Increasingly, companies have ethics and compliance policies that get reviewed and signed annually by employees. And yet, the recent Wells Fargo case (in which employees created multiple fraudulent accounts) is a reminder that despite these policies, there are other factors that may cause even good employees to go astray. One very strong factor is the excessive pressure by management to reach unrealistic performance targets. And once employees fear loss of the job, status, or incentives, they may resort to unethical practices to achieve those targets. Ultimately, leaders should infuse discussions with ethical considerations when setting targets, and reinforcing ethical choices as ‘the norm’ of the firm.
Source: Havard Business Review