1. How to Increase the Odds of You and Your Organization Avoiding an Ethical Crises Kevin C. Duggan West Coast Regional Director ICMA

2. –ICMA Staff on the West Coast –CA/Oregon/Nevada/Washington/Alaska /Hawaii and Arizona –State Associations/Senior Advisors/Range Riders/Members

7. Goal of This Presentation: Increasing the Odds That You and Your Organization Will Avoid An Ethical Crises

8. Definition: Ethics Ethics: “In Accordance With the Accepted Principles of Right and Wrong Governing a Groups Conduct” Ethics: “In Accordance With the Accepted Principles of Right and Wrong Governing a Groups Conduct”

9. Definition: Integrity Integrity: “Rigid Adherence to a Code of Behavior” Integrity: “Rigid Adherence to a Code of Behavior”

10. Common Themes Honesty Honesty Transparent Transparent Fair/Equitable Fair/Equitable Consistent Consistent

11. What’s The Connection Between Ethics/Integrity and Leadership?

12. How Unusual Are Instances of Personal and Professional Misconduct? “Unethical” “Unethical” “Corruption” “Corruption”

21. WHY? Ego? Ego? Power? Power? Greed? Greed? Avoidance of “Pain”? Avoidance of “Pain”? Compulsion? Compulsion? Embarrassment? Embarrassment? Basic Lack of A Moral Compass? Basic Lack of A Moral Compass? “The End Justifies the Means”? “The End Justifies the Means”?

22. The Greatest Threat to You Personally and to Your Organization: Complacency The Greatest Threat to You Personally and to Your Organization: Complacency

23. 15 Thoughts…..

24. 1) “Prevention First”: Never take ethics and integrity for granted Never take ethics and integrity for granted Talk about it Talk about it Train Train Don’t assume it will just happen Don’t assume it will just happen Make it part of the organization’s culture and value system Make it part of the organization’s culture and value system

25. 2) It will be Very Difficult to Have an Ethical Organization without Ethical Employees: “Hire for Ethics” “Hire for Ethics” Have it as a criteria Have it as a criteria Talk about it as part of the selection process Talk about it as part of the selection process Thorough background checks Thorough background checks

26. 3) “Just Because it is Legal Doesn’t Mean it is Ethical”: Don’t confuse “Legal” with “Ethical” Don’t confuse “Legal” with “Ethical” Not breaking the law will keep you out of jail, but won’t make you a role model of ethics and integrity (consider the spirit as well as the letter of the law) Not breaking the law will keep you out of jail, but won’t make you a role model of ethics and integrity (consider the spirit as well as the letter of the law) Our obligation is to maintain public confidence in ourselves and our public institutions Our obligation is to maintain public confidence in ourselves and our public institutions We must hold ourselves to a higher standard than not breaking the law We must hold ourselves to a higher standard than not breaking the law

27. 4) The Greatest Obstacle to Ethical Conduct: The “R” Word: Our greatest enemy is our and our employees’ ability to rationalize that inappropriate conduct is okay Our greatest enemy is our and our employees’ ability to rationalize that inappropriate conduct is okay “I deserve………” “I deserve………” “In this case it is okay to ……..” “In this case it is okay to ……..” We can be seduced by our ability to come up with a “plausible rationale” We can be seduced by our ability to come up with a “plausible rationale”

28. 5)Beware of “…But No One Will Find Out”: “A secret is a 5-second head start” “A secret is a 5-second head start” There is always someone who will (or could) know There is always someone who will (or could) know No one finding out is NOT an appropriate criteria No one finding out is NOT an appropriate criteria YOU WILL KNOW YOU WILL KNOW

29. 6) “The Newspaper Rule” NOW “The Google Rule”: The best defense to the “seduction of rationalization” The best defense to the “seduction of rationalization” Understand you don’t just have to convince yourself – you have to convince everyone else Understand you don’t just have to convince yourself – you have to convince everyone else

30. 7)“The Taxpayer Rule”: What you think is justified vs. what tax payers will think is reasonable What you think is justified vs. what tax payers will think is reasonable Public funds belong to the public Public funds belong to the public

31. 8) Leaders Need to “Walk the Talk”: Talking about vs. demonstrating ethics and integrity Talking about vs. demonstrating ethics and integrity Leaders need to hold themselves to a higher standard Leaders need to hold themselves to a higher standard

32. 9) You Are Only Really Tested When it Isn’t Easy: When you have something to lose or gain When you have something to lose or gain When you can suffer personally or professionally for taking a stand When you can suffer personally or professionally for taking a stand When it is difficult and uncomfortable When it is difficult and uncomfortable

33. 10) If You are an Organizational Leader, it is Not “Just About You”: You won’t simply be held accountable for your conduct, but also for the conduct of those in your organization You won’t simply be held accountable for your conduct, but also for the conduct of those in your organization You will fail no matter how ethical you are if your organization fails to perform ethically You will fail no matter how ethical you are if your organization fails to perform ethically

34. 11) The Three Levels of a Leaders Ethical Responsibility: What you did: What you did: –Your decisions and actions What others did – that you knew about: What others did – that you knew about: Did you respond Did you respond How you responded How you responded What others did – that you didn’t know about: What others did – that you didn’t know about: Should you have known Should you have known Pay attention Pay attention Ask questions/due diligence Ask questions/due diligence “Open to bad news” – Don’t shoot the messenger “Open to bad news” – Don’t shoot the messenger

35. 12) Responding to an Ethical Failure: Being Judged Not Just on What Happened, But How You Responded: Avoid the “C” word at all costs (“coverup”) Avoid the “C” word at all costs (“coverup”) Full disclosure Full disclosure Early disclosure Early disclosure Corrective actions Corrective actions The biggest issue is often not what happened, but how it was responded to The biggest issue is often not what happened, but how it was responded to How you respond may well be the primary basis on which you will be judged How you respond may well be the primary basis on which you will be judged “Not deciding” is a decision for which you may be held accountable “Not deciding” is a decision for which you may be held accountable Don’t turn an honest mistake into an ethical scandal Don’t turn an honest mistake into an ethical scandal

38. 13) Whose Responsibility Is It – Is It “Your Job”? If you know about it – it is your responsibility to do something If you know about it – it is your responsibility to do something What you are required to do depends on the circumstances What you are required to do depends on the circumstances You don’t necessarily need to be the “Lone Ranger,” but…… You don’t necessarily need to be the “Lone Ranger,” but……

39. 14) As a Leader, you Need to Support the Organization and “The Innocent” During an Ethical Crisis: Protect those who stand up for ethical conduct/integrity Protect those who stand up for ethical conduct/integrity Keep the organization focused during an ethical crisis Keep the organization focused during an ethical crisis Recovering from an ethical failure – learning and getting better Recovering from an ethical failure – learning and getting better

40. 15) The Three Questions You Will Always Need to be Prepared to Answer: What did you know? What did you know? When did you know it? When did you know it? What did you do about it? What did you do about it?

41. Key Thoughts You will not be an effective leader unless you demonstrate ethics and integrity You will not be an effective leader unless you demonstrate ethics and integrity Beware of the “R word” – Rationalization Beware of the “R word” – Rationalization If you are a leader, it is your responsibility If you are a leader, it is your responsibility No one finding out is not the criteria No one finding out is not the criteria The “newspaper rule” The “newspaper rule” The “taxpayer rule” The “taxpayer rule”

45. Blind Spots The struggle between the “want self” and the “should self.” The struggle between the “want self” and the “should self.” Many don’t reflect carefully enough to identify ethical challenges. Many don’t reflect carefully enough to identify ethical challenges. Don’t carefully evaluate the impact of alternatives. Don’t carefully evaluate the impact of alternatives. You can easily “fool yourself” when facing an ethical challenge You can easily “fool yourself” when facing an ethical challenge Lacking a leader who believes in ethical decision making, an organization will not act ethically. Lacking a leader who believes in ethical decision making, an organization will not act ethically.

46. Blind Spots, Continued Informal values can trump stated values and formal ethics programs. Informal values can trump stated values and formal ethics programs. What is and is not informally talked about is important. What is and is not informally talked about is important. What kind of conduct/behavior is and is not supported/rewarded is critical. What kind of conduct/behavior is and is not supported/rewarded is critical. Most people think they are more ethical than most other people….. Most people think they are more ethical than most other people….. Decision makers commonly engage in unethical behavior without realizing it. Decision makers commonly engage in unethical behavior without realizing it.

47. Resources: International City Management Association: International City Management Association:www.icma.org Institute for Local Government (California): Institute for Local Government (California):www.ca-ilg.org

48. A Final Thought….. “All That is Necessary For the Triumph of Evil is That Good Men and Women Do Nothing”