Typically when the topic of business ethics comes up, it is in reference to fraudulent practices by big companies trying to get ahead in new markets by bribing inspectors, falsifying work permits, buying billions of dollars in bad debts (then needing American taxpayers to bail them out), and driving smaller businesses into bankruptcy just to gain control of the market so consumer prices can skyrocket. We are used to sensationalism when it comes to business ethics.
More subtly though, ethical issues also plague the executive recruiting process – not in the sense that the little guy gets it in the end, but more that seemingly harmless practices put personal interests ahead of corporate interests. The main points of business ethics can be summed up in that statement. Business ethics often focus on the set of codes, standards and values which govern corporate actions. These actions are designed not only to promote productivity and profitability, but also to uphold public trust and maintain the integrity of the company’s brand.
Let’s explore three important areas of recruiting where ethics can easily lapse, but are sorely needed.
Point of Interest #1: The Job Description
When it comes to business ethics, hiring managers and executive job seekers alike have to be careful not to cross the lightly drawn line that separates ethical from unethical dealings. It begins with the job description. Hollywood has done more than its fair share of movies on cut-throat business people who hire unsuspecting middle managers and young executives to take the fall for illegal activities about which the new guy is unaware.
The problem is one of omission – not telling the new hire the job he or she was really hired to do. While that’s a Hollywood dramatization, it is often the case. Executives and managers are hired into a position wherein the job description is either incomplete or inaccurate. This problem makes it difficult for job seekers and recruiters to really determine if the new hire is a good fit for the company and ultimately hinders the success of the newly hired executive. 
Executive candidates should be provided an accurate, detailed explanation of the position requirements and the expected results to be delivered at the end of a specified period, whether that’s one quarter, one year, or five years.
Point of Interest #2: Personal Interest vs. Company Interest
Another source of unethical practices in executive recruiting is how the hiring manager conducts the hiring of executive candidates favored by the recruiter. When the hiring decision is based on personal preference instead of what is best for the company, some safeguards can slip through the cracks. This includes conducting thorough interviews and checking employee references. Interviews are designed to uncover the personal nuances of a candidate’s work history and professional style. The failure to conduct an explorative interview can result in a candidate being placed in a position for which he or she is ill-suited. Likewise, employee references can provide hiring managers first-hand accounts of the candidate’s abilities, habits and credentials directly from the mouths of the candidate’s current and former employers and colleagues.
Point of Interest #3: Selecting Non-Competitive Employees
Hiring managers are naturally inclined to find the best candidate for the position. However, if that candidate has the potential to supplant the hiring manager in the months and years to come, the temptation to skip over recruiting an executive candidate who may be trained to possibly replace the hiring manager is understandable… but unethical.
Warren Buffett is credited with saying, “It takes 20 years to build a reputation and 5 minutes to ruin it.” Unethical practices in executive recruiting may be a more subtle breach but the impact on the company’s overall productivity and on an executive candidate’s overall success in a position are directly affected.