Ethical values provide the moral compass by which we live our lives and make decisions. They also highlight why organisations should focus on creating a shared ethical culture where employees feel empowered to do the right thing rather than simply following a set of rules.

The way we make decisions is important for organisations because wrong or badly implemented decisions can significantly impact people’s lives and the reputation of organisations. But when we make decisions based on good principles, and live by good values, we can improve the lives of others and their experiences at work.

In setting out standards for the people profession, the CIPD’s Profession Map  includes ethics under ‘Core behaviours’, describing ethical practice as:

"Building trust by role-modelling ethical behaviour and applying principles and values consistently in decision-making."

Therefore, it’s vital that people professionals can define ethical behaviour, identify unethical behaviour, and take steps to create a shared ethical culture accordingly.

In this guide, we discuss the red flags to watch out for, along with practical tips and resources to safeguard your organisation and people against ethical breaches and misconduct. The guide draws on – and complements  – CIPD research, and features nine areas of action employers can prioritise to ensure they behave ethically. Please note, individual red flags may not in themselves indicate unethical behaviour, but several may be a sign of a wider issue.

Ethical climate in organisations

Develop and consistently embed codes

Fairness and organisational politics

Personality/mood

Job Design

Targets and reward

Accountability

Communication

Conclusion

Organisational climate checklist

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Flowchart: how to develop and consistently embed codes

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Speaking up checklist

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Discussion prompts for workforce training

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Transparent decision checklist

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Further resources

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