Key features of an effective ethics training program

In any organization, a good business ethics process is the first and most important line of defense against unethical or illegal activities. Stated simply, controls and auditing efforts are much less effective when the ethics and integrity of the organization and its employees cannot be affirmed. Perhaps the most important component of an effective business ethics process is a training and awareness program that enhances managers' and employees' sensitivity to their ethical roles within the organization. Training also helps improve their decision-making capabilities in the presence of ethical dilemmas as well as establish goal congruence between employees and the organization.

Unfortunately, research conducted by the Council of Ethical Organizations indicates that employees are skeptical of training programs in general and, specifically, of ethics and compliance training programs. A key reason for their skepticism is that individuals assume the message of such training is not in their own interests. Despite this barrier, the good news is that employee skepticism can be overcome when the manner of the program delivery evidences commitment to the program.

So what makes an ethics training program successful? Common features of an effective ethics and awareness training program-based on benchmarks from 41 world-class, U.S.-based multinational corporations by the KPMG Business Ethics Institute in conjunction with the Center for the Study of Ethics and Behavior in Accounting at Binghamton University-are summarized below.

In short, results show that the most effective programs provide employees and managers with a good understanding of the integral role ethics plays within the organization as well as in their long-term professional career. Further, ethics courses that successfully demonstrate senior management's sincere commitment to best ethical practices, rather than having a strict focus on legal compliance or a rule orientation, tend to be most effective.

Key Features of Successful Training

By virtue of different industry concentration, competitive pressures and business risks, ethics training initiatives among the 41 participating companies differed in many important ways, including the scope of their programs and the nature of their core curriculum. Despite these differences, the following 12 common features were found in the majority of organizations and especially those that have "exemplar" company-wide ethics programs for managers and employees.

Live instruction. The most effective training efforts involve traditional classroom delivery with a live instructor....