Lately, we have been hearing about one organization after another being investigated for unethical behavior. Executives from companies like Adelphi Communications, Cendant, and Tyco appear to be in the headlines on a daily basis for allegedly committing business crimes. After the Enron scandal, every business leader should have gone through their organization with a fine-toothed comb and made changes necessary to ensure they wouldn't be next. It's not too late for you to evaluate the ethics of your company's business practices. Here are some tips to get you started.

1. Hire right: use behavioral-based interviewing techniques

It's easy to be blinded by a candidate's stellar credentials. Today, more than ever, it's important for hiring managers to "get behind the resume." Using an approach like behavioral-based interviewing allows interviewers to see what makes a candidate tick.

Behavioral-based interviewing is based on the premise that behaviors are formed over time and that if employees have done something in the past, they're likely to repeat it in the future. Therefore, candidates are asked to describe how they actually handled situations in the past. Take, for example, a person who alerted management that an extra $100 was mistakenly direct-deposited into his or her account. He or she is likely to behave honestly on the job.

Companies who implement this type of interviewing program throughout their organization see a dramatic increase in the quality of their hires. Perhaps Enron would still be standing today if they had done a better job with staffing.

2. Pay attention to a candidate's attitude when hiring

If you have ever interviewed candidates for hire before, you have probably noticed that some become quite defensive when you ask them probing questions about a claimed skill, credential, or competency on their resume. More than likely, these candidates don't have the claimed skill and are trying to bully their way out of a tight spot.

Perhaps the candidate does, in fact, have the claimed credentials. You then have to ask yourself if you really want someone in your organization with that kind of attitude. Some of your employees may not be strong enough to confront an individual like this on issues surrounding ethics. Instead, they may choose to be silent or tell someone outside the company.

3. Review your personnel policies

Review your personnel policies, particularly as they relate to the hiring of family members. Employees may find it extremely difficult to blow the whistle on the unethical behavior of a relative if they sense that this action will put a family member's job in jeopardy.

Implement a written code of ethics and a business code of conduct for your company, regardless of its size. Establish core values, guidelines, and practices that the company would like the employees to follow and include this in your employee handbook. For example, be specific about the acceptance of gifts from vendors. Put a dollar amount on what employees can spend when wining and dining clients.

A formal code of ethics and business code of conduct can also be used to help recruit employees with high ethical standards to your organization. It will be obvious to candidates with similar values the position your company takes on this highly visible matter.

4. Establish a reporting system

Establish a system in your organization where employees can confidentially report unethical work behavior. Ways to do this include installing your own hotline or contracting with an outside firm to provide these services for your organization.

5. Communicate effectively and train employees

When it comes to ethics, the line in the sand appears to be continually moving. Business owners, executives, and leaders need to communicate continuously with employees about their company's governing principals and beliefs. They should also provide on-going training that includes opportunities for employees to practice responding to real-life ethical dilemmas.

Developing a workplace where ethics are second nature takes time, but taking the time is well worth your while. Businesses that can convince stockholders, customers, and employees that they are ethically grounded will have a strong competitive advantage in the marketplace.

Roberta Chinsky Matuson is the principal of Human Resource Solutions and is also a NEHRA member. She can be reached at Roberta@yourhrexperts.com or 617-566-8978.