Integrity Management – Chapter 1 Preview

Why Is Managing Organizational Integrity Important?

Integrity is one of the most important, yet perhaps most misunderstood, concerns in the workplace today. There is conclusive evidence that the failure to manage integrity costs companies billions of dollars in fines, litigation, increased costs, and, perhaps most important of all, lost customer relationships. Companies are suing competitors over allegations of unfair pricing, deceptive advertising, trademark and copyright infringement, and monopolistic practices in order to level the field of business. Consumers are demanding greater social and environmental awareness from the organizations they patronize, support, and in which they invest. Federal, state, and local governments are responding to misconduct with increasing regulations, standards, and business accountability. The costs of unethical and fraudulent acts committed by working Americans on a daily basis currently total $400 billion annually. Examples of these acts include making unauthorized photocopies and long-distance calls, taking office supplies home, using company stamps to send personal mail, taking bogus sick days, and misappropriating cash and inventory. Yet, economic downturns, downsizing, and pressure to increase profits often put integrity on the back burner at work.

By its very nature, organizational integrity is controversial, and there is no universally accepted approach for resolving questions. However, many groups in society, including government, are encouraging organizational accountability for ethical and legal conduct. Organizations are being asked to prevent and control misconduct by implementing ethics and legal compliance programs. Integrity brings many rewards to organizations that nurture it, but managing integrity requires activity and attention on several levels—complying with the law, setting ethical standards, and being a good organizational citizen in society.

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