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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