“ETHICAL LEADERSHIP ”

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					       “ETHICAL
       LEADERSHIP”
       APICS Ethics:
       Should they be situational?

        Ethical Leadership - Mike Bell, Terra
2008               Grande Staff                 1
APICS Code of Ethics
      To maintain and improve sound business practices and foster high
       standards of professional conduct.
      To hold in professional confidence any information gained of the business of
       a fellow member’s company and to refrain from using such information in an
       unethical manner.
      To seek success without taking unfair advantage or questionable acts that
       would comprise one’s self-respect.
      To neither engage in nor sanction any exploitation of one’s membership,
       company, or profession. To encourage and cooperate in the interchange of
       knowledge and techniques for the mutual benefit of the profession.
      To be careful with one’s criticisms and liberal with one’s praise; to build and
       not to destroy.
      When a doubt arises as to the right or ethics of one’s position or action, to
       resolve such doubt according to generally accepted standards of truth, fair
       dealing, and good taste.
      To maintain high personal standards of moral responsibility, character, and
       business integrity.
                                Ethical Leadership - Mike Bell, Terra
2008                                       Grande Staff                              2
Ethical Leadership
  Business ethics
  is not always simple
  or necessarily
  “Black and White.”




                Ethical Leadership - Mike Bell, Terra
2008                       Grande Staff                 3
Topics
 Trust Model
 Avoiding conflicts of interest
 Business amenities
 Confidential information
 Financial / Slush funds
 Values-based decisions
 Summary

                Ethical Leadership - Mike Bell, Terra
2008                       Grande Staff                 4
Trust Model
A Step-by-step process that enables you to break down situations to smaller &
simpler segments. This enables you to analyze a situation more objectively.
T = Think about the situation objectively
    * Clearly understand the situation.
    * Know the facts.
    *Identify the real issues.
R = Recognize and analyze motivations.
    * If the situation troubles you, ask yourself why.
    * Consider the other party’s motivations.
U = Understand applicable laws, rules, and policies
    * Consider all options
    * Research the Standards of Business Conduct & other policies
    * Know whom and when to ask for help
S = Satisfy the headline test
    * Ask yourself if you feel comfortable seeing your actions reported in the news
    * Consider the consequences of your decision: on APICS, customer, yourself
T = Take responsibility for your actions
    * Make an appropriate choice & act accordingly
    * Remember, you are accountable for the outcome of your decisions.

                                    Ethical Leadership - Mike Bell, Terra
2008                                           Grande Staff                           5
Avoiding conflicts of interest
You are an active APICS member.
You serve on the chapter board,
attend PDM’s, and teach
certification courses. You are
approached by a member company
that has a need for on-site courses
that you teach & ask if these could
be available. You’ve been thinking
about starting a consulting
business on the side. This seems
like it might be a good way to get
started. You are considering
making an offer.                                         What should you do?
                       Ethical Leadership - Mike Bell, Terra
2008                              Grande Staff                                 6
 Avoiding conflicts of interest
You are the chapter facilities or
program director. Your brother-in-law
just called & said he has a new job
selling event & group meals with a
hotel & he wants your chapter’s
business. The chapter has a contract
with a hotel they are satisfied with.
The contract can be broken easily.
You are happy with the current hotel,
but he is your wife’s brother & you
might be able to save a few bucks
up front if you make a deal.
                                                           What should you do?
                         Ethical Leadership - Mike Bell, Terra
 2008                               Grande Staff                                 7
  Avoiding conflicts of interest
You have been working with particular
supplier (privately held co) for several                        “Special Deal Just for You”
years. You have grown close thru your
interactions. The supplier gets routinely
reevaluated for continued business
based on published guidelines. The
president of this company invites your
board to a celebration event. At this
party the supplier mentioned to you that
she is selling her company car, which
would be perfect for your daughter. She
said she would cut the price in half
“just because it is you.” You can save a
lot of money, but while tempting, you
think there could be feelings by the board
that you are “too friendly” with this person.
                                                                  What should you do?
                                Ethical Leadership - Mike Bell, Terra
  2008                                     Grande Staff                                       8
Avoiding conflicts of interest
You are recruited to serve on your
chapter’s board. You are told it will
take a couple of hours a week, a
few phone calls & emails. Seemed
OK & you accept. You discover
that there is are many phone calls,
email traffic, & other activities
required during business hours.
Your company has policies about
using company assets, equipment,
systems for non company related
business. You believe that both
you & the company will benefit
from your APICS involvement.
                                                             What should you do?
                           Ethical Leadership - Mike Bell, Terra
2008                                  Grande Staff                                 9
Business amenities
A business partner suggests a
business meeting with the chapter
board this Friday at his family’s
vacation home, which happens to
be on the ocean.
Afterward, he has invited you &
your family to spend the weekend
there enjoying the house and the
beach.


                                                          What should you do?
                        Ethical Leadership - Mike Bell, Terra
2008                               Grande Staff                                 10
Business amenities
A chapter supplier whom you
have been doing business for
several years has offered to
transport you to a joint
conference via its private
company jet.




                                                         What should you do?
                       Ethical Leadership - Mike Bell, Terra
2008                              Grande Staff                                 11
Confidential information
You are an active APICS
certification course instructor.
Your students complain that the
courseware is not offered on-line
through the chapter. You and a
friend together have the ability to
develop an online version of the
current APICS courseware. You
are considering this and the
possibility of marketing it through
your friend.


                                                             What should you do?
                           Ethical Leadership - Mike Bell, Terra
2008                                  Grande Staff                                 12
Confidential information
A college friend of yours who is
with ISM has been working on an
opportunity with a customer, and
APICS is also bidding on the
deal. At a recent trade show,
your friend tells you that he’s
able to offer the service at a rock-
bottom price ( & he blurts out the
price) & suggests that you
persuade the chapter to back out
of the deal in return for a lead on
another opportunity.

                                                            What should you do?
                          Ethical Leadership - Mike Bell, Terra
2008                                 Grande Staff                                 13
  Financial / Slush funds
 Your chapter is conducting an
on-site certification course for a
member company. The night
before the course starts there
ended up being 5 more students
participating than planned. You
do not have documents and
student guides for these additions
The company is a new customer
and you do not want to delay or
start off badly. You are considering
making copies of the student
   guides for use.                                           What should you do?
                           Ethical Leadership - Mike Bell, Terra
  2008                                Grande Staff                                 14
Financial / Slush funds
You are conducting an on-site
course at a major member
company. There are 5 more
students in the course than
agreed to in the contract. You
have enough student guides and
the instructor is ok with the
addition, so you agree to continue
on with the additions. The contract
And invoice do not reflect this
increase. Previous experience with
this company makes you consider
not changing the paperwork and
telling the responsible company
manager that you will just make up                           What should you do?
                            course.
the difference on a futureEthical Leadership - Mike Bell, Terra
2008                                  Grande Staff                                 15
Financial / Slush funds
Your chapter’s board has
approved money for a major
event in your area of
responsibility. The event came in
under the approved budget. You
are considering spending the
remaining funds on a fun dinner
party to recognize the few key
people that made this event a
success.

                                                           What should you do?
                         Ethical Leadership - Mike Bell, Terra
2008                                Grande Staff                                 16
Values-based Decisions

Let’s take another look at the trust model to
  see if we are using that process to make
  the best decisions….

Remember there could be more than one
 correct answer depending on the
 situation…

We are looking for the best decision!
                Ethical Leadership - Mike Bell, Terra
2008                       Grande Staff                 17
Trust Model
A Step-by-step process that enables you to break down situations to smaller &
simpler segments. This enables you to analyze a situation more objectively.
T = Think about the situation objectively
    * Clearly understand the situation.
    * Know the facts.
    *Identify the real issues.
R = Recognize and analyze motivations.
    * If the situation troubles you, ask yourself why.
    * Consider the other party’s motivations.
U = Understand applicable laws, rules, and policies
    * Consider all options
    * Research the Standards of Business Conduct & other policies
    * Know whom and when to ask for help
S = Satisfy the headline test
    * Ask yourself if you feel comfortable seeing your actions reported in the news
    * Consider the consequences of your decision: on APICS, customer, yourself
T = Take responsibility for your actions
    * Make an appropriate choice & act accordingly
    * Remember, you are accountable for the outcome of your decisions.

                                    Ethical Leadership - Mike Bell, Terra
2008                                           Grande Staff                           18
Summary
      Read, review, & post the APICS Code of Ethics with your chapter
       board & members
      Include in one of your board meetings some ethics discussions or
       training (you can use this package if you do not have something
       available)
      Review the TRUST Model & compare to past & current situational
       decisions
      Remember the “Headline Test”
      When in doubt review available guidelines, policies, laws & seek
       assistance
      One bad decision may not be fatal, but it takes a lot more effort to
       overcome the error & win back favorable perceptions from others
       than it does to make the best decision at the start.


                             Ethical Leadership - Mike Bell, Terra
2008                                    Grande Staff                          19
Questions, Comments, thoughts...




          Mike Bell    (972)497-4881
          email: mike.bell2@hp.com

           Ethical Leadership - Mike Bell, Terra
2008                  Grande Staff                 20
 Bonus Exercise



You notice that an officer of your chapter who is employed at the same
company is writing an article for the chapter newsletter with his company
email address listed for responses. In the article he is asking for
feedback and comments to survey questions from the 650 chapter
members. You are concerned that this may be inappropriate use of the
company’s time, equipment, & systems. You are also concerned it might
look bad for APICS & you (you recruited this person) if discovered.

                                                            What should you do?
                          Ethical Leadership - Mike Bell, Terra
 2008                                Grande Staff                                 21
 Bonus Exercise


You having lunch with one of your chapter’s members. When the bill came, she
insisted on paying. In passing, she said that she can afford it because of the
extra money she was making from her side business. When you ask about this
business, she explained she was teaching APICS type courses at a company
member’s site on the weekends. The company had mentioned a future need
while she was conducting a chapter on-site course in the past. She did not
think that the chapter was still providing courses at this company, so she set-up
a corporation in her husband’s name & contracted with the company. She went
on to say it has been very successful, making enough money to cover her
family’s 3 car payments
                                                               What should you do?
                             Ethical Leadership - Mike Bell, Terra
 2008                                   Grande Staff                                 22

				
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