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Ethics
Today Online
Published
by the Ethics Resource Center
August 15, 2003 Volume 1, Issue 12
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- A Word from the President
- Building Ethics Institutions and
Ethics Capacity in Developing Countries
-- Introduction by Director of International
Programs Alex Zalami
-- Ethics Institute of South Africa
-- Turkish Ethical Values Center
-- Transparencia por Colombia
- Ethics and Corruption at Home and
Abroad: The Urgency of Building an Integrity Culture
- Good Governance Efforts by Donor
Agencies
- Book Review: Varieties of Ethical
Reflection: New Directions for Ethics in a Global Context
- Press Release: Boost Ethics Education
and Training for Young People
- ERC Fellows Discuss Role Modeling,
Ethics Effectiveness
- Ask the Expert: How Do Globalization
and the U.S. Corporate Scandals Affect Ethics?
- The Enron Effect: Ethics in the
Workplace
- Corporate Codes of Ethics and Sarbanes-Oxley
- Chairman of the Board Ken Frazier's
Term Extended
- The Results are In: ET Reader Survey
and June/July Opinion Poll
- Online Index to Ethics Today to
Debut in September
- Publications and Media Coverage
- News from the ERC
- Offering Our Thanks
****************************************************************************
**
A Word from the President
The past year seems to have flown by.
It was September 2002 when Ethics Today moved from print to electronic
format. Some of us - like me - were romantically attached to the
idea of a paper document, but our ability to provide the most current
information with almost instantaneous transmission was just too
attractive.
All of us at the Ethics Resource Center
have been gratified by the response to the new format and content.
This was corroborated by the responses to our July survey.
I was especially struck by the diversity
of our readers -- from compliance officers to college professors,
from corporate senior executives to journalists. The sectors represented
were just as diverse, including individuals from all segments of
our society: accounting, education, information technology, law,
government and non-profits.
The wide range of topics covered evidently
resonated with those individuals concerned about ethics. More than
50% of respondents were very interested in business ethics, character
education, codes of ethics, corporate social responsibility, global
ethics, government, and professional ethics. We are obviously "hitting
home" with our selection of topics. Readers responded positively,
as well, to the decision by staff to focus on particular issue areas
of ethics within each issue.
Our features, guest columns, "Ask
the Expert" and theme related articles appear to be the most
popular. The article lengths and focus seem to be just about right,
as is the monthly format. Some found the publication a bit too long,
and we will adjust that in future additions. Interestingly, most
readers didn't care when we sent the electronic version out.
Most importantly, readers were far
more interested in the content than format and timing. The number
of individuals receiving and downloading Ethics Today has increased
exponentially. In July, almost 2900 copies were sent via email and
more than 1750 visitors accessed the current issue of Ethics Today
on the website. It is a reminder of how important the issue of ethics
is in today's world. We appreciate all of your feedback that will
help to ensure the continued quality of our publication.
Stuart C. Gilman, President
During our first year online, Ethics
Today published the following essays by ERC President Stuart Gilman
in his president's column:
- What Obligation to Teach Ethics?
- The Value of Research
- Do Ethics Pay?
- The Vulnerability of American Institutions
(or All Too Quiet on the Ethics Front)
- Globalization and Corporate Social
Responsibility
- Living the Olympic Values
- Why Ethics? Why Now?
- Character and Fate
- The New Reality of the Global Village
- The Character of Our Nation, the
Character of Our World
Read these previous "Words from
the President" at:
http://ethics.org/sg_corner_archives.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Building Ethics
Institutions and Ethics Capacity in Developing Countries
The ERC seeks to build organizational
ethics and good governance capacity in developing countries as a
means of advancing their economic and social development. Since
1995, the ERC has assisted local ethics institutions to develop
the necessary capacity and technical expertise to provide a wide
range of business and organizational ethics resources, services
and products to their communities. The growing network includes:
- The Gulf Center for Excellence in
Ethics (GCEE), Abu Dhabi, UAE
- The South African Ethics Institute
(EthicsSA)
- Transparencia por Colombia, Bogotá,
Colombia
- The Center for Business Ethics (CBE),
St. Petersburg, Russia
- The Turkish Ethical Values Foundation
(TEDMER)
- The Korean Business Ethics Institute
(KBEI)
The ERC's approach to providing technical
assistance to international partners is guided by the following
principles:
1) Local ownership of the ethics agenda.
We seek out committed local partners and assist them in surfacing
their own cultural values in emulating internationally accepted
standards of organizational ethics and good governance.
2) Coalition building. A successful
and sustainable ethics agenda typically requires active support
by a broadly based coalition of stakeholders from a number of sectors
(government, business, civil society). This is particularly true
of developing nations where the level of development of individual
sectors puts constraints on their ability to undertake independent,
sector-based reform oriented initiatives.
3) A focus on local capacity building.
The ERC typically engages in accelerated local capacity building
using a proprietary catalog of train-the-trainer curricula to prepare
local consultants in the delivery of customized training programs
in:
- Business ethics and corporate governance
- Government ethics and public sector
governance
- Civil society empowerment
In the rest of this fact sheet, Director
of International Programs Alex Zalami describes the process by which
the ERC determines the feasibility and long-term viability for ethics
centers abroad, and how it helps them transition to operational
and financial independence.
Read the rest of this article at:
/resources/article_detail.cfm?ID=454
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
In addition to reporting generally
on the Centers' goals and accomplishments, Ethics Today asked Ethics
Center directors to comment on the ethics environment in their country
and the impact of their center on the ethical climate.
** Ethics Institute of South Africa
(EthicSA)
EthicSA and staff have appeared numerous
times in the national print, radio and television media, delivered
more than 30 presentations at conferences and workshops, and published
dozens of articles, reports and other materials. The website, due
to be revised this month, contains numerous resources, including
a hefty number of articles and citations to references in the area
of bio-medical ethics. EthicSA also publishes a twice-weekly e-mail
based newsletter pertaining to national and international business
events.
The Center has recently completed Business
Ethics South Africa (BESA) 2002: Corporate Ethics Indicator, based
on a survey designed with the assistance of ERC Senior Researcher
Joshua Joseph, that provides South Africa with a national benchmark
for corporate ethics governance and management initiatives. The
full report, which includes ethics management best practices, will
be available for purchase from EthicSA.
Get a PDF copy of the Condensed Research
Report at:
http://www.ethicsa.org/Condensed%20research%20reportver21.pdf
ERC's Principal Consultant Frank Navran
visited the Center in March and April 2003, assisting with the development
of business ethics management consulting proposals, providing in-house
training and capacity building, fine-tuning the BESA survey and
the Center's new membership plan and providing other expertise.
About the state of ethics in South
Africa, CEO Willem A. Landman says: "It is impossible to address
this question adequately in a few sentences, but some indicators
stand out. The publication of the King II Report in 2002, a benchmark
corporate governance document, set the tone for corporations and
other organizations to operate ethically. A whole industry has developed
in its wake. EthicSA is one of the most prominent players in respect
to ethics management support, with the King Committee having given
us special recognition in a number of ways. The problem is how to
match capacity with overwhelming demand! EthicSA's business ethics
survey (BESA 2002) is the first comprehensive initiative to benchmark
business ethics in corporations in South Africa, based on King II
and the US Federal Sentencing Guidelines for Organizations (FSGO)
(1991) as standard-setting documents."
"Anticorruption agencies and initiatives
have multiplied and there is truly a new focus on eradicating fraud
and corruption in South Africa. There is complete commitment to
this from the Presidency. EthicSA has been involved in several anticorruption
workshops to help ensure that commitments translate into practice."
About the future, Mr. Landman writes:
"EthicSA will be launching its organizational membership plan
in September. Organizations will be able to join EthicSA, with EthicSA
providing ethics support and monitoring services in return for commitments
to verifiable ethics management initiatives by organizations and
the payment of an annual fee. We are determined that this plan will
put organizational ethics in South Africa on a new level."
Read more about the Ethics Institute
of South Africa at:
http://www.EthicSA.org
** Turkish Ethical Values Center (TEDMER)
TEDMER was launched in January 2003
in an event that also highlighted the Turkish Survey on Business
Ethics, adapted for Turkey from the ERC's 2000 National Business
Ethics Survey. Since then, the center has worked toward establishing
and improving relationships with a number of other ethics organizations,
including university ethics clubs and non-governmental organizations
(NGO's). Managing Director Necati Guler made a presentation at the
National Congress of Medical Ethics in June 2003, and Frank Navran
spoke to and conducted workshops for university ethics clubs during
his visit to the center in May 2003. Also during that visit, Frank
started the training for TEDMER's "Ethics Officer Certificate
Program" which will continue during his visit next month.
Get a PDF copy of the Turkish National
Business Ethics Survey at:
/resources/article_detail.cfm?ID=783
TEDMER is also developing "Ethics
Volunteers" working groups, a quarterly ethics magazine and
an "Ethics Bowl" for university ethics clubs, as well
as planning an international conference on business and political
ethics. With the technical assistance of Frank Navran, the center
is also preparing an "Ethics Leaders Program".
Managing Director Necati Guler writes:
"Although a very short period of time has passed since the
launch of TEDMER, there has been a substantial increase in awareness
on issues related to ethics. Through different media, TEDMER is
trying to spread the message that 'ethical business is good business'.
Our Ethics Officer Certificate Program that we started with the
great contribution from ERC has received a lot of coverage. This
has made quite a few companies and institutions take the matter
more seriously.
"Along with TEDMER, a couple of
other NGO's are very much involved with the efforts to spread ethics
and integrity as well as stopping corruption and the Government
just passed a decree to fight corruption. There is also a law now
being considered to establish an 'Ethics Committee for all Public
Sector and Government Officials'. I believe, as long as it is correctly
and fairly passed at the Parliament, this is a big step towards
an ethical society."
As for the future, Mr. Guler says:
"In addition to our Ethics Officer Program, we plan to have
an Ethics Leader Program which will enable us to get the heads of
the organizations involved as well. Since we plan to make our members
have a board member who deals specifically with ethics issues in
the company, such a program will be a very important element for
progress in our local environment."
Read more about the Turkish Ethical
Values Center at:
http://www.tedmer.org.tr/ing/index2.htm
** Transparencia por Colombia
Transparencia por Colombia adapted
an ERC-designed methodology for larger companies that allows enterprises
to orient their decision-making process and employee behavior towards
ethical standards. They developed another methodology for small
and middle enterprises, which has spread through trade unions, universities
and small and middle enterprises' associations.
Transparencia por Colombia also worked
on the introduction of Integrity Pacts to help government, businesses
and civil society groups fight corruption in the field of public
contracting. Under an Integrity Pact, bidders competing for the
supply of goods and services provide a binding assurance that they
have not paid any bribes in order to obtain this contract and that
they will not do so in the future. The Integrity Pacts were designed
by Transparency International and were adapted by the Colombian
chapter to the conditions of the country. Forty Integrity Pacts
have been signed by 254 domestic and 48 international firms. In
addition, more than 600 public servants in loyalty and management
positions have signed Ethical Declarations.
Transparencia has worked with students
at 10 universities to make them reflect on the application of ethical
values to specific realities they experience first hand. During
a March visit to the Center, ERC Principal Consultant Frank Navran
spoke to a group of 300 university students on the subject of social
responsibility and ethics and how they are relevant in Latin America,
and Colombia in particular.
During that visit, Frank also engaged
in staff training on a wide range of ethics issues, including the
role, responsibilities and population of an ethics office and an
ethics committee (EC), investigations, confidentiality / anonymity
issues, data gathering and reporting and interface with senior executives
and boards.
Transparencia por Colombia has developed
an "Integrity Index for Public Institutions" designed
to help monitor the evolution of corruption and integrity in the
country. The Index is published annually and measures the performance
of the main public institutions in areas such as transparency, control
and punishment, and efficiency and institutionality.
Read the press release for the 2002
report at:
http://www.transparency.org/pressreleases_archive/nat_chaps_press/
2002.09.30.integrity_index_colombia.html
About the ethics environment in Colombia,
communications director Diana Suarez says: "Despite having
in the country a forward-looking legislation and a favorable institutional
framework towards integrity, the situation regarding corruption
is still worrying:
- The Corruption Perception Index,
prepared by Transparency International, ranks Colombia among the
highest risks countries, since it hasn't achieved a score above
3.8 over 10.
- The Study on Corruption, Governance
and Institutional Development in Colombia, conducted by the World
Bank, indicates that 94% of those surveyed identify corruption
as one of the country's four most serious problems, and 81% of
entrepreneurs acknowledge the significant influence drug trafficking
and economics groups have in decision-making by top governmental
authorities.
- The 2002 Integrity Index for Public
Institutions reflects that only one of the 88 public institutions
analyzed accomplishes an optimum integrity level.
- The most conservative estimates
of corruption's direct costs in the public national budget account
for 1% of the GDP.
- A 2002 survey of 900 business people
who contract with the State shows that bribes increased from 12.8%
to 16.3%. The survey indicated that 38.2% of those interviewed
would not agree with giving contributions in order to fight against
corruption."
Read more about Transparencia por Colombia
(Spanish language only) at:
http://www.transparenciacolombia.org.co
The Merck Company Foundation and Merck Co., Inc. have provided
generous support toward the establishment and ongoing work of the
Gulf Centre for Excellence in Ethics (GCEE), the Ethics Institute
of South Africa (EthicSA), the Turkish Ethical Values Center (TEDMER)
and Transparencia por Colombia.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Ethics and Corruption
at Home and Abroad: The Urgency of Building an Integrity Culture
On June 22, 2003, Frank Vogl, President
of Vogl Communications and ERC Board member, spoke to the Goodwill
Delegate Assembly 2003 at the Annual Meeting of Goodwill Industries
International Inc. His presentation discussed the need for all organizations
to redouble good governance efforts, especially in light of the
U.S. corporate scandals.
"At the core of organizational
good governance is the building of an integrity culture," he
said. "The leaders of every organization must not just have
a meaningful institutional code of ethics, but a plan to ensure
they are seen across their organizations as ethical role models.
Their pro-active stance, backed by superb ethics-directed communications
and employee training, ensure that an ethical culture is built and
sustained. Organizations that fail to assign the highest priority
to this challenge will lose their reputations in due course. They
will fail."
Mr. Vogl, one of the 12 founders of
Transparency International who received the ERC's 2000 Pace Award,
also discussed at length the issue of international corruption and
payment of bribes and facilitation payments by U.S. and other firms.
On the positive side, he said, "There is ample evidence that
organizations with a very strong ethical culture can impress people
overseas with their firm adherence to basic values. Organizations
can enter a country and tell official and business counterparts
immediately and directly - we don't pay bribes. We are here for
the longer-term. We are here to act as good citizens. We are here
to work with you to the benefit of your people. We can bring our
experience and knowledge to your needs - but we do not pay bribes."
He concluded with a discussion of "pragmatic
ethics management", in which he laid out a seven-point checklist
of key actions that will help an organization grow in strength.
Read the full text of his speech at:
/resources/speech_detail.cfm?ID=452
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Good Governance
Efforts by Donor Agencies
Jerry O'Brien, Democracy Specialist
for USAID and former Director of International Programs at ERC,
spoke in April 2003 at the Annual Conference of the International
Consortium on Governmental Financial Management which met under
the title "Reducing Poverty and Corruption: An Integrated Approach
to Good Governance". His remarks on "Good Governance Efforts
by Donor Agencies" focused on the ways in which USAID promotes
good governance and democracy in the field and how the agency works
with host countries to institute good governance at the national
and local levels through programmatic activity. During his speech,
O'Brien considered the links between governance and development
and between governance and democracy. He stated that while democracy
is not in itself a guarantee of good governance, it creates the
political space within which to fight for good governance. "The
view that poor governance and corruption are the key impediment
to development has been steadily gaining adherents in the development
and foreign policy fields for some time now", he continued,
citing the Administration's planned Millennium Challenge Account
and the programs supported by USAID to help host countries improve
governance.
Read the text of this presentation
at:
/resources/article_detail.cfm?ID=455
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
**Book Review: Varieties
of Ethical Reflection: New Directions for Ethics in a Global Context
According to ERC Programs Manger Jerry
Brown, while the anthology "Varieties of Ethical Reflection"
presents some cultural and religious information often missed in
studies in the United States, it concentrates more on Asian philosophical
sources and lacks the truly global perspective promised in the title.
"Individual articles stand out
and have weight and value," he notes in his review. Although
limited in range, he says, "The book is a starting place for
better understanding of ethics from a global perspective."
Read the rest of this review at:
/resources/book_detail.cfm?ID=450
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Press Release:
Boost Ethics Education and Training for Young People
"Corporate leaders and business
schools need to strengthen their focus on youth," said national
ethics experts gathered in Washington DC for the July 2003 ERC Fellows
meeting. According to the August 5 press release, "Ethics education
and training for young people by corporations and business schools
is essential for the future of business integrity"
Fellows Program Chairman Stephen Potts,
former Director of the US Office of Government Ethics, said, "Too
many corporate leaders are failing to pay adequate attention to
ethics training for young people in the American workforce. At the
same time, many business schools are failing today to provide tomorrow's
generation of corporate leaders with the ethics education vital
for the health of American business."
Read the full press release at:
/releases/nr_20030805_fellows.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** ERC Fellows Discuss
Role Modeling, Ethics Effectiveness
Other topics discussed at the Fellows
meeting, which took place July 23-25, include Ethical Role Modeling
in Business, Examining the Effectiveness of Ethics Programs, and
Challenges for Global Business Ethics. Guest Knight Kiplinger, editor
in chief of The Kiplinger Letter, Kiplinger's Personal Finance Magazine
and KiplingerForecasts.com, gave the keynote address and led the
discussion on perspectives and issues in organizational ethics.
The Fellows also agreed to consider
the following issues for potential future projects:
- Causes for the increased pressure
to commit misconduct felt by younger employees (as shown by NBES
'03), and their lower rates of reporting
- Formal ethics structures, especially
the differences between large and small organizations.
- Measurement of ethics training
- Managing ethics in a remote environment
- Responsibilities of front-line
supervisors with respect to ethics
- Identification and tracking of ethics
in legislation
- Incorporating ethics into business
school curricula
Read more about the ERC Fellows Program
at:
/fellows
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** The Enron Effect:
Ethics in the Workplace
On July 22, ERC President Stuart Gilman
delivered a live webcast on "The Enron Effect: Ethics in the
Workplace" as part of a series of free seminars offered by
PlaceWare, a subsidiary of Microsoft, and covering business topics
from top organizational leaders. The webcast was taped and can be
heard on the Web by following the instructions below.
In his presentation, Stuart states
that, for the average American worker, the ethical climate in the
workplace has improved, and backs up his words with findings from
the ERC's National Business Ethics Survey 2003. As a result of "The
Enron Effect", he explains, employees are more positive about
ethics in their own workplace, leaders and organizations are more
proactive and leaders understand that ethics is not an abstract
concept, but a critical part of a healthy company. Other topics
include:
- Actions senior managers can take
to set an ethical example;
- How a formal ethics program makes
a difference;
- What a formal ethics program should
include; and
- The overarching importance of ethical
leadership.
The latter part of his presentation
deals with continuing areas of concern, such as the reluctance of
certain groups of employees to report observed misconduct -- and
the reasons that they do not do so. He also notes that transitioning
organizations and smaller organizations may be more vulnerable.
Listen to the recorded audio and watch
the presentation's synchronized slides at:
http://www28.placeware.com/cc/marketing/view?id=ERC&pw=650650
Please note: You will be asked to register
with your name before viewing the webinar. You may also need to
install Real Audio player or Windows Media Player.
Or read the PowerPoint presentation
in PDF, without the accompanying lecture, at:
/pdfs/Ethics_Workplace_072203.pdf
Please note: You will need Acrobat
Reader to view this presentation.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Ask the Expert:
How Do Globalization and the U.S. Corporate Scandals Affect Ethics?
Instead of posing just one question,
ET prints a couple of questions and answers from Principal Consultant
Frank Navran's response to an email interview with a Turkish journalist
following his latest visit to the country.
In this month's Ask the Expert, Frank
responds to the following questions:
- How have the Enron, WorldCom and
other corporate scandals affected ethics worldwide?
- How does globalization affect corporate
ethics and ethics in the workplace?
Read the answers at:
/ask_e11.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Corporate Codes
of Ethics and Sarbanes-Oxley
The July 2003 issue of Wall Street
Lawyer featured an article co-authored by ERC Principal Consultant
Frank Navran and Edward L. Pittman, who is an attorney with the
firm of Thelen Reid & Priest. The article gives an overview
of codes of ethics and the issues to consider in implementing the
spirit and the letter of the new ethics disclosure rules written
pursuant to Section 406 of the Sarbanes-Oxley Act. The co-authors
answer a number of code-related questions, including:
- What is a code of ethics?
- How is a code of ethics created?
- What specific provisions are required
in the [SEC's] code of ethics? (including a separate more detailed
discussion of each of the five elements required by section 406)
- Who must be covered by the code
of ethics?
- How should waivers and amendments
be addressed?
They conclude by emphasizing the importance
of an effective overall ethics program and addressing the role of
the Board of Directors. A sidebar entitled "Directors' Guide
to Assessing an Ethical Culture" is included.
Read "Specific Points for a Director
to Examine In Determining The Effectiveness Of An Ethics Program",
on which the Director's Guide was based, at:
/resources/article_detail.cfm?ID=456
Read more about the requirements imposed
by Sarbanes-Oxley on Thelen Reid & Priest's web page on Corporate
Governance, Public Company Disclosure and Accounting Reforms at:
http://www.thelenreid.com/articles/sec_updates_idx.htm
Get more information about Wall Street
Lawyer, a subscription publication, at:
http://www.wallstreetlawyer.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Chairman of the
Board Ken Frazier's Term Extended
The ERC Board of Directors has extended
for one year the term of Kenneth C. Frazier as chairman of the ERC
Board of Directors. Mr. Frazier, Senior Vice President and General
Counsel at Merck & Co., Inc., has been a member of the ERC Board
since 2000 and is currently serving as Chairman of the Board.
Mr. Frazier is a graduate of Pennsylvania
State University and of Harvard Law School. After receiving his
J.D., he joined the Philadelphia office of the firm of Drinker,
Biddle & Reath, where he remained for 14 years and became a
partner in the Litigation Department. In 1992 he left private practice
to become Vice President, General Counsel, and Secretary of Astra/Merck
Group. In 1994 he was named Vice President for Public Affairs of
the parent company, Merck & Co., Inc. He took on the additional
responsibilities of Assistant General Counsel in 1997, and in 1999
he became Vice President and Deputy General Counsel. Later in the
same year he assumed his present position as Merck's Senior Vice
President and General Counsel, based at company headquarters in
Whitehouse Station, New Jersey.
Mr. Frazier is a founding board member
of the Cornerstone Christian Academy, a private elementary school
in Philadelphia, where many of the students are high-risk children.
In 1999, he and his wife Andrea established a scholarship in Liberal
Arts at Penn State for students whose ethnic, cultural, or national
background contribute to the diversity of the student body. This
year, he underwrote 10 scholarship subscriptions of MAXIMize the
Moment, the ERC's online character education resource tool, donating
one to the Academy and offering others to schools in need around
the country.
In addition to serving on the ERC and
Cornerstone Boards, Mr. Frazier is a member of the Board of Legal
Services of New Jersey, and on the Advisory Boards of CorporateProBono.Org,
National Legal Aid and Defender Association, University of Pennsylvania's
Law & Economic Center, Seton Hall University's Health Law &
Policy Center, and The Rand Institute for Civil Justice. He is a
member of the American Law Institute, American Bar Association,
Association of General Counsel, Council on Foreign Relations, and
Pennsylvania Bar Association.
The ERC staff joins in extending our
gratitude to Mr. Frazier for his tireless leadership.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** The Results are
In: Reader Survey and Opinion Poll
In July, in lieu of our monthly opinion
poll, we asked that readers take a short survey concerning the format,
content and delivery of Ethics Today Online. We appreciate the responses
of all who participated and will use them to guide us as we develop
the editorial and strategic plans for Ethics Today Online Volume
2.
Also in July, we extended the June
opinion poll in which we asked if, during the past year, you had
personally observed conduct that you thought violated the law or
your organization's standards of ethical business conduct and, if
so, did you report it? The results:
- 32% responding said they did not
observe conduct they believed to be illegal or unethical.
- 44% said they observed but did
not report conduct they believed to be illegal or unethical.
- 24% said they observed and reported
conduct they believed to be illegal or unethical.
See the results of last month's poll
at:
/cfpollresults.cfm?QuestionID=23
Our regular opinion poll feature will
return in the September 2003 issue.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Online Index
to Ethics Today to Debut in September
We are putting the finishing touches
on an index to all of the articles that appeared in Ethics Today
Online between our first issue in September 2002 and this final
issue of the editorial year. The index, which will be published
online by the first week in September, lists items according to
the same four major categories used in our online resource section:
Organizational Ethics, Character Education, Global Ethics and Integrity,
and General Ethics topics. Articles will also be indexed by sub-categories
and keywords.
Look for announcements about the Ethics
Today Online Index and other new features at:
/today
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** Publications
and Media Coverage
-- The July/August 2003 issue of the
Conference Board's "Across the Board" magazine contained
two articles by persons related to the ERC:
- "Are You Serious
About Ethics?" by Patrick J. Gnazzo and former ERC Fellow George
R. Wratney, discusses the issue of confidentiality as it relates
to ethics programs. Employees who seek to raise issues but are timid
or fearful want more than a conditional assurance of confidentiality,
say the authors. However, unlike many relationships that have limited
privileges, for instance attorney-client or doctor-patient, no law
covers the relationship between ethics or compliance officers and
employees. They cite recent ERC survey findings that many employees
who observe misconduct decide not to report it -- and that their
reasons include fear of retribution or retaliation, lack of trust
that the organization will keep the report confidential, and concerns
about being labeled whistleblowers. The authors advance the idea
of organizational ombudsman programs as a solution, and discuss
a number of situations in which it can be employed successfully.
Read this article at:
http://www.conference-board.org/publications/atb/articles/03julyGnazzo_01.cfm
- ERC Board Member Frank
Vogl was also published in the July 2003 issue of "Across the
Board". In his opinion piece, entitled "The Return of
the Ugly American", he discusses the impact of the recent U.S.
corporate scandals on the rise in anti-Americanism, with consequences
for the U.S. economy, international trade, investment and the position
of U.S. business in the world. The resulting damage includes foreign
investors avoiding U.S. stock markets because they doubt the honest
of corporate balance sheets, overseas holders of U.S. dollars losing
confidence and selling the currency in exchange for euros, antitrust
regulators at the European Union's Commission deciding against U.S.
corporations, and foreign governments resisting U.S. demands for
more free trade and investment liberalization. To turn the tide,
says Mr. Vogl, "CEO's ... need to condemn the compensation
greed, the tax-evasion habits, and the 'business as usual' approaches
to audit committees". They must then build coalitions of business
leaders "dedicated to placing integrity back at the core of
corporate culture." (This article is not available online.)
-- The following paragraph appeared in the August 1 issue of Kiplinger
Forecast:
"Business ethics are improving, according to a new survey by
the Ethics Resource Center in Washington, D.C. The study polled
employees and executives in firms of all sizes, in many fields.
Observed misconduct at work is less frequent since a 2000 poll,
and there's less perceived pressure to compromise one's own ethics.
Plus ethics problems are reported more, with greater security being
mandated for whistle-blowers and others who come forward. But 44%
of nonmanagers say they DON'T report misconduct they've seen. So
scandal-related publicity and reforms may be bearing fruit. Formal
ethics programs help, too, as do company wide discussions that set
a good tone and give whistle-blowers more confidence. Note: Senior
managers have a rosier view of their firms' ethics than their subordinates
do but are less reluctant to report problems. For help in sizing
up your company's ethics, tap the expertise of the Ethics Resource
Center at www.ethics.org or call 202-737-2258."
-- ERC President Stuart Gilman is quoted
extensively in an August 10 Courtland Milloy column in the Washington
Post on the ethical condition of the District of Columbia government.
In "The District Must Redefine Its Morality", Stuart emphasizes
that, by and large, the people in the DC government are "decent
and hardworking and want to do the right thing." They are trapped,
he says, "in an antiquated system that encourages them and their
staffs to do the wrong thing because it's so hard to get things done
and hire the highest quality people and provide them with the best
training." It is not the obvious areas of unethical behavior
-- such as using a government credit card to buy personal items --
that indicate the real problem, according to Stuart, who also teaches
ethics at the Center for Excellence in Municipal Management at George
Washington University. Rather, the problem is "believing it's
okay because 'I'm going to pay it back'. It's still a conflict of
interest." Once you lose the trust of the citizens, he says,
it becomes nearly impossible to govern.
Read the column at:
http://www.washingtonpost.com/wp-dyn/articles/A39492-2003Aug9.html
-- "Rights, Relationships, and Responsibilities, Volume 1"
is scheduled for distribution in September 2003. Editors O.C. Ferrell,
Lou Pelton and Sheb True have collected 22 articles that cover a
range of interesting ethics topics, including one co-authored by
ERC Principal Consultant, former ERC President Michael Daigneault
and former ERC Fellow Jerry Guthrie. Ethics Today and the ERC website
will include links to the publication when it becomes available.
-- The National Business Ethics Survey 2003 and the ERC/SHRM Business
Ethics Survey both continue to receive media coverage in a variety
of publications including Association Trends, the PR Reporter, Managing
People at Work, HR Magazine, the Chicago Daily Law Bulletin, and
the Billings Gazette. One article, "Most Firms See No Need
to Alter Policies", published July 5 in the Annapolis (MD)
Sunday Capital, also discussed what efforts have, and have not,
been undertaken by local small and privately held companies in light
of the recent scandals.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
** News from the
ERC
-- ERC President Stuart Gilman participated
in a BNA-sponsored audio conference along with Jacqueline B. Gates,
President and CEO of SOARing, LLC, and former ethics officer for
the World Bank Group. "Trends in Workplace Ethics", which
took place live on July 17, considered questions in three major
areas:
- Trends in Workplace Ethics
- Value of Corporate Ethics Programs/Ethics Training
- Roles of the Board, Management, and HR
Read the list of questions submitted by participants before the
conference at:
/resources/bna_questions.html
-- ERC President Stuart Gilman and Fellows Chairman Stephen Potts
made a presentation on the findings of the National Business Ethics
Survey to approximately 150 employees attending the Guardsmark,
LLC, annual sales meeting in New York on July 16. Guardsmark, LLC,
supported the NBES 2003 by underwriting the costs of the survey
and report. Ira Lipman, President and Chairman of Guardsmark LLC,
received the 2002 Stanley C. Pace Award for Leadership in Ethics
from the Ethics Resource Center Fellows.
Read Steve's remarks at:
/resources/speech_detail.cfm?ID=449
Stuart has been asked to present the
NBES 2003 findings in a number of different formats and arenas.
One fairly comprehensive version of his presentation is available
through the Placeware archive at:
http://www28.placeware.com/cc/marketing/view?id=ERC&pw=650650
-- On August 5, Senior Researcher Joshua Joseph spoke to a small
group from the U.S. Office of Government Ethics on "Getting
the Most from Your Business Ethics Survey." Read the notes
from a previous presentation on the same topic at:
/nbes2003/2003nbes_presentations.html
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** Offering Our
Thanks
As a non-profit organization, the Ethics
Resource Center depends on contributions from many generous donors.
Without their dedication and trust, many of the programs and projects
highlighted in this newsletter would not be possible.
The ERC thanks the following for their
contributions of general support:
- Bristol-Myers Squibb Foundation
We invite you to join our loyal contributors
in lending your support. To find out how to contribute or to donate
online, go to:
/support_how.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Ethics Resource Center (ERC)
is a non-profit, non-partisan educational organization exempt from
taxation under the Section 501(c)(3) of the Internal Revenue Code.
All gifts are tax-deductible to the fullest extent of the law.
=======================================================
Copyright (c) 2003 Ethics Resource
Center. All rights reserved.
Please contact ethics@ethics.org
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Washington, DC 20006 Telephone: 202-737-2258