Issue of the Month

September 2001, An Ounce of Prevention is Worth a Pound of Cure

Do You Have a Code of Corporate Conduct, Document Employee Receipt of Policies and Training, and Foster Team Building?

Additional Techniques for Preventing and Resolving Conflicts

Building upon the topics discussed in the prior two issues of the month, this issue presents concepts addressing policy, documentation and team building as additional techniques for preventing and resolving employment-related conflicts. These three elements are important because informed employees make good decisions, solid documentation supports the company's position in a dispute and motivated employees, who have a common focus, result in an improved work environment with fewer problems.

Code of Corporate Conduct

A Code of Corporate Conduct is a compilation of policy statements and guidelines that govern a company's business transactions and operations. It outlines the parameters for employees to make sound business decisions and reduces a company's exposure to legal risk. Policies and standards generally included in a Code of Corporate Conduct are:

1. Statement of Operating Principles

• A succinct summary of the company's principles for conducting business relationships.
  

2. Compliance with Ethical Standards and Laws

• Guidelines for documenting financial transactions and reports; adherence to ethical behavior related to the acceptance of bribes or kickbacks; principles for accepting entertainment and gifts from vendors and providing gifts to business contacts; legitimate use of the Internet and e-mail system for business purposes; and the use of non-public information about the company that could result in financial gain to the employee, their family members or others.
  

3. Conflicts of Interest

• Parameters governing the personal interests and financial activities of employees that may give the appearance of, or result in, a conflict of interest with the employee's responsibility to the company. Examples include: ownership in a competitor or supplier; employment with a competitor, supplier or subcontractor; acceptance of gifts or favors that have more than a nominal value from a competitor, supplier or subcontractor; and the misuse of company information on pricing, marketing, operations, business ventures or other trade secrets that are proprietary to the company.
  

4. Policy of Non-Discrimination in the Workplace

• Policy statements regarding the company's compliance with all laws regarding non-discrimination and providing equal opportunity in the workplace. Specifically, the policies should address: decision-making procedures involving hiring, promotions, demotions, pay, and termination; the company's commitment to ensuring a workplace free from sexual and other types of harassment; types of behavior considered offensive; and the procedures for reporting misconduct.
  

5. Health and Safety Policy

• Statement that the company is committed to providing a safe and hazard-free workplace, guidelines for complying with the policy and reporting requirements of governing agencies, and procedures for addressing deliberate violations of the policy.
  
  

6. Corporate and Community Citizenship

• Statement regarding the company's support of its community.
  

Signed Receipts

Written policies, handbooks and training sessions provide the framework for informing employees of company standards and procedures; however, additional documentation is needed when disputes arise. Often, when there is a problem, an employee will claim that they "didn't know" or "weren't aware" of the company's policy against certain behavior (accepting gifts from vendors) or the procedure for addressing a grievance (a claim of sexual harassment). A simple method for ensuring that all employees are aware of and are responsible for adhering to company policies and procedures is to include a form for employees to sign acknowledging that they have received and read the document or received specific training. This signed form is invaluable in defending future claims in which the employee asserts that they were not aware of company policies or procedures. Obtaining signed receipts from employees should be part of your standard operating procedure during orientation and training, and any time that a new or revised policy document is distributed. The original signed receipt should be kept in the employee's personnel file and a copy provided to the employee. Below are sample receipts.

Team Building

Work with others rather than against them. Dr. Allan Fromme

Employees who work together as partners on a team, with a common goal or focus, understand the big picture of the company and their responsibility to helping the company succeed. Team-oriented companies have positive relationships with their employees which, in turn, result in fewer work-related problems. To reap these benefits, however, employers need to do more than just pay lip service to the concept of "team." Outlined below are ways to build and support an effective team environment.

Attributes of Motivated Teams

I. Purpose: Successful and rewarding teams have a clear focus or mission.

II. Challenge: Teams need challenge to stay motivated. Provide challenging but attainable goals.

III. Camaraderie: Successful teams address both technical needs and human needs. Team members truly like each other and work hard to develop and maintain their relationships. Remember, attitudes have the power to lift up or tear down a team.

IV. Responsibility: Share with your employees the company's mission statement and goals. Involve them in the company's customer-service philosophy and strategy so that they can make the right decisions. Teams that have both responsibility and authority tend to maintain motivation over longer periods of time.

V. Growth: When people feel they are accomplishing goals, learning new skills, and developing their intellect, motivation remains high.

VI. Leadership: The best leaders create the conditions for the team to motivate itself. But great leaders also understand the importance of team purpose, challenge, camaraderie, responsibility, and growth, and focus much of their time on creating the conditions for these to exist.

Without question, communicating the vision and the atmosphere around the vision, has been, and is continuing to be, by far, the toughest job we face. Jack Welch, retired CEO of General Electric.

What does a partnership with your associates mean to you? The power of team is based on the understanding of the partnership. Partners depends on trust, which is defined as having faith in the person, seeing the person as a problem-solver and solving problems successfully together. There is a two-way street between supervisors and subordinates. What do you do to make your employees look good and how do they make you look good? Partners care about others and try to understand others' limitations and help them become more productive. All this is done without resentment -- this is what a team member is -- what a partner is.

The legendary Sam Walton, founder of Wal-Mart, embodied the team concept in all aspects of his company, from referring to employees as associates to the management structure and performance of daily operations. He empowered his associates with information that, in turn, allowed them to make decisions and have responsibility for the success of their company. His principles are outlined below:

Sam Walton's 10 Rules for Building a Business:

1. Commit to your business.

2. Share with your associates and treat them as partners.

3. Motivate your partners, set challenges and goals.

4. Communicate with your partners and empower them.

5. Appreciate your associates, give them recognition and praise.

6. Celebrate your successes.

7. Listen to your associates.

8. Exceed your customer's expectations.

9. Control expenses better than your competitors.

10. Swim upstream, find your niche.

Review: What Every Employer Should Do

Before disputes arise, employers should review their internal policies and procedures and assess their company's work environment to determine whether additional preventive measures need to be implemented. Drafting policies and conducting training are the first steps; then follow through by obtaining signed receipts from all employees. Next, assess your work environment. Are your employees a team in name only? Do they understand the mission of the company? Are they motivated to work together to achieve common goals? Do they have the information and the tools they need to succeed? Formal policies, documentation and motivated employees are three components you can use to minimize the potential for work-related problems.

For more information, please call (414) 423-1330 or e-mail educational services.