there’s no accounting for good ethics…or is there? patricia j. harned, ph.d. chief executive...
TRANSCRIPT
There’s No Accounting for Good Ethics…Or is There?
Patricia J. Harned, Ph.D.
Chief Executive Officer
Ethics & Compliance Initiative
www.ethics.org | ©2015 Ethics & Compliance Initiative
www.ethics.org | ©2015 Ethics & Compliance Initiative
www.ethics.org | ©2015 Ethics & Compliance Initiative
www.ethics.org | ©2015 Ethics & Compliance Initiative
www.ethics.org | ©2015 Ethics & Compliance Initiative
www.ethics.org | ©2015 Ethics & Compliance Initiative
What Do We Mean by Ethics?
• Ethics = a decision that impacts another person
• Most decisions have an ethics component:
o Procedures and controlso Accuracy of recordso Management of errorso Meeting financial obligationso Transparency of financial statementso Funding or cutting programso Employee supervisiono Treatment of colleagueso Personal use of time & information
Questions?
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Presentation Plan
• Current State of Workplace Ethics
• Drivers of Good Conduct in Organizations
• Telltale Signs
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About ECI• Leading the Movement for Responsible Organizations
o New ideas grounded in research o Best practice communityo Education and certification
• Comprised of:o Ethics Research Centero Ethics & Compliance Association o Ethics & Compliance Certification Institute
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• Longitudinal, cross-sectional study
• Implemented eight times since 1994
• Government data through 2007; 6,420 responses in 2013
• Dual mode: Online and phone (including cellular)
• Oversampling for companies with 90K+ employees
• Data weighted by: collection mode; age, gender, and education of respondent; company size
• Sampling error: +/- 1.2 percent at 95% confidence level
About the National Business Ethics Survey®
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The Current State of Workplace Ethics
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• In 2010, 11% of federal employees observed illegal or wasteful activities in their agency.
– 35% did not report the activity– 35% of incidents cost more than $100,000
• “I can disclose a suspected violation…without fear of reprisal.”
– 20% disagreed/strongly disagreed
Source: 2011, US Merit Systems Protection Board, Blowing the Whistle: Barriers to Federal Employees Making Disclosures
Fraud, Waste & Abuse in the Public Sector
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• 34% of US employees observed fraud, waste or abuse in their workplace during 2013.
• 8% observed some form of corruption.
-Source: ERC’s 2013 National Business Ethics Survey™
Fraud, Waste & Abuse in the Public Sector
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Observed Misconduct
-Source: ERC’s 2013 National Business Ethics Survey™
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Who Commits Misconduct?
53%
-Source: ERC’s 2013 National Business Ethics Survey™
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Who Commits Misconduct?
60%
-Source: ERC’s 2013 National Business Ethics Survey™
www.ethics.org | ©2015 Ethics & Compliance Initiative
Questions?
www.ethics.org | ©2015 Ethics & Compliance Initiative
Drivers of Good Conduct
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#1 Awareness of Standards & Resources
Industry Benchmark Data
-Source: ERC’s National Business Ethics Survey™
www.ethics.org | ©2015 Ethics & Compliance Initiative
#1 Awareness of Standards & Resources
-Source: ERC’s 2013 National Business Ethics Survey™
www.ethics.org | ©2015 Ethics & Compliance Initiative
Questions?
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#2 CultureMost managers think of themselves as ethical.
They are often perceived as ethically neutral or altogether unethical.Trevino, Hartman & Brown. (2000). California Management Review
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#2 Culture
-Source: ERC’s 2013 National Business Ethics Survey™
www.ethics.org | ©2015 Ethics & Compliance Initiative
#2 Culture
-Source: ERC’s 2013 National Business Ethics Survey™
www.ethics.org | ©2015 Ethics & Compliance Initiative
#3 Accountability
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Telltale Signs
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Signs of An Unhealthy WorkplaceVast Majority of Misconduct Committed by Individual “Bad Apples”
Strong Ethics Culture
Weak Ethics Culture
-Source: ERC’s 2013 National Business Ethics Survey™
www.ethics.org | ©2015 Ethics & Compliance Initiative
• Strong economy• Poor management practices• Lack of awareness of standards & resources• Employee feelings of pressure• Rumors of retaliation
Indicators of Ethics Risk
“Listen to the whispers and you won’t have to hear the screams.” Cherokee Proverb
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Questions?
www.ethics.org | ©2015 Ethics & Compliance Initiative
Upcoming Resources from ECINational Business Ethics Survey® Reports:
Generational differences & ethics Employee connection to culture (collective identity) Gender Differences & Tone at the Top National Business Ethics Survey® - Contracts Management Industry National Business Ethics Survey® - Internal Auditors Global Business Ethics Survey
Benchmarking Group Reports: Conflicts of Interest Anti-corruption Programs Working with Monitors Regulatory Intelligence
www.ethics.org | ©2015 Ethics & Compliance Initiative
For More Information
Pat Harned, Chief Executive Officer
www.ethics.org