Publications: Archives


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:

  1. 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;
  2. 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,
  3. 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.

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The Ethics Resource Center, 1747 Pennsylvania Ave., NW, Suite 400
Washington, DC 20006 Telephone: 202-737-2258

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