What is it?
It’s not your office manual or your policies and procedures. It’s the glue that keeps the firm together, the hidden messages and assumptions. Every firm will have one, and sadly it won’t always tally with the publicity or induction material. It’s the ‘feel’ of a place. It’s how everyone behaves, how things get done.
Sounds a bit ‘touchy feely’
It is, but your firm’s ethical culture will influence everyone who works there, and everyone who walks through your doors. As it’s so hard to change and to control, it deserves a lot of attention. If everyone works really well together, decisions are made logically and efficiently, poor behaviour is discouraged, all staff are motivated, and all customers treated as they should be, then your firm’s ethical culture is a very stable one, and you’ll be able to adapt well to the ever changing business environment.
If things don’t change as quickly as they should, certain teams compete with rather than support each other, managers don’t set the right example, and poor behaviour is tolerated then despite what you might want outsiders to think of your firm, there are hidden assumptions at play that are sabotaging the environment that you want to create.
Your reputation will depend on what your firm does, rather than what its brochures and websites say. Trust takes a long time to develop, but a second to destroy. Whilst very small firms might be able to influence the core value system more easily, if customer expectations or other external factors change it might quickly become much more difficult to ensure that everyone is still on the same wavelength.
Hearts and minds
If certain colleagues insist on doing things the old way, do you let them, or do you make it clear that things are now being done differently for a very good reason? Are staff encouraged to adapt, learn and grow, or is adjustment half hearted? Is change handled professionally, ethically, and sensitively, or is it rushed, unbalanced and unreasonable?
A positive attitude
If a firm finds it difficult to adapt to change clients will pick up on this, and start to lose trust. It’s often easier for outsiders to see the bigger picture more clearly than those on the inside, and clients will know if they’re not being put first. A responsive attitude will reap dividends, not only by reminding clients that you genuinely care about their needs, but by providing an honest, open workplace for employees. Make your firm a good place to be. Get rid of the hidden agendas, no matter how much soul searching is required; stop thinking solely about the bottom line on the spreadsheet; and start thinking about the individual. Yes there may be tears and tantrums. Yes you may lose employees who find it more difficult to cope with change and prefer the familiar. Isn’t it all worth it though, to have a firm that does the right things in the right way?
So what’s next?
The next article will provide practical guidance on managing and changing your firm’s ethical culture, but if you’re eager to read up on the subject in the meantime I recommend the CII (Chartered Insurance Institute) white papers on ethical culture for small firms and regulated environments, which can be found if you click here and here.
About the author
Hayley Crawshaw is a Risk and Compliance Consultant. Her contact details can be found at www.celticcompliance.com