Unethical workplace behavior: A guide in workplace ethics and integrity

As he starts heading out the office door, Kevin remembers he promised his son that he would pick up some markers for a school project. Since he is already late for dinner, Kevin contemplates where he can grab a pack quickly. Just then, a colleague notices Kevin looking puzzled and inquires. Kevin explains the situation. In response, the co-worker notes that the supply cabinet contains several Sharpies packages. Kevin gives a hesitant grimace, which draws a chuckle from his friend. “Don’t worry,” the colleague says, “Everyone shops there.”

Kevin slips a pack into his satchel and drives home. He feels terrible even as he tries to reason that the action is no big deal. It reminds him of swiping a candy bar from the supermarket checkout line during childhood. His mother found out and made him bring back the empty wrapper, apologize, and pay for the item with money from his piggy bank.

The unpleasant feeling lasts well into the evening until finally, Kevin knows what must be done. He leaves for work early the next morning to pick up a pack of replacement markers. He puts the Sharpies in the cabinet before anyone else arrives. Additionally, he decided to put an anonymous note in the company’s suggestion box to alert management that locking up supplies might stop employee theft. Within a month, the business puts such items under lock and key, with the administrative assistant as gatekeeper.

Unethical behavior in the work environment

As this instance demonstrates, ethics is an issue with gray areas that are subject to interpretation and opinion. Individual and organizational codes of conduct vary. What one person or group sees as acceptable or justified, another may view as immoral or highly questionable.

Different environments experience different types of ethical dilemmas. In the modern workplace, some common examples of unethical workplace behavior include:

• Stealing (swiping physical objects from the workplace for personal use or to sell; taking electronic information, such as product formulas or staff social security numbers)
• Lying and cheating (presenting another’s idea as your own; fudging sales figures or tax information; submitting false reimbursement expenses; taking undo amounts of credit; denying your wrongdoing or allowing someone else to take the blame)
• Misleading (withholding pertinent information; presenting info in a way designed to make customers or fellow team members draw the conclusion you wish; hiding negatives among the fine print)
• Misusing company time, for instance, running personal errands while on the clock, looking at social media instead of working, or even accepting a paycheck but not putting forth effort on the job.
• Bullying, harassing, or other abusive behavior (physically and/or mentally harming other people; creating an environment of fear)
• Maintaining conflicts of interest (moonlighting for a competitor; giving unfair advantages to vendors or contractors who have personal ties to the company’s leadership)
• Breaking confidentiality (sharing company information; revealing publicly something told to you privately without that person’s consent)
• Ignoring safety standards (failing to provide proper working conditions; dismissing maintenance schedules; checking off items on inspection reports without observation)
• Discriminating (treating certain people differently or poorly because of their race, gender, sexual orientation, or other protected status)
• Favoring certain employees (maintaining inconsistent standards on applying company rules; failing to make hard work the basis for promotion; giving choice assignments to team members who “suck up”)

Reasons why individuals and companies engage in unethical workplace behavior

Adults teach children to think about their actions and consequences from an early age. They encourage letting one’s conscience act as a guide. Why, then, do some adults behave unethically as workers or leaders?

• They can.

In some places, little to no measures exist to monitor unethical workplace behavior among employees. Similarly, some organizations fail to punish ethical violations. With leadership unlikely to find out or to impose repercussions if they do, violators act without much fear or motive to change. Companies themselves can fall into this mindset when the legal system or regulatory agencies fail to take notice and sanction appropriately.

• They view it as no big deal.

“So I padded my business expense reimbursement form a tad. It’s not like I swindled the company out of thousands of dollars.” Offenders often use such thoughts to defend their behavior.

• They witness the unethical actions of others.

Know how a teenager caught with alcohol tries to tell his parents that everyone else at the party was drinking too? While two wrongs don’t make a right, some adults still try to use this defense. They also may claim that engaging in the same dishonest practices as their colleagues or competitors is the only way to stay on par. For instance, if a co-worker boasts better sales figures by promising clients an impossible delivery date, you may try to convince yourself that doing the same is in your best career interests.

• They feel pressured to engage in unethical conduct.

Bosses with a “whatever it takes” attitude may encourage their charges to fudge here and there to make sales or post better results. Leaders sometimes belittle those who hesitate or protest, or they may infer that their future with the company is in jeopardy. Lying can feel like a better alternative than losing one’s job.

• They want to profit.

Using inferior materials, skipping safety measures, paying unfair wages . . . at least in the short term, cutting corners can be cheaper than abiding by ethical standards.

• They harbor resentment or feel unappreciated.

Employees who feel mistreated or overlooked may consequently decide to take out their anger at the company. For example, stealing things from the office or doing personal activities on company time becomes a way of getting back at the employer. Furthermore, underpaid workers often feel entitled to create their own “benefits package.

• They enjoy the power trip.

Some leaders relish their position in unsavory ways. They do not see the harm in bullying their direct charges, displaying favoritism, or asking for “favors” in return for advancement.

• They possess an underdeveloped conscience.

In the workforce, as in life, some people do not hold themselves to high standards. They do not particularly view harassing, discriminating, cheating, or any other destructive behavior they exhibit as wrong.

Problems resulting from poor ethical conduct

Regardless of the reason behind the unethical workplace behavior, such actions often result in substantial trouble for the organization. Undesirable consequences potentially include:

• Loss of money

Pilfering office supplies, stealing company merchandise, dipping into petty cash, diverting company money into one’s account, falsifying time cards . . . employee theft and dishonesty large and small adds up to the tune of American businesses losing some $50 billion annually.

• Legal hot water

Many types of unethical actions also qualify as illegal behavior. Individuals and businesses alike can get in trouble with the law for a variety of infractions, such as “cooked” books, illegal hiring practices, failure to follow safety procedures, lying to the public, sexual harassment, and discrimination.

• Damage to the company’s reputation

When customers lose trust, you lose business. Information travels wide and fast nowadays with social media and many news outlets (not to mention a good old-fashioned neighborly word of mouth). Unethical incidents cause others to question a brand’s trustworthiness. Disregarding the environment during manufacturing, knowingly selling an unsafe product, or using child labor are just a few of the practices that can spark outrage.

• Undesirable workplace culture

Companies with poor moral standards are a breeding ground for toxicity. In fact, a lack of ethical behavior directly affects teamwork, employee morale, and even decision-making. Ultimately, acting as a cohesive unit invested in the company’s success becomes difficult when honest communication and trust are absent. As a result, workers waste time second-guessing each other and management, worrying about what might happen behind the scenes, and often participating in rumors and gossip.

• High employee turnover

People with ethical values want to avoid working for or alongside bad apples. They become stressed and disgusted by what they witness or are pressured to do. Rather than being associated with this type of behavior, they leave for another job with better company culture and code of conduct.

• Hiring issues

Job review sites abound nowadays, and disgruntled former employees love to contribute. Moreover, when coupled with any bad press an organization may have received from displaying poor ethical standards, potential candidates may become unlikely to apply. After all, why risk one’s reputation and well-being?

How to improve workplace ethics

What can organizations do to halt the damage of unethical workplace behavior and encourage everyone to develop a more honest work environment? Consider these strategies:

• Create strong company policies – and follow through

Leave no doubt that your organization values ethical behavior both within the office and in its relationships with the world at large. First, include honesty as a core value listed in your mission statement. Then, continue touting personal and business ethics in the employee handbook. Furthermore, clearly state that dishonest behavior is unacceptable and not tolerated. Specifically, call out unacceptable actions and the disciplinary procedures in place. Finally, follow through on these consequences swiftly and consistently.Failure to do so tells guilty parties – and everyone else– that you do not stand by your word, and incidents may increase.

• Provide outlets to report unethical practices

Knowing where to turn when witnessing improper behavior encourages workers to take action. The employee handbook states the proper channels for notifying human resources or another department about ethical concerns, including ones involving their superiors. Thank those who come forward. Offer anonymous outlets, too, for those hesitant to speak face to face or to attach their name to a complaint. Look into all grievances, and never retaliate against whistleblowers.

• Model good behavior from the top down

A manager who lies to customers or fudges sales figures does little to discourage employees from doing the same. Employees take their cues from what they observe, so leaders must make ethical behavior part of their modus operandi.

• Take sensible measures

Like the company in the opening that locked up office supplies to discourage employee theft, think about ways to remove temptations. Actions might include:

• Limiting access to specific databases to only those who genuinely need it.
• Vigilantly shredding sensitive paperwork.
• Providing new employees with non-disclosure agreements to sign.

Therefore, consider managerial alertness a sensible measure, too. Leaders who are alert to potential ethical problems often squash undesirable behavior before it progresses.

• Encourage individual responsibility

Lastly, build a company culture that promotes the notion that every employee has an obligation to act ethically. Appeal to personal standards and accountability. Discuss how ethical behavior builds customer loyalty and enhances brand image. Reinforce that the adage “see something, say something” applies to everyone and is a responsibility nobody should forget.

More Resources:
Sample performance improvement plan for behavior
Employee gets ticket in company car: Who pays?
Scripts for terminating an employee professionally