MENTORING TO DEVELOP ETHICAL EMPLOYEES:
According to business professor Linda Treviiio, ethical behavior in organizations depends less on formal training programs than on such management practices as ethical leadership. Perhaps most important is creating an environment in which employees believe people are treated fairly. Managers can foster such an environment by responding positively when employees raise ethical and other concerns. They can also build ethical leadership by rewarding ethical behavior in managers and by placing ethical managers in positions where they can mentor others. In recent years, mentoring has become especially critical in companies' financial divisions. Several high profile scandals involving misleading financial reports have brought greater regulation and public scrutiny,especially aimed at the chief financial officer (CFO) and his or her staff. Whereas CFOs were once valued primarily for their quantitative skills, today they need a broader range of ethical skills. In particular, they must be role models for ethical behavior, mentoring the organization's other financial experts. With these greater demands, the average length of service for a CFO is now just 30 months.
1. In general, how might a senior executive mentor junior employees in behaving ethically?
2. If you were an employee who contributed to preparing an organization's financial statements, would having a CFO who places a high priority on ethical behavior help you meet high ethical standards? Why or why not?
3. How might an HR department help to develop financial executives who are ethical leaders and mentors.