Ethics Today Online
Published by the
Ethics Resource Center
December 2006 Volume 5, Issue 2

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A Word from the President: Season's Greetings!
Season's greetings from all of us at
the Ethics Resource Center! We thank you for the opportunity to
work with you and the confidence you have in our organization.
Ethics takes many forms - a set of
principles, an organizational department, a training course, a marketing
message, a budget item. Above all, though, ethics is about people
and making a choice about right or wrong when the outcome affects
others. It is our wish now and throughout the year that the resources
we provide can help you make the tough ethics calls when you need
to.
As our gift to you this holiday season,
we are making available another new resource, a white paper entitled
"Critical Elements of an Organizational Ethical Culture." You can
read more below about this report and how to download it for free
from our website. In the coming year, we plan to make available
more of our findings through white papers and webcasts, and hope
you will continue to be a part of our network.
Patricia Harned, Ph.D., President
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New Research
Identifies Three Workplace Actions That Contribute Most to Employees'
Ethical Behavior and Compliance
Ethics Resource Center and Working
Values, Ltd. Partner to Help Companies Improve Ethical Culture
Three ethics-related actions by management
and coworkers have the greatest impact on employee ethics and compliance
- an influence more profound than formal ethics programs and organized
activities. They are:
- Setting a good example;
- Keeping promises and commitments;
and
- Supporting others in adhering to
ethics standards.
These findings come from new research
released by the Ethics Resource Center (ERC) and Working Values,
Ltd. The report, "Critical Elements of an Organizational Ethical
Culture," results from collaboration between the ERC and Working
Values. The report builds on the ERC's 2005 National Business Ethics
Survey® (NBES), which measured ethical culture by asking employees
if management and coworkers demonstrated various "ethics-related
actions" (ERAs) in the workplace.
Read the press release at:
http://www.ethics.org/about-erc/press-releases.asp?aid=1050
Working Values® Ltd., a SmartPros
company, is a leading developer of integrated values-based corporate
responsibility and ethics awareness and compliance learning programs.
Learn more about Working Values at:
www.workingvalues.com
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White Paper:
Critical Elements of an Organizational Ethical Culture
The 2005 National Business Ethics Survey
found that employees who perceive their managers, supervisors, and
coworkers displaying "Ethics Related Actions" (ERAs) are more likely
to observe the outcomes expected of an effective ethics and compliance
program than those whose colleagues and managers exhibit fewer such
actions. This new white paper builds upon the NBES findings on ethical
culture and explores which ERAs have a greater impact on program
outcomes. In addition, this paper presents new analysis on whether
ethics training is more useful for junior employees than for senior
employees.
Download a free PDF copy of "Critical
Elements of an Organizational Ethical Culture" at:
http://www.ethics.org/erc-publications/organizational-ethical-culture.asp
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Resources:
A Trio on Training
What Would You Do? Ethics Courses
Get Context
By Erin White, The Wall Street Journal Online (June 16, 2006)
Experts recommend a contextual approach
to ethics training that they say is all too rare, according to this
WSJ article. Instead, employers have often deluged workers with
"long lists of do's and don'ts." But that doesn't help navigate
the really gray areas, according to W. Michael Hoffman, executive
director for the Center for Business Ethics at Bentley College in
Waltham, Mass. By contrast, Dr. Hoffman says, actually discussing
ethical dilemmas raises people's level of awareness.
The article cites ERC's 2005 National
Business Ethics Survey that found 69% of respondents said their
employers provided ethics training, up from 55% in the 2003 survey.
"Lots of companies are training, but it's not really making a big
difference," said Patricia Harned, president of the Ethics Resource
Center, who also noted that employers often rely too much on one-size-fits-all
ethics programs, instead of tailoring programs to different types
of workers at different levels of the hierarchy
Read the rest of this article at:
http://www.careerjournal.com/columnists/theorypractice/
20060616-theorypractice.html
Ethics Training: Impact on Corporate Liability
By Lamar Odom, Robyn Ferguson, Clarice Golightly-Jenkins,
and Ricardo Alarcon, Our Lady of the Lake University, Leadership
Review (Summer 2003)
"In the best of all possible worlds,
the conscience of each individual employee would be sufficient to
maintain ethical workplace practices. However, an individual's values
and moral code may be ignored as a result of the pressures and difficult
choices faced in daily decision making. In addition, employees'
potential unethical behavior has repercussions for others in the
organization and for the organization itself. Ethical decision-making
and behavior are therefore the responsibility and challenge of both
the individual and the organization. Within the organization, it
is the responsibility of managerial leaders to determine the most
effective means of disseminating information and creating expectations
about ethical behavior. "
The remainder of this article discusses
organizational ethics training within organizations, specifically
addressing how training can help establish an ethical climate and
minimize the risk of civil and criminal liability to organizations.
Read this article at:
http://www.leadershipreview.org/2003summer/article1_summer_2003.asp
How to Get Employees to Take
Ethics Training Seriously
By Working Values (August 2004)
Developers of ethics training programs
are often asked by clients to develop programs that employees will
take seriously, says this article by ethics training company Working
Values, Ltd. "Like the adage 'you can lead a horse to water but
you can't make it drink,' it's one thing to develop engaging training
programs that are interactive, fun and full of energy. It's another
to expect that a fun program in and of itself is going to draw the
attention of busy employees and managers that have too much on their
plates already."
Read the rest of this article at:
http://www.workingvalues.com/thought_pieces.asp#
How%20to%20Get%20Employees
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Compliance
Week: The Risk Of Being Ethically Tone Deaf At The Top
[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]
While being able to point to a Code
of Conduct and existing internal controls may help leaders sleep
a little better, even enforcement agents are beginning to realize
that corporate malfeasance often results from two things: bad decisions
by individual actors, and a corporate culture that allows the conduct
to occur.
The magnitude of that message--that
at the same time corporations must worry about individual employees,
they must also foster an overall environment that discourages misconduct
from taking place--is huge. Time and time again, we've heard policy-makers,
pundits, and even prosecutors declare that for efforts to prevent
and detect misconduct to succeed and an ethical culture to take
root, the effort must come from the top.
But what exactly does tone at the top
look like? How does it get established?
Read this column originally published
in the September 6, 2006, electronic edition of Compliance Week,
at:
http://www.ethics.org/download.asp?fl=/downloads/
The_Risk_Of_Being_Ethically_Tone_Deaf_At_The_Top.pdf
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Charles
A. Bowsher Receives 2006 Pace Leadership in Ethics Award
Former Comptroller General Recognized
for Outstanding Contribution to Corporate Governance
Washington, DC, October 17, 2006 --
The Ethics Resource Center (ERC) Fellows Program has awarded the
2006 Stanley C. Pace Leadership in Ethics Award to Charles A. Bowsher,
former comptroller general of the United States and chairman of
the Public Oversight Board (POB). Every year since 1999, the ERC
Fellows Program has honored an organization or individual whose
accomplishments have contributed to ethical business conduct.
"As a group committed to ethics and
compliance, the ERC Fellows are highly selective in choosing the
Pace Award recipient," said Dr. Patricia Harned, President of the
ERC. "Mr. Bowsher has modeled ethical leadership throughout his
career and we are honored to have him accept this award."
Mr. Bowsher will receive his award
at a Fellows function in January 2007.
Read this press release at:
http://www.ethics.org/about-erc/press-releases.asp?aid=1041
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ERC Board
Spotlight: The Honorable Stephen D. Potts, Esq., Chair, ERC Board
of Directors
[ERC is proud of the many wonderful
and accomplished individuals that serve on the organization's board
of directors. As with any organization, its effectiveness and long-term
success begin at the top. This new regular feature will highlight
individual members of the ERC Board.]
The Honorable Stephen D. Potts, Esq.,
joined the ERC Board of Directors in 2000. In 2001 he was named
Chair of the ERC Fellows Program and held this position until he
was elected as Chair in 2004. In June of 2006 he was re-elected
for a second term.
Mr. Potts came to the ERC Board after
a decade of public service as the Director of the Office of Government
Ethics (OGE). This agency directs government ethics policy for millions
of political, career and military officers in the federal government.
Prior to that, he enjoyed a distinguished legal career as a partner
in the respected firm of Shaw Pittman Potts and Trowbridge (now
Pillsbury Winthrop Shaw Pittman).
As evidence of his solid reputation
for fairness, honesty and deliberateness in the execution of our
government's ethics policies, Steve served as Director of the OGE
for ten years under two administrations, Republican, George Bush,
Senior, and both terms of Democrat, William J. Clinton. Although
asked to serve a third five year term, he decided that any office,
no matter how well run, needs new leadership after a decade. This
is eloquent testimony to his commitment to ethics in government
as well as his leadership in government service.
Steve's leadership, negotiation skills,
and professional diplomacy led OGE worldwide in showcasing how governments
could adopt effective ethical standards. While available to all,
Steve concentrated on providing outreach to emerging democracies
"planting seeds of ethics that can potentially take hold and end
the corruption which has enslaved so many countries." His goal was
to help US corporations and those abroad develop a level playing
field on which the global economy could flourish. Such efforts contributed
to economic development in many emerging countries and provided
increased opportunity to citizens.
Throughout his career, Steve has been
respected for his integrity and his devotion to high ethical standards
in all his business dealings. Noting that "the public trust is critical
to good government, but also contributes to good business," Steve
actively sought ways to integrate ethical principles and standards
of conduct into both public and private institutions by contributing
to the tools that would help both.
Many years after his "retirement,"
Steve's advice on issues of ethics in the public sector is still
sought by colleagues in the United States and around the world.
In his roles as an ERC Board member and a senior ERC expert in the
field, Steve has traveled to Albania, Bucharest, Prague, UAE and
Australia continuing his mission to bring an understanding of the
importance of ethics in government to those abroad.
Steve's vision for ERC is to continue
developing tools and information that will assist organizations
in determining the effectiveness of their ethics programs. While
ethics offices and programs have evolved in their breadth and sophistication
from the early 1980s, measuring the "impact" of such programs is
still in its early stages. Steve hopes that during his leadership,
ERC's research data can be used to address such open questions with
quantifiable research versus the anecdotal evidence of program effectiveness.
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** News from the ERC
ERC Launches Partners Program
The ERC Partners Program is an Ethics
Resource Center (ERC) initiative to affiliate with several leading
service providers in the ethics and compliance industry. Through
this initiative, professional service providers can offer their
clients access to ERC's advanced measurement instruments and benchmarks.
The resulting data allows Partners to better identify and address
client needs. The data also enhances ERC's research on trends and
best practices in organizational ethics.
Benefits of working through an ERC
partner include:
- Access to multiple services through
one provider
- Inclusion of the ERC Partner's customized
questions in an organization's survey
- Support from an ERC Partner in interpreting
the organization's survey results
- Access to benchmarks to interpret
company findings
- Access to resources (white papers,
strategies, tools, etc.) through ERC's Online Benchmarking Portal
- Access to a community in which to
share information on factors that positively impact organizational
ethics
For more information about the ERC
Partners Program, please call 202-737-2258 or email ethics@ethics.org
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Publications & Media Coverage
The following stories appeared in California
papers following the release of results from a survey conducted
this fall by Ethics Resource Center for the City of San Diego. The
survey found that 41 percent of city workers who responded reported
witnessing ethical misconduct at work.
The Ethical Job
Hunter, 12/13/06, BusinessWeek
http://www.businessweek.com/bschools/content/dec2006/
bs20061213_235137.htm?chan=top+news_top+news+index_b-schools
An interview with ERC Invited Fellow Patrick E. Murphy, University
of Notre Dame, about his manual for students and recruiters that
answers questions about how to face certain dilemmas when looking
for a job. 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. The document is available
online at:
http://www.ethics.org/download.asp?fl=/downloads/Ethical_Business_
Practice_Importance_for_the_Recruiting_Process.pdf
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Supporting Character and Integrity
We extend our gratitude to everyone
who has contributed to the Ethics Resource Center this year. Without
your dedication and trust, many of the programs and projects highlighted
in this newsletter would not be possible.
The Ethics Resource Center achieves
its goals through its research, surveys and measurement tools, network
of international ethics centers and character education programs.
These programs can only continue through philanthropic support.
We invite you to join our loyal contributors in lending your support.
And now you can make a secure donation
online at:
https://www.ethics.org/store/donations.asp
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.
To find out more about how you can
support the ERC and its many programs, call 202-737-2258.
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Copyright (c) 2006 Ethics Resource
Center. All rights reserved.
Please contact ethics@ethics.org
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The Ethics Resource Center, 1747 Pennsylvania
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Washington, DC 20006 Telephone: 202-737-2258
http://www.ethics.org
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