1. FEATURE STORY:
PROMOTING RESPONSIBLE LEADERSHIP
A leader sets an example, good or bad, for the rest of the organization. So it's not surprising when an unethical, irresponsible leader spawns unethical, irresponsible followers, and together, they take down an entire organization. Enron is, of course, the most obvious example of bad leadership run amok.
Unfortunately, corporate scandals still continue to make headlines in the post-Enron world. A recent New York Times article reported that the Department of Justice (DOJ), once known for zealously prosecuting corporate miscreants, has instead been offering more and more deferred prosecution agreements (DPAs), which have been likened to executive get-out-of-jail-free cards. Reportedly, some legal experts are concerned that the DOJ's policy shift could be sending the wrong signal to corporate leaders, encouraging them to test the limits of corporate anti-fraud laws and other regulations.
The bottom line: In this age of murky business ethics and uncertain legal consequences, it's more important than ever to make leadership development a priority in your organization. Fortunately, HR plays a key role in leadership development; from policy writing to hiring to training, you can positively influence what kind of leadership your organization will ultimately have.
Institute a company-wide ethics and compliance program. The U.S. Sentencing Commission (USSC) suggests that such a program feature written standards for ethical conduct; provisions for seeking ethics-related advice or information; provisions for reporting misconduct anonymously; disciplinary measures for violators of the organization's standards; and/or assessing ethical conduct as part of the annual performance review. Tip: When drafting ethical standards and guidelines, the more input management has, the better; if supervisors and managers have a stake in drafting ethical policies, they'll have a deeper understanding of the need for such policies and are more likely to have a sense of ownership and pride in carrying them out.
Review company policies carefully with all managers and supervisors. Leaders who don't understand company policies and procedures, or who enforce them inconsistently, can land a company in court just as quickly as an unethical leader. A thorough review of all company policies should be included in your organization's management training program. Each time a new policy is instituted, managers and supervisors should be educated on the new policy before it's implemented company-wide, and should sign a form acknowledging that they have received, read, and understand the new policy.
Watch out for telltale character flaws. When interviewing a candidate for a leadership position, look for evidence that they have "the right stuff." If they display impulsiveness, defensiveness, negativity, excessive self-interest, volatility, resistance to change, inability to learn from mistakes, arrogance, disdain for the rules, or dishonesty — these are personality traits you don't want in a potential leader.
Hold leaders accountable. Why should employees fear the consequences of not following company policies, if they see management getting away with breaking rules left and right? If a leader has strayed from an established policy, they must be disciplined accordingly. Managers' and supervisors' performance assessments should be partly based on how well they uphold and enforce company policies, and any policy breaches should count against them in terms of raises, bonuses, promotions, and job security.
Be proactive in promoting responsible leadership throughout your organization! Enroll your managers and supervisors in AHI's Leading, Coaching, & Mentoring: Why All Three Are Critical To Your Organization's Success webinar, to be presented live on Wednesday, April 30.
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2. CATHIE'S CORNER BLOG:
WORKING IN A START-UP
I recently spent some time in the main office of a small, start-up company, and discovered that the employer was ignorant of a lot of basic employment laws that we, as HR people, take for granted. While I'm sure that most everyone reading this has all these issues covered, in case there are any newbies among us, I thought it couldn't do any harm to run through the issues that I uncovered at this company...Continue the story.
Catherine Bannon is an HR consultant in Marshfield, MA (catherine.bannon@gmail.com). Bannon worked for 10 years in HR management before starting her consulting practice.
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