Ethics: The Credit Union as Corporate Citizen

CUNA HR/TD Council
November 20, 2010 | COMMENTS

As cooperatives, credit unions have a special mandate to conduct their affairs in an ethical and moral way. At a time when scandal has rocked the boardrooms and executive suites of corporations, members of the general public, legislators, and opinion leaders have become skeptical of the behavior of corporate entities. It is now more important than ever to communicate the credit union difference to credit union employees, credit union members, and the community.

In its role as an employer, the credit union is expected to live up to certain ethical standards in the treatment of its employees-beginning with the recruiting process and through hiring, orientation, training, managing, and on to possible disciplinary action. When supervisors break the rules or ask subordinates to do so, they undermine the ethical foundation of the organization.

The role of top management, including the board of directors and executives, is critical to successful implementation of organizational ethics. To achieve positive results, the CEO and those in influential positions must openly and strongly commit to ethical conduct and provide leadership. The process starts with weighing the attitudes and backgrounds of prospective employees, pervades training programs, and involves the serious and continuous attention of managers at all levels and employees of every department.

Just as the credit union has an ethical responsibility to its employees, each employee has an equally important responsibility to act in an ethical and moral manner on the job. If people make decisions based only on their personal needs and don't see those needs linked to the welfare of the team, the work environment becomes chaotic, a battleground of competing self-interests. Selfish decision-making is not appropriate among professional colleagues in a workplace setting.

A particular concern of credit unions and their employees is the need for honesty in all activities undertaken by the staff. Because many credit union employees have access to member funds, it becomes critically important that the credit union adopt standards of behavior to avoid situations that could invite internal dishonesty, and that each employee maintains the highest standards of honesty.

Credit unions also have an ethical responsibility to their members and their communities. As cooperatives, credit unions set the ethical bar at a high level. They are responsible to all members on an equal basis. Members have the opportunity to select directors to represent them at the highest levels of policy and governance. Members themselves even may be elected to the board of directors.

Executive summary from the CUNA HR/TD Council white paper, "Ethics: The Credit Union as Corporate Citizen."

Read this white paper and others at www.cunahrcouncil.org/research.html