Publications: Archives


Ethics Today Online

   Published by the Ethics Resource Center 
   October 2006   Volume 5, Issue 1


 

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** A Word from the President: A Solid Foundation

Welcome to the start of a new year for Ethics Today! The launch of our fifth volume of ETO issues provides an excellent opportunity to reflect on how far we have come in the past year, and where we are headed with the next. You may recall that in the fall of last year, we unveiled a new logo and our 2005 National Business Ethics Survey, which included more participants and areas than ever before. Building on our history of performing comprehensive ethics surveys, we developed a survey method by which ERC could leverage its expertise to allow organizations to benchmark their ethics programs against the NBES figures and industry groups. To further that mission and add depth to our databank, we developed the Donate Your Data program to obtain and incorporate data from survey questions about ethics from any organization. Furthermore, we used aggregate research from surveys to develop a Webcast series on "Understanding, Affecting and Measuring Ethical Culture."

The ERC Fellows were also busy refining their research and delving into new topics. The working groups made significant advances, with some groups finishing their research and publishing the outcomes in ways that will provide practical applications for corporate members. In addition, two documents that relied on Fellows research - the Mergers & Acquisitions template and an Ethics Guide for Jobseekers and Employers - are available to the public on the ERC's website. At their summer meeting, the group discussed in depth the topic of Impacting Ethical Culture, adding to our understanding of the ways in which corporate culture influences ethical outcomes.

Not to be outdone, the Student Fellows Program held its annual meeting in August, where it provided student ethics officers with ideas and guidance for developing their program agendas, as well as distributing the newly printed Student Ethics Office (SEO) Manual created for use by students and sponsors in the schools participating in our SEO Program.

Whether working with client organizations through our survey work and sponsorship programs, ethics and compliance officers and experts through the Fellows Program, or students and their sponsors through the SEO program, we continue to refine our process of collecting and comparing data and then analyzing it to produce research that benefits all organizations. In this way, we have formed a solid foundation for our work in the upcoming year, which includes:

  • Publishing white papers on key findings from our research
  • Providing regular web casts to help organizations improve and measure ethics in their organizations
  • Creating partnerships with like-minded organizations in order to take advantage of each organization's expertise and provide organizations with a panoply of options. (See the first story below announcing our alliance with the Ethics and Compliance Officer Association.)
  • Developing the 2007 National Business Ethics Survey
  • Establishing an online benchmarking portal by which subscribing organizations from around the world can compare their survey results with aggregate data from other organizations.

Look for more information on these projects in upcoming issues of Ethics Today. On that note, please be aware that we have changed the publication schedule for this newsletter, with issues now released six times a year, in October, December, February, April, June and August. Subscribers will also receive press releases and special announcements. As always, we will continue to use Ethics Today to dive deeper into current areas of expertise such as ethical culture and measuring the effectiveness of ethics programs, as well as report on developing trends, such as the overview in this issue on Sustainability Reports.

Patricia J. Harned, Ph.D.
ERC President

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** Ethics & Compliance Officer Association, Ethics Resource Center Form Strategic Alliance

On September 26, the Ethics & Compliance Officer Association (ECOA) and the Ethics Resource Center (ERC) announced a major strategic alliance for conducting research and providing resources to the growing community of ethics and compliance officers.

This is a positive step forward in the world of ethics and compliance where the need for public awareness regarding corporate integrity is increasingly high. The alliance brings together the world's largest membership association for ethics and compliance practitioners (ECOA) with the world's leading non-profit researchers in the field of business ethics (ERC).

The two organizations will combine resources on many projects to advance the cause of ethics and compliance in organizations, including the following, on which work has already begun:

  • ECOA/ERC Benchmarking Initiative
  • Best Practices Project
  • A White Paper on the Role of Organizational Ethical Culture

Read the press release at:
http://www.ethics.org/news/releases/nr_20060926_ecoa.html

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** ERC Presentations at the ECOA Conference

The ECOA Annual Business Ethics & Compliance Conference, to be held October 3-6, 2006, in Salt Lake City, Utah, is the largest multi-industry gathering of corporate ethics and compliance practitioners. Conference sessions led by prominent subject matter experts and experienced ethics and compliance officers address the latest issues and provide opportunities for the exchange of innovative ideas and practical, proven methods for implementing and maintaining successful ethics, compliance and business conduct programs.

ERC will participate in three planned sessions at the ECOA conference, including:

  • Defining the Role & Elevating the Professional Profile of the Ethics Officer
    Thursday, October 5, 2:00 - 3:15 p.m.
    Session leaders: Patricia Harned, Ethics Resource Center (ERC); Scott Roney, Archer Daniels Midland Company; and Mary Zeinieh, Ethics & Compliance Officer Association
    Session Description: Wherever two or more ethics and compliance officers are gathered, the conversation almost always turns to the need for members of the profession to have more authority, more resources and more respect in their organizations. In response, an ERC Fellows Task Force prepared a report that suggests the appropriate role, reporting relationship, preparation, and responsibilities of a corporate ethics and compliance officer today. This session outlines the content of the paper, now in draft form, written jointly by the chief executive officers and stakeholders of four of the leading nonprofits in our industry -- ECOA, the Ethics Resource Center (ERC), the Society for Corporate Compliance and Ethics (SCCE), and the Business Roundtable Institute for Corporate Ethics (BRICE).
  • Discover the Power of 7: Participating in the ECOA-ERC Benchmarking Initiative
    Thursday October 5, 3:30 - 4:45 p.m
    Session leaders: Pat Harned, President, Ethics Resource Center and Bill Ott, PEAC Ventures, Inc.
    Session Description: Dr. Harned and Mr. Ott will introduce the ECOA-ERC Benchmarking Initiative-- a joint project by ECOA and the Ethics Resource Center to provide members with a baseline survey that they can use to measure the effectiveness of their ethics and compliance programs against ECOA benchmarks. The session will cover how to participate in the initiative, what information the survey questions will yield and how companies can access their data and ECOA benchmarks after the survey.
  • Findings from ECOA/ERC Research on Measurement and "Ethical Culture"
    Friday, October 6, 10:00 - 11:15 a.m.
    Session leaders: Abby Davidson, Senior Project Manager, Ethics Resource Center and Pat Harned, President, Ethics Resource Center
    Session Description: This presentation provides an overview of the first two research projects resulting from the ECOA/ERC strategic alliance. Ms. Davidson and Dr. Harned will present findings from a survey of ECOA members on their efforts to measure their ethics and compliance programs. They will also give an overview of what the leading thinkers on organizational culture have to say about what culture is, how it forms, and how leaders can shape the ethics of it.

Get more information about and register for the ECOA conference at:
http://theecoa.org/Events/AC/AC2006.asp

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** Overview of Sustainability Reporting: Links & Resources

An increasing number of companies now produce "Sustainability Reports" which differ from annual reports in that they consider environmental, social responsibility and non-financial matters related to the organization's activities. Much is being written about this developing area of corporate communications. Below we offer a variety of online resources and articles available for those wishing to learn more about sustainability reporting.

  • American Institute of Certified Public Accountants: FAQs on Sustainability Reporting

This handy starting point answers questions such as:

  • What is health, safety, and environmental reporting? What is corporate social responsibility reporting? What is the triple-bottom line? What is sustainability reporting?
  • What is the difference between sustainability reporting and sustainable development?
  • Why are companies issuing sustainability reports? What is the value proposition for sustainability reporting?
  • Are U.S. companies preparing and issuing sustainability reports?
  • What are the criteria for sustainability reporting?
  • What is the relationship between sustainability reporting and financial reporting?
  • Why should the public accounting profession get involved in sustainability reporting?

Read the answers to these questions at:
http://www.aicpa.org/innovation/baas/environ/faq.htm

  • Business for Social Responsibility (BSR) Issue Briefs

Business for Social Responsibility (BSR) is a global organization that provides information, tools, training and advisory services to make corporate social responsibility an integral part of business operations and strategies. Among other resources, they offer two issue briefs of particular relevancy to Sustainability Reporting:

-- ISSUE BRIEF: CSR Reporting
Companies face increasing demands for disclosure of their social and environmental performance from customers, investors, and a wide range of other stakeholders, according to this brief. As a result, it says, a growing number of companies are sharing information and issuing reports describing the economic, environmental, and social impacts of their operations and products. A global reporting survey conducted in 2004 by the Association of Chartered Certified Accountants and CorporateRegister.com found that the number of corporate social, environmental, and sustainability reports increased from fewer than 100 in 1993 to more than 1,500 in 2003. Similarly, a 2003 study of the world's 100 largest companies by the consulting group CSR Network found that almost half of them (49) issued an environmental, social, or sustainability report.

Read the BSR publication on CSR Reporting at:
http://www.bsr.org/CSRResources/IssueBriefDetail.cfm?DocumentID=50962

-- ISSUE BRIEF: Sustainable Business Practices
A related BSR publication discusses the movement calling on the business community to play a major role in moving the global economy toward "sustainability," defined in a 1987 report of the UN World Commission on Environment and Development (the Brundtland Report) as "meeting the needs of the present without compromising the ability of future generations to meet their needs."

Read the BSR publication on Sustainable Business Practices at:
http://www.bsr.org/CSRResources/IssueBriefDetail.cfm?DocumentID=50106

  • The Sustainability Reporting Guidelines of the Global Reporting Initiative 2002

The Global Reporting Initiative's (GRI) Sustainability Reporting Guidelines represent the first global framework for comprehensive sustainability reporting, encompassing the "triple bottom line" of economic, environmental, and social issues. The GRI Guidelines are a framework for reporting on an organization's economic, environmental, and social performance. According to the GRI site, The Guidelines:

  • Present reporting principles and specific content to guide the preparation of sustainability reports;
  • Assist Organizations in presenting a balanced and reasonable picture of their economic, environmental, and social performance;
  • Promote comparability of sustainability reports to the extent possible;
  • Support benchmarking and assessment of sustainability performance; and
  • Help to facilitate stakeholder engagement.

The Guidelines do not provide instruction for designing an Organization's internal data management and reporting systems or offer methodologies for preparing reports or verifying such reports.

The Guidelines document is available at:
http://www.globalreporting.org/guidelines/2002.asp

For a general summary of the guidelines, view:
http://www.globalreporting.org/guidelines/2002/gri_companion_lite.pdf

  • Social Research Analyst Statement on Corporate Sustainability Reporting

This brief released by social research analysts from 23 investment firms explains how companies can use the Global Reporting Initiative (GRI) to increase the credibility, comparability and utility of social and environmental reporting. It also provides answers to companies' most frequent questions on reporting and suggests ways to enhance the usefulness and credibility of CSR reports.

Read the brief at:
http://www.bsr.org/Meta/200510_Corp-Sustainability-Reporting.pdf#
search=%22SOCIAL%20RESEARCH%20ANALYST%20
SUSTAINABILITY%20REPORTING%22

  • The INEM Sustainability Reporting Guide: A Manual on Practical and Convincing Communication for Future-Oriented Companies

The INEM Sustainability Reporting Guide is based on the Sustainability Reporting Guideline of the Global Reporting Initiative but also incorporates the economic interests of the company and focuses on good communication to and with stakeholders. The guide (October 2001) gives advice on how to draw up an effective sustainability report, informs about target groups and their interests in information, outlines the principles of sustainability reporting and describes the elements of the sustainability report. It also provides presentation and design examples and addresses the problem of credibility of the sustainability report.

Read this guide at:
http://www.productstewardship.us/supportingdocs/INEMSustainRep
Guide.pdf#search=%22INEM%20sustainability%22

  • The International Corporate Sustainability Reporting Site

This website dedicated to Corporate Sustainability / CSR and environmental reporting provides news; a resource library, with guidelines, tools, articles, and more; and a portal for viewing sustainability reports of multinational companies.

Browse sustainability reports by sector, country or alphabetically at:
http://www.enviroreporting.com/service/sr/list_alphabetic.php?
PHPSESSID=d2cfa86a2af8bce708b5afb651369cd9

Access other resource information at:
http://www.enviroreporting.com/

  • More Than Words? An Analysis of Sustainability Reports

This article by Ans Kolk, University of Amsterdam, Amsterdam Graduate Business School, says that the growth of environmental and sustainability reporting has raised questions about the persistence and significance of this largely voluntary corporate activity, especially in light of recent discussions about the reliability of disclosure and auditing. The paper also addresses the question of 'implementation likelihood', or the probability of actual implementation of sustainability in reporting companies.

Read this article at:
http://www1.fee.uva.nl/pp/bin/176fulltext.pdf#search=%22More%20
Than%20Words%3F%20An%20Analysis%20of%20Sustainability
%20Reports%22

  • Briefing: Sustainability Reporting: An Anchor, Not the Answer

Noting that, although there is a considerable increase in the number of organizations producing sustainability reports, those reports often fail to get the attention of key stakeholders, this paper presents research on how companies ensure successful social or sustainable development reporting,

Read this briefing at:
http://www.ashridge.org.uk/Intranet/IC.nsf/ICAll/63C0D2CAB275A14D8
256FDD003E2770/$file/ananchornotananswer.pdf

  • Trust Us: The Global Reporters 2002 Survey of Corporate Sustainability Reporting

This document summarizes the findings of the 2002 Global Reporters survey with the objective of identifying and classifying best practices in corporate accountability across the triple bottom line of sustainable development. It considers 100 sustainability and corporate social responsibility reports from around the world, with the Top 50 subjected to an in-depth benchmarking. It identifies key facets to using CSR and sustainability reporting to rebuild trust, including materiality, governance and branding.

Read this report at:
http://www.sustainability.com/insight/article.asp?id=131

  • Sustainability Reporting: Who's Kidding Whom?

The authors of this article, Rob Gray, University of Glasgow, Scotland and Markus J. Milne, University of Otago, consider a few of the inconsistencies and contradictions observed in the business and accounting contributions to the growing debates on sustainability and suggest a few possibilities that they believe could enhance that contribution.

Read this article at:
http://www.business.otago.ac.nz/acty/research/pdf/sustainability_
reporting.pdf#search=%22Sustainability%20Reporting%3A%20Who
%E2%80%99s%20Kidding%20Whom?%22

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** ERC Fellows Discuss Influencing Ethical Outcomes through Corporate Culture

The ERC Fellows Program held its summer meeting on July 26-28, hosted by Boeing at their facility in Rossyln, VA. Sixty-two individual representatives from 47 member and guest organizations attended the meeting, which featured presentations by academic and corporate Fellows members, and Madelyn Hochstein, Owner, President and Co-Founder of DYG, Inc.

The theme for the meeting: Impacting Ethical Culture: Influencing Ethical Outcomes through Corporate Culture gave the Fellows an opportunity to discuss defining, measuring, and impacting culture from many perspectives. To start the discussion, Linda Trevino, Chair, Invited Academic Fellows, presented on organizational culture research to help answer the question "What is Corporate Culture"

Read a summary of Dr. Trevino's presentation at:
http://www.ethics.org/resources/culture_summ_lt.pdf

ERC President Patricia Harned presented findings from the National Business Ethics Survey, highlighting ethics-related actions, and Fellows Jack Lenzi, with Altria, and Martha Ries, with Boeing, presented on tactics they have used within their organizations to impact the ethical culture in a positive way. Mr. Lenzi's outline of the research that Altria conducted to assess culture, the results and how they are using these results to develop tools to positively impact culture is available at:
http://www.ethics.org/resources/culture_ppt_jl.pdf

Guest presenter Madelyn Hochstein finished the theme-related discussion with a presentation on Societal Trends and Generational Influences on Building an Ethical Culture.

Six Fellows working groups gave updates on the status of their work, including interview projects, research papers, and development of other resources to share. Those groups were:

  • Risk Assessment
  • Reporting
  • Measurement
  • Ethics Curricula
  • Ethics Officer Definition
  • Benchmarking Global Best Practices

Additional Fellows working groups that did not present at this meeting include:

  • Procedural Justice
  • Incentives

The Fellows Program is made up of 72 representatives from 37 member companies, including 56 corporate representatives, nine academic invited Fellows, four non-profit representatives and three government liaisons.

Read more about the ERC Fellows Program at:
http://www.ethics.org/fellows

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** Ethical Culture: What We Know?

In her July 2006 Fellows Meeting presentation on ethical culture, Linda Trevino, Chair, Invited Academic Fellows, said that ethical culture is one way to think about the broad organizational context that influences employee ethics-related attitudes and behaviors. Ethical culture has been defined as

shared assumptions, values, norms, beliefs, and traditions that guide ethical behavior in the organization - or - perceptions of "how we do things around here" in relation to ethics. It is acceptable - indeed, it is a responsibility -- for an employer to attempt to manage the ethical culture in order to influence such attitudes and behaviors in its employees. It is critical to consider both formal and informal systems when studying organizational culture, as it is embedded in both.

Read the rest of this summary at:
http://www.ethics.org/resources/culture_summ_lt.pdf

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** Student Ethics Officers Meet to Share Experiences and Plan School Year Activities

Each summer, the Student Fellows Program brings student ethics officers together in the Washington, DC, area to share their successes and challenges, obtain leadership training and develop future directions for their SEO's. The 2006 summer meeting was held August 7-11 at the Lockheed Martin Center for Leadership Excellence in Bethesda, Maryland. Students from Lack Braddock Secondary School, Washington-Lee High School and Annandale High School, all in Virginia, attended the program run by ERC Character Development Manager Rielle Miller and Character Development Associate Lena Thomson.

External speakers included:

  • Maryanne Lavan, VP Ethics and Business Conduct, Lockheed Martin
  • Sue MacTavish, Ethics Officer, Lockheed Martin
  • Michael Campbell, Chairman of the Employee Ethics Committee, SAIC

The students spent four days working on personal leadership development and goal setting, drafting a code of ethics for their own SEO's, and reviewing their experiences in SEO over the past year or two. In addition, they completed needs assessments, addressed strengths and weaknesses, and created school year plans for their own SEO programs. Students also spent a day at Hemlock Overlook to facilitate personal goal setting and teamwork.

Read more about the SEO and Student Fellows Program at:
http://seo.ethics.org

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** Compliance Week: The Subtle Presence Of Corporate Ethics

[In August 2006, ERC President Patricia Harned started contributing a monthly column on ethics to the well-known national publication Compliance Week. This newsletter on corporate governance, risk and compliance reaches over 40,000 financial and legal executives at U.S. public companies electronically every Tuesday morning and is published as a glossy print magazine on the first day of the month. Compliance Week has granted permission for ERC to reprint Dr. Harned's columns after they have appeared in both the electronic and print versions. For more information about Compliance Week or to subscribe, please visit http://www.complianceweek.com ]

This month's column asks, "What do we actually mean by "ethics" anymore?" Is it a goal, or a function? Has it been subsumed by something else? The answer is very simple, says Dr. Harned. Where there are people, there will be ethics--both good and bad.

Read this article originally published in the August 1, 2006, electronic edition of Compliance Week, at:
http://www.ethics.org/resources/cweek1_subtle.pdf

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** News from the ERC

-- ERC Character Development Manager Rielle Miller and Character Development Associate Lena Thomson along with SEO-participating students Lauren Lessard, Lake Braddock Secondary School, and Klee Simmons, Washington-Lee High School, presented at the Coalition for Community Schools Conference on June 14, 2006, in Baltimore, MD. Their discussion of "Students As Ethical Leaders: Transforming Challenges Into Opportunities" focused on ERC's Student Ethics Office (SEO) model, which relies on students to envision and implement novel and effective strategies for instilling good character in their peers. The student leaders in particular discussed how participating in the program increases ethical awareness and allows them to pass along what they have learned to others in the school community, generating an ethical school culture and fostering strong values in students.

The Coalition for Community Schools is an alliance of national, state and local organizations in education K-16, youth development, community planning and development, family support, health and human services, government and philanthropy as well as national, state and local community school networks.

-- Ms. Miller and Ms. Thomson also presented along with SEO-participating students Carolyn Wright, Lake Braddock Secondary School, SherAfhan Tareen, Washington-Lee High School and Mark Galligan, Lake Braddock Secondary School, at the CharacterPlus Character Education Conference in St. Louis, MO, on July 13-15, 2006. The panel discussion on "Celebrating Students As Ethical Leaders: The Students Ethics Office Initiative" highlighted how students can contribute to the way schools teach character, noting that the Student Ethics Office program not only encourage ethical leadership, but also allow students to practice ethical leadership and celebrate their successes in doing so.

CHARACTERplus, an initiative of Cooperating School Districts, is devoted to advancing the cause and importance of character education. The annual conference began in St. Louis and has grown to become the largest community and statewide character education conference in the nation.

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** Publications & Media Coverage

--Ethics Guide for Jobseekers and Employers
This new brochure is aimed at educating job seekers and employers about ethical behavior during the interview process. Produced by Pat Murphy, ERC Academic Fellow from University of Notre Dame, the guide's co-sponsors include the ERC Fellows Program, members of the Ethics Curricula group specifically, and the Business Roundtable Institute for Corporate Ethics.

View and download the guide at:
http://www.ethics.org/fellows/pdfs/interview.pdf

Read the press release "Notre Dame Provides Ethics Guide to Job Seekers, Employers" at:
http://www.insideindianabusiness.com/newsitem.asp?ID=19298

-- Mayor Announces Ethics Survey For City Employees; Firm Ethics Resource Center To Administer Survey, September 5, 2006, 10news.com (San Diego, CA)

City employees will soon be asked to fill out a survey on ethics as part of an overall audit of integrity in the workplace, San Diego Mayor Jerry Sanders announced Tuesday. Results of the survey will be included in an ethics audit report, which will be completed by the end of the year and include recommendations for changes to policy and procedures, according to Sanders.

Read this article at:
http://www.10news.com/news/9793926/detail.html

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** Support ERC Activities

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. We invite you to join our loyal contributors in lending your support.

To find out about how to support the ERC and its many programs, call 202-737-2258.

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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