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ETHICS IN BANKING
October 8, 2003
CEO's of bank of all sizes are now realizing that the only
way to have a truly successful company is to act and conduct
business in an ethical manner.
We all know that success occasionally comes as a result of "who you know." Other times it comes from "what you know." Let's not forget that success can also come from "what you are known for." In fact, your reputation is one of the biggest factors in reaching your business dreams and goals.
Ethics should always start from the top down in any
organization. Being honest and open is the only way to succeed
at business. INTEGRITY -
Winston Churchill once joked about honesty in business. He
said, "Men occasionally stumble over the truth,
but most pick themselves up and hurry off, as if nothing
had happened." Fortunately, business people are
taking ethics more seriously today. As Andrew Carnegie
said, "A
great business is seldom built up, except on lines of strictest
integrity." The same goes for your reputation.
As a CEO or Senior Manager, how can you avoid ethics problems
within your business?
Bring your highest sense of ethics to your business and always lead by example. Demonstrate high ethical standards of behavior toward your customers, suppliers, shareholders, employees, and communities in which you do business. Be honest in all your dealings.
Develop an ethics policy. Make certain that your policy starts at the
top level so that company management sets an important example for all employees.
Set up training programs that will assist employees in carrying out established ethics policies.
Although an ethics policy may not stop unethical behavior, it may give
people something to think about and provide a measurement against which to assess
their behavior.
Establish an internal communication system that allows employees to express concerns directly to top management if they suspect wrongdoing or are uncomfortable with current practices. Consider appointing an ombudsman.
Treat your employees with respect and fairness.
Reward your employees for ethical decision-making and actions.
Meet with your Accounting staff to reinforce the highest reporting and accounting
standards and expectations. When the line between doing what is right and what
is legal is not clear, move back to what you know is right!
Know what is going on in your company. Routinely walk around and talk to your
employees directly. Get a feel for what they are doing. Be accessible and interested.
WISDOM - To paraphrase management consultant Peter Drucker, "The key is wisdom. The world is becoming not labor intensive, not materials intensive, not energy intensive, but wisdom intensive." The choices you make, and the wisdom reflected in those choices, will serve as the foundation of your life's reputation.
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