Steven CorderyUTC Corporate Ombudsman

Europe, Middle East & Africa

The International Pharmaceutical Regulatory and Compliance Congress

June 6-7, 2007Brussels, Belgium

Ombudsman & DIALOG

REVENUES$42.7 billion (2005)61% outside United States

EMPLOYMENT220,000 employees (2005)67% outside the United States.

Ombudsman & DIALOG

1986 – DII – 6 Principles of business ethics and conduct

1986 - Launch of Ombudsman / DIALOG Program

1990 – Code of Ethics first published

1991 – US Sentencing Guidelines

2004 – Sarbanes–Oxley Act

2006 – Code of Ethics Refreshed & Strengthened

2006 – 20th Anniversary Ombudsman / DIALOG Program

Key Events

Ombudsman & DIALOG

Ombudsman

An American Idea?

Something New?

The origin of the word is found in Old Swedish umbuðsmann, and the word umbuds man, meaning representative and is non-gender specific. The first preserved use in Swedish. From 1552, it is also used in the other Scandinavian languages such as the Icelandic "umboðsmaður", the Norwegian "ombudsmann" and the Danish "ombudsmand".

The modern use of the term began in Sweden, with the Swedish Parliamentary Ombudsman instituted in 1809, to safeguard the rights of citizens by establishing a supervisory agency independent of the executive branch.

A prototype of modern ombudsmen flourished in China during Qin Dynasty (221 BC), and in Korea during the Choseon Dynasty. The Romans also grappled with the problem, but it was the example of the second Muslim Caliph, Umar (634-644) and the concept of Qadi al-Qadat (developed in the Muslim world), which influenced the Swedish King, Charles XII. In 1713, fresh from self-exile in Turkey, Charles XII created the Office of Highest Ombudsman. The Scandinavians subsequently moulded the Office into its contemporary form.

Ombudsman - Origins and Etymology

Ombudsman & DIALOG

Why have an Ombudsman?

7

8

9

(in writing, usually (usually via telephone; not legal or issues tend to be complicated in more complex, legal nature) in nature)

UTC Employee Options

Established, open channels Alternate, confidential channels

Supervisor Human Resources Legal DIALOG Ombudsman

Environmental Health & Safety

Business Practices

Cornerstones

• Confidential

• Neutral

• Independent

Accepts “notice” Does not accept “notice”

Investigates issues Does not investigate

Exists to protect Neutral, independentthe organization

Cannot promise Can promiseconfidentiality confidentiality

Company Representatives Ombudsman & DIALOG

• Confidential, independent, neutral resource to address issues

• Abides by The International Ombudsman Association Code of Ethics

and Standards of Practice.

• Reports to UTC HQ

• Independent of any company management structure

• No other roles or responsibilities that could compromise this position.

• Listen, coach and assist in developing options

• Provides feedback on trends, issues, concerns (RADAR)

• Recommends policy review or change

• Oversees DIALOG Program.

The Role of the Ombudsman

The DIALOG process is….

• an effective, confidential, two-way, communication channel

• an alternative to the normal communication channels in the company

• a communication tool that enables employees: to ask questions, raise concerns, submit ideas, without fear of reprisal,

• a way in which employees can help bring about change in the organisation

Considerations….

• Local Laws

• Leadership & Management Style

• Culture – Company & Country

75,454 75,454 DIALOGDIALOG inquiries inquiries

11,753 Ombudsman cases11,753 Ombudsman cases

Since August 1986…Since August 1986…

Ombudsman & DIALOG Volume

2004 2005 2006

2004 2005 2006

2004 2005 2006

2004 2005 2006

North America

EMEA

Asia/Pacific

South America

No changerequested

Reviewed butno change

Resultedin change

36%

22%

42%

Program Effectiveness - UTCOmbuds/DIALOG Program – since January 1998

Steven CorderyUTC Corporate Ombudsman

Europe, Middle East & Africa

The International Pharmaceutical Regulatory and Compliance Congress

June 6-7, 2007Brussels, Belgium