workplace ethics

Nearly every individual will at some point in their career face an ethical dilemma. Whether that question comes from a superior or direct report, these decisions take a significant toll on mental health, psychological safety, and burnout in the workplace. 

Ethical concerns can take place in a variety of ways. Every ethical question is not as extreme as fraud or lying on financial statements but, ethical dilemmas can be seen in everyday workplace experiences. For example, consider Kelly, who is a senior manager at a large sales firm. Executives of the firm are expecting to be acquired by a much larger company and thus, are pushing for increased sales and revenue from Kelly’s sales team. Because of this, Kelly’s team members are pressured into making one-time sales so the acquirer notes better results for the firm rather than the more accurate, transparency of the expected revenue. How do these decisions affect the health and psychological safety of these parties?

To begin, these employees are now subject to immense stress to make sales, which will likely negatively impact psychological safety and contribute to burnout. Additionally, these individuals' psychological safety and mental health may be negatively impacted if they have to confront their manager or miss a sales goal. If there are pay differences due to falling short of a sales goal during this time, these individuals may become significantly dissatisfied leading to impacts on mental health, psychological safety, or even turnover. On the other hand, Kelly is now stressed and concerned that her team will not meet these sales goals and, she is concerned about what the acquirer will find once they are bought out and the sales decrease. 

Once the firm is bought, many parties may see an adverse effect from the inauthenticity of the sales revenues. For example, the purchasing company may move forward with laying off or letting go of employees because the sales projections based on the perceived recurring revenues right before the sale of the company (which turn out not to be recurring and therefore shouldn’t be in the projections) are not met. Additionally, the purchasing company may potentially alter the compensation structure of the employees, negatively impacting their motivation to work if compensation is based on inaccurate data, these sales goals may be challenging or unachievable for these employees. For example, sales and performance quotas based on projections that aren’t based in consistent results.

If Kelly approaches Michael with this ethical concern, she may see unfavorable effects, especially moving into a merger or acquisition with the firm. In discussing this sensitive matter, it is crucial for professionals to be extremely cognizant of the surrounding environment to find the right time and manner to discuss a concern without becoming accusational or placing blame on superiors. Here are 5 tips for discussing an ethical concern with a superior:

In bringing up concerns about a sensitive topic, it is crucial for individuals to maintain objectivity and avoid placing blame on the superior. For example, in the aforementioned situation, Kelly may ask to schedule a meeting and begin by saying she is concerned about how sustainable the sales are. This statement does not place blame on Michael or suggest that he is acting unethically. Rather, this statement brings up a sincere concern. Additionally, this statement does not bring up the variety of negative effects that may be possible in the situation but just focuses on the one main concern to be addressed. Kelly may also not realize the pressure Michael is under and that he might not have been the person that decided to fluff up the sales numbers but was instead following orders.
2. Propose Solutions

Continuing in the meeting with a superior, leaders should be cognizant of their attitude and propose potential solutions to move forward with. These solutions should be constructive and should directly address ethical concerns. For example, Kelly should consider offering solutions to the situation of sales data representation. Perhaps Kelly can head a new and sustainable marketing campaign for current clients or, suggest a different way to encourage sustainable sales in this situation. 
3. Highlight Possible Consequences

If Michael needs additional convincing to approach this ethical concern, Kelly should consider bringing up possible negative consequences, backed by data. For example, Kelly could share that if sales are to drop after the acquisition, her team may be downsized or, brand reputation or morale may have negative effects for the team moving forward. In this area of the conversation, individuals need to bring concerns that are sincere possibilities with adverse effects and, avoid blame placing. Being empathetic to the superior will always help both parties better understand the other and how to best move forward. Kelly could also acknowledge who benefits from having inaccurately boosted sales numbers, their proximity to everyone else at the company, and who may face consequences after the sale is completed.
4. Encourage Open Dialogue

In these discussions with a superior, managers should be considerate in finding a comparable solution for the superior's objectives to be met in a more ethically sound manner. In Kelly's case, suggesting possible solutions and then asking for feedback or other ideas to find a compromise of the way the problem is approached and the objective solution that is best for the company. Managers in this situation should also listen carefully to the superior to find any other information or data that could help find an ideal solution to move forward with. 
5. Seek Guidance

Finally, managers should consider seeking guidance in moving forward with an ethical concern. To find help, managers can consider a variety of methods. First, the manager could reach out to the firm's human resources. But, leaders should be conscious that these individuals may be required to report potential problems or concerns within the company. If an individual is seeking some mentorship outside of the firm, they should find a horizontal mentorship program or an executive mastermind group. These programs focus on building relationships with peers in other organizations at similar levels or, with more experience. Being able to privately discuss concerns with other professionals is a fantastic resource for effectively approaching sensitive topics. For example, Kelly may benefit from a horizontal mentorship by speaking with a sales manager at a different firm and learning more about how to best approach the situation from an outside perspective. This method also works to reinforce psychological safety that promotes open discussion and conversation. 

Although challenging, voicing concerns about ethical topics is crucial for companies to maintain their cultures and positive work environments. And, as leaders, managers have a responsibility to represent their direct reports and work in their, and the company's best interest. In this pivotal role, individuals can become stressed and overworked so, it is necessary for leaders to maintain clarity and thought processes in decision-making processes that will affect a whole team.