A company's reputation can be forever tarnished by the actions of just one employee. A breach in corporate ethics can cause clients and ethical employees to take off, while regulators start heading in. It has become important to not assume that employees have a strong moral code.

In fact, he Junior Achievement/Deloitte Teen Ethics survey recently revealed that young people are cheating in school at an alarming rate. Thirty-eight percent of those surveyed felt they must steal, cheat or plagiarize in order to succeed in school. As these young people become our workforce, there is a concern that such behavior will carry over, especially given the heightened stakes and potential rewards.

What can be done to ensure your employees will take ethical actions on behalf of your company? Research reveals that when faced with a moral dilemma, employees look to their peers for direction. As such, you want to make sure that your organization is comprised of people who truly grasp the rules and understand the immediate consequences for not following them.

On a more general level, employers must allow their employees flexibility and sufficient time off to spend on their personal pursuits, including spending time with family and friends. An employee who is not disgruntled is less likely to make an unethical indiscretion.

Also, employees should be treated fairly and rewarded for a job well done. When employees feel like their organization is exploiting them or do not appreciate their efforts, they will look to acquire power in any way that they can.  

Remember, the people at the top of the corporation set the ethical tone. Those in upper-level positions must always carry themselves as examples of the strong ethics they want to see in their employees. Also, employers need to send a powerful message to their employees. For example, if you cheat, you are fired. If you do not follow orders, you will immediately be punished by clear and established penalties. Make sure to take ethical issues seriously and follow up with those who report problems so they know that ethics are a top priority.

If you make corporate ethics a top priority, you can maintain the reputation of your organization and hopefully contribute a revival of ethics in corporate America. 

Source: Forbes.com "How a New Generation's Ethics Got Zapped" 8/16/10