1. February 25, 2004Barbacane Thornton1 10 Steps You Can Take Now To Make Ethics Come Alive in Your Organization Kate Nelson, Ethics Alliance

2. February 25, 2004Barbacane Thornton2 Step #1 – Articulate a Vision  Everyone needs to sing from the same hymnal: Shared vision Shared mission Shared values

3. February 25, 2004Barbacane Thornton3 Step #2 – Articulate Policy  Keep it short  Make it clear  Give examples  Prioritize when possible  Communicate it  Train employees

4. February 25, 2004Barbacane Thornton4 Step #3 – Know Who “You” Are  Do background checks  Check references  Ask the right questions during interviews (best predictor of future performance is past performance)

5. February 25, 2004Barbacane Thornton5 Step #4 – Identify Your Risks  Where is there most likely to be a problem?  What is measured in your organization?  How are people rewarded?  Ask your people: “What keeps you up at night? or “What could hit the fan here that would really embarrass us?”

6. February 25, 2004Barbacane Thornton6 Step #5 – Analyze Your Rewards  For what are people paid?  What incentives exist?  How are people rewarded for doing the right thing?  How are people punished for doing the wrong thing?  Are people held accountable for living values or only for results?  Who is getting promoted?

7. February 25, 2004Barbacane Thornton7 Step #6 – Create a Process for Raising Issues  Place to get advice  Protection for the messenger  Training for managers in what their role is in this process  Clear blueprint for raising issues beyond the manager level

8. February 25, 2004Barbacane Thornton8 Step #7 – Use Moral Language  Are we doing the right thing?  Is this fair?  Could anyone be harmed by this?

9. February 25, 2004Barbacane Thornton9 Step #8 – Understand Employee Needs Good SoldiersKnows rules Good ethical compass Encouragement Loose CannonsGood ethical compass Don’t know rules Training Grenades No ethical compass Rules don’t matter Personal agenda Senior management example Swift discipline

10. February 25, 2004Barbacane Thornton10 Step #9 – Involve Executives  Needs to come from the top  Walk talk  Understand ethical leadership

11. February 25, 2004Barbacane Thornton11 Two Pillars of Ethical Leadership (Moral Person and Moral Manager by L. Trevino, California Management Review, Summer 2000) Moral Person  Traits Integrity Honesty Trustworthiness  Behaviors Do the right thing Concern for people Being open Personal Morality  Decision-Making Hold to values Objective & fair Concern for society Follow ethical decision rules Moral Manager  Role modeling through visible action  Rewards and discipline  Communicating about ethics and values

12. February 25, 2004Barbacane Thornton12 Executive Reputation and Ethical Leadership (Moral Person and Moral Manager by L. Trevino, California Management Review, Summer 2000) Hypocritical leader Ethical leader Unethical leader Ethically neutral leader Strong Weak Moral Manager Weak Strong Moral Person

13. February 25, 2004Barbacane Thornton13 Step #10 – Communicate and Train  Communicate vision and values  Communicate all elements of ethics program  Hold managers and employees accountable  Create interactive training around known risks  Train regularly

14. February 25, 2004Barbacane Thornton14 Know Thy Customer One of your long-time volunteers (and contributors) is a wealthy man in his 60s who annually manages the cash collection “tent” at your largest annual fund raiser (netting over $250,000 annually) You’re very familiar with his behavior, and over several months you detect a marked change. He’s unable to concentrate, uses inappropriate words, and is increasingly forgetful. He asks you to ensure that all credit card machines and cash box are placed in his custody for the event. You express concern and say that you think the event is becoming increasingly too large for him to take on so much responsibility. He vehemently disagrees and insists that you leave him in charge. You: A) ‘give him control of the funds. He contributes large funds. B) fax a letter to him and be frank about your concerns. C) tell him you can’t give him control without Board approval D) contact his family and explain your concerns.

15. February 25, 2004Barbacane Thornton15 Know Thy Customer Scores A) -10 B) 30 C) 10 D) 20

16. February 25, 2004Barbacane Thornton16 Diversity For over five years, Bruce has managed the family foundation of Sam Stewart, an irascible but shrewd client who has been a source of significant revenue for your organization. Bruce is moving to another job, and you’ve named Julia as his replacement. Julia has worked closely with Bruce and his clients, which is why Sam’s call comes as a surprise. “Don’t get me wrong,” Sam says. “I like Julia. But I’m not going to have some little girl managing my account. Replace her or I’m leaving.” You: A) remove Julia from Sam’s account. B) say she is best qualified to manage his account and if he can’t deal with her, your organization is probably not the best resource for him. C) ask Julia to voluntarily resign from the account. D) replace Julia with a male colleague, but ask her to manage things from behind the scenes.

17. February 25, 2004Barbacane Thornton17 Diversity Scores A) -30 B) 30 C) -20 D) -10

18. February 25, 2004Barbacane Thornton18 Journalism Ethics As a reporter for the only newspaper in Smalltown, PA, you’ve heard rumors that Red Company is about to have a huge layoff because of the recession in the women’s apparel business. When you interview the company president, she confirms the rumors, but asks you to keep the story out of the paper for a week. She’s meeting with buyers in NYC next week, and their orders would dry up if they knew the extent of Red’s financial woes. The future of the entire company is in jeopardy. You: A) ask for an exclusive in return for holding the story. B) print the story the next day as planned. C) hold the story as she asked. D) speculate on the layoff without exact numbers; hold the details until the NYC meetings are over.

19. February 25, 2004Barbacane Thornton19 Journalism Ethics Scores A) -30 B) 30 C) -10 D) -30

20. February 25, 2004Barbacane Thornton20 How to Fraud-Proof Your Organization Jeff Fry, Ethics Alliance

21. February 25, 2004Barbacane Thornton21 Fraud Defined “Deliberate deception in order to secure an unfair or unlawful gain.” In other words: “To gain something of value by false pretenses.” “To cheat.”

22. February 25, 2004Barbacane Thornton22 Where is Fraud Risk Highest?  Where goods are exchanged Goods can be money, products, services, influence High risk areas: purchasing, sales  Where there are close relationships If nothing else, could be the appearance of a conflict  When people are being hired – credential fraud Employees Vendors

23. February 25, 2004Barbacane Thornton23 Preventing Fraud  Establish clear controls with effective checks and balances  Train employees around their responsibilities  Make sure your issue-raising process is robust  Check credentials carefully (on front end)  Articulate a clear conflict of interest policy and live it  Go beyond an audit – periodically analyze: “How did we make this decision?”