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Keeping You Up-to-Date With Values R&D and Events!
July 1, 2001

Using the AVI to Create a Code of Ethics

Last eZine, we looked at the importance of creating a code of ethics in the right way and the importance to organisations of having a code. In this eZine, we look more specifically at just what a code of ethics looks like and re-visit the steps to put one in place.

Firstly, Longstaff (1994, pp. 241-242) makes a clear distinction between codes of ethics and codes of behaviour:

A code of ethics expresses fundamental principles that provide guidance in cases where no specific rule is in place or where matters are genuinely unclear. A well-drafted code of conduct will be consistent with the primary code of ethics, however, it will provide more specific guidance.

As an example, a code of ethics might include statements such as (Longstaff 1994, p. 241):

  • Our actions should be based on a recognition of the essential dignity of each and every person.
  • We should have concern for the well-being of the community and the environment.
  • We should provide a challenging and safe work-place in which people can flourish.

On the other hand, codes of conduct usually have discrete headings and specific instructions (Longstaff 1994, p. 242):

Gifts & Benefits - Employees must:

  • not demand or accept any unauthorised gifts, rewards or benefits because of the employee's status.
  • disclose to their manager any gift, reward or benefit offered or suggested to them in connection with their duties.

Conflicts of Interest - Employees must:

  • ensure that there is no actual or apparent conflict conflict between their personal interests and the performance of their duties.
  • identify, and fully disclose in writing to their manager, possible conflicts of personal or financial interests.

Even the language used in the two types of code is different. Codes of ethics are expressed in terms of "ought" or "should", whereas codes of behaviour use "must".

A properly drafted codes of ethics expresses the values and principles the organisation wishes to "display to the world" through the behaviour of its stakeholders. It is a core statement of its identity. It provides general guidance in cases where a code of conduct is silent, ambiguous or unclear. As we saw eZine #7 , a code of ethics is a more significant document than a code of behaviour.

Below are the steps to put a code of ethics, as a "living document", in place in your organisation:

  1. Undertake a Values Audit

Use the AVI to take an inventory of your organisation's values. A Group AVI Report is produced from the AVI questionnaires completed by a selected random sample of stakeholders. This report is used  to guide the answering of the questions: What do people in your organisation...

  • think to be most its important values?

  • believe to be the ideal level of presence of each of these values?

  • believe to be the actual level of presence of each of these values?

This step identifies any "values gap" that exists in your organisation. It also provides a base-line against which progress, to close the gap, can me measured.

  1. Involve Everyone

Everyone, directly or indirectly, should be involved in suggesting the means to close the gap. One way your organisation can go about identifying strategies to close the gap is to use a future search conference. Involving people in this way helps build the level of trust and loyalty necessary for any cultural development or change that may be identified as necessary. By choosing to encourage your people to participate in defining your organisation's ethos it sends a message to them that they are regarded as being more than a mere means for securing your organisation's ends - they are co-creators of the organisation.

  1. Aim for a Short Development Cycle

All the good work of Steps 1 and 2 will be wasted unless reports and follow-up action take place in a timely manner. Such tardiness can lead to a serious erosion of morale. People become cynical and easily develop the perception that the entire exercise was nothing more than a "gesture"  by management. From a practical point of view, the faster the turn-around, the greater the likelihood that positive reinforcement ensues.

  1. Build in a Process of Review

Use the AVI, at regular intervals, on a selected random sample of your organisation's stakeholders to gauge if a values shift is occurring. If at any time, a significant values shift is found, then start again at Step 1.

As part of this regular review process, ask people their perception of how their organisation is living in accordance with its values.

Encourage people to look at their own values and reflect on how their life can be made more meaningful through living their personal values in such a way that they are "in tune" with the organisation's values - see eZine #6, it is through this process that people are able to maintain themselves at Position 4:

 

The four step process described above, should be viewed as an investment.  In today's competitive global market place, organisations can no longer afford to sacrifice the additional effectiveness that flows from values-based processes for the sake of achieving false efficiencies. As Michelle Collins highlights (The Sunday Mail Jan 21, 2001, p. 92) in an article titled, Ethics of profit: honour before greed, values-based organisations consistently prove to be more successful than other organisations. Michelle cites Cochlear Limited, maker of the bionic ear, as a typical example of an ethical success story:

[Cochlear Limited] is your classic case of a growth company that has made good and used state-of-the-art technology to improve the lives of deaf people...Last year, Cochlear's shares went from a low of $8.50 to a high of $21.10.

Cochlear  Limited, under the guidance of Heather Lesley-Swan, have, for some years, undergone an extensive values programme using the AVI as its foundation.

References

Colins, C. & Chippendale, P. 1995, New Wisdom II: Values-Based Development, Acorn Publications, Brisbane.

Longstaff, S. 1994, 'Why codes fail: And some thoughts on how to make them work' in Ethics for the Public Sector, ed. N. Preston, Federation Press, Sydney.

Scott, T. & Harker, P. 1999, Humanity at Work , Phil Harker & Associates, Queensland

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13 October, 2008