Fostering an Ethical Workplace: Encouraging Employees to Speak Up Against Unethical Behavior

In today’s rapidly evolving business environment, maintaining ethical standards is more crucial than ever. Companies and organizations are not only judged by their financial success but also by their commitment to ethical practices and social responsibility. Unethical behavior in the workplace can undermine trust, damage reputations, and lead to significant legal and financial consequences. Therefore, it is vital for employees to feel empowered and responsible for reporting unethical behavior when they encounter it. Unfortunately, such reporting is often not pursued.

To better understand the factors that influence an employee’s likelihood of reporting unethical behavior in the workplace, a group of researchers recently conducted a study. The research, conducted across two studies involving hundreds of employees, revealed that exploitative leadership increases the likelihood of employees remaining silent about unethical behavior they witness or experience. However, the study also identified two scenarios in which employees were more likely to overcome the effects of exploitative leadership and report misconduct: (1) when employees found their work to be meaningful, and (2) when employees possessed strong “moral potency,” which refers to the courage to act and the belief in their ability to make a difference. Furthermore, when the expectation of rewards is considered, this can discourage employees from speaking up.

Based on these findings, organizations should consider taking the following steps to promote an ethical workplace:

• Prevent exploitative leadership by implementing a selection system that identifies leaders who are less likely to engage in wrongdoing.
• Assist employees in finding meaning in their work by encouraging them to engage in job crafting–which involves aligning their jobs with their personal needs and preferences. Employees who find their work meaningful are more likely to report unethical leaders, according to the study.
• Support employees’ moral potency by encouraging them to identify and resolve ethical dilemmas. Organizations should also recognize and reward employees who speak up about unethical behavior.
• Foster a culture of fairness by ensuring that the reward and assessment processes are transparent and objective. This will encourage employees to report wrongdoing without fear of negative consequences to their rewards, compensation, or performance evaluations.
• When instances of exploitation are discovered, organizations must act swiftly to protect employees and address the inappropriate behavior.

By implementing these measures, organizations can create an environment that encourages employees to speak up against unethical behavior, ultimately promoting a more ethical workplace.

Reference

Wang, Z., Ren, S., Chadee, D., & Chen, Y. (2024). Employee ethical silence under exploitative leadership: The roles of work meaningfulness and moral potency. Journal of Business Ethics, 190, 59-76.