Principle 4 Ethical Staff Behavior 091410

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Principle 4 Ethical Staff Behavior 091410 Powered By Docstoc
					Principle #4 – Ethical
Staff Behavior

   This presentation is made
possible by the Smart Campaign
   www.smartcampaign.org
Today’s Agenda
  1. The Client Protection Principles

  2. Principle #4 in Practice

  3. How Management Promotes Ethical Staff Behavior

  4. Participant Feedback & Lessons from Practitioners

  5. Good Practice Guidelines and Examples

  6. Next Steps for Your Institution



                                2
Client Protection Principles
    1. Avoidance of over-indebtedness

    2. Transparent and responsible pricing

    3. Appropriate collections practices

    4. Ethical staff behavior

    5. Mechanisms for redress of grievances

    6. Privacy of client data
                          3
Ethical Staff Behavior: The Principle in Practice


    A financial institution measures up to this
 principle by creating a corporate culture that
 values high ethical standards among staff and
  ensuring safeguards are in place to prevent,
   detect, and correct corruption or customer
                   mistreatment.



                         4
Management Encourages Ethical Staff Behavior by:


  Creating a Code of Ethics for the institution
  Establishing an Ethics Committee that rewards
   ethics and sanctions violations
  Communicating the importance of ethics to staff
   on a regular basis
  Training staff to respond to ethical dilemmas
   tailored for their position
  Empowering managers to follow up on ethical
   complaints
                            5
Feedback from Participants

• Have you received training at your
  institution that highlights ethical staff
  behavior?
• How do institutions monitor and enforce
  ethical staff behavior?
• Can you describe an ethical lapse or
  ethical success at their institution or
  elsewhere?
• Does your institution have a Code of
  Ethics?              6
Lessons from Practitioners
•   Write your points for the presentation here.
•   Points
•   Points
•   Points
•   Points




                         7
Ethical Staff Behavior: Indicators of Good Practice
    Ethical Corporate Culture

    • The organization's corporate culture values and rewards
      high standards of ethical behavior and customer service.

    Written Code of Ethics

    • A written code of business ethics spells out organizational
      values and the standards of professional conduct expected
      of all staff.

    Leadership Promotes Code of Ethics

    • The code of ethics has been reviewed and approved by the
      Board and is included in staff rule books or administrative
      policies.


                                         8
Ethical Staff Behavior: Indicators of Good Practice
    Clearly Defined Acceptable and Unacceptable
    Behavior
    • Staff rules include specific provisions on what is considered
      acceptable and unacceptable behavior. Provisions describe
      reprimands and actions that can result in termination of
      employment.

    Ethics Matters for HR

    • HR procedures pay attention to ethics, such as assessing
      new employees for compatibility with organizational values.

    Staff Training on Ethics

    • Staff receives orientation and refresher courses on the
      practicalities of following codes of conduct.

                                      9
Ethical Staff Behavior: Indicators of Good Practice
    Ethics Component of Performance Evaluations

    • Managers and supervisors review ethical
      behavior, professional conduct, and the quality of
      interaction with customers as part of staff
      performance evaluations.

    Internal Audit and Controls

    • The organization has a robust internal audit and
      fraud control system that detects customer
      mistreatment, such as soliciting kickbacks and
      favors or using coercion.

                                  10
The Code at the Center

                         Manage-
                          ment




                        Code of
                         Ethics
             Human                 Internal
            Resources               Audit




                            11
 Example: Good Practice from Mexico
     • Compartamos Banco outlines its values for all
       employees, clients, and other stakeholders to see.
     • The bank’s mission sets its goals, the values provide
       the “how” for implementation.
     • The values include:
       keeping the person
       at the center,
       service,
       responsibility,
       passion, financial
       sustainability, and
       teamwork.
                                 12
Source: Compartamos Banco
 Example: What a Code of Ethics Includes
                                                    Norms of
                                                    Conduct
     Institutional                Mission &
      Philosophy                   Values             Conflict of
                                                                     Harassment
                                                       Interest

                                                                       Use of
                                                      Privileged
        Ethical                    Norms of          Information
                                                                      Company
                                                                      Property
     Expectations                  Conduct
                                                                     Safeguarding
                                                      Client/Staff
                                                                     the Company
                                                     Relationships
                                                                      Reputation
     Enforcement                Updating the
       Methods                     Code                               Respecting
                                                      Corruption       the Work
                                                                     Environment

                                               13
Source: Adapted from Compartamos Banco
 Example: Keeping a ‘Code’ Alive
                                              Internal polices
        Annual Review          Ethics
                                              incorporate the
           of Code           workshops
                                               Code of Ethics


                              Refresher       Training includes
        New employees
                            campaign each     examples of real
          must sign
                                year              situations


                               Annual
        Tested on Code
                            recertification
         after 90 days
                                 test


                                    14
Source: Compartamos Banco
 Example: Enforcing a Code of Ethics




                            15
Source: Compartamos Banco
Good Practices from Around the World


  • One MFI designed an integrated training program on
    ethical behavior that includes specific ethical
    dilemmas for different job functions. The training
    modules are based on experiences that employees
    have faced in their work.
  • One MFI includes “ethical behavior” in its annual
    performance reviews in order to give employees
    feedback on their behavior and find out how
    successful the organization has been in building an
    ethical culture.

                              16
Next steps for your institution

  What next steps can your institution
  take to create a corporate culture that
  values high ethical standards among
  staff?




                      17
               Thank you!
          Join the Campaign &
Endorse the Principles of Client Protection

            Have questions?
       Contact the Smart Campaign
        www.smartcampaign.org




                     18

				
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