Setting Your Ethical Compass

Jan. 1, 2020
Looking at the dialy news headlines, you'll notice that the "ethics" adhered to by many companies worldwide have been under sever scrutiny and in some cases have brought public uproar. At the same time, there's also a powerfully growing movement for
ethics ethical businesses automotive aftermarket ethical repair shops Looking at the daily news headlines, you'll notice that the "ethics" adhered to by many companies worldwide have been under severe scrutiny and in some cases have brought public uproar. At the same time, there's also a powerfully growing movement for better ethical management and recognition for companies that adhere to the highest ethical standards. Customers are beginning to recognize the significance of this movement. Many companies are responding by positioning themselves to capitalize from the implementation of strict ethical standards.

The purpose of this article is not to point out areas of our industry where folks are not operating ethically (such as where outright fraud is being practiced) but rather to explain how to make sure everyone in an operation truly is keeping to an ethical code. When it comes to ethics, everyone is accountable, everything counts and everyone must "walk the talk."

No gray zones

Recently, my wife and I went to our favorite Chinese buffet. The hostess at the desk handed us a rolled napkin with the fork and spoon inside. This was strange because in the past the silverware was on the table where the drinks were dispensed. The owner told us he had to change that since last year alone more than 800 forks and spoons came up missing.

In your shop is it okay to take that roll of 2-inch or 3/4-inch tape home? Probably not. Yet at many shops, sandpaper, adhesives, copy paper, coffee, pens, customer's CDs, change, etc. all can come up "missing." Why? When it comes to the workplace or places of business, people often take a different view of the same ethics they practice elsewhere.

They put them aside. They seem to believe they're no longer stealing when they take something from a business instead of from a person. You'll even see this in our industry. It's as if a difference in environment somehow allows for a different set of ethics.

This simply shouldn't be. Walking the talk is not about setting rules, laws and penalties. It's about cultivating a belief within an organization to "do the right thing" all of the time. You, as the owner or manager, must lead this culture. That means addressing ethical gray zones, areas where employees may think ethics no longer apply or may be "redefined."

To remove these gray zones, always stick strictly to existing laws and regulations. Avoid the influence from third parties. Look not just at the literal wording of laws/regulations but also the intent of the rules. Then, get your entire staff involved. Listen to your conscience and to that of others within your organization. Discuss gray areas and ask, "Is this right?" Staff involvement is the first step in building your code of ethics into your business culture.

Take Action

Discussions, promises and written agreements mean nothing without verifiable actions everyone, including the customer, can see. Actions matter most. You'll find that most people adhere to the old adage "behavior doesn't lie."

The best way to determine if your own actions equal or exceed your promises is to ask your customers, employees and suppliers. Third-party customer satisfaction index providers tell you if you are on track. Are you hitting your promise dates? Employee Satisfaction Index (ESI) programs can determine if your leadership is in line with your promises. Other survey programs developed over the years can provide good information from your suppliers and insurers you work with.

Your leadership as an owner and manager determines how the information will be used to improve your organization. At times it may be a harsh reality, but if you want to improve your business while building an ethical organization, you must act on the feedback, and change.

Testing

To make sure the actions that are being considered are most likely going to be ethical, you can implement a very simple ethical action test. This test includes asking the following questions. A "no" answer to any of these indicates an ethical problem.

1. Is it legal?

2. Does it comply with our rules and guidelines?

3. Is it in sync with our organizational values?

4. Will I be comfortable and guilt-free if I do it?

5. Does it match our stated commitments and guarantees?

6. Would I do it to my family or friend?

7. Would I be perfectly OK with someone doing it to me?

8. Would the most ethical person I know do it?

There are some very common rationales often used to rationalize not doing the right thing. These are never acceptable to an ethical organization, but they will certainly challenge you and your people from time to time. They include:

  • "Everyone else does it."
  • "They'll never miss it."
  • "Nobody will care."
  • "The boss does it."
  • "No one will know."
  • "I don't have time to do it right."
  • "That's close enough."
  • "Some rules were meant to be broken."
  • "It's not my job."

Once you allow your organization to go down this path, you can lose your ethical way very quickly.

One of the most difficult challenges will be when the customer requests an action that is not ethical according to your standards of operation. In these cases, this is where a tactful response must be provided.

The following steps are from "Ethics 4 Everyone" by Eric Harvey and Scott Airitam:

1. "State your objection and concern without indictment. Don't accuse the person of being unethical; use 'I statements' to describe your feelings."

2. "Propose an alternative action that you feel is ethical."

3. "Ask for the person's help and agreement."

4. "If the person doesn't agree, seek assistance from a higher or designated authority."

Where to Begin

Albert Einstein said, "Leadership by example is the only kind of real leadership. Everything else is a dictatorship." The most important first step begins with you as the owner or manager. It also may be the most difficult step for many. How you walk the talk is key to your shop becoming a true ethical organization. Everything is important and everyone is watching, all the time.

TONY PASSWATER is president of consulting firm AEII and has been in the collision industry since 1972. He has worked with collision shop owners worldwide and contributes management features to Motor Age's sister publication, ABRN. E-mail him at [email protected]

About the Author

Tony Passwater

Tony Passwater, president of AEII, has been in the collision industry since 1972. AEII is an international consulting, training and system development organization founded in 1986. Tony has worked with collision shop owners worldwide and developed computer solution software programs, training seminars, and on-site consulting services for many of the top organizations. He is also a founding partner in Quality Assurance Systems International, QASI, the leading organization for process improvement in the collision industry through ISO international standards and certification.

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