1. Influencing the ethical context of your organisation Speaker: June Smith, Partner Company: The Argyle Partnership Lawyers Date: 22 November 2006

2. Introduction What is ethical climate and ethical culture? How does the ethical context of an organisation influences attitudes, behaviour and decision making? How do you review the ethical context within the business? What is it’s role in the provision of advice to clients?

3. What is Ethical Climate? It is a component of organisational culture that helps to determine: a)What employees/advisers believe constitutes ethical behaviour at work; b)Which issues employees/advisers consider to be ethically pertinent; and c)What criteria they use to understand, weigh and resolve issues.

4. The Different Climates Climate TypeDescription CaringFocuses on friendship, team interest and social responsibility. The organisation is usually perceived as considering what’s best for everyone, doing what is right for the customer and the public when making decisions. RulesFocuses on internal rules and standard operating procedures and everyone is expected to follow these when making decisions. Law and CodeFocuses on external principles when making decisions, the first consideration being whether a decision or action is in breach of any law or professional code. IndependenceThe organisation is usually perceived as expecting employees to follow their own personal and moral beliefs when making decisions. InstrumentalFocuses on self interest and company profits. The organisation’s members perceive they are expected to act and make decisions primarily based on furthering the company’s interest first.

5. How does it contribute to your business? Is the ethical climate of the organisation effectively contributing to the: Types of ethical choices and conduct that the organisation wants from its employees/advisers; Quality and consistency of ethical decision making; Strategic direction and goals of the organisation?

6. Ethical Culture Provides a shared perception amongst members of the organisation, of what behaviour is right and what behaviour the organisation expects from its members in certain situations.

7. Ethical Culture Organisations usually articulate this ethical culture in written form or formal structures: Code of Ethics; Client Charter; Organisational Rules; Compliance procedures; Reward and incentive programs.

8. Linking the ethical context of an organisation to individual roles Decision making and ethical behaviour are key factors in the Licensee’ ability to meet its primary legal obligations: Protect consumer interests, ensure the professionalism and expertise of the staff in the services offered; and Ensure the Licensee is providing financial services efficiently, honestly and fairly.

9. Using the ethical context to influence employee/adviser behaviour What is the existing ethical climate? What are the firm’s values, priorities and decision making processes? How does the firm articulate its ethical culture? What documents and systems does it use? What are the particular ethical risks the organisation faces? Will the existing ethical context allow risks to be minimised or exacerbated? Does the organisation’s ethical context fits with the organisation’s values? What about with the strategic aims of the company? What potential conflicts might arise between the existing ethical context and the company’s goals?

10. Changing the ethical culture and climate Education and training in ethical decision making; Revising or developing a formal organisational Code of Ethics; Changes in how employees and advisers are monitored and supervised; Alterations to company policies and procedures, including manuals, performance objectives, recruitment and termination processes ad incentive and reward systems.

11. What are the main ethical issues faced in your business? Lets make a list of your top five Then we will group them in themes Now we will compare results Any similarities?

12. Conclusion In summary: The ethical context of an organization plays a major role in addressing specific unethical behaviour in advisers. Poor ethical decision making and unethical behaviour can be linked to a lack of organisational commitment, structure or environment. Unethical behaviour can be exacerbated by a weak organisational system where acceptable ethical behaviour is not clearly defined and an ethical culture is not promoted. Your influence can make a difference.