Ethics in the Workplace

The phrase “ethics in the workplace” refers to standards of right and wrong conduct that must be followed by people in their place of employment. The standards of right and wrong conduct can vary between different industries and individual businesses.

Often, ethical issues in employment law involve rules that are specific to certain professions or industries. Some professions impose ethical standards on their practitioners as a condition of holding a license, e.g. lawyers, doctors, dentists and others who hold licenses in order to practice their profession. Even if there are no specific rules of ethical conduct, workers are typically expected to conduct themselves in a manner that is fair and considers the interests of their employer, co-workers, and clients or customers.

Federal and state regulations can set ethical standards of conduct in certain professions or industries or for government employees. A person who works in those professions or industries or for a government agency should be aware of what those standards are.

However, many employers write down the values, practices, and procedures expected of their employees in a company operating manual or policies and procedures handbook. Some employers take their ethical standards a step further and require seminars or exams on company ethics and professional liability. This communicates the need for employees to know and respect standards and liability risks.

This is especially true of certain professionals such as doctors, accountants, lawyers, and other comparable professionals. Failure to abide by company and professional ethics can have serious consequences, including pay penalties, demotion, discharge, or possibly even legal liability for the damaging consequences of wrongdoing.

What Are Some Examples of Ethical Violations in the Workplace?

Ethical standards vary across different industries, but some typical examples of workplace ethics violation include:

• Discrimination or harassment based on ethnicity, gender, age, disability, color, or national origin: Today the vast majority of workplaces expect their employees to treat all of their colleagues, customers and clients respectfully, fairly and without bias;
• Disclosing confidential information: If a person has access to personal information of a confidential nature in the course of their employment, they are expected to keep it confidential. An employer is likely to have policies that allow for consequences for breach of confidentiality;
• Using fraud or misrepresentation in dealings with a client or co-worker: Fraud or intentional misrepresentation can be charged as a crime under some circumstances in the business environment. It can also lead to civil liability, so engaging in fraud or intentional misrepresentation is definitely ill-advised;
• Violating terms of an employee or client contract: if an employee has a contract with their employer, they should respect its terms. Failure to do so could make an employee liable for breach of contract or lead to termination of their employment. Violating a contract with a client or customer could make the employer liable for breach of contract or other negative legal consequences. Rules of ethics indicate that an employee should respect contracts;
• Breach of fiduciary duties: A person may have a fiduciary duty with respect to a client or an employer. A fiduciary duty is a duty of loyalty and reasonable care of assets that are in the custody and control of the fiduciary. A fiduciary is legally obligated to take actions for the advantage of the beneficiary and not themselves;
• Violating industry-specific standards: Some industries have specific laws and regulations with which practitioners must comply. For example, members of the clergy, e.g. ministers and rabbis, must keep the confidences of those they serve. Certain corporate officers and employees are restricted in their trading of their corporation’s stock. Many industries and professions have special rules and regulations. Knowing these rules and respecting them in practice is part of a professional’s role;
• Commingling client assets: Some professionals come into possession of the assets of their clients in the course of doing business, e.g. lawyers, accountants, financial consultants. Of course, they are prohibited from mixing their own assets with those of their clients;
• Disclosing trade secrets: Companies prohibit employees from disclosing their trade secrets, the knowledge that forms the basis for the company’s business and from which it profits. Often, employees are required to sign contracts in which they agree not to disclose these secrets, both during their employment and after their employment ends. The non-disclosure agreement may specify penalties for the employee if they should disclose the company’s trade secrets;
• Using company resources for personal gain: When a person is at work, they are expected to use their time, expertise and the resources made available to them to work for the best interests of their employer. It is considered unethical to use the resources of their employer organization for their own personal profit or benefit.

Are There Any Legal Consequences of Workplace Ethical Violations?

Depending on the type of issue involved, the consequences of employment law and ethics violations can include such negative outcomes as:

• Probation or Termination: An employee who violates ethical rules and regulations can expect their employer to respond by putting them on probation or even terminating their employment;
• Loss or Suspension of Professional Credentials: The license to practice of certain professionals depends on their compliance with certain ethical standards. Their license can be suspended in the event that they commit ethical violations. Lawyers and doctors, for example, can have their licenses suspended for a period of time. Or, if their violation is especially serious, they can lose their license. Professionals of this type need to pay special attention to their compliance with the ethical standards of their profession;
• Civil Liability for Damages: Another possible consequence of certain ethical violations can be civil liability. The is true, if the violation has caused financial losses to another person or company;
• State or Federal Criminal Charges: In the worst case scenario, violations of ethical rules and standards can also be crimes and the violations can result in criminal charges being brought. For example, if a financial advisor uses the money of a client to which they have access to pay personal expenses, it may constitute the crime of embezzlement. The advisor can be charged and prosecuted for this crime with the possibility of serving time in jail upon conviction.

Every professional, from a financial adviser to a real estate broker, should make it their business to know what their ethical responsibilities are and to respect the rules of their profession.

Do I Need a Lawyer for Help with Workplace Ethics Violations?

Workplace violations or even hostile work environments can sometimes involve very serious issues. You may wish to hire an experienced workplace lawyer, if you need help understanding the ethical standards in your industry. Or if you work in an environment in which others are engaged in unethical conduct and you are unsure of how to proceed, a skilled employment attorney can review the facts with you and advise you how to proceed.

If you have been charged with violation of the ethical standards of your business or profession, an experienced workplace lawyer can help you understand what the implications could be. They can represent you in negotiations and court proceedings necessitated by the situation.