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Exploring Top Down Ethics

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					Exploring Top Down Ethics


             NAFCU

        Presented by Rory Rowland
Concern for Ethical and Societal Issues
Sarbanes-Oxley Act 2002 law that added oversight for the nation’s major
   companies and a special oversight board to regulate public accounting firms
   that audit the financial records of these corporations.
Business Ethics The standards of conduct and moral values governing actions and
   decisions in the work environment.
   • Social responsibility.
   • Balance between what’s right and what’s profitable.
   • Often no clear-cut choices.
   • Often shaped by the organization’s ethical climate.
THE NEW ETHICAL ENVIRONMENT
• High profile investigations and arrests in headlines.
• Vast majority of businesses ethical.
• New corporate officers charged with deterring wrongdoing and ensuring ethical
    standards.
Individuals Make a Difference
•   Personal ethics matter.
     • Survey of workers found 30 percent spent
     30 minutes daily doing personal business
     online.
• Technology expanded abuses.
     • Data theft.
Code of Conduct Policy

Covered Persons of this credit union are expected to
conduct the business of the credit union in full compliance
with both the letter and the spirit of the law and the
guidelines established by this Code and to:
• Use confidential information properly
• Comply with CU policies and procedures
• Recognize, disclose, and avoid conflicts of interest
• Protect credit union property, including information,
products, services, and assets
• Properly manage personal finances
• Treat fairly and respectfully all with whom they have
dealings
Conflict of Interest
Situation that has the potential to
undermine the impartiality of a person
because of the possibility of a clash
between the person's self-interest and
professional-interest or public-interest.
Conflict of Interest

Situation where a party's responsibility to
a second-party limits its ability to
discharge its responsibility to a third-
party.
Federal Bank Bribery Act


   The Bank Bribery Act prohibits any
   Covered Person of the CU from offering
   or receiving anything of value where the
   item of value is offered with the intent of
   influencing the Covered Person
   involved in a credit union business
   transaction.
Allowable Activities
• Acceptance  of gifts
• Acceptance of meals
• Acceptance of loans
• Acceptance of unsolicited advertising or promotional
materials of nominal value.
• Acceptance of discounts or rebates on merchandise or
services
• Acceptance of gifts of reasonable value (limited to
$100 per gift, per person)
• Acceptance of civic, charitable, educational, or
religious awards in recognition of a service performed or
an accomplishment.
Ethical Leadership

• Code of Conduct Formal statement that defines how the organization expects
   and requires employees to resolve ethical questions.

Ethical Reasoning

• Codes of conduct cannot detail a solution for every ethical situation, so
   corporations provide training in ethical reasoning.

Ethical Action

• Helping employees recognize and reason through ethical problems and turning
   them into ethical actions.

Ethical Leadership


• Executives must demonstrate ethical behavior in their actions.
World of Values




                           Ethics




                  Values
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                 Making the Case Nationwide

     2000 National Business Ethics Survey Report
   One in eight employees feels pressure to compromise their
    organizations’ ethical standards.
   About one in three employees observes misconduct at work.
   One in three fears retaliation if they report misconduct or
    other ethical concerns.
   Senior and middle managers’ perceptions about ethical
    behaviors in their organizations are consistently more positive
    than those of lower level employees.
   There are virtually no differences in ethical standards
    perceptions among employees of government, for-profit and
    non-profit activities.
            - Ethics Resource Center, Washington, D.C., 2000

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               Making the Case Nationwide

2000 National Business Ethics Survey Report
(cont’d)

        Top five observed misconduct behaviors
      Lying
      Withholding needed information
      Abusive or intimidating behavior toward
       employees
      Misreporting actual time or hours worked
      Discrimination
                        - Ethics Resource Center, Washington, D.C., 2000

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“No one trusts or believes senior management
these days – yet a lot of executives are too
stressed out to care. The result is a crisis of
hope, faith and charity in business.”
                   - Kenny Moore, Keystand Corporation
                    as reported in the Wall Street Journal,
                    February 19, 2002




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                  Impact of Disrespect
                    In the Workplace
• 71% of 1,100 workers surveyed* said they’d
  experienced disrespectful behavior on the job.

• Result: damaged mental health and lowered
  productivity.

*University of Michigan-Ann Arbor report to the American Psychological Society, 2001

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            Respect’s Catch-22
• Complaining about disrespectful behavior often
  triggers social or work-related retaliation.

• Keeping quiet fosters anxiety or depression




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     “Responsibility is a detachable
     burden easily shifted to the shoulders
     of God, Fate, Fortune, Luck or one’s
     neighbor. In the days of astrology,
     it was customary to unload it upon
     a star.”
                  -- Ambrose Bierce, 19th c. American author



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Aspects of Responsibility
     Accountability. We are free to choose and that
      makes us accountable for our choices.
     Duty. We are obliged to do what is expected of
      us by virtue of our jobs and our work force
      positions.




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Trustworthiness and Lying

               What is a lie in business?
        Exaggerations of product claims.
        Over-promising of service and deliveries.




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Information



Rory Rowland
14401 Covington
Independence, MO 64055
816-478-3249
www.EvalsRus.com
RoryRRowland@ATT.com

www.rateyourboss.org