Use a credit union ethics program to build business value and customer trust

A version of this article will be published in the March 2021 edition of ACUIA, The Audit Report.

Implementing a comprehensive business ethics programs could help your credit union articulate its values and customer commitments and operate with increased efficiency, effectiveness, safety, and transparency.

Here, get answers to key questions about business ethics programs and learn how they’re most effective for credit unions.

Why is an ethics program valuable to a credit union?

Financial institutions are at the forefront of discussions around business ethics. As stewards of the public’s money, they’re often viewed critically — and errors in judgment quickly become newsworthy stories.

A business ethics program can help reduce mistakes and incongruences within a credit union’s operations. It’s a referenceable tool that defines an organization’s values and approach including:

• Culture and identity
• Business expectations and acceptable behavior
• Processes for analyzing ethical dilemmas

Decision-making frameworks

Given the subjective nature of ethical dilemmas, an ethics program might not encompass all situations. It could be necessary to include a decision-making framework based on your organization’s core principles in the program.

A decision-making framework provides referable insight grounded in the credit union’s mission and values. This framework allows a credit union to implement a plan that is less reliant on individuals and comparative cases, while providing greater flexibility when management is addressing an issue with which they may not have experience.

Key steps a decision-making framework might include are:

• Identifying the ethical dilemma
• Gathering facts
• Considering alternatives
• Weighing possibilities against the credit union’s mission and values