|
 |
 |
| Publications: Ethics Today Archives |
|
|
|
|
|
Ethics Today Online Published
by the Ethics Resource Center
** A Word from the President: Measuring Ethics One of the continuing issues in organizational ethics is measurement of the impact of formal ethics programs, especially as programs are increasingly designed to integrate ethics into the organizational climate. The importance of measuring the effect of such programs is not in question. Organizations aren't lacking incentives to measure effectiveness either. Indeed, the revisions to the Federal Sentencing Guidelines for Organizations, scheduled to take effect in November 2004, will legally require the majority of organizations in the United States to periodically measure the effectiveness of their ethics and compliance programs. Measurement of program effectiveness is difficult, in part, because organizational data on its own is difficult to interpret. Without something to measure against, it's hard to know if company data is positive or negative. In an effort to help organizations better understand the effectiveness of their ethics programs, we at the Ethics Resource Center are pleased to be able to offer a survey solution that enables organizations to satisfy the legal requirement and benefit from an affordable mechanism for ongoing compliance. The survey enables participating organizations to compare their ethical practices to national averages. Furthermore, trade organizations and their members may contract with the ERC to establish industry averages to which their members can compare their individual results. For ten years the ERC has offered the National Business Ethics Survey (NBES), which identifies the impact of ethics program elements and trends in organizational ethics from the perspective of the American workforce. The new ERC Ethics Index(tm), based upon that NBES dataset, can help organizations comply with the law while improving their efforts to encourage ethical business practices. Furthermore, in order to create a reliable dataset against which ethics and compliance performance can be benchmarked, the ERC has expanded the NBES instrument and dataset to examine the effectiveness of ethics and compliance programs. Companies of all sizes and sectors can benchmark against the ERC's dataset. Even companies that do not have an ethics/compliance program in place may wish to use the ERC Ethics Index(tm) instrument to provide baseline data to indicate areas of priority in program establishment. The process is fairly straightforward and administered by the ERC to preserve confidentiality and anonymity. Companies distribute the ERC Ethics Index (tm) survey instrument via email and/or paper to a randomly selected group of employees. The ERC then analyzes the responses to measure:
November 1, 2004 will be an important day for many organizations, as new requirements in the Federal Sentencing Guidelines take effect. Among them, measurement of effectiveness and assessment of risk will become a part of the process in ethics and compliance. This issue of Ethics Today contains the first article in a series dissecting the new FSG requirements and how they will impact organizations. Furthermore, information about the ERC Ethics Index (tm) is provided. We also encourage you to visit our special website, at www.ercethicsindex.org to learn more about measurement of program effectiveness and the ERC's exciting new benchmarking service. Patricia J. Harned ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** ERC Ethics Index(tm) Benchmarking Solution The Ethics Resource Center is pleased to introduce the ERC Ethics Index(tm), a benchmarking solution that can help organizations comply with the law while improving their efforts to encourage ethical business practices. For over a decade, the ERC has been benchmarking trends in business ethics with the National Business Ethics Surveys (NBES), which identifies the impact of ethics program elements from the point of view of the workforce, the extent to which employees perceive the informal culture of the organization as ethical, and the level of misconduct present within an organization. The best gauge of a company's ethics is feedback from employees, implemented through a systematic effort to measure ethics/compliance program effectiveness. ERC's Ethics Index(tm) leverages our ten-year-old dataset collected through our National Business Ethics Survey to allow companies to:
The ERC has developed a website providing details about the ERC Ethics Index(tm), including answers to frequently asked questions such as:
http://www.ercethicsindex.org ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** NBES and Organizational Assessments Other measurement-related offerings from the Ethics Resource Center include:
Assessment of risk before implementation of a training or other ethics-related program allows organizational leaders to address the appropriate needs, and also to gather baseline data for measurement of effectiveness. For more information about the ERC's organizational assessment services, please contact ethics@ethics.org . ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** Business Ethics: Program Evaluation and Organizational Learning The July issue of Ethics Today Online highlighted a new manual for corporate responsibility programs published in May by the U.S. Department of Commerce and co-authored by ERC Adjunct Senior Consultant Kenneth W. Johnson, Director of the Ethics and Policy Integration Centre (EPIC) Chapter 10 of "Business Ethics: A Manual for Managing a Responsible Business Enterprise in Emerging Market Economies" addresses "the last of the eight fundamental questions owners and managers must ask themselves: 'How should we monitor, track, and report our performance as an enterprise and continuously learn from it?'" In this chapter, the authors discuss the basic concepts and practices for evaluating a business ethics program, such as defining the purpose of program evaluation, tracking organizational culture, evaluating the process and defining expected program outcomes. The chapter also includes charts on measurable factors of organizational culture and measurable program outcomes, among others. The full document can be downloaded
for free at: The EPIC website regularly updates
the Manual and provides current resources that supplement the publication
at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** Ethics Effectiveness Quick Test: Excerpt on Measurement Once ethics policies and procedures are in place the organization should develop measurements for determining if its ethical standards are being maintained and if those standards are yielding the desired results. In this excerpt from the Ethics Effectiveness Quick Test, we include the eight questions from the Quick Test that help one to assess the ethics measurement process in an organization. The Ethics Quick Test was designed by ERC Principal Consultant Frank Navran to assess an organization's ethical effectiveness. Responses to questions in twelve ethics management areas help identify what is working well within an organization and where improvement might be required. Quick Test the ethics measurement in
your organization, then read the potential impacts and recommended
actions, at: Take the full Ethics Effectiveness
Quick Test online, or download a PDF copy, at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** ERC Fellows Study Measurement of Ethics Program Effectiveness The Ethics Resource Center (ERC) Fellows Program is a select group of corporate, government, non-profit and educational leaders who share an expertise and strong practical interest in the fields of organizational ethics. The Program provides an intimate forum for meaningful dialogue around cutting-edge ethics issues, which then prompts the formation of collaborative working groups and research teams to address ethics issues and challenges facing organizations today. The mission of the ERC Fellows program includes an emphasis on work products or research outputs with practical applications for corporate member organizations. The issue of how to evaluate ethics climate and measure the effectiveness of ethics training is the topic of one such ongoing collaborative working group within the ERC Fellows Program. As part of their research, the group has heard from outside experts on the metrics of ethics effectiveness and is developing a pilot for measuring the effectiveness of ethics training. Read more about the ERC Fellows Program
at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** Excerpts on Measuring Ethics -- "The success of business-ethics training can be difficult to quantify if the measurement criteria are not clearly defined. Measuring numbers of employees who have affirmed a code of conduct or who have attended a course may not have a strong connection to whether behaviors are in alignment with the company's expectations." "The good news is that there are in fact several ways to effectively measure the success of an ethics program, each dependent on the company's ability to set specific goals and milestones." From "How Do We Know If Ethics
Training Is Working?"
From "Does Business Ethics Pay?"
From "It's All Down to Personal
Values" ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** Benchmarking Code of Conduct The American Productivity and Quality Center (APQC) has developed a "Benchmarking Code of Conduct", in which it describes benchmarking -- "the process of identifying and learning from global best practices" -- as "a powerful tool in the quest for continuous improvement and breakthroughs." According to the Code, APQC developed and adheres to this code of conduct to:
Adherence to this Code, it states, will contribute to efficient, effective, and ethical benchmarking. Read the APQC Code at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Revisions
to the Federal Sentencing Guidelines: Key Terms and Profound Changes This article, by Kenneth W. Johnson, ERC Adjunct Senior Consultant and Director of the Ethics & Policy Integration Centre (EPIC),is the first in a series that will describe and comment upon the US Sentencing Commission's amended requirements for an "effective program to prevent and detect violations of law." We believe this to be a subject worthy of close study: less because organizations should anticipate having problems with federal regulators or prosecutors than because the amended FSGO will provide an excellent foundation for designing ethics and compliance programs. This article highlights new key terms used in the amended FSGO and describes four profound changes to the definition and practice of an effective program. In articles to follow, we will (1) explore the significance of the new requirements for risk assessment and program evaluation; (2) lay out, in detail, the seven required elements of an effective program, (3) explore how an organization might approach evaluating its ethics and compliance program, (4) examine how the Commission addressed the issues of what is coming to be known as the "litigation dilemma," (5) integrate the FSGO provisions relating to small organizations; and (6) conclude with thoughts about how organizational leaders might take the notion of an effective program farther than the Commission's charter allowed it to go. Along the way, we will point the reader to resources used by the Commission, which may help the reader participate more fully in the framing, discussion, and debates about program effectiveness to come. Read the full story at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ "At 4:07. A.M., September 15, 2004, my wife and I became refugees although we didn't know it then. We also didn't expect the journey to be an ethics lesson," writes ERC Programs Manager Jerry Brown, who lives in Ocean Springs, Mississippi, and recently had to evacuate his home as a result of Hurricane Ivan. Read more about Mr. Brown's ethics
experience at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ** Publications and Media Coverage --In 2003, the ERC collaborated with the Office of Government Ethics of Puerto Rico (OGEPR) to assess the environment for ethics within all agencies of the Executive Branch of the Commonwealth. The result was "a landmark workplace ethics survey - the first of its kind to invite all government employees to participate." The survey focused on three primary areas relating to workplace ethics: (1) standards of ethical conduct and values (2) ethical issues and outcomes and (3) the environment for ethics. The survey was designed to assess employee perceptions on a range of ethics issues and topics and to gather baseline data against which to evaluate future progress. The report to the OGEPR was printed in full in both English and Spanish in Ethos Gubernamental, Volume 1, Number 2, January to June 2004. Read the October 2003 press release
about the Puerto Rico survey at:
ERC Board Chair, Stephen Potts, was asked to comment on a recent story questioning the judgment of N.C. State for hiring C.J. Hunter. Hunter tested positive four times for the steroid nandrolone just before the 2000 Olympic Games and made news by retiring from the sport rather than fight doping charges. About a year later, he became a part-time assistant strength coach with the N.C. State football program and was promoted to full-time status in March 2003. "I would say it is premature to bring someone like that into a job like that," said Mr. Potts. "Before you give him a job where trust is a big element, you've got to think twice about it.'' Read the story at:
No matter the best intentions of the parents who raise them, says this article, kids seek out role models in popular culture. That's not all bad, however, according to some experts, including ERC Acting President Patricia Harned. "There's lots of research to show that one of the most powerful ways to teach appreciation of service and of ethics is through a role model," she says. "The sports hero or role model can have a very powerful influence on a person's character development." But in a day when prominent athletes show up regularly in the news with legal and criminal problems, she advises parents to make sure the kids know the rest of the story. Harned said that a fallen hero can provide a valuable lesson, if parents tell their kids "the negative things he's doing and the impact they've had on the sporting field and the fans who follow him." Read this story at:
This story discusses the importance to an organization of having an ethics statement and cites the ERC's handbook "Creating a Workable Company Code of Conduct" as an "excellent guide to writing ethics statements." The article is available for a fee
from the archives of the Jerusalem Post at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ On September 7, ERC Manager of Character Development Katie Sutliff and Associate Consultant for International Programs Abby Davidson delivered training for international visitors participating in a program sponsored by the US Department of State. The participants from over 20 developing countries were part of a delegation entitled "Accountability in Business and Government." The introductory ethics training session was designed to equip participants with tools and strategies to:
ERC's former Director of International Programs Alex Zalami is the Executive Director at the Dubai Ethics Resource Center. The Center's vision is to be the leading ethics center in the region, providing knowledge resources and value added services to stakeholders and a platform for active regional contribution to the development of global integrity standards. ERC Chairman of the Board Stephen Potts serves on the DERC Advisory Committee. Visit the Dubai Ethics Resource Center
online at: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 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:
The ERC also thanks the Merck Company Foundation for their generous support of the international programs and centers. We invite you to join our loyal contributors in lending your support. You can make a tax-deductible credit
card donation online at: In addition to general support, the ERC is currently seeking funding to develop the 2005 iteration of their National Business Ethics Survey. The ERC's National Business Ethics Survey(c) (NBES) identifies trends in organizational ethics from the perspective of our nation's workforce, utilizing a statistically valid random sample of the US employed population. Through the findings of NBES, business leaders have gained insights that are now seminal to the business ethics industry. For the 2005 NBES, we have already secured in kind support from several organizations. We are currently seeking other sponsors to underwrite the remaining cost of producing, distributing and marketing this important study. For more information, please contact ERC Development Manager, Allison Pendell Jones at 202.872.4760 or allison@ethics.org. To find out about other ways to contribute,
go to: 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. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PLEASE NOTE: Ethics Today will be published 11 times this year, with the July and August issues combined into one. ======================================================= Copyright (c) 2004 Ethics Resource
Center. All rights reserved. Please contact ethics@ethics.org for information about reproducing any of the information contained within this newsletter or on our web site. Back issues of Ethics Today are available
online at: For questions about your subscription,
please email The Ethics Resource Center, 1747 Pennsylvania
Ave., NW, Suite 400 =======================================================
|
About ERC •
Advisory Services
•
Research
• Character
Education •
Resources
• News
•
Publications
• Fellows
• Support
ERC • Contact
Us
Ethics Resource Center,
1747 Pennsylvania Ave., NW, Suite 400, Washington, DC 20006
Telephone 202-737-2258 Fax 202-737-2227 E-mail ethics@ethics.org