Recent events shined a spotlight on executive conduct. Unless you are living under a rock, I am referring to the kiss cam video that was seen around the world. When I saw it, I cringed and thought of the lives being ruined personally and professionally. With an issue larger than infidelity (both of them being married to other people), they were executives at the same company.
Leaders set the tone at the top. So, when they make a visible mistake that is ethically questionable, the damage erodes trust and credibility. And for HR professionals - credibility is our currency. Personally, I don’t find joy in other people’s mistakes – I’ve made plenty of my own. But professionally, this needed to be dealt with quickly and efficiently as unethical practices can erode the company brand, incur regulatory penalties, and cause internal dysfunction.
Their actions had consequences: the Astronomer CEO resigned, the CHRO was put on leave and Pete DeJoy, interim CEO, acknowledged the “unusual and surreal” media attention the startup has received. He said he would approach the role with a “wholehearted commitment to taking care of our people and delivering for our customers,” thanking his team for its resilience.
The response a leader takes in a crisis can make (or break) the company’s reputation. With CEO and CHRO out of the company, DeJoy took hold of the interest and attention the company received by hiring (of all people) Gweneth Paltrow to be a temporary spokesperson to promote the business of Astronomer – a little known start-up until the incident.
Alternatively, the former CEO continues to dig himself into a deeper hole – failing to own his mistake and take accountability. Instead he is deflecting and blaming others (even filing a lawsuit) which further damages his credibility. (People tell you who they are – you only have to pay attention.)
Back to business… I looked up Astronomer’s Business Code of Conduct (BCC) which includes specific ethics commitments and even highlights workplace relationships. It is one thing to have these standards in place, but the importance is in top executives embodying the ethical standards they endorse. When leaders breach the company standards they promote (especially when it involves power dynamics and/or HR leadership), this can have serious organizational consequences.
Most companies have a BCC. I don’t know if employees appreciate the importance of the document – many think it is just one more policy to read and acknowledge. But each company’s code reflects the ethics, principles and standards that guide the expected behaviors of the company. They define what is considered right and wrong in business practices and help organizations act with integrity, fairness, and accountability. Business ethics cover areas such as honesty in communication, responsible use of company resources, fair treatment of employees, compliance with laws, environmental responsibility, and transparency with stakeholders.
I have developed BCC’s for small businesses and large as well as integrating disparate standards for merging businesses. This important policy is the company’s foundation, providing confidence in the company’s values and consistent behavior. The nature of the policy requires that each employee understands what is expected and meets the outlined requirements for integrity and ethical standards. They tend to be common-sense; however, it is important that a company puts their standards in writing and ask employees to read, acknowledge and confirm they will abide by the code.
Benefits of implementing and upholding a BCC include:
Additionally, companies that operate with integrity tend to foster stronger employee engagement. All of these contribute to better operational and financial outcomes. Ethical organizations are more likely to attract and retain top talent, avoid costly legal or reputational issues, and build resilient cultures that support innovation and accountability.
As stated, your Business Code of Conduct is the foundation for good ethical behavior – behavior that drives performance by aligning values with actions and reinforcing a company's strategy to operate and grow.