Ethical Issues in Consulting
“Organizational performance is improved when we are able to institutionalize new behaviors that lead to long-term results in ways that are effective, efficient, and ethical” (Hale, 2007, p. 103). Although it is fairly common to hear of CEOs and other high-ranking officials committing ethical infractions in the name of business and profitability, rarely is a consultant in the news for ethical infractions. However, there are a multitude of ethical considerations for consultants. According to the Institute for Ethical Consulting, consultants must be held to the highest standards of ethical behavior due to the sensitive nature of the work and exposure to privileged as well as commercially sensitive information (Green, 2009). The reputation of the individual as well as the entire consulting industry is damaged whenever a consultant makes statements or promises that deliberately mislead clients, or whenever a consultant does not operate with integrity. Providing services and deliverables with integrity and to professional standards is critical to success in this industry (Green, 2009).
Ethical considerations begin with the establishment of the client-consultant relationship. Gallos (2006) espouses the importance of laying ground rules with every client, establishing written agreements and getting to know clients prior to signing agreements so that the consultant can be confident of an honest, open relationship. From the first phone call, the consultant should be gauging whether the client is someone the consultant can do business with, from a professional and an ethical standpoint. If, during the initial meeting, the consultant cannot find something to like, respect, or admire about the client, that is a clear indicator that the client-consultant relationship would not be a healthy one. Consultants can become compromised when entering into relationships with clients who do not conduct business with integrity, so consultants must do their homework and be clear up front about what will be done and how business will be conducted. In case something undesirable is discovered after entering a consulting agreement, one of the early terms of the agreement should be that either party can terminate the relationship with 24 hours’ notice, following a face-to-face meeting (Gallos, 2006).
Another ethics-related component of consulting is that several industries have very specific ethical considerations that consultants working in those industries need to become familiar with. If an organizational consultant is working within the healthcare industry, for example, issues of informed consent and confidentiality may be much more relevant than in other industries. It is the consultant’s responsibility to learn about the industry and the special ethical standards that may be applicable before accepting a client in that industry. Additionally, organizational politics play a greater role in some industries than in others, and according to Clarke (2011), organizational politics impact ethical assertiveness. As the consultant works with the client and employees of the client organization, this must be kept in mind to ensure ethical considerations are never overlooked.
Consultants are most often brought in to initiate, assist with, or evaluate the need for organizational change initiatives. When organizational changes are implemented, the consultant must have considered the ethical implications of those changes and the impact on the employees of the organization, as well as the customers of that organization. This does not mean change should not occur if there are ethical implications; this simply means that the method of enacting that change requires care to ensure change is made with integrity and is perceived to be ethical. For example, if an organization needs to downsize or simply remove certain employees due to productivity, effectiveness, or other issues, consideration should be given to treating those employees fairly. Likewise, even if an organization needs to cut costs via reduction of benefits and so forth, making those changes with fairness in mind, as well as open communication, should be top considerations.
According to Hale (2007), when employees are involved in the development and implementation of a change process, they are more likely to have a sense of ownership and fairness of the change. Likewise, the more informed employees are of the rationale and justification for change, the easier such change is to accommodate, even when such change could be perceived as negative. Along these lines, carefully crafted communications—those that tell the “story” of change—can be instrumental in ensuring acceptance (Rhodes, Pullen, & Clegg, 2010). Employees at all levels talk about change, so it is important not only that the circulated information is accurate but also that the message is in the best interests of the organization and those served by that organization. Often, the way this communication is constructed can have a major impact on whether change is considered ethical. Consultants can play a major role in making sure organizational change is made with integrity and is perceived as ethical.
References
Clarke, M. (2011). Organizational democracy, ethics and leadership: The mediating role of organizational politics. Leadership, 7(4), 415–433.
Gallos, J. V. (2006). Organization development. San Francisco, CA: Jossey-Bass.
Green, I. (2009). Code of ethics. Institute for Ethical Consulting. Retrieved from http://www.ifec.biz/ethics.html
Hale, J. (2007). The performance consultant’s fieldbook: Tools and techniques for improving organizations and people (2nd ed.). San Francisco, CA: Pfeiffer.
Rhodes, C., Pullen, A., & Clegg, S. R. (2010). “If I should fall from grace . . .”: Stories of change and organizational ethics. Journal of Business Ethics
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