to teamwork and better productivity.

• Enhance overall company image: When your company promotes ethical practices and procedures internally, it can help improve your brand image. For example, providing high-quality working conditions can help create a positive reputation among customers and vendors.

• Increase employee retention: Promoting workplace ethics can contribute to a safe, supportive and respectful workplace that boosts job satisfaction and employee retention.

How to assess your business’ workplace culture and ethics

Consider these steps to assess the current state of workplace ethics at your company:

1. Monitor productivity rates across the company

When teams have clear ethical standards, they often feel supported and empowered to perform at their best. To measure productivity, meet with department heads and review key performance indicators (KPIs) to determine if each department is meeting its quotas, deadlines and short-term goals.

However, KPIs aren’t always representative of a positive workplace culture, as some employees may work hard without necessarily feeling supported or meeting their performance goals.

2. Review turnover and retention rates

A high retention rate can indicate strong workplace ethics, since it generally implies employees are loyal to your company and its mission. If employees also feel that management models ethical behaviors, employees are more likely to stay with a company long-term.

3. Ask employees to rate workplace ethics

Consider implementing an anonymous way for employees to provide feedback about your workplace. For example, you might use the Organizational Culture Assessment Instrument (OCAI), which rates your organization in terms of six aspects of culture. The Denison Organizational Culture Survey (DOCS) may also benefit your workplace culture by assessing its adaptability, mission, involvement and consistency.

As you review the responses, look for reports of ethical issues. For example, if an employee notes that others are taking office supplies home, it may be an opportunity to reinforce company policies regarding theft and inventory expenses.

4. Reflect on your company values and workplace practices

Determine if your company’s current practices align with the principles in your mission statement and values. If discrepancies exist, consider realigning your business practices. For example, if your company promotes a healthy work-life balance but employees are skipping vacations or working long hours, you might set mandatory PTO requirements or implement company holidays to foster a healthier culture.

5. Survey customers to identify company ethics externally

An outside perspective can help you assess your company’s ethical behaviors. Include questions that target customers’ perceptions and experiences. Noticing differences between their responses and your company’s stated values can reveal opportunities for growth.

For example, if your company’s mission statement prioritizes respect and customer service, but customer experiences don’t reflect this, it may be an opportunity to revisit training and reinforce your commitment to those values.

6. Observe employee behaviors

Observation can be a simple way to gauge workplace ethics. Watch how your employees behave at work, during client presentations and in company meetings. Are they respectful? Do they practice transparency in the workplace? Can they admit mistakes honestly? These behaviors show that employees understand and practice workplace ethics.

What can businesses do to shape an ethical workplace?

Here are some ways to cultivate stronger workplace ethics:

Define ethical behaviors during employee onboarding

Explain what workplace ethics are, and outline your company’s ethical practices and priorities to new employees during the onboarding process. Work with the HR department to develop a unique training program that helps new employees get a sense of the organizational culture and expectations for conduct.

Discuss how team members can use company values to guide their decision-making process at work. Consider also including your workplace ethics in your organization’s code of conduct or employee handbook.

Promote ethical behavior with recognition and positive feedback

Show that the company values ethical workplace behaviors by rewarding employees who practice principles such as accountability and integrity. When you recognize workers, provide examples of their positive behaviors to help other employees understand what workplace ethics look like in practice.

Create a system for reporting unethical behavior

Establish a confidential way for employees to report misconduct and ethical breaches. You could create an anonymous email for complaints or a system with HR that enables employees to speak with someone in person. A reporting system can make it easier for employees to communicate about ethical issues.

Lead by example

Reinforce the importance of ethical behavior by ensuring the leadership team models company expectations. Employer ethics might include consistently treating others with respect and taking accountability for mistakes. For example, if the company values honesty, executives might make an effort to be transparent about the issues facing the business.

Ensure that company culture supports ethical behavior

Build a company culture that encourages employees to behave ethically. Promote integrity and allow workers to discuss ethical concerns without fear of retaliation or punishment. Cultures that prioritize ethics often value open communication, inclusivity and respect.

FAQs about ethics and the workplace

What are some examples of workplace ethics?

Examples of workplace ethics include trust, character, collaboration and responsibility. While all ethical principles are valuable, your company should emphasize those most relevant to its operations and goals.

How is workplace ethics different from work ethic?

Workplace ethics apply to the entire business, while work ethic is how individuals approach their work. A person with a strong work ethic values punctuality, time management and diligence, and often prioritizes completing all tasks to the best of their ability.