Research indicates that unethical conduct is far too common. “No organization is free from ethics and compliance challenges,” according to Patricia Harned, CEO, Ethics and Compliance Initiative (ECI). Unethical conduct covers a wide range of behaviors by employees and companies, including conflicts of interest, lying to customers and prospects—plus corruption, including bribery and accepting inappropriate gifts.

According to the National Business Ethics Survey of the U.S. Workforce, 60% of workplace ethical misconduct involves management authority. That means that those responsible for setting an ethical example often are more likely to demonstrate poor judgment. The survey clearly concludes that ...