from villains heroes€¦ · from villains to heroes patrícia colombo 16 realistic targets: there...

From Villains to Heroes

Patrícia Colombo 1


Patrícia Colombo 2

DISCLAIMER:

This presentation was prepared by PatriciaColombo in her personal capacity. The views andopinions expressed in this presentation are thoseof the speaker and do not necessarily reflect theofficial position of FUJIFILM group.

VillainsorHeroes?


Patrícia Colombo 3

Volkswagen - Case

Partial film

https://m.youtube.com/watch?v=Y5TvFY7xRDM

■ Harassment

■ Fraud■ Engaging in illegal activities /

business

■ Bribery

■ Insider Trading

■ Customer Privacy Breach

■ Using office equipment forpersonal use

■ Doing personal business on worktime

■ Calling in as “sick” to take the dayoff

■ Falsifying time reports

■ Conflict of Interests

Observed Unethical Behavior in the Workplace


Patrícia Colombo 4

Variation on Employee

THE GOOD10%

Follow their own valuesand beliefs which arethe same or evensuperior from those ofthe company. Naturalheroes.

THE MISGUIDED

80%

Go along with thegroup.

THE BAD

10%

Take advantage ofsituations if the penaltyis less than the benefitand the risk of beingcaught is low. Naturalvillain.

Debts Lifestyle needs Illicit activites: vices, gamblig,

drugs Unreal Targets Pressure to perform

OPPORTUNITY

MOTIVATION

(INTERNAL ANDEXTERNAL

PRESSURE)

RATIONALIZATION

► Internal Controls: None in place Un-enforced Un-monitored Ineffective

UNETHICAL

BEHAVIOR

• “It’s in the best interest of the Company”• “I don’t get paid what I am worth!”• “Everyone else is doing it”• “Behavior is not really illegal”

What it takes to be come a business villain:


Patrícia Colombo 5

Culture is the key !

Design or Default ! ! ! !

One good egg does not make a dozen.

When people face the decision to cheat, they often look to othersto gain information about appropriate behavior. Lab experimentshave shown that when people see others like them (e.g., peers)behaving unethically, they are more likely to cheat themselves.

One bad apple can spoil a barrel.

Cul

ture

is t

he k

ey!


Patrícia Colombo 6

Compliance Culture

“As long as it is legal, it’s ethical”

“As long as it is not illegal, it’s okay”

I’m worried that our company motto

makes us look shifty

here is the motto proposal for our

company:

“we never did anything

illegal"


illegal"

I’m worried that our company motto

makes us look shifty

here is the motto proposal for our

company:


illegal"

Ethics vs. Compliance

“Our rules alone won’t be enough. Our rules neverhave been enough, are not enough today, and neverwill be enough. What is really needed is a change ofmindset – one that fosters not only a ‘culture ofcompliance’ but also a company-wide environmentthat fosters ethical behavior and decision-making”

William Donaldson - Former chair, SEC


Patrícia Colombo 7

What is Ethical Culture?It’s “a company‐wide commitment to do the right thing this time, and every time”.

William Donaldson, Former Chair SEC

https://www.youtube.com/watch?v=5CcLIPaUz3E

Zappos Company Culture

Partial film


Patrícia Colombo 8

Tony Hsieh, CEO of Zappos, largest online shoe store stated that:

“At Zappos, our number one priority is our company culture. Our belief is that if we get the culture right, most of the other stuff, like delivery, great customer service and building a long-term enduring brand, will happen naturally, on its own.”

“I don’t think the Zappos culture can be or should be cloned, but I do think the idea of being transparent and running a business based on core values and a meaningful vision that’s not just about money and profits can work for any organization. It doesn’t really matter what the core values are, as long as the entire organization commits to those core values.”

Source: Making News in the Digital Era, by David Henderson.

Tony Hsieh, CEO of Zappos, largest online shoe store stated that:

“At Zappos, our number one priority is our company culture. Our belief is that if we get the culture right, most of the other stuff, like delivery, great customer service and building a long-term enduring brand, will happen naturally, on its own.”

“I don’t think the Zappos culture can be or should be cloned, but I do think the idea of being transparent and running a business based on core values and a meaningful vision that’s not just about money and profits can work for any organization. It doesn’t really matter what the core values are, as long as the entire organization commits to those core values.”

Source: Making News in the Digital Era, by David Henderson.

Why Ethical Corporate Culture is Important?

Lower exposure toscandals/reputational

safety;

Lower exposure toscandals/reputational

safety;Employee engagement: he/she does not do the

right thing because Codes said so, but because of

culture organization;

Employee engagement: he/she does not do the

right thing because Codes said so, but because of

culture organization;

Facilitates the generation of

commitment to something larger than

self-interest (customers, patients, society);

Facilitates the generation of

commitment to something larger than

self-interest (customers, patients, society);

Investorsinterest

increases;

Investorsinterest

increases;

Employee Misconductdecreases.

Employee Misconductdecreases.


Patrícia Colombo 9

EMPLOYEE ENGAMENT

CULTURE ENGAGEMENT

NBES Research: Ethics and Employee Engagement

According to National Business Ethics Survey (NBES), it was proved that:- Positive perceptions of an organization’s

ethical culture are associated with higherlevels of engagement;

- Employees who ovserved misconductwere less engaged than those who didnot;

- Engaged employees are more likely toreport misconduct when they witness it.

Source : http://erc.webair.com/files/u5/NBESResearchBrief2.pdf


Patrícia Colombo 10

EMPLOYEE ENGAMENT

Ethical Engagement is when people feel so involved withcompany and its values they are willing take responsibility forseeing its values are maintained and speaking up if they are not.

This is not something you “do” to people. Instead, engagement stems fromunlocking people’s natural desire to do a good job…bringing the HERO to thesurface!!!

Who is responsible for sustaining employee ethical engagement?

According to NBES Research: Management’s commitment to ethics is particularlyimportante for employee engagement. Source: http://erc.webair.com/files/u5/NBESResearchBrief2.pdf

CULTUREENGAGEMENT



1. - Not being a role model.

2. - Setting managerial values that undermine integrity;2.a. - Bottom-line mentality2.b. - Exploitative mentality2.c. - Madison Avenue Mentality

How

Man

ager

s in

adve

rten

tly

enco

urag

e m

isbe

havi

or ?

1. - Not being a role model.

.

• Does not act morally nor in compliance with company's values;• Does not communicate importance of ethics to his/her team;• Does not bring an ethical perspective to decision-making• Says Compliance Trainings are a waste of time;• Do not attend nor allow its subordinates to attend compliance trainings;• Does not act with integrity in personal life.

How

Man

ager

s in

adve

rten

tly

enco

urag

e m

isbe

havi

or ?



• Financial success as the only value to be considered;• Rules of morality are merely obstacles along the way to

bottom-line financial success;• Employees that achieves narrow goals should be reward no

matter how they achieve it;• Ends justify the means.

2. - Setting managerial values that undermine integrity;2.a. - Bottom-line mentality

How

Man

ager

s in

adve

rten

tly

enco

urag

e m

isbe

havi

or ?

Case:

General Eletric: the company removed a manager who refused todiscuss prices with competitor and offer his successor the positionwith the understanding that management believed he wouldbehave as expected and engage in price-fixing activities (Source:Geis, 1977, p. 124).

2. - Setting managerial values that undermine integrity;2.a. - Bottom-line mentality

How

Man

ager

s in

adve

rten

tly

enco

urag

e m

isbe

havi

or ?



• Lack of empathy and compassion;• Highly selfish perspective: one that sacrifices others in favor

of one’s benefit.

Cases:o Ford - Pintoo Johnson -Tylenol

2. - Setting managerial values that undermine integrity;2.b. - Exploitative mentality

How

Man

ager

s in

adve

rten

tly

enco

urag

e m

isbe

havi

or ?

As long as it looks like ethical, it is ok. It’s about coveringunethical behavior with rationalizations like:

• it’s not really illegal;• It’s in the best interest of the company;• No one else will ever find out;• Everybody does it.

2. - Setting managerial values that undermine integrity;2.c. - Madison Avenue Mentality.

How

Man

ager

s in

adve

rten

tly

enco

urag

e m

isbe

havi

or ?



As long as it looks like ethical, it is ok. It’s about coveringunethical behavior with rationalizations like:

• it’s not really illegal;• It’s in the best interest of the company;• No one else will ever find out;• Everybody does it.

2. - Setting managerial values that undermine integrity;2.c. - Madison Avenue Mentality.

How

Man

ager

s in

adve

rten

tly

enco

urag

e m

isbe

havi

or ?

Creating and Maintaining an Ethical CultureGENUINE TONE AT THE TOP AND THE MIDDLE: Walk the Talk – Leaders are watched!

• Subordinates look up for their boss, not only for instructions but for inspiration.• Employees often view unethical behaviors from leaders as an implicit

endorsement that these behaviors are acceptable• Leaders must demonstrate the highest moral standards and ethical conduct in

their everyday talk and walk, so other will follow suit. If leaders behave as if theonly thing that matters is profit, employees are likely to act in a like manner.



Creating and Maintaining an Ethical Culture

BE A BUSINESS PARTNER – It’s not just about teorical guidances.Neither do’s and dont’s. Sit with the business and discuss real problems as

they appear.

CODE OF CONDUCT: Adopt a meaningful set of values with which employees canidentify—make sure these readily translate into daily forms of behaviour.

And where possible, involve employees in both identifying and naming thecore values, rather than issuing them from high. They will feel like doing part ofsomething meaningful.

CREATE A DECISION FRAMEWORK – This is how decisions are taken here! Mostethical dilemmas are not clear-cut situations. Employees must understand thedifferences between outcomes (short-term) and consequences (long-term).

REALISTIC TARGETS: There is a LOT of pressure in the workplace. Repeat the“mantra” it’s not just about getting there, but how we get there. Stick to it!

When your pay check depends on the choices you make, it can be really hard even for good people

always to make the right decisions…




REALISTIC TARGETS: There is a LOT of pressure in the workplace. Repeat the“mantra” it’s not just about getting there, but how we get there. Stick to it!

ASSIGN STAKEHOLDERS – Managers, Compliance Champions, CorporateCommunication and HR are great – and necessary – stakeholders to helpinvolving employees and keeping the ethical culture alive.

According to the conclusions of NBES research, when HR is effective in itsefforts to promote employee engagement , it’s simultaneously reducing thecompany’s ethics risk.Source:http://erc.webair.com/files/u5/NBESResearchBrief2.pdf


COMMUNICATE ETHICS

• Clearly and frequently communicate the desiredbehaviors and why they are important to thecompany (example: patient care).

• Put ethics on team agendas regularly, with seniorpeople willing to speak about ethics and theirimportance to the company. Use every channel youcan: internal newsletter, webpage, staff meetings,share cases of ethical dilemmas and how they wereresolved.

• Provide office material (pens, post-its, agenda etc.)with your company logo and compliance/ethicalmessages.




DO EXCITING AND INVOLVING TRAININGS – not merely check the box – games, food,small gifts have their worth. Bring real problems to be discussed.

MAKE IT REAL: share monitoring results:show the gaps and suggest how to fixthem;

PERFORMANCE MEASURE : Ethical behaviormust be part of annual employeeevaluation and bonus;


HIRE AND PROMOTE THE GOOD APPLES: Hire and promote those who share the samevalues of the company and look for long-term interested employee.

Make Integrity Tests part of your standard hiring process.

You handled the audit sowell, we’re promoting youfrom Accounts Receivable

to Accounts Deceivable





U.S. Attorney Preet Bharara on Leading Ethical Organizations

https://www.youtube.com/watch?v=NuWj6QmOra8

Partial film

BE RESPONSIVE: Prefer taking rewarding ethical approach instead relying onlyin punishment approach (but do it consistently) – if ethical behavior isrewarded it’s unlikely to have people wanting to be unethical. Anyway, clearlydefine the repercussions for wrongdoing and apply discipline consistently.





HOTLINE:• For advice on ethical situations and report mecanism

(anonimaty should be allowed, but not encouraged).• Display hotline number/email in every possible way

(posters, website, office suppliers etc).• Whenever possible, publishes internal suitably

anonymous examples of where a whistle blowersystem report led to an investigation and appropriatedisciplinary action against those found to haveviolated the companies' policies. This helps to buildthe necessary trust among employees.


NON-RETALIATION POLICY: Provide encouragement and protection to any employeewho reports in good faith;

Source: http://www.ethics.org/research/eci-research/nbes/nbes-reports/nbes-2013

21% of employees that reported

misconduct suffered retaliation and

34% of those who despite witnessing stayed quite

said it was for fear of retaliation.



The key to enabling people to be as moral as possible is designingan ETHICAL CULTURE that makes such behavior easy, automatic, andhabitual.

When employees perceive that their organization truly puts virtuesinto actions, they are more likely to invest time, energy andinvolvement in their work, leading to beneficial outcomes for theindividual employee, whole organization and society, becoming – whynot to say – a business HERO!

CONCLUSION

From Villains to Heroes: Fostering Ethical Behavior in Organizations15th Annual Compliance and Ethics Institute Chicago -2016



Patricia Colombo, CCEP, CHCGeneral Manager, Legal, Complianceand Regulatory AffairsFUJIFILM Brazil

From Villains to Heroes: Fostering Ethical Behavior in Organizations15th Annual Compliance and Ethics Institute Chicago -2016

from villains heroes€¦ · from villains to heroes patrícia colombo 16 realistic targets: there...

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