The Effect of an Ethics and Compliance Program

The Effect of an Ethics and Compliance ProgramPromoting a Positive Ethical Environment1October 9, 2015Becky Morris, Elizabeth Phillips, Sarah Grant, Craig Monahan, and Holly BrownCOMM1134 Research and Report WritingRecommendationsIndustry FactsIssues faced by companiesEffects on corporationsEnsuring an ethical workplacePrimary ResearchInternal controls and policiesManagement and employee trainingDealing with issues of non-complianceIndustry FactsIssues faced by companiesIssues Faced by CompaniesDeceptive sales practicesUnsafe working conditionsMishandling of confidential informationDiscriminationSexual Harassment

Deceptive Sales PracticesMisrepresenting promotions/upsellingNot informing about policy/pricing changesNot disclosing all contract informationMaking promises that cannot be kept

Unsafe Working ConditionsReduces illness/injury rates by at least 20%Returns $4 to $6 for every dollar investedBoosts employee morale

Mishandling Confidential InformationOnly viewed by authorized individualsApply the need to know principlePassword protect informationContinuously change passwords

Discrimination Anti-discrimination policies should:Explain/define discriminationInform employees it will not be toleratedShow employers how to respondCover all forms of discrimination

Sexual HarassmentUnwelcome verbal or physical sexual attentionInappropriate languageSuggestive jokesUnwelcome touching

Industry FactsEffects on corporationsWhat are the effects?Turnover ratesAbsenteeismPublic Image

11October 9, 2015Becky Morris, Elizabeth Phillips, Sarah Grant, Craig Monahan, and Holly BrownCOMM1134 Research and Report WritingTurnover RatesTurnover costs range from 25% to 200% annually1 in 3 employees have ended their employment due to ethical issues

12October 9, 2015Becky Morris, Elizabeth Phillips, Sarah Grant, Craig Monahan, and Holly BrownCOMM1134 Research and Report WritingAbsenteeism17% higher in companies with fair or poor moraleFear retaliation as response to expressing concernsIncreased chances of employees calling in sick to work

13October 9, 2015Becky Morris, Elizabeth Phillips, Sarah Grant, Craig Monahan, and Holly BrownCOMM1134 Research and Report WritingPublic ImageEstablish a companys reputationAttractive to investors and consumersSocial responsibility

14October 9, 2015Becky Morris, Elizabeth Phillips, Sarah Grant, Craig Monahan, and Holly BrownCOMM1134 Research and Report WritingIndustry FactsEnsuring an ethical workplaceSteps in Reporting an Issue Data source: RichardsTraining ProgramsSource: Primary12 Ethical PrinciplesSource: Primary12 Ethical PrinciplesSource: PrimarySteps to Ensure Effective ProgramData source: Barman and WhiteBenefitsSource: PrimaryPrimary ResearchSource: PrimaryInternal controls and policiesManagement and employee trainingDealing with issues of non-complianceInternal Controls and PoliciesEffectively addresses:Trust, honesty, and accountabilityConfidentialityDiscriminationEmployee behaviour

Only 69% are aware of program!

Source: PrimaryInternal Controls and PoliciesSource: PrimaryInternal Controls and PoliciesSource: PrimaryTrainingManagementAnnual online training modules64% of employees believe management is well-trainedApproachabilityFear of retaliationCompany-wide75% of employees want regular training

Issues of Non-compliance11 respondents have purposely not followed policies.

Management rarely receives complaints.

Does not mean breaches do not exist!RecommendationsTraining ProgramIn-person training sessionsIncrease employee awarenessShould be led by managers

Manager trainingFollow the 12 ethical principlesHonesty, integrity, promise-keeping, fairness, caring, loyalty, respect for others, obeying the law, committing to excellence, leadership, morale, and accountabilityReporting Issues81% aware of procedureStreamline current process

Ethics helplineSignificant benefitExplain investigationFollow-upData source: RichardsRecommendationsIndustry FactsIssues faced by companiesEffects on corporationsEnsuring an ethical workplacePrimary ResearchInternal controls and policiesManagement and employee trainingDealing with issues of non-complianceWorks CitedBarman, Tanya, and Samantha White. "Implementing an Effective Corporate Ethics Policy."CGMA Magazine. AICPA and CIMA, 13 June 2014. Web. 21 Nov. 2014. Dobrin, Arthur. "Can Ethical Principles Be a Bad Thing?"Psychology Today. Sussex Publishers, LLC, 6 July 2012. Web. 22 Nov. 2014. England, Deborah. "The Essential Guide to Handling Workplace Harassment & Discrimination."Nolo. Nolo, 1 Oct. 2012. Web. 18 Nov. 2014. "Ethics".Merriam-Webster. Merriam-Webster Inc., n.d. Web. 23 Nov. 2014. "Handling Confidential, Market Sensitive Information: Principles of Good Practice." Chartered Secretairies Austrailia, n.d. PDF. 19 Nov. 2014. Hickie, Brandon. "5 Unethical Sales Practices That Will Sink Your Brand." Scale Finance. FINACA, n.d. Web. 21 Nov. 2014. Hill, Brian. "The Advantages of Ethical Behavior in Business."Chron. Demand Media, n.d. Web. 25 Nov. 2014.Works Cited"Human Rights Policy: Preventing Discrimination in the Workplace."B.C. Human Rights Coalition. AMGMedia Works Inc., n.d. PDF. 20 Nov. 2014. Investopedia. "Sarbanes-Oxley Act of 2002 (SOX)."Investopedia. Investopedia, LLC, n.d. Web. 29 Nov. 2014. Joseph, Joshua. "Integrating Ethics and Compliance Programs: Next Steps for Successful Implementation and Change."Ethics Resource Center. Ethics Resource Center Fellows Program, n.d. PDF. 21 Nov. 2014. Josephson Institute Reports."The Hidden Costs of Unethical Behaviour."Business Ethics and Leadership, n.d. PDF. 28 Nov. 2014. Josephson, Michael. "12 Ethical Principles for Business Executives by Michael Josephson."Business Ethics and Leadership. Wordpress, 17 Dec. 2010. Web. 23 Nov. 2014. "LRN Ethics Study: Employee Engagement."Ethics Resource Center. LRN, 26 June 2006. Web. 19 Nov. 2014. Mohr, Angie. "5 Most Publicized Ethics Violations by CEOs."Investopedia. Investopedia, LLC, 2 Jan. 2013. Web. 24 Nov. 2014.Works CitedNelson, Debra L., James Campbell Quick, Ann Armstrong, and Joan Condie. "Challenges for Individuals." ORGB. Canadian ed. Toronto: Nelson Education, 2012. 30-67. Print.Nish, Steve. "Ten Benefits of Having an Ethics Code."Business Ethics and Leadership. Wordpress, 30 Dec. 2013. Web. 25 Nov. 2014. Richards, Francine. "How to Report Unethical Behavior in the Workplace."The Nest. Demand Media, n.d. Web. 27 Nov. 2014. Serviere-Munoz, Laura, and Michael L. Mallin. "Protect and Prevent: Neutralizations and Unethical Sales Behavior." Baylor Business. Baylor University, 1 Sept. 2014. Web. 17 Nov. 2014."Why Is Safety Important?" Safety Management Group. Safety Management Group, n.d. Web. 19 Nov. 2014.