3. It can enhance and strengthen your brand reputation
Being called ‘compliant’ isn’t exactly something that would thrill most of us if we were being described by a friend to someone who had never met us before. In the context of the world of business and third-sector/public organisations though, compliance is absolutely everything.
Compliance is an unexpectedly attractive word when it comes to organisations and their reputations.
At the heart of the issue is the fact that most customers and suppliers want reliable, trustworthy partners – they don’t necessarily want unpredictable rock-stars (as fun as that might be).
Having strong ethics and a clear moral responsibility can also help to supercharge your reputation amongst everyone from employees, suppliers and customers. As Thomas Sehested argues in this Forbes article, whilst in the past irreputable companies might have been able to get away with having questionable ethics, the invention of social media and online reviews has made that much harder to get away with now.
Technology has made the ethics of a company and their moral record much easier to research nowadays. It’s also made their record on compliance a lot simpler to track too.
4. It can help employee relations
Ensuring that your organisation has a focus on ethics and following clear values can have an added benefit of improving employee relations.
The CIPD describes ethics as a type of ‘moral compass’ that helps both employers and employees build positive working relationships and create a more inclusive, happier and productive workplace.
Employees, quite rightly, expect employers to act with the utmost integrity and honesty. They place their trust in employers to treat them fairly and with respect. When there is a disconnect between these expectations and reality, employee relations can suffer. Morale can sink. Productivity can plummet. Employees may even take industrial action through their trade union.
Of course, your organisation being principled in its actions and working according to clear values might not stop all of these things happening – external factors, like the economy and political events, can influence them too. Embedding ethics and morals in your organisation can, however, go a long way to improving the general mood of your internal culture and reduce the risk of avoidable industrial unrest from occurring.
Ultimately, an organisation that holds clear values and operates ethically is likely to build more trust with employees and thus, reduce the likelihood of employee unrest forming from things that you could easily prevent.
Ethics and Compliance: One of HR’s Vital Concerns
Arguably, one of the most essential focuses of a HR department should be the ethics of an organisation, and whether they are being complied with. The two topics are mutually interdependent – without ethics, you likely won’t be compliant with legislation and rules; and without compliance, you won’t be able to live up to the ethics of your organisation.
We hope this blog has given you a good introduction to the topic and has helped inform your study on the CIPD Level 3 Foundation Certificate in People Practice!
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