Few things are as electrifying to the media and populace as charges of inappropriate conduct in the workplace. From harassment suits to breach of contract, bad practices are like unexploded time bombs, just waiting to destroy or severely damage a solution provider’s business.
The alleged misdeeds at both Penn State and the National Restaurant Association (accusations made against presidential candidate Herman Cain) may capture a lot of headlines, but at the end of the day, those institutions will be able to weather the storm and survive. Most solution providers likely wouldn’t survive such a significant lapse in ethics. If an employee is accused of sexual harassment or a claim of false advertising is lodged against the company, the cost of litigation could run into the millions—even if the cases are settled out of court!
Ethics is more of a guideline or standard than a hard-and-fast rule. Despite the measures a company puts in place to ensure its employees and executives are doing the right things, not every situation is black-and-white. Poor communication skills can lead to misunderstandings that are not necessarily breaches in ethics. If a sales representative errantly quotes a higher price than the rate card, it could simply be a mistake and not an attempt to overcharge the customer or prospect. But if the error is discovered and not quickly rectified with the client, that would be considered a breach in business ethics. Companies may not be able to teaching those lessons, but can provide examples and guidelines that define the expectations.
An Ethics Guide for Employers
Chances are, most small VARs and MSPs will never be sued by a client or business partner, but they still need to take measures to protect their organization from ethical lapses. One of those steps is the creation of a clear and concise employee manual to detail worker expectations. These documents should be more than a guide for new hires, but a list of company rules and requirements for all employees. Ethics are not the rules, but come from the adherence to these statutes. When executives and other employees purposely fail to follow them, it’s a moral failure.
The employee handbook should list specific procedures for taking time off, leaving early or starting late. When rules are not clearly detailed, employees tend to interpret the policy to their benefit or claim not to have understood its intent or the need to report a violation. Ethics are an integral part of many company policies, which is why it’s critical to openly communicate the specifics as often as possible, as well as put them in writing. If employees don’t see or hear them frequently, the violations are more likely to happen.
The employee handbook also should emphasize proper treatment of clients, including fair and honest conduct in all discussions. Lying or misleading customers and prospects should be strictly prohibited, with repercussions spelled out clearly so employees understand the consequences. The same weight should be applied to pricing policies for the company’s products and services. Guidelines must be comprehensible and should stress that no employee should promise more than they can deliver. Easier said than done, but the inclusion of specific examples will help set the moral compass they need to follow.
The details of each rule in the handbook help create an ethics policy for the business, though it’s just a basic framework. It’s virtually impossible to include every situation employees may encounter, but these guiding principles will help minimize violations.
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Any effective ethics policy also forbids abusive behavior in your workplace. These activities can take many forms, from sexual harassment and bullying other workers to steal from co-workers or the company. The employee handbook must explicitly forbid these actions at work and spell out the punishments or repercussions of such actions.
In a few cases, such as illegal drug use, the work rules may apply to actions they take outside business hours. Crossing into that territory may be uncomfortable for some solution providers, which is why experts recommend consulting an experienced business law professional before designing an employee handbook. There’s another option for CompTIA members, who can quickly input their company details in an online template to construct their own Human Resources Guide. This employee handbook can be customized for any solution provider and is automatically adjusted to meet their state’s requirements. CompTIA also created a number of other personnel tools for VARs and MSP businesses, which help address areas from employee onboarding to salary administration, and each is available free of charge for members.
Solid Contracts and NDAs Lessen Ethics Concerns
In the most basic terms, ethics requires an individual or group to know the difference between right and wrong— and choosing to do what is right. While most employee dilemmas can be avoided with a solid employee handbook and communications, the management team still has to address other areas where business ethics can come in to play. Contracts and other agreements fall into this category.
For solution providers with an attorney on staff, creating legal documents is pretty straight forward, though it’s not an inexpensive proposition. Consulting a qualified business lawyer is always a good idea, helping a company ensure their specific issues are fairly and legally addressed. But for those solution providers who don’t have access to their own attorney, CompTIA has developed a number of legally-vetted document templates that can be customized to their specific needs. The resources include:
- Managed Services Agreement Template
- Services Agreement Template
- Consulting Services Template
- Non-Disclosure Agreement Template
These are just a few tools to help solution providers build a legal frame work for their business, but they don’t specifically address the ethical dilemma. No one can force a company or its employees to follow a high moral path, but solution providers can do their best to take steps to minimize their risk. CompTIA offers a number of resources to help them navigate several potential “minefields” in their business, addressing the most common issues where ethics come into play. That includes tools such as the employee handbook, HR guides and contract templates, filled with industry accepted language and best practices.
At the end of the day, it’s not necessarily what you say in court on the witness stand that determines your business ethics, but what you do to prevent being there in the first place.
Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and industry alliances director with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.
