2. Ethics in the Workplace Jim Corkill Controller Accounting Services & Controls (Rev. 8/09)

3. Today’s Goals l Awareness l Areas of Concern l Tools for Decision Making l UC Standards of Ethical Conduct l Role of the Business Officer l Resources

4. Ethics: A definition “Relating to what is good or bad, having to do with moral duty and obligation.” 1 (Moral is defined as relating to principles of right and wrong.) “Ethics is not about being better than someone else; it’s about being the best we can be.” 2 1 Webster’s New World Dictionary, 3rd College Edition 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

5. Personal Ethics vs. Business Ethics Is there a difference?

6. Business Ethics l Acting with an awareness of the need for complying with rules, such as the laws of the land, the customs and expectations of the community, the principles of morality, the policies of the organization, and such general concerns as the needs of others and fairness.

7. Consequences When the stakes are higher, doing the right thing is harder.

8. Consequences to UCSB l Public Trust –Stakeholders l Taxpayers l Donors l Funding Agencies l Parents l Students l Public Image l Loss of Funding l Perception of Department or Organization l Criminal or Civil Investigation

9. Areas of Concern l Travel l Conflict of Interest l Personal Use of Goods, Services and Staff Resources l Hiring/Staffing Practices

10. Travel l Taking the maximum daily meal allowance l Meal reimbursement even though meals were provided as part of cost of event l Purchase airline tickets from a carrier that offers free miles even though the fare might be higher than another carrier

11. Conflict of Interest l Personal gain or gain for friend/relative l Accepting gifts from vendors l Hiring friend/relative as an employee or contractor

12. Personal Use of Goods and Services l Office supply cabinets l University equipment/vehicles l Computing resources UCSB

13. Personal Use of Staff l Asking clerical assistance for external committee involvement l Asking someone to order flowers for a friend l Asking someone to make personal travel arrangements while they are making business travel arrangements

14. Hiring/Staffing Practices l Falsifying hours worked, timekeeping l Allowing a limited appointment FTE to work even though their paperwork has not been formally processed/approved l Misrepresenting work performance on performance evaluation l Not communicating work performance issues to employee

15. Making the Right Choice: How Can You Be Sure? l Listen for the bells warning you are on “thin ethical ice” –“Well, maybe just this once” –“No one will ever know” –“It sounds too good to be true” –“Everyone does it” –“Audit will never catch it” –“We have always done it this way” 1 Lockheed Martin: Code of Ethics and Business Conduct, July 1999 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

16. Making the Right Choice: How Can You Be Sure? l Ask yourself - are my actions legal? l Check to see if there are regulations or rules which restrict your choices l Will I sleep soundly tonight? l How will your decision look in the News- Press? To your family? 1 Lockheed Martin: Code of Ethics and Business Conduct, July 1999 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

17. Tools for Decision Making l What would a reasonable person do, or how would they perceive your decision? l Think of someone whose moral judgment you respect - what would that person do? l How would my family perceive my actions? l Policy Compliance l Evaluate the options, issues, and consequences l If you are uncertain, talk with someone you trust, or a campus resource, e.g. Ombuds 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

18. Tools for Responding l How do you respond to someone who asks you to do something that you think is inappropriate, unethical and/or a violation of UC Policy? –Share your concerns –Use University policy –Offer alternatives, options –Seek advice –UC Standards of Ethical Conduct

19. UC Standards of Ethical Conduct l Statement of UC’s belief in ethical, legal and professional behavior in all of our dealings inside and outside the University. l Statement of Ethical Values: –Integrity –Excellence –Accountability –Respect

20. UC Standards of Ethical Conduct –Fair Dealing –Individual Responsibility and Accountability – Respect for Others – Compliance with Applicable Laws, Regulations, University Policies, Procedures and Other Forms of Guidance –Conflicts of Interest or Commitment –Ethical Conduct of Research –Records: Confidentiality/ Privacy and Access –Internal Controls –Use of University Resources –Financial Reporting –Reporting Violations and Protection from Retaliation

21. UC Standards of Ethical Conduct l Recent events involving public review of UC compensation practices –UCSB’s “climate” for ethical conduct

22. Policy Compliance l Policies exist for a reason l Policies protect not only the University but also the employee –Examples: Hiring of outside contractors, caterers Do we follow policy only to avoid audit issues, or do we follow policy because it is the right thing to do?

23. Perception Often times, perception is just as bad as the real thing. Even if something is allowed, should you do it?

24. Real Life Situations l What are the options? l What are the issues? l What are the consequences? l What is the right thing to do?

25. Discussion Item #1 l Your chair asks you to purchase software for her personal use using the University contract. By using the contract, she will benefit from the University discount. The chair plans to pay the department back. Is this ok?

26. Discussion Item #2 l A faculty member’s award will run out in June, so she asks you to pay a student in June for time the student will work in the summer. What do you do?

27. Discussion Item #3 l A career employee is hired on September 1, and lives paycheck to paycheck. For the December holidays he wants to be with his aged father who lives on the east coast, but he is short eight hours of vacation time. What do you do?

28. Role of the Business Officer l Faculty/Staff rely on you to explain the rule/policy –Be able to say no and explain why l Ethical leadership –Be the example, not the exception –“Ethics are what you would you do, if you were sure no one would see you.” 1 l Let someone know l Be consistent 1 Larry Hubbard & Associates, “Ethical Risks - What You Don’t Know Can Hurt You”

29. Campus Resources l Department Chair l Control Point l Audit & Advisory Services l Accounting Services & Controls l Policy l Office of the Ombuds l Whistleblower Policy

30. Office of the Ombuds l Confidential, informal, independent, and neutral resource. l Provides informal and private consultation. l Helps with identifying options to effectively address a complaint, dispute, or conflict. l Safe, confidential, and impartial.

31. Questions?