integrating ethics and integrity into the business

Integrating Ethics and Integrityinto the Business

Ami Spivey VP of Innovations, Engineering & Global Processes, Sam’s Club

Cindy MoehringVP & Chief Ethics Officer, Walmart

2 Integrating Ethics and Integrity into the BusinessOperating an Effective Ethics Program Globally

“Personal and moral integrity is one of our basic fundamentals and it has to start with each of us.”

- Sam Walton

3 Integrating Ethics and Integrity into the Business

Walmart Way of Working

Common Operating PrinciplesCommon Operating Principles

Common Values and BehaviorsCommon Values and Behaviors

Respectfor the

Individual

Respectfor the

Individual

Serviceto the

Customer

Serviceto the

Customer

Actwith

Integrity

Actwith

Integrity

Strivingfor

Excellence

Strivingfor

Excellence

Our PurposeOur PurposeWe save people moneyso they can live betterWe save people moneyso they can live better


Elements of Corporate Ethics

PersonalLeadership

Culture Programs


Lessons from Walmart Leaders


“Mentor your leaders; assume they know nothing about professionalism and integrity -teach them before they fall, and before they impact other associates...”

- Don SoderquistFmr. Vice Chairman Walmart Stores, Inc.

Don’t Make Assumptions


• “Don’t be loyal to individuals or seek personal loyalty; follow, teach, & uphold our 3 Basic Beliefs!”

• “Ego is the greatest enemy of leadership”– Stops listening– Breeds arrogance– Causes bad decisions

- H. Lee ScottWalmart Board of Directors,Fmr. CEO, Walmart Stores, Inc.

Check Your Loyalty and Ego


“Leadership starts with trust, and trust only comes from integrity.”

- Mike DukePresident & CEO, Walmart Stores, Inc.

Establish Trust


“Lead by example….don’t ask your folks to do something that you aren’t willing to do.”

- Rosalind BrewerPresident & CEO, Sam’s Club

Set the Tone from the Top


“Servant leadership isn’t the absence of power…it’s the presence of humility. It is a leadership choice that fully realizes its full potential through others achieving theirs.”

- Susan ChambersEVP, Walmart Global People

Be a Servant Leader


“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

- Sam WaltonFounder, Fmr. CEO Walmart Stores, Inc.

Be Accountable


“Listen to the pieces of criticism that can help you improve.”

“Don’t automatically discount the entire message, just because some parts of it could be incorrect.”

- H. Lee ScottWalmart Board of DirectorsFmr. CEO, Walmart Stores, Inc.

Be Receptive to Feedback


• Say “Thank You” – Encourage associates.• “Open the Door” For criticism, feedback, involvement in your decisionsBy spending time with Associates, so they are

comfortable coming to you

Be Adaptable


• Don't assume people aren't afraid of or intimidated by you Asking questions after you give direction – “do you think

this is the right course of action, do you have what you need to get it done?”

Avoid absolutes – never say “I don’t care what you have to do” or “Whatever it takes”

Encourage “push back”

• Admit your mistakes

Be Approachable


• Every leader is handed the keys to the “car.” Remember you “co-own” the car; it’s not your car! You get

to drive it for a while.

• The “car” is a very valuable and very effective and successful vehicle. It represents our people, processes, networks, systems and

culture.

The Car Analogy


• Don’t Wreck It• Respect the Car Those that build the “car”, - the people that make us

successful

• Respect the “engine” of the car Proven systems, processes, structures, and communication

processes

The Car Analogy


• Drive the “car” responsibly You are given the keys only for a short time

• Go Fast on the Straight-aways Run the Business Exceeding PlanTake it to New Places, while Serving, Respecting, Listening

and Involving

The Car Analogy


• Slow Down on the Curves When you are changing the business, SLOW DOWNThink it Through. Test it.

• Take your car down the road but be a Great Steward Drive it well – so the team continues to win long after you

are gone

The Car Analogy


• Ethical issues arise when an individual or institution becomes bigger than the people they are leading or serving

• When this is left unchecked this creates one of my favorite Engineering Terms:

“Design Induced Error”

Reverse

Forward

The Car Analogy


Common Themes Leading to Ethical Lapses

• Loyalty to supervisor

• By-products of unchecked success

• Goal mesmerization

• Blind precedents

• Isolated teams or performers


Global Ethics Office Vision


Global Ethics Office Objectives


Promoting a Culture of Integrity

• Emphasis on prevention– Values-based approach

– Proactive advice from the Global Ethics Office

• Tone at the top– Board of Directors

– Leadership Speaks Series

– Presentations from the Chief Ethics Officer at Global Leadership Meetings

– Facilitated on-boarding for all global officers

• Mood in the middle– Blended training approach for management

(facilitated, e-learning, toolkits)

– Level and position-specific content


Leveraging Technology and Innovation

• Walmartethics.com

• Mobile-friendly version

• Diverse workforce

• Accessibility for field associates

• Increase in mobile device usage


Positive Reinforcement and Recognition

• Peer nominated program

• Local emphasis, global exposure

• Market award recipients selected to attend Shareholders’ Week


Questions?

integrating ethics and integrity into the business

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