Archive for the ‘HR’ Category
Ethics, PR, and Dissing Your Customers
Filed under: consumers, culture, employees, HR, scandal, social media |
Comments (1) Here is a cautionary tale at the intersection of ethics and customer service. It’s a true story, but names and trademarks have been omitted to protect the innocent.
The story is worth relating at length, and it goes like this. A friend of mine recently emailed one of his favourite chain stores — one he patronizes regularly — to make a suggestion: would they please improve the selection of one product line at the location nearest his home?
I’m sure it’s the kind of suggestion that lots of companies get these days. After all, they’ve got websites with Contact pages featuring phone numbers and email addresses and stock photos of smiling operators waiting to take your input.
What happened next, however, is perhaps not an everyday thing. Following his friendly suggestion, my pal was accidentally cc’d on an internal email regarding his query. The gist of that employee-to-employee email was that my friend should be told to go to a different store (farther from his house, but with a broader selection of goods). There was, in addition, speculation that my friend had “too much time on his hands.”
Excuse me?
Resisting the urge to post this story on Twitter, my friend settled for sharing this story with a handful of friends on Facebook. He also forwarded the offending email the company’s CEO, and its head of Communications, and gently suggested that “if staff want to complain about customers, they probably shouldn’t CC them.”
Within just a few hours, my friend received a response. It included an apology. It also included assurance that such disrespect for customers was not consistent with the company’s customer service policy, and that the offending employee had been advised of this fact in no uncertain terms. Finally, it included a gift certificate, along with an invitation to a VIP tour of one of the chain’s stores in order to discuss its offerings with a knowledgeable member of their staff, and a promise to revisit the product offerings as per my friend’s original suggestion.
To his credit, my friend now considers the matter closed, and has asked me not to publicize the name of the company involved.
But it’s worth reflecting for a moment on just what went on here, and why. The author of the offending email was rude, to be sure — rude in a way that was supposed to be kept behind the scenes, but rude none the less. Whether such rudeness amounts to an unethical lack of respect is a question that is probably best answered in terms of frequency. We all have grumpy days; but a pattern of rudeness amounts to a display of disrespect that is inconsistent with the ethical demands of customer service. We don’t know whether the employee in question was merely having a bad day. But I’m pretty sure that the company in question came within a hair’s breadth of having a very bad day from a public relations point of view. Because, needless to say, the company involved only narrowly avoided a minor social media disaster. Had my friend decided instead just to post his experience on Twitter, the story might well have gone viral.
This reminds me of an anecdote I recently heard related by an executive at Disney, having to do with the customer-service orientation of the Disney employees responsible for picking up trash and emptying trash bins at the company’s amusement parks and resorts. The Disney executive said that, for years, those employees had been told that their job was to keep the place clean. The result: all those tourists leaving pop cans and popcorn boxes all over the place were inevitably viewed as pains in the neck, as obstacles these workers faced in trying to get the job done. The result was poor morale, and occasionally surly interactions with paying customers. At some point, someone had the bright idea of changing these employees’ mission: no longer would their mission be to “keep the place clean.” Instead, their mission would be to make customers’ experience at Disney a positive one. Sure, that would mostly consist of keeping the place clean, but that would just be a means, not an end in itself. The result, or so the story goes, was a big improvement in morale. The lesson: there’s no need to see customers as a burden if it is made clear that customers are why you’re there in the first place.
Hiring the Donor’s Daughter
Filed under: employees, HR, leadership, nepotism, NGO, philanthropy, Uncategorized |
Comments (13) Nonprofit and charitable organizations face many of the same ethical challenges that other organizations face, but they may also bump into a few special problems from time to time.
As an example, consider the following HR dilemma, which was posed to me recently.
I work for a nonprofit organization in health research, and I’ve recently been told that I will be hiring and supervising a new individual whose parents are donating her salary for one year (it’s to be a one-year, limited-term position) in addition to making a sizeable donation. The hope is that, in time, the donors will make a significantly larger gift of a million dollars or more. The arrangement presents numerous challenges to me as a manager, since everyone in the upper levels of the organization agrees that the true nature of the arrangement can’t be revealed, but many employees will realize that the situation is unusual and will have serious questions about it.
I’ve presented my concerns to those involved, but the decision-makers are rationalizing their actions (they tell me it’s “for the good of the organization”), and asking me to embrace this “opportunity.”
Clearly, the mid-level manager here is in a tough position, caught between a rock and a hard place. The manager is being told, by those higher up, that this is the way things are. But the manager also has a team to manage, and the unorthodox hiring of this new “employee” may cause trouble.
Here are what I think are the relevant considerations:
1) I don’t think the basic arrangement itself is obviously unethical. The “employee,” here, is essentially a volunteer, being bankrolled by her father. A bit lame, for her, but if she provides the organization with some value, that in itself could be a good thing, in addition to the donation that her father is making and may later make.
2) Point #1 above assumes that this person will actually do some work, rather than just be padding her CV by means of this one-year position with a reputable nonprofit organization. If she’s just going to take up space, then her presence is inevitably going to be resented and hence disruptive.
3) Then there’s the question of whether this “hire” is affecting anyone else’s job. From what I understand, no one is being fired to make room for this new person. But even if no one’s job is immediately in jeopardy, it may have implications for who gets hired over the next year, who gets overtime, whose job is expanded in interesting ways, and so on. So other employees do have reason to be concerned.
4) The fact that senior management sees a need to hide what’s really going on, here, seems to be where the ethical problem lies. That part seems highly problematic. If this is a good “hire”, why not be transparent about it?
5) At a certain level, this is as much a “wise management” question as it is an ethics question. If (as seems to be the case) the current plan is bad for morale, then wise senior managers should realize that, and think this through more carefully.
All in all, I would suggest that the situation, as it is being handled by senior managers, represens a significant lapse in leadership. Their motives in accepting the deal — hiring this woman in return for a big donation — are reasonable enough. The mere fact that her hire wouldn’t go through the usual processes isn’t itself damning, provided that the net value to the organization is positive, and as long as no one’s rights are violated. Perhaps the ends here do justify the means — after all, we’re talking about the potential for a very large donation. But the fact that senior managers feel the need to keep the deal secret is a major red flag. Wise organizational leaders should work hard to make sure that, when compromises are being made, they are at very least compromises that they are able to defend, and about which they are willing to be transparent.
Why HR Management is Always Ethically Relevant
Ethics should be thought of as the heart of your organization’s HR function. Likewise, HR is likely to be the heart of attempts to manage ethics within your organization. Let me explain why.
It’s hard to imagine a function more essential to most businesses than HR.
HR may not get the glory that Finance does, but it’s just as important. Hiring, training, evaluating, and retaining the right people are all undeniably core management challenges. Every manager knows this. The relevant difference between Finance and HR is that Finance gains prestige by bringing to bear the tools of quantitative analysis; HR issues, on the other hand, are typically harder to quantify, harder to mathematize, leading many to think of them as “mushy.” But “mushy” typically just means “I find this stuff difficult.” Managers who find HR difficult would rather hide in the numbers. Ironically, HR gets called “soft” precisely because it is so hard.
At many large companies, the HR Department is in charge of ethics — or at least that part of ethics that isn’t bundled with Compliance. The HR Department is often tasked with making sure every employee gets a copy of the company Code of Ethics, for example. HR is also typically in charge of ethics training, as well as updating the company’s Conflict of Interest policy and other ethically-salient policies.
But the fact that many companies embed their Ethics function within their HR function may actually obscure the extent to which every aspect of HR is ethically significant. The full extent to which HR is an ethical matter may not be obvious.
Ethics is fundamentally concerned with the choices we make — either as individuals or as companies — when those choices have an impact on people’s well-being or their rights. And so ethics is and must be part of all of the policies and activities for which HR is responsible, not just the ones that have the word “ethics” explicitly attached to them.
Hiring, for instance, (or setting the rules for hiring) involves balancing a range of value-laden criteria, such as skill and experience and reliability, and avoiding ethically-inappropriate criteria such as race, gender, and sexual orientation. The same goes for performance evaluation. Likewise, how overtime is handled — who is eligible, under what conditions, with whose permission — is a fundamental question of justice. This is also true of policies related to discipline, which obviously require attention to fairness, another central sub-topic within ethics.
So even if it weren’t in charge of ethics training and ethics policies, the HR function would remain ethically crucial.
Finally, HR also gains ethical significance by embodying most of the few tools available for managers to shape that elusive thing known as corporate culture. Culture — that communal set of understandings, beliefs and traditions that give a shared sense of “how we do things around here” — is widely acknowledged to be a critical element of organizational success. Indeed, there’s a well-worn saying to the effect that culture trumps strategy every time. That is, regardless of what strategic initiatives senior managers put in place, or what policies they put down on paper, those initiatives and policies are liable to fail if the culture of the workplace isn’t suited to them. Enron famously had a rather lengthy code of ethics, but the culture fostered by the company’s compensation model and its performance review process went a long way toward fostering a culture in which unethical behaviour was readily tolerated. Culture, you might say, makes up an organization’s collective ethical character.
So we see, then, that HR is actually ethically significant in two ways. It is the locus of an enormous number of central, ethically-relevant policies, practices, and decisions. And it is the mechanism through which organizational culture is built, the culture that will hopefully support rather than frustrate ethical decision making.
A shorter version of this blog entry appeared at the Cornerstone Blog
The Business Ethics Blog 