Ethics-is it a place near Lake Erie?
by Toronto Training and HR
March 2011
3-4 Introduction to Toronto Training and
HR
Contents 5-6
7-9
The new ethical management
Ethics and integrity
10-11 How the best-intentioned managers
get derailed
12-13 Drill
14-15 Barriers to an ethical organization
16-21 Ethics-based culture change
22-24 Dealing with malicious gossip
25-26 Transformative nature of
accountability
27-28 Dimensions of work ethic
29-36 Employees mirroring the work ethic
around them
37-38 Character traits
39-40 Ethical decision-making
41-43 Stakeholders
44-45 Overcoming disconnects
46-48 Self-sabotage of high performers
49-50 Advantages in acting ethically
51-52 Conclusion and questions
Introduction
Page 3
Introduction to Toronto Training
and HR
• Toronto Training and HR is a specialist training and human
resources consultancy headed by Timothy Holden
• 10 years in banking
• 10 years in training and human resources
• Freelance practitioner since 2006
• The core services provided by Toronto Training and HR are:
- Training course design
- Training course delivery
- Reducing costs
- Saving time
- Improving employee engagement & morale
- Services for job seekers
Page 4
The new ethical
management
Page 5
The new ethical management
What is it?
Where did it come from?
Where is it going?
Page 6
Ethics and integrity
Page 7
Ethics and integrity 1 of 2
Relationships with your family and friends
Attitude and behaviour towards money
Commitments to others, especially in the
business/work
Page 8
Ethics and integrity 2 of 2
Identify men and women of great character
Analyze your key relationships
Keep your word
Page 9
How the best-intentioned
managers get derailed
Page 10
How the best-intentioned
managers get derailed
Goals that reward unethical behaviour
Conflicts of interest that motivate people
to ignore bad behaviour when they have something to
lose by recognizing it
A tendency to overlook dirty work that’s been
outsourced to others
An inability to notice when behaviour deteriorates
gradually
A tendency to overlook unethical decisions
when the outcome is good
Page 11
Drill
Page 12
Drill
Page 13
Barriers to an ethical
organization
Page 14
Barriers to an ethical
organization
Ill-conceived goals
Motivated blindness
Indirect blindness
The slippery slope
Overvaluing outcomes
Page 15
Ethics-based culture
change
Page 16
Ethics-based culture change 1 of 5
You can’t force culture—you can only create
environment
You are on the outside what you are on the
inside—no debate
Success is doing the right things the right way
People do what they are incentivised to do
Input=Output
Page 17
Ethics-based culture change 2 of 5
Embracing ethical values can change how your
company runs—it can revitalize your purpose,
policies, and practices
People who don’t fit are immediately weeded out
People respect their leaders and each other
Page 18
Ethics-based culture change 3 of 5
CREATING AN ETHICAL VALUES COMPASS
Ask your colleagues: What do you want this
company to look like?
Narrow the answers
Translate these ethical values into behaviours you
can monitor
Figure out where a course change is in order
Settle in for the long haul
Page 19
Ethics-based culture change 4 of 5
CHARACTERISTICS SETTING EMPLOYERS APART
Leaders encourage a two-way dialogue about
business conduct
The organization’s code of ethics is a living
document
Ethics isn’t a “program” but a way of doing business
Training about ethics is relevant, maybe even fun
Employees are actively engaged as corporate
citizens, aligned with the company’s values
Page 20
Ethics-based culture change 5 of 5
SIMPLE ADDITIONS TO EXISTING PRACTICES
Make ethics a priority
Set a good example of ethical conduct
Keep commitments
Provide information about culture and compliance
Consider ethics in decision-making
Talk about ethics in the workplace
Page 21
Dealing with malicious
gossip
Page 22
Dealing with malicious gossip 1 of 2
When you pass information, casually or not, do so
in a manner that ensures that the message heard
by those listening is as accurate as possible. Avoid
insinuations, quibbling, and half-truths.
If you are not sure of the information's accuracy,
don't repeat it.
Page 23
Dealing with malicious gossip 2 of 2
If it is a case of obvious rumour spreading or
malicious gossiping, try to stop it in an appropriate
manner such as interrupting the speaker and
questioning the source of information.
Let it be known that you do not approve of such
activity.
Seek help from co-workers, team members,
supervisor, manager or Human Resources -
whatever is appropriate to stop the rumour mill.
Page 24
Transformative power of
accountability
Page 25
Transformative power of
accountability
To see it
To own it
To solve it
To do it
Page 26
Dimensions of work ethic
Page 27
Dimensions of work ethic
Self-reliance
Morality/ethics
Leisure
Hard work
Centrality of work
Wasted time
Delay of gratification
Page 28
Employees mirroring the
work ethic around them
Page 29
Employees mirroring the work
ethic around them 1 of 7
BELL CURVE FACING MANAGERS
On the far right are the most helpful of the group, those
"dedicated co-operators" who by personal conviction will
contribute their best to the common cause without
worrying much about what the rest are doing.
On the far left are a few "dedicated free riders," people
who in almost any situation will let the others do the
heavy lifting and keep their own resources for
themselves.
Page 30
Employees mirroring the work
ethic around them 2 of 7
BELL CURVE FACING MANAGERS
In between the extremes are those who
reciprocate to various degrees. This majority of
people will meet cooperation with cooperation and
selfishness with selfishness.
Page 31
Employees mirroring the work
ethic around them 3 of 7
CRUCIAL FACTS
First, even though there are incentives to freeload
from the very beginning, a large proportion of
people start by venturing some of their money,
maybe to test the waters, maybe out of a sense of
morality. They arrive at a job fully prepared to
cooperate with the group- if they find cooperation
to be the norm.
Page 32
Employees mirroring the work
ethic around them 4 of 7
CRUCIAL FACTS
Second, without any way of holding team members
accountable for their work on the group's behalf,
some will coast. Taking advantage of the group in
this way creates resentment that causes many of
those originally willing members to withhold what
they control, and this snowballs into an almost
perfectly selfish workgroup that loses the chance of
making solid profits.
Page 33
Employees mirroring the work
ethic around them 5 of 7
CRUCIAL FACTS
Second, without any way of holding team members
accountable for their work on the group's behalf,
some will coast. Taking advantage of the group in
this way creates resentment that causes many of
those originally willing members to withhold what
they control, and this snowballs into an almost
perfectly selfish workgroup that loses the chance of
making solid profits.
Page 34
Employees mirroring the work
ethic around them 6 of 7
CRUCIAL FACTS
Third, even when it is personally expensive to punish
another team member, many participants will "invest" in
keeping the game fair. Researchers call this "altruistic
punishment" because it requires a player to spend his own
money to enforce the group's interest. " This suggests that
even with performance-based bonuses that create a risk of
neglecting their own rewards for a while, employees'
attention can be seriously diverted when a bad apple is in
the barrel.
Page 35
Employees mirroring the work
ethic around them 7 of 7
CRUCIAL FACTS
Fourth, if team members can be punished for
slacking, the slackers behave better and the
naturally cooperative people, seeing a fairer
system, become more willing to invest. The
group's profits rise.
Page 36
Character traits
Page 37
Character traits
Vocation
Stewardship
Virtue
Heart
Page 38
Ethical decision making
Page 39
Ethical decision making
Transparency
Effect
Fairness
Page 40
Stakeholders
Page 41
Stakeholders 1 of 2
shareholders
trustees
guarantors
investors
funding bodies
distribution partners
marketing partners
licensors
licensees
approving bodies
Page 42
Stakeholders 2 of 2
regulatory authorities
endorsers and 'recommenders'
advisors and consultants
employees
customers
suppliers
the local population (community)
the regional general public
national general public
international communities
humankind
Page 43
Overcoming disconnects
Page 44
Overcoming disconnects
Generational
Short-termism
Trust
Page 45
Self-sabotage of high
performers
Page 46
Self-sabotage of high
performers 1 of 2
BEHAVIOR EMERGES FROM…
awed by success, we project a “halo” around the
head of those who achieve it, signifying they can
do no wrong
the “halo” influences how we view and describe
them and biases how they view and describe
themselves
they seek to protect themselves against having to
admit failure or weakness and suffer shame
Page 47
Self-sabotage of high
performers 2 of 2
HELPING VICTIMS OF SUCCESS
Resisting help-remove resistance, a safe learning
opportunity
Self-conception-redirect the need to achieve,
detachment
Page 48
Advantages in acting
ethically
Page 49
Advantages in acting ethically
Competitive advantage
Improved employee retention and attraction
Investment
Morale and culture
Reputation
Legal and regulatory reasons
Legacy
Page 50
Conclusion & Questions
Page 51
Conclusion
Summary
Questions
Page 52