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Implementing Ethics in the Workplace: Creating the Process (Abridged version)

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Title: Implementing Ethics in the Workplace: Creating the Process (Abridged version)


1
Implementing Ethics in the Workplace Creating
the Process(Abridged version) a program of the
Greater Omaha Business Ethics Consortiumat
Creighton University  
Sponsored by
2
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

3
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.

4
Every Company is Unique
  • Leadership
  • History
  • Culture
  • Policies
  • Practices
  • People
  • Regulatory Environment

5
Gallup Organization Findings Tone at the Top
VALUES One of the Seven Demands of
Leadership
6
Gallup Research Based Findings
  • During nearly forty years of research and tens of
    thousands of interviews, Gallup has determined
    the
  • Seven Demands of Leadership.
  • These are behaviors of individuals who are
    perceived as leaders within their organizations,
    communities and nations.

7
WHAT GREAT LEADERS DO MOST - 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
8
Allocation of Time For Creating Alignment Gallup
Organization
Typical
90-100
0-5
0-5
Drafting Redrafting Statements
Identifying Core Values
Creating Alignment
Desired
0-5
10-20
80-90
Identifying Core Values
Creating Alignment
Drafting Redrafting Statements
9
Organization and Personnel
10
How to Manage Organizational Ethics?
  • 1. Create a formal program w/resources
  • 2. Put someone in charge of it
  • General Counsel
  • HR director
  • Internal auditor

11
Report to
  • CEO
  • Board of Directors
  • Committee of the Board of Directors
  • Senior Executive

12
Support for Managing Organizational Ethics
Programs
  • Ethics and Compliance Officer Association
  • http//www.theecoa.org/

13
Compliance with Laws
Ethical Behavior
SWEET SPOT
Compliance and Ethics Program
14
BCBSNE Compliance Organization
Board of Directors
Audit Compliance Committee
Corporate Compliance Officer (VP Level)
Compliance Department (with dedicated Staff)
Compliance Cross Functional Team Members
15
Responsibilities
  • Provide Guidance and Answer Questions
  • Create and Assist in Creating Policy Procedure
  • Develop and Deliver Training
  • Foster Awareness Encourage Ethical Behaviors
  • Respond to Auditors and Regulators
  • Respond to Complaints (Receive/Investigate/Documen
    t/Resolve)
  • Liaison with the Board of Directors
  • Listen
  • Report
  • Keep Current on and Facilitate Compliance with
    Laws and Regulations

16
Communication Training
  • Getting the right message out

17
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?
18
Methods of Communication
  • Evaluate current ethics communication lines
  • Formal and informal
  • downward, upward, and two way
  • Clear, consistent, credible messages across
    communication lines

19
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

20
Ethics Training
  • Design for individual groups
  • Groups
  • new recruits
  • existing employees
  • top management
  • local management

21
Ethics Training
  • Live
  • Computer based
  • Trainers
  • Certification

22
Helplines/Hotlines
  • Getting Started, Outsourcing, Case Management,
    Operational Flow, Processes, and more
  • Factors and Features

23
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, positioning,
    themes, questions

24
What. A Helpline/Hotline Is and Some
Alternative Reporting Mechanisms
  • Helpline. 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, Audit, Environmental, HR)
  • Evolution of reporting channels
  • From post office boxes
  • To confidential faxes
  • To voice mailboxes
  • To confidential e-mails
  • To web-based reporting systems

25
What . 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, HR, IT,
    Law, EEO,
  • Operating, Audit, etc.)
  • Designated Support Personnel
  • Accountability and follow-up
  • Communications and Employee Awareness

26
Union Pacifics Values Line
  • Established in 1994 and is outsourced
    (third-party service)
  • Covers 55,000 employees
  • Is a business conduct report line
  • Does not primarily support Safety, Emergencies,
    Environmental, Payroll or HR services (internal
    lines)
  • Supports EEO, Audit, Policy and Employee
    Relations reporting

27
Why.Set up a Helpline or Hotline?
  • Understand the objectives
  • Increased emphasis on organizational ethics and
    compliance carrot and stick incentives
  • Establish formal monitoring, 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, effective tool for protecting
    company

28
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

29
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

30
Who?.Analyzing Vendors
  • Vendor Selection Process
  • Talk with people who have lines
  • Visit Vendor Websites
  • Review intake process/procedures
  • Request proposals, review best practices
  • Include your IT department
  • Perhaps absorb existing call system(s)
  • Consider hidden costs, extra reporting

31
How. Does a report line work?
  • - 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.)
  • Classifications, information, 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

32
Operational Key Points
  • Spread Out the Work
  • Expect 1-2 of Employees to call/yr
  • Who Calls the Line?
  • Types of Calls, Categories
  • Anonymous versus Identified (20/80)
  • Sufficient Investigation Resources
  • No Retaliation for good faith reporting
  • Confidentiality to extent possible
  • Follow up is essential

33
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34
Questions?
  • Cost 1,500 to 30,000 per year your time
  • Reports see handouts
  • Vendors The Network, EthicsPoint, Lighthouse,
  • Allegiance, and many more.
  • See handouts of hotline best practices
  • Helping to maintain a culture of integrity

35
Enforcement
  • Ensuring Observance
  • Putting into practice
  • Making it happen

36
Enforcement
  • Reality Codes and rules without enforcement and
    adherence are useless.
  • Question How do we ensure compliance with legal
    rules and corporate policies?

37
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, SEC, IRS,
    court, etc.

38
Types of EnforcementThe best policy is to
prevent wrongdoing
  • Getting Compliance (preventative)
  • Training and Education (I didnt know)
  • Review Audit for compliance and quality
  • Incentives compensation and recognition
  • Model Leadership talks, and walks the talk
  • Punishment (responsive)
  • Clear Sanctions in place
  • Ethics Committee (method in place)
  • Someone with oversight responsibility

39
Implementing Enforcement
  • Consistency is Important across Firm
  • Cross-check from HR for termination issues
  • Codified Policy is helpful
  • Yet, Flexibility is important also
  • Realize Firing is sometimes correct action for
    sake of firm.
  • Unions usually have process/expectations

40
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

41
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

42
Wrap Up Discussion
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