Despite this, levels of explanation for staff have fallen; only 41% of companies now offer any kind of training on the meaning and use of the company code of business ethics.
Co-author of the report, Simon Webley, from the Institute of Business Ethics, commented:
-Employers tell us that they see the main purpose of the company code as providing guidance for staff. So, as it becomes increasingly important for staff to understand their company code, it’s both surprising and a matter of concern that the number of companies providing training is falling. It’s not fair to staff, and makes companies unnecessarily
vulnerable, if they rely only on reactive measures such as disciplinary procedures. Training is an effective, proactive solution.”
Following changes in the law [3] the report also revealed a rapidly growing reliance on -speak-out’ programmes (whistle-blowing), to give companies warning of ethical malpractice. These programmes guarantee staff confidentiality and protection from reprisals, when an employee raises concerns about behaviour in the organisation which they consider to be harmful, illegal or unethical.
Confidential means for raising issues, including helplines, are now used by over two-thirds of companies, having grown in popularity by 20% since 1998.
Ethics Training
Of the companies offering training, there has been a dramatic increase in the use of the corporate intranet (56%). In-house seminars and staff manuals and guides are also popular options. By contrast, face-to-face briefings are only used by one survey respondent.
Simon Webley commented, -Face-to-face briefings, where employers can ensure that the company code is properly explained and its importance emphasised, and where employees have the opportunity to ask questions and gain a full understanding, are particularly effective. However, the corporate intranet is also being used, and has the merit that it is interactive and can be accessed at times convenient to employees.”
Social and Ethical Audits
The survey also reveals a sharp increase in interest in social and ethical auditing. The proportion of companies who have either engaged in such an audit, or considered doing so, is half of all respondents – double the total in 1998.
Fishburn Hedges director Martin Le Jeune commented, -The increase in the use of auditing is a sign of the way in which corporate ethics is becoming enshrined in the operating structures of companies. And since audits are frequently conducted in preparation for the production of an externally-focused report, the survey also reveals a growing awareness of the benefits of including commitment to corporate ethics in wider communications.”