Ethics Today Online
Published
by the Ethics Resource Center
October 14, 2005 Volume 4,
Issue 1

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** A
Word from the President: New Look, New Direction
I am pleased to announce a new logo and
a new strategic focus for the Ethics Resource Center. As a result
of a comprehensive strategic planning process with our Board and
staff, the ERC's efforts are now focused on three primary areas-evaluation,
research, and character development.
First and foremost, we are leading the
way in program evaluation. At a time when organizations are investing
millions of dollars in efforts to ensure compliance and foster ethical
conduct, ERC is leveraging the datasets we've collected throughout
the years to measure the effectiveness of ethics and compliance
programs. We are also growing our datasets and conducting research
to advance understanding of the practices that impact ethics and
compliance in organizations.
We're excited to be launching this streamlined
focus for our center, especially since it draws upon the core strengths
we've had for years. Since 1978 the ERC has been conducting research
in organizational ethics. In the mid-80s, ERC began collecting data
from organizations and in 1994 we began the longest and most rigorous
collection of national trends that now provide measures of the impact
of organizations. For more than a decade we've conducted assessments
of impact of programs in companies, and we are now leveraging these
riches of data to help companies measure the effectiveness of their
own efforts.
Our measurement efforts begin with the
launch of several new initiatives:
- Program evaluation, organizational assessments
and benchmarking against ERC data for organizations desiring reliable
measures of effectiveness;
- Donate Your Data® program, a tax-deductible
way to allow companies to safely donate data collected from their
employee ethics surveys for the greater good. ERC will conduct
research across data we collect to improve program practices.
- Research whitepapers, sharing findings
from our research. We have developed a research agenda for the
coming year, and will be distributing findings as our work is
completed.
- Effective Ethics (tm) quarterly newsletter
with updates on valid measures for effectiveness, data from our
research, and expert advice in measurement.
Finally, we are excited to announce the
findings of our 2005 National Business Ethics Survey (NBES), a nationally
representative study of employees' views of ethics in the workplace.
The 2005 report marks the fourth implementation of the study, and
leverages 11-years of data collection.
Findings from the research address:
- Trends in the implementation of ethics
and compliance programs since 1994;
- Evidence of ethical culture in organizations;
- Risk for misconduct;
- Outcomes expected from effective programs;
and,
- The impact of formal program elements
and ethical culture on outcomes.
To accentuate its importance, we focus
this issue of Ethics Today on the 2005 NBES.
It has been our great honor over the years
to be able to add input, offer resources, and to contribute to the
practices that are now commonplace in our industry. With the 2005
NBES, we expand our knowledge and our contributions, and we look
forward to continuing our tradition of adding insight and improving
practice for years to come.
Patricia J. Harned, President
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**
National Business Ethics Survey 2005
The National Business Ethics Survey (NBES)®
was first implemented out of the recognition that research was drawing
on opinions of executive leadership or the types of practices in
place to determine the ethics of organizations. Studies were not
being done, however, to consider the perspective of those most impacted
by the programmatic activity--the employees themselves. NBES was
therefore born out of belief that:
- When an organization puts an ethics
and compliance program in place, the end goal is usually to encourage
ethical conduct in all its business activities7;
- If a program (regardless of its formality)
is successful, attitudes and behavior throughout the organization
will reflect a positive change in support of the ethical standards
of the organization; and,
- The full impact of a program cannot
be adequately measured without taking into account the perspective
of employees at all levels within the organization.
These guiding ideas have remained constant
in the NBES studies over the years. Central to this research is
the notion that employee perspectives on ethics in their organizations
truly matter, and through employees much can be gained in understanding
what an effective program actually does.
--Survey Documents State of Ethics in the Workplace
More than half of American workers have
observed at least one type of ethical misconduct in the workplace,
a slight increase from 2003, despite an increase in worker's awareness
of formal ethics programs, according to the 2005 National Business
Ethics Survey (NBES) released today by the Ethics Resource Center.
Employee reporting of misconduct they observe is also down by 10
percentage points. Despite the decrease in ethical conduct, according
to the NBES report, "Ethics and compliance programs can and do make
a difference. However, their impact is related to the culture in
which they are situated."
The survey of
more than 3,000 American workers, analyzes trends in workplace ethics,
the implementation of formal programs, the ethical culture within
organizations, the impact of programs, and factors that pose risks
of misconduct.
Read
the rest of the press release at:
/nbes/nbes2005/release.html
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--
Preface and Executive Summary
It has now been
eleven years since the Ethics Resource Center (ERC) first began
what we now refer to as the "NBES." We undertook that very
first study, then called the Ethics in American Business (EAB) survey,
to "provide national benchmarks for organizations on key compliance
outcomes." Never could we have imagined how much the world of organizational
ethics would change in the years hence. Neither would we have guessed
that our initial interest in "benchmarks" and "outcomes" would come
to have the salience, and also the weight of responsibility, that
it does today.
Read the rest of ERC President
Harned's preface to NBES 2005 at:
/nbes/nbes2005/preface.html
Get a PDF copy of the NBES 2005 Executive
Summary at:
/nbes/nbes2005/2005summary.pdf
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What's New in the 2005 NBES?
NBES has
a core set of questions that remain unchanged from year to year,
allowing for trend analysis over time. In the 2005 study, twenty-one
content questions have remained unchanged since 1994, forty-four
questions are consistent with the 2000 survey, and sixty are identical
to the 2003 NBES question set.
Some modifications
are made each year in the study to allow NBES to reflect
the times and to offer insights that can guide the organizational
ethics field. In 2005, the conceptual frame for our analysis and
reporting has been updated as a result of an important change that
has taken place since our last report. In November 2004, the US
Sentencing Commission revised Federal Sentencing Guidelines for
Organizations (FSGO) to include several substantive changes.
Read more about what's new
in NBES 2005 at:
/nbes/nbes2005/whatsnew.html
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Briefings and Webcasts
Senior ERC staff will be making a number
of presentations around the findings of NBES 2005. These include:
*October
19, 2005, 2:00-3:30 p.m.
"How Employees View Ethics in
Their Organizations: Findings of the 2005 National Business
Ethics Survey® "
Webcast, The Conference Board
Participants will gain an overview
of the just released 2005 National Business Ethics Survey® (NBES).
The webcast will feature presentations and discussions of:
- Major survey findings, including
trends in the growth of ethics and compliance programs across
the country
- Elements of ethics and compliance
programs and their impact on employee behavior
- Measures for assessment of
ethics and compliance program effectiveness
- Application of NBES findings
for organizational leaders regarding resource allocation and ethics
and compliance program design.
Get more information about this
webcast and register at:
http://www.conference-board.org/conferences/Webcasts/upcomingWebcast.cfm?ID=1051
*November 8, 2005, 2:00-3:30 p.m.
"Identifying and Measuring Ethical Culture"
Webcast, The Conference Board
The 2004 revisions to Federal Sentencing
Guidelines advise that ethics and compliance programs should "promote
an organizational culture that encourages ethical conduct and a
commitment to compliance with the law." Culture tells employees
"how things are really done" in an organization, and it has a substantial
impact on ethical conduct in the workplace.
The recently completed 2005
NBES collected extensive data that measure the impact of culture
elements on employees. During this webcast, speakers will present
the most recent NBES findings on ethical culture and discuss how
participants can leverage those findings to identify the cultural
strengths and weaknesses in their own organizations. Specific discussion
topics include:
- How executives, management
and peers create culture
- How an ethical culture can
improve the expected outcomes of an ethics and compliance program
- Methods and measures you
can use to define and improve your company's ethical culture
Get more information about
this webcast and register at:
http://www.conference-board.org/conferences/Webcasts/upcomingWebcast.cfm?id=1052
October 24-27, 2005
Ethics Officer Association Conference
At the EOA meeting, ERC staff will present:
- October 25 on "Measuring Ethics Program
Effectiveness"
- October 27 on "11 Years of NBES - Survey
Says? "
- October 28 on "How Do You Know Your
Program is Working?"
Get more information about the conference
and register at:
http://www.eoa.org/Events/AC/AC2005.asp
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-- Uses
for NBES Research
Findings from
previous NBES research studies have found many uses:
For organizational leaders:
- Benchmarking
internal data regarding company program elements to a national
trend.
- Support for
prioritization of ethics in business practice within an organization.
- Identification
of ethics elements to integrate into performance assessments.
- Development
of content for internal trainings including:
- Leadership
training
- Board training
- New employee
orientation
- Diagnosis of
program effectiveness.
- Identification
of issues to address and program objectives for the future.
- Allocation
of resources based on emerging issues.
For
university faculty:
- Trend analysis
and key findings reprinted in business school textbooks.
- Secondary research
on NBES data by academic researchers and doctoral students.
For
public policy makers:
- Referenced
in the Advisory Group on the Organizational Sentencing Guidelines
report to the US Sentencing Commission.
- Insight regarding
the impact of public policy on organizations.
For
practitioners/consultants:
- Identification
of key issues and sectors for the provision of resources.
- Benchmarks
for identifying program effectiveness.
For
media:
- Identification
of trends in ethics and compliance across the country.
- Detail of key
issues for organizations (levels of misconduct, pressure to compromise
standards, risks, etc.).
- Resource information
of practices by organizations that impact employee ethical conduct.
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--
NBES Research Team, Authors & Advisory Group
NBES 2005 benefits
from the rich experience of a multi-faceted ERC research team. The
survey instrument was updated in conjunction with our Advisory Group.
Analysts skilled in survey research examined the data, and practitioners
in organizational ethics and program evaluation participated in
the interpretation of findings and the writing of the report.
Our work was guided
by 21 experts who view the NBES data from a variety of
perspectives. We are honored that our 2005 Advisory Group includes
compliance professionals as well as ethics officers, and the group
also represents specialists in research methods, academics in organizational
ethics and sociology, and consultants who apply our findings in
the field.
Read about the research team
and advisory group at:
/nbes/nbes2005/team.html
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--
NBES Sponsors
This research
could not have been accomplished without the support of the following
donors.
Principal sponsorship:
Guardsmark, LLC
Additional support
provided by:
- Society for
Human Resource Management (SHRM)
- PricewaterhouseCoopers, LLP
- ERC Fellows
Program
- Open Compliance
and Ethics Group (OCEG)
Printing of
the NBES research report made possible by:
- Practising
Law Institute (PLI)
Read more about these and
other sponsors at:
/nbes/nbes2005/sponsors.html
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--
How to Order NBES 2005
NBES 2005 is available electronically now
in PDF, and will be available in three to five weeks in a printed
and bound version.
- Order
the PDF version for delivery now
Please note: We are in the process of upgrading our PDF
delivery system from email & attachment delivery to customer-side
downloads. We anticipate that system to be operational the week
of October 17. Until then, orders placed after 4 PM Friday will
not be fulfilled until Monday morning.
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** Publications
and Media Coverage
Following the October 12 release, ERC's
National Business Ethics Survey 2005 was cited in the following:
"Most U.S.
workers see ethics violations at work"
October 12, 2005, Reuters
http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=
2005-10-12T205614Z_01_N12279196_RTRIDST_0_RIGHTS-ETHICS.XML
"Workplace
ethics - not so good"
October 12, NPR Marketplace
http://www.marketplace.org/shows/2005/10/12/PM200510126.html
"Online Poll:
Ethics in the Workplace"
October 13, WTOP News Radio
http://www.wtopnews.com/index.php?sid=592174&nid=400
"Workplace
Misconduct on the Rise"
October 13, Black Enterprise.com
http://www.blackenterprise.com/exclusivesekopen.asp?id=1352
"Survey: Ethics
abuses on rise"
October 13, NorthJersey.com
http://www.bergen.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXkyOCZmZ2Jlb
DdmN3ZxZWVFRXl5Njc5MTE0NyZ5cmlyeTdmNzE3Zjd2cWVlRUV5eTI=
"Many ethics
violations go unreported"
October 14, MarketWatch - USA
http://www.marketwatch.com/news/story.asp?guid=%7B626F20D5-A49C-
4F4B-BDBD-76B118C21120%7D&siteid=google
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** News
from the ERC
-- About Our New Logo
Our new logo is designed to honor our past
and anticipate our future. The three interlocking fields of our
logo represent our name, but also the three core functions of the
ERC - Evaluation, Research, and Character development. While our
colors remain the same as they have since our inception, they are
now intentionally overlapping to reflect the openness, transparency,
and integration that characterize our nonprofit organization.
Even the two typefaces of our logo are
meaningful in their style. The typeface used within the green fields
is contemporary. The typeface used in 'Ethics Resource Center' is
that of a classical Roman font -- symbolizing the historic roots
of ethics, and the longstanding tradition of the ERC.
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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.
ERC thanks the following for recent contributions:
- BDO Seidman, LLP
- George Sherman
- PricewaterhouseCoopers, LLP
We invite you to join our loyal contributors
in lending your support.
To find out about how to support the ERC,
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.
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PLEASE NOTE: Ethics Today will be published
10 times this year.
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Copyright (c) 2005 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.
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please email ethicstodayonline@ethics.org
The Ethics Resource Center, 1747 Pennsylvania
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Washington, DC 20006 Telephone: 202-737-2258
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