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Discipline
July 01, 2009
Beyond the Law: Workplace Values Are a Bottom Line Issue

By Patricia M. Trainor, J.D.
Legal Editor

HR has a key role in making the business case for workplace values and culture. So says Stephen M. Paskoff, attorney and president of ELI in Atlanta, Georgia.

At the Society for Human Resource Management's (SHRM) 61st Annual Conference & Exposition, Paskoff argued that workplace culture, driven by a company's internal values, is at least as important as legal compliance driven by the external requirements of laws and regulations.

Attendees agreed with Paskoff that disruptive workplace behavior-- such as disrespectful, abusive, nonwelcoming, and retaliatory conduct—can lead to decreased productivity, increased turnover, low morale, distraction from the business' mission, lack of teamwork, damaged reputation of the business and lack of trust. Attendees also agreed that this is true regardless of whether the disruptive behavior is illegal. However, attendees acknowledged that companies often tolerate disruptive behavior from supervisors and other company leaders, believing that as long as legal liability is not a risk, there is no real problem for the company.

Focusing solely on the narrow issue of the legality of conduct is a costly mistake in Paskoff's view. In the current climate of economic hardship, workplace culture is critical for preventing, detecting, and correcting disruptive behavior that negatively impacts business.

Paskoff noted that almost all businesses have a mission statement and/or a statement of company values. However, those words are not always translated into behavior. Paskoff stated that it is important to connect a company's values to the bottom line. For example, if an employee is intimidated by a supervisor's bullying, he or she may not speak up regarding issues of importance to a project or the overall success of the company. While this may not lead to legal liability, it can cost a company an immeasurable amount in loss of trust and reputation.

In Paskoff's view, HR should encourage company leaders to:

  • Model values
  • Communicate and integrate values discussion on a regular basis
  • Welcome employees' concerns and thank them for their imput
  • Follow-up and reinforce the concerns raised by the employee, for example, by agreeing to take steps to alleviate the problem, and meeting at a later date to discuss the outcome.

HR should hold leaders accountable for making values more than just nice words. Leaders should be responsible for translating values into behavior so that they constitute a workplace culture embraced by all employees. How can HR accomplish this? In Paskoff's view, HR can demonstrate the harm disruptive behavior can do to a company's bottom line, and that will get the attention of company leaders.