1. Ethics in the Workplace
Jim Corkill | Controller
Business and Financial Services Controller’s Office
Good Morning.
1st class offered in the series of the Financial Management Program
We will be using Optionfinder today.
Give acknowledgement to Josephson, and David Clous of Lockheed-Martin
We probably all think of ourselves as ‘ethical’
How many of you broke the law today? None of us? Right? Did any of you exceed the speed limit coming to work? 25 miles on campus?
Qualifications - personal ethics
We are going to talk about the things we deal with everyday - not the $4.5M cash theft.

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

3. 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
Our focus is on what is Right and Wrong
Try to do the “right thing.”
Example
“We’re not as bad as they are”
Morals – concerned with the principles or rules of right conduct or the distinction between right and wrong; ethical; moral attitude
Principles or habits with respect to right or wrong conduct
1Webster’s New World Dictionary, 3rd College Edition
2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

4. Personal Ethics vs. Business Ethics
Is there a difference?
Shopping Cart in Parking Lot
10 items or less - cash only
Returning items to their original place – Peas vs. Potato Chips
Too Much Change
We are who we are - whether at work or at home.
It is not easy to do the right thing, when the consequences are greater
-school story
-donations-taxes (charitable)

5. Business Ethics
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.
Introduce another level with ‘compliance,’ policies…rules.
Three top factors to cause people to compromise ethical standards
Pressure to meet unrealistic business objectives/deadlines
a desire to further one’s career
Desire to protect one’s livelihood

6. When the stakes are higher, doing the right thing is harder.
Consequences
When the stakes are higher,
doing the right thing is harder.
Talk about changing address to send your child to better school.
Falsification of records
Reference check on campus- another campus dept asking for reference of employee you don’t want to lose
More about “Ethics in your Personal Life” to get them thinking.

7. Consequences to UCSB Public Trust Public Image Loss of Funding
Stakeholders
Taxpayers
Donors
Funding Agencies
Parents
Students
Public Image
Loss of Funding
Perception of Department or Organization
Criminal or Civil Investigation
Resources: Staff/Dollars
Damage to Reputation
Have Group fill out Ethical Dilemma Sheet
Maybe you have suggestion for the Daily Dilemma column?
OPTIONFINDER: Icebreaker and Discussion Questions

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

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

10. Conflict of Interest Personal gain or gain for friend/relative
Accepting gifts from vendors
Hiring friend/relative as an employee or contractor
Avoid the perception of conflict
Conflict of Interest - Policy #5005
Vendors - Gift Acceptance
Examples:
Ramada Inn lunch
Receptions

11. Personal Use of Goods and Services
Office supply cabinets
University equipment/vehicles
Computing resources
UCSB
Others??
Printing
Xerox
Web - Surfing the Net

12. Personal Use of Staff
Asking clerical assistance for external committee involvement
Asking someone to order flowers for a friend
Asking someone to make personal travel arrangements while they are making business travel arrangements
Others?
Making Drs. Appointment

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

14. Making the Right Choice: How Can You Be Sure?
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”
1Lockheed Martin: Code of Ethics and Business Conduct, July 1999
2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

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

16. Tools for Decision Making
What would a reasonable person do, or how would they perceive your decision?
Think of someone whose moral judgment you respect - what would that person do?
How would my family perceive my actions?
Policy Compliance
Evaluate the options, issues, and consequences
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.

17. Tools for Responding
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
Talk about how to try and not say “no”, but “I will find out” kind of approach….
I’m busy with University projects, I’m not sure University policy allows….
Tone, approach is important
Stall…… I’ll check with my supervisor

18. UC Standards of Ethical Conduct
Statement of UC’s belief in ethical, legal and professional behavior in all of our dealings inside and outside the University.
Statement of Ethical Values:
Integrity
Excellence
Accountability
Respect
Recently the University released a fairly new UC Standards of Ethical Conduct.. There are four values. Handout help us in our daily work by giving us framework, guidelines to draw from when confronted with an ethical dilemma….

19. 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
Talked about UC resources, conflict of interest, fair dealing, treating each other as we’d want to be treated

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

21. Policy Compliance
Do we follow policy only to avoid audit issues, or do we follow policy because it is the right thing to do?
Policies exist for a reason
Policies protect not only the University but also the employee
Examples: Hiring of outside contractors, caterers
If you don’t understand why the policy exists, then ask why.
Soccer Match
Women’s World Cup
USA vs. China
Game ended 0 - 0; Went to Penalty Kicks
Penalty Kicks are 1 on 1; 1 player vs. the goalie - pretty easy to make a goal
Team with the most goals after 5 attempts on each side wins.
USA was able to block one shot - resulting in a score of 5 for US, 4 for China - USA WINS!
USA Goalie’s comments – “I crossed the line on the prior kick and the ref didn’t call it – so I did it again and blocked the kick”
“It isn’t cheating if the ref doesn’t call it.”
The greater the consequences, harder to do the right thing.

22. Perception Often times, perception is just as bad as the real thing.
Even if something is allowed, should you do it?
Attending vendor reception or accepting gift
Use this slide to talk about San Francisco Chronicle issues….perception of our campus as a result….perception of the UC System?

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

24. Discussion Item #1
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?
What are the Options?
Go ahead with the purchase
Do not make the purchase
Tell someone
VOTE
What are the Issues?
Violates conflict of interest - using Univ. resources for personal gain
Does not follow policy
Attempt at a work around
Are we in compliance with federal regulations?
Does the equipment benefit the project? Either project?
What if the money isn’t paid back?
Contract could be terminated
What are the consequences of making the purchase?
Dept. loses money
Puts the UC agreement at risk
Disallowance by federal auditors
Loss of funding to the institution
What if PI #1 leaves the campus?
Setting a precedent

25. Discussion Item #2
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?
What are the Options?
Pay the student
Don’t pay the student
VOTE
What are the Issues?
Does not follow policy
Attempt at a work around
How do you monitor? Keep track of the hours
Are we in compliance with federal regulations?
What are the consequences?
Student leaves and never works the hours
The student doesn’t do the work assigned - not motivated
Poor example for the student

26. Discussion Item #3
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?
What are the Options?
VOTE
What are the Issues?
Policy
Union Contract
Benefit to the employee
Overtime
What are the consequences?
Precedent

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

28. Campus Resources Department Chair Control Point
Audit & Advisory Services
Business & Financial Services
Policy
Office of the Ombuds
Whistleblower Policy

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

30. Questions?
OPTIONFINDER Evaluation Questions - Course and Instructor