Let's get ethical, ethical 🎶

I have a lot of post-election thoughts I'm still sorting through, but in the context of all the transition news, I've got ethical workplace behavior on my mind. While unethical behavior at the highest level of government is its own beast, we all experience a range of ethical dilemmas in our work. But first, the inspiration for this edition:

Let's dive in. Imagine this: you discover that a coworker has been falsifying time sheets, or perhaps you’re asked by your supervisor to omit a critical piece of information in a client report. Maybe you've been asked to approve payment to a contractor whose work was questionable, or maybe you found out that a member of leadership has been misappropriating funds by approving contracts with friends. Perhaps you overhear your supervisor making a racist comment about another member of your team. What would you do in these scenarios? These brief examples illustrate common ethical boundaries we may encounter at work, including:

• Misuse of resources

• Dishonesty

• Discrimination or harassment

• Favoritism or nepotism

Ethics and Compliance Initiative, The State of Ethics & Compliance in the Workplace: A Look at Global Trends

Boundaries, at their core, are about respect—respect for ourselves, our values, and the communities we’re part of. When unethical behavior arises, our boundaries can feel violated, leaving us grappling with difficult decisions about speaking up, staying silent, or taking action.

In this post, we’ll explore how ethics and boundaries intersect in the workplace, highlight key data on employee perceptions of workplace ethics, and discuss actionable steps to navigate these challenges.

What the Data Says About Ethics in the Workplace

According to the 2023 Global Business Ethics Survey by the Ethics & Compliance Initiative:

• 53% of U.S. employees have observed misconduct in the workplace.

• Globally, 28% of employees felt pressure to compromise organizational standards to achieve work goals and 46% of employees who reported unethical behavior experienced retaliation.

A report by the Institute of Business Ethics found that 76% of employees in the US agree that senior management takes ethics seriously in their organization, but 43% also agree that their line manager rewards employees who get good results, even if they use practices that are ethically questionable.

According to the 2023 Workplace Harassment & Employee Misconduct Insights by HR Acuity, 40% of employees lack faith in their organization's approach to addressing misconduct in the workplace, but when investigations do occur, 74% of employees report that they felt treated with dignity and respect, received timely responses and had good communication throughout the process.

IBE image, Ethics at Work: 2024 international survey of employees, "Building a supportive environment for ethics matters"

Boundaries at Play

When unethical behavior occurs, several types of boundaries can be impacted, but perhaps the most important are our mental and emotional boundaries. I write often about workplace mental health, and it is important to keep in mind all of the ways that we can feel either threatened or supported by our work environment. Making difficult decisions about observed misconduct challenges us to weigh workplace expectations and standards against our own personal interests and beliefs, and this can lead to stress and burnout if the right systems are not in place.

In a study of the effects of organizations’ internal ethical context on their employees’ subjective well-being published in the International Journal of Environmental Research and Public Health, the authors note that recurrent unethical behavior in organizations is negatively associated with job satisfaction and commitment, which can contribute to depression, anxiety, and other health problems, but they also found that ethical leadership plays a crucial role in highlighting and embodying organizations’ ethical standards and orientation, thereby influencing employees’ subjective well-being. This has also been affirmed by other studies, including this one by Gallup.

Relevant Laws and Policies

Several laws and organizational policies play a key role in addressing unethical behavior and protecting employees who report it, some of which I've referenced in past editions.

• Whistleblower protection laws prohibit employers from retaliating against an employee for filing a complaint or for reporting issues related to your work. There are a number of federal statutes that contain anti-retaliation provisions, and most states also have whistleblower protection programs, but these vary widely. These protections are an important way to make it easier for employees to report bad behavior.

• The Sarbanes-Oxley Act of 2002 is intended to prevent fraudulent financial reporting by corporations. It requires public companies to have mechanisms for employees to report unethical behavior anonymously and protects whistleblowers from retaliation.

• Codes of ethics or professional conduct are an important tool to establish uniform standards within a profession or setting. However, they must be supported by policies and procedures and ensure there are consequences for violations. If you hold a license or certification, chances are you agreed to a code of ethics as part of your application process. When was the last time you read it?

Gallup Workplace, September 4, 2024, "Most Unethical Behavior Goes Unreported and Unresolved"

Who is Most Impacted by Unethical Workplace Behavior

Unethical behavior in the workplace doesn’t impact everyone equally. According to the HR Acuity report linked above, 52% of employees have experienced or witnessed inappropriate, unethical or illegal behaviors at work, with the most prevalent being bullying (51%), sexual harassment (40%), and racism (30%). Certain groups, particularly those from marginalized backgrounds, are disproportionately affected by these kinds of behaviors. This includes:

• Women and gender minorities

• People of color

• Low wage and immigrant workers

• LGBTQ+ employees

• Employees with disabilities

These disparities not only harm individuals but also undermine trust and morale across organizations. Employees who witness unethical behavior—whether they are directly impacted or not—are less likely to feel engaged and more likely to seek employment elsewhere, contributing to higher turnover rates and a less inclusive workplace culture.

Action Items: What You Can Do

As an Employee

📚 Educate Yourself: Familiarize yourself with your organization’s code of ethics and reporting mechanisms. Understand your rights under whistleblower and employment laws.

📝Document Incidents: Keep detailed records of unethical behavior, including dates, actions, and any correspondence.

🤝🏽Seek Support: Reach out to HR, a trusted mentor, or external resources like ethics hotlines for guidance on how to address concerns. My last place of employment had an anonymous reporting option, and yours may have one as well.

As an Employer

🙋🏽 Cultivate an Ethical Culture: Lead by example, ensuring that leadership adheres to and enforces ethical standards consistently.

👩🏽 Provide Training: Offer regular ethics training that equips employees to recognize and address unethical behavior.

📧 Encourage Reporting: Create a safe environment for employees to report concerns without fear of retaliation.

Conclusion

Ethics and boundaries are deeply intertwined in the workplace, shaping how we interact with colleagues, approach challenges, and uphold our values. By fostering environments where ethical behavior is the norm—and where employees feel empowered to set and enforce their boundaries—we can build workplaces that are not only productive but also principled.

Whether you’re an employee navigating a tough situation, an employer setting the tone for your organization, or an advocate for workplace equity, there are steps we can all take to strengthen ethical standards and honor the boundaries that support our collective well-being.