Professional Documents
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08-PPT-Model Codes of Conduct - Ethics Panel - FINAL
08-PPT-Model Codes of Conduct - Ethics Panel - FINAL
• Purpose
• Why a code of conduct?
• The impact of a code of conduct
• Legal implications
• Considerations and recommendations
• “Complementing” the code
• A model code of conduct
• Case study: Time Warner Inc.
• References
• Open forum
©SHRM 2008
Purpose
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Why a Code of Conduct?
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The Impact of a Code of
Conduct
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Ethics and Integrity
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Principles and Values
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Practically Speaking…
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Legal Implications
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Sarbanes-Oxley Act
Source: Falcone, P. (2006, June). Management tools: Reporting for SOX duty. HR Magazine,
51(6). Retrieved from
www.shrm.org/Publications/hrmagazine/EditorialContent/Pages/0606managementtools.aspx.
©SHRM 2008
International Matters That Support
the Need for a Code of Conduct
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Considerations and
Recommendations
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Consider…
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Not One Size Fits All
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Recommendation I
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Recommendation II
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Recommendation III
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Recommendation IV
• Get buy in
> Ensure that all senior managers of the company have
an opportunity to review and comment on the code
before it is finalized.
> Address any questions and resolve any concerns that
are raised.
> You may not be able to gain total agreement, but it is
necessary for the management team to fully support
and exhibit the tenets of the code in their everyday
roles.
©SHRM 2008
Recommendation V
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Recommendation VII
• Consider training
> Conduct computer-based training on the code.
> Include important and related concepts from the code
in any compliance training.
> Hold “live” seminars to focus on certain aspects of the
code.
> Provide an overview of the code as part of your new-
employee orientation.
©SHRM 2008
Recommendation VIII
• Consider certification
> Require all employees to attest to their understanding
and acceptance of their responsibilities under the
code.
> As part of new employee orientation.
> As part of incumbent employee recertification any
time the code is updated.
©SHRM 2008
Recommendation IX
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Recommendation X
• Keep it dynamic!
• Revisit the code annually or at any time that
your business operations significantly change:
> A merger/acquisition or divestiture
> Plant closing
> Large expansion
> New product line, new market or new business
development initiatives
> Engagement of outside resources (agents,
contractors, etc.)
©SHRM 2008
Recommendation XI
• Make it yours!
• Ensure that the code—in every aspect—reflects
the fundamental tenets of your company, its
guiding principles and its culture.
©SHRM 2008
“Complementing”
the Code
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Ethics and Compliance Hotlines
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Ethics and Compliance Training
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Sample Outline of a Code of Conduct
• Introduction
• Employment practices
• Corporate assets
• Customer relations
• Relationships in the marketplace
• International relations
• Public and investor relations
• Government relations and political activity
• Miscellaneous (table of contents, index, FAQs)
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Sample Outline: Introduction
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Sample Outline: Employment Practices
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Sample Outline: Corporate Assets
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Sample Outline: Customer Relations
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Sample Outline: Relationships in the Marketplace
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Sample Outline: International Relations
• International activities
• Bribes, kickbacks and other unlawful payments
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Sample Outline: Public and Investor Relations
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Sample Outline:
Government and Political Activities
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Sample Outline: Miscellaneous
• Table of contents
• Topical index
• Key contacts
• Frequently asked questions
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Case Study:
Time Warner Inc.
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Time Warner
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The Time Warner Standards of Business Conduct
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Outline of the Time Warner
Standards of Business Conduct
• Overview
• Maintaining a professional workplace
• Protecting company records and information
• Conflicts of interest
• Conducting business in a global marketplace
• Designated internal contacts (appendix)
• FAQs included in each section
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Overview
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Maintaining a Professional Workplace
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Protecting Company Records and Information
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Conflicts of Interest
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Conducting Business in a Global Marketplace
• Fair dealing
• Foreign corrupt practices act
• Antitrust laws
• Export, import and anti-boycott laws
• Political activities and solicitations
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Designated Internal Contacts
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FAQs
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References
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Professional Associations
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Corporate Codes of Conduct
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Sample Outline
for Code of Ethics and Business Conduct
©SHRM 2008
Articles
• Business Ethics
www.shrm.org/research/briefly_published/Business%20Ethics%20Series%20Part%20I
_%20Business%20Ethics%20Overview.asp
• Business Ethics-Corporate Governance
www.shrm.org/research/briefly_published/Business%20Ethics%20Series%20Part
%20II%20-
%20Business%20Ethics%20---%20Corporate%20Governance.asp
• Business Ethics-Codes of Conduct/Ethics Programs
www.shrm.org/research/briefly_published/Business%20Ethics%20Series%20Part%20III_%20B
usiness%20Ethics%20---%20Codes%20of%20Conduct_Ethics.asp
• Business Ethics in the Global Arena
www.shrm.org/research/briefly_published/Business%20Ethics%20Series%20Part%20IV
_%20Business%20Ethics%20In%20the%20Global%20Arena.asp
• Management Tools: Reporting for SOX Duty
www.shrm.org/hrmagazine/articles/0606/0606managementtools.asp
• The Corporate Governance and Compliance Hotline
Benchmarking Report
www.secureworldexpo.com
• Compliance is Not Enough: Law Enforcement Looks to a
Company’s Ethical Culture
www.shrm.org/hrresources/lrpt_published/CMS_009941.asp
©SHRM 2008
Other Resources
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Open Forum
©SHRM 2008