Fall 2015 Issue of Horizons

LIFE SCIENCES & TECHNOLOGY

Ethics Are An Asset by Jason Mannello, CFA, CLP

W hen you hear the term intangible asset, what comes to mind? For many, intellectual property such as patents, trademarks and trade secrets might come to mind. Expanding beyond intellectual property, some may consider goodwill or reputation as intangible assets. But should an organization’s culture be considered an intangible asset? An organization’s culture can be a determining force within the organization. It can inspire, motivate and drive collaboration, innovation and ultimately high performance. It can also have the opposite effects and introduce unwanted risks into an organization.

Ethics are a critical component of an organization’s culture and should receive focus in establishing an organization’s culture and operating practices. Ethics can be loosely defined as a set of principles that guide an individual’s or an organization’s behavior. An ethical culture is an organizational culture that promotes integrity and “doing the right thing.” According to the Ethics Resource Center (ERC), “In a ‘strong’ ethical culture, ethical values matter and that is apparent in the actions of employees (especially management), company policy and procedures, and decisions about who gets rewarded, who gets punished, and how to weather tough times.

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