There is growing need for c-level ethics officers as stewards of ethics-compliance programs in view of the persistent stressors of gross corporate misconduct with adverse repercussions felt most by employees and customers alike. Not too long ago, the energy executives, Kenneth Lay (former CEO and chairman of Enron Corporation), and Jeffrey Skilling (former president of Enron Corporation) were both implicated in gross corporate misconduct ranging from conspiracy and insider trading to securities fraud and receipt of unauthorized bonuses. Dennis Kozlowski, Tyco International CEO; and Bernie Ebbers, co-founder and chief executive at WorldCom were as well found culpable of corporate misconduct causing irreparable harm to their organizations and their clients. Bernie Madoff, the stock broker and investment advisor, pleaded guilty in March 2009 to operating the largest Ponzi scheme in history. Other corporate misconduct include corporations concealing hazards to consumers of flawed manufacturing processes, second-guessing safety procedures, and assuming wildly inappropriate financial risks.
These examples and many more aside, and the fall out from such public manifestations of ethically controversial conduct, make it necessary for companies to make corporate ethics a prerogative within their organizations. The creation of executive positions to focus exclusively on ethics compliance has become increasingly necessary as also confirmed by a Society for Human Resource Management (SHRM) survey of 400 HR professionals by nearly half (about 48%) of organizations polled reporting they now employ ethics officers.
Besides, employees, shareholders and the general public are demanding increased transparency and accountability from corporate leaders, a trend whose importance is underscored by recent events of corporate schemes. These voices are pushing for stronger regulations and/or safeguards. Positively, HR leaders are becoming increasingly aware of the essence of effective ethics and compliance programs within their organizations. A work environment that relies on employees holding each other to high ethical standards is key to such programs. Further, training employees and creating solid reporting structures of identified corporate issues can be a useful trajectory as well.
Ethics Officers’ Role in Corporate Management
Most corporations with exclusive ethics and compliance departments are bringing on board ethics officers who can report often to the CEO (about 44%) and to corporations chief HR (about 20%) according to the recent SHRM survey. Experts attribute the trend toward a direct reporting relationship between the chief ethics officer and the CEO, HR leader or board of directors to top executives’ desire to have assurance that the chief ethics and compliance officer has both the access and independence necessary to perform his or her role. The ethics officer’s relationship with HR (the oganization’s architect who play key parts in designing the roles, rules and responsibilities of key positions remain clearly interdependent. The ethics officer’s capacity to report directly to top level management underscores efficiency of the organization’s reporting structure that is crucial in ensuring the company and its employees adhere to ethical codes of conduct.
Kenday Samuel Kamara, Ph.D.: A scholar in international development and back-office administration with cumulative years of experience in development sector management and peace research with advanced degrees in organizational management and decision sciences. Had consulted extensively in West Africa, Europe and the United States. Career highlights include: administrator expert for microfinance development in West Africa; strategy and policy advice at institutional and civil society level; capacity building (training workshops, seminars); educator with Walden University, the Graduate School of World Problems as well as the Pan African University; peer review experience (with Global Integrity) on integrity and corruption perception indicator scorecards; impact analyses on environment, social, economic and energy issues; strong knowledge of European Commission technical assistance procedures, planning and implementation; an accredited international development consultant with the CANADEM Civilian Roster of Consultants and the Intota Network of International Development Experts; and a Salzburg Fellow (as scholar of the Kellog Foundation). Have authored and co-authored a number of books as well as a number of published essays on various management and development issues.
