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Implementing Ethics in the Workplace: Creating the Process

(Abridged version)
a program of the Greater Omaha Business Ethics Consortium
at Creighton University

Sponsored by

The Seven Sentencing Guidelines
1. Having Standards 2. Assigned Responsibility - Adequate Resources 3. Due diligence in Hiring 4. Communications and Training 5. Monitoring, Auditing, Reporting 6. Promotion and Enforcement of Ethical Conduct 7. Reasonable Steps to Prevent Misconduct

The Challenge is Doing More with Less
1. Have a Plan - preferably a long range plan 2. Have support at the Top and an “Ethics Team” 3. Get an Ethics/Compliance Committee Chartered 4. Put in place a “Code of Conduct” 5. Get a Helpline Set Up 6. Communicate to Managers/Employees 7. Do Some Training - E-Mail,Web,Video, 8. Attend Other Meetings or Training Sessions 9. Give Leaders Ethics Messages to Send Out 10. Use the Company Website Extensively 11. Follow in the Wake of Critical Events 12. Regularly Report on Numbers, Issues to Mgt.

Every Company is Unique
Leadership History Culture Policies Practices People Regulatory Environment

Gallup Organization Findings Tone at the Top VALUES One of the Seven Demands of Leadership .

Gallup Research Based Findings During nearly forty years of research and tens of thousands of interviews. Gallup has determined the Seven Demands of Leadership. communities and nations.org . GOBEC www. These are behaviors of individuals who are perceived as leaders within their organizations.omahaethics.

omahaethics.org .the most commonly expressed demands Gallup Organization VISIONING 7 D E M A N D S MENTORING BUILD A CONSTITUENCY CHALLENGING EXPERIENCES MAKING SENSE OF EXPERIENCES STABILIZING VALUES KNOWING SELF GOBEC www.WHAT GREAT LEADERS DO MOST .

org 80-90% Creating Alignment .Allocation of Time For Creating Alignment Gallup Organization Typical 90-100% Drafting & Redrafting Statements 0-5% Identifying Core Values 0-5% Creating Alignment Desired 10-20% Identifying Core Values 0-5% Drafting & Redrafting Statements GOBEC www.omahaethics.

Organization and Personnel .

Put someone in charge of it • General Counsel • HR director • Internal auditor GOBEC www. Create a formal program w/resources 2.omahaethics.org .How to Manage Organizational Ethics? 1.

omahaethics.Report to… • • • • CEO Board of Directors Committee of the Board of Directors Senior Executive GOBEC www.org .

org .theecoa.org/ GOBEC www.omahaethics.Support for Managing Organizational Ethics Programs Ethics and Compliance Officer Association http://www.

Compliance with Laws SWEET SPOT Ethical Behavior Compliance and Ethics Program .

BCBSNE Compliance Organization Board of Directors Audit & Compliance Committee Corporate Compliance Officer (VP Level) Compliance Department (with dedicated Staff) Compliance Cross Functional Team Members GOBEC www.omahaethics.org .

Respond to Auditors and Regulators Respond to Complaints (Receive/Investigate/Document/Resolve) Liaison with the Board of Directors   Listen Report 5. 3.Responsibilities 1.org .omahaethics. Provide Guidance and Answer Questions    Create and Assist in Creating Policy & Procedure Develop and Deliver Training Foster Awareness & Encourage Ethical Behaviors 2. 4. Keep Current on and Facilitate Compliance with Laws and Regulations GOBEC www.

Communication & Training Getting the right message out .

omahaethics.org .What is communicated? Ethics Materials: Mission Values Code of conduct/ethics Policies Decision methods Your culture Ethics program: Who is the Ethics Officer? How to make contact? Senior Management Commitment to Ethics: Why organizational ethics matters? GOBEC www.

and two way Clear. upward.Methods of Communication Evaluate current ethics communication lines – Formal and informal – downward. consistent.org .omahaethics. credible messages across communication lines GOBEC www.

More about Methods of Communication            Hiring Announcements Website Email Brochures Meetings – Formal & Informal Orientation sessions Newsletters Manuals Code Handbooks w/certifications Badges and Wallet Cards Key Fobs GOBEC www.omahaethics.org .

Ethics Training Design for individual groups Groups: – new recruits – existing employees – top management – local management GOBEC www.omahaethics.org .

Ethics Training  Live  Computer based  Trainers  Certification GOBEC www.omahaethics.org .

Outsourcing.Helplines/Hotlines Getting Started. Processes. and more Factors and Features . Case Management. Operational Flow.

omahaethics.org . positioning. themes.Introduction • What – is a helpline/hotline and what do you need to do to establish one? • Why – set up a helpline/hotline? • Who – should answer the line? • How – does a helpline/hotline work? • When – can you expect to fully implement a helpline/hotline? • Free Advice –vendor selection. questions GOBEC www.

A Helpline/Hotline Is and Some Alternative Reporting Mechanisms • Helpline…. Audit.What…. a confidential toll-free telephone number for employees or others to report suspected violations of law or company policy and to answer policy questions • Hotline – focuses on the reporting of suspected violations and emergencies • Consider departmental needs/requirements (Safety. EEO. Environmental.omahaethics. HR) • Evolution of reporting channels – – – – – From post office boxes To confidential faxes To voice mailboxes To confidential e-mails To web-based reporting systems GOBEC www.org .

EEO.org . Law.) • Designated Support Personnel • Accountability and follow-up • Communications and Employee Awareness GOBEC www.omahaethics. HR. You Need to Establish a Helpline • Senior Management Support and some Money • Understandable Guidelines for using the Helpline that Reflect your Organizational Values and Policies • Multi-function support (Communications. etc. Operating. Audit.What …. IT.

Union Pacific‟s Values Line • Established in 1994 and is outsourced (third-party service) • Covers 55.org .omahaethics. Policy and Employee Relations reporting GOBEC www. Emergencies. Environmental. Payroll or HR services (internal lines) • Supports EEO. Audit.000 employees • Is a “business conduct” report line • Does not primarily support Safety.

auditing and reporting systems • Provide anonymous channel for reporting suspected violations (which may otherwise be unreported) • Raise awareness of commitment to ethical conduct • Establish a proven.Set up a Helpline or Hotline? • Understand the objectives • Increased emphasis on organizational ethics and compliance– carrot and stick incentives • Establish formal monitoring. effective tool for protecting company GOBEC www.org .omahaethics.Why….

Why… Set up a Helpline or Hotline? Legal and Regulatory Requirements • Federal Sentencing guidelines – One of seven steps in an effective ethics and compliance program • SEC implementing rules • New York Stock Exchange proposed listing requirements • Sarbanes-Oxley Act (enacted 2002) – Sections 301 and 806 GOBEC www.omahaethics.org .

org .Who …. should answer the line? Decision Process • External – – – – – 24/7/365 Anonymity Multilingual Perceived confidentiality Vendor Features • Internal – – – – – – – Staffing/budget Time constraints Employee trust Knowledge of Policies Translation services? Training/Turnover Software GOBEC www.omahaethics.

extra reporting GOBEC www. review best practices – Include your IT department – Perhaps absorb existing call system(s) – Consider hidden costs.org .Analyzing Vendors • Vendor Selection Process – Talk with people who have lines – Visit Vendor Websites – Review intake process/procedures – Request proposals.omahaethics.Who?….

How….omahaethics. key issues – Case is reported to you and/or others via e-mail or web links – Case management data is summarized each month or through ad hoc reports GOBEC www. information.Call is placed to the UP Values Line designated toll-free number (800-998-2000) OR shared toll-free number – Helpline personnel records information according to general protocol or your specific design (EEO. FMLA. etc. Does a report line work? .org .) – Classifications.

org . Categories Anonymous versus Identified (20/80) Sufficient Investigation Resources No Retaliation for good faith reporting Confidentiality to extent possible Follow up is essential GOBEC www.omahaethics.Operational Key Points • • • • • • • • • Spread Out the Work Expect 1-2% of Employees to call/yr Who Calls the Line? Types of Calls.

2006 Theft & Drugs 1% Pay 4% Safety 4% Union/CMS/Discipline 6% Smoking 1% Supervision/Relations 66% Policy 11% Job Perf. Policy Smoking Union/CMS/Discipline Safety Pay Theft & Drugs Discrim./Harass. 1 . 31.Types of Values Line Reports Jan./Harass./Fitness Other Butch Ethington Ombudsman 402-544-2113 595 GOBEC www./Fitness Threats/violence 0% 3% Other 1% Supervision/Relations Discrim. 3% Threats/violence Job Perf.Aug.omahaethics.org .

000+ per year + your time • Reports – see handouts • Vendors – The Network. – See handouts of hotline best practices • Helping to maintain a culture of integrity GOBEC www.Questions? • Cost – $1. EthicsPoint. – Allegiance. Lighthouse.500 to $30.org .omahaethics. and many more.

Enforcement Ensuring Observance Putting into practice Making it happen .

• Question: How do we ensure compliance with legal rules and corporate policies? GOBEC www.Enforcement • Reality: Codes and rules without enforcement and adherence are useless.omahaethics.org .

etc.org . court. SEC. IRS.omahaethics.Why should you enforce? You have Two Choices: • Corporate Enforcement • Government Enforcement • The best enforcement is self-enforcement! • Better your company do it than the EEO. GOBEC www.

Getting Compliance (preventative) • • • • Training and Education („I didn‟t know‟) Review: Audit for compliance and quality Incentives: compensation and recognition Model: Leadership talks.org . Punishment (responsive) • • • Clear Sanctions in place Ethics Committee (method in place) Someone with oversight responsibility GOBEC www. and walks the talk 2.Types of Enforcement The best policy is to prevent wrongdoing 1.omahaethics.

org .omahaethics.Implementing Enforcement • Consistency is Important across Firm – Cross-check from HR for termination issues • Codified Policy is helpful • Yet. • Unions usually have process/expectations GOBEC www. Flexibility is important also • Realize Firing is sometimes correct action for sake of firm.

omahaethics.org .Correcting Problems • Sentencing Guidelines also require that you have a method of remedying ethical problem areas in your corporate culture • Examples: – – – – Ethics committees Ombudsman Ethics Officer Stated Corporate Policy On Correction Procedure GOBEC www.

Auditing. Having Standards 2. Promotion and Enforcement of Ethical Conduct 7.The Seven Sentencing Guidelines 1. Reasonable Steps to Prevent Misconduct . Assigned Responsibility . Monitoring. Communications and Training 5. Due diligence in Hiring 4.Adequate Resources 3. Reporting 6.

org .Wrap Up Discussion GOBEC www.omahaethics.