Unlocking the Positive Value of Ethics

Transcription

1 Unlocking the Positive Value of Ethics e-factor! Educational Board Game of Business Ethics Marcy Maslov Marcy Maslov CPA (Illinois), MBA, Certified Professional Co- Active coach. Over 25 years working in Fortune 500 accounting and 11+ years as Executive Coach bringing Fortune 500 skills to small and medium sized businesses. Services include: Business and executive coaching Enhancing leadership, team-building and decision-making skills Building or Rebuilding Trust, Integrity and Accountability through interactive, experiential workshops Practical use and interpretation of financial statements and strategic planning Copyright 2008-Present. All Rights Reserved 2 Ethics Scenario You are required to sign a code of conduct advising the organization if you are aware of any illegal or unethical behavior. You ve just witnessed Big Boss changing statistics on your report without your permission to make the project meet organizational standards. (Scenario courtesy of e-factor!. Copyright 2007-present.) Does this action require you to report a violation of the code of conduct? Why or why not? 1

2 What s your definition of Ethics? Write one word that means Ethics to you Compare with your neighbors 4 Leader vs. Staff vs. Client Copyright 2008-present All Rights Reserved 5 Ethics Scenario Revisited You are required to sign a code of conduct advising the organization if you are aware of any illegal or unethical behavior. You ve just witnessed Big Boss changing statistics on your report without your permission to make the project meet organizational standards. (Scenario courtesy of e-factor!. Copyright 2007-present.) How would client or staff view this scenario and how does it differ from your view as leader? 2

3 Unethical Behavior What do you consider to be unethical behavior? How much does this behavior cost your organization annually? 7 Annual Cost of Unethical Behavior # Employees Cost (note A) < 100 $145K annually > 100 Up to 5% of Revenue annually Turnover 30% - 400% of annual salary Depends on employee level and expertise (note C) Age 80% of year-olds will leave if they believe the leaders are unethical (note D) Profile Middle-aged males College degree 6 or more years with organization (note E) 8 Benefits of Ethical Culture Financial Market Value 2 3 X (note F) AvgReturn on Capital 50% (note I) Employees Productivity 8% (note H) Turnover 55% (note J) Risk Reduction in Fines & Penalties 95% (note G) PRICELESS: Increases in Employee morale Business Reputation Business Relationships 9 3

4 Our Moral Compass Our Obligations if: Company vs. individual values? Risk and reward? 10 Steps to Resolving Dilemmas D Define the ethical dilemma O Options for resolution S Stakeholders C Consequences A Actions and Decisions 11 What can we do? Clarify definitions Alignment Innovative, experiential training and modeling 4

5 Using Games to Make Your Point Most effective training methods for adults 90% vs 10-15% 70% 13 Action Plan What is one action you will take from today s talk to unlock the positive value of ethics at your organization? 14 What s next? Challenge: write your own scenario Describe generically the biggest issue you want to finally resolve 70 words or less No solutions offered Be open to various interpretations and ask at least 5 people what they would do My gift to you: 30-minutes to help you craft your scenario. Schedule at

6 We help you Establish, clarify, and align definitions Provide ethics training, professional development We offer Training workshops (60-, 90-, half day) Code of Conduct reviews Enterprise-wide development programs CPA, CFE continuing education credits in Ethics Please contact Marcy Maslov at or visit our website at e-factor! is a property of 16 for helping me change the conversation about Ethics! 17 Unlocking the Positive Value of Ethics e-factor! 6

7 Footnotes Note A: Per 2012 Association for Certified Fraud Examiners study. Note B: Per 2002 Ernst & Young survey published in the CPA Letter October 2002 and published in a Josephson Institute report titled The Hidden Costs of Unethical Behavior Note C: The ROI of an Effective Ethics Program published on HR.com 8&I= &1=0 Note D: Employee Retention: What Employee Retention Really Costs Your Company by Ross Blake. Published on WebProNews Average cost for an $8/hour worker is between $3,000 - $5,500 according various sources and studies. shows the various studies and their results. Note E: Forbes.com 2/1/2010 article by Alexander F. Brigham and Stefan Linssen of Ethisphere 19 Footnotes Note F: 1999 Study by Business and Society Review published in the article The ROI of an Effective Ethics Program on HR.com Note G: The Hidden Costs of Unethical Behavior Josephson Institute report Note H: Study of annual return on investment by companies listed on Fortune Magazine s 100 Best Companies to Work For in America from and published on Google Knowledge blog by Greg Heaps. Note I: Does Business Ethics Pay? Ethics and Financial Performance, Institute of Business Ethics, London 2003 published in a Josephson Institute report titled The Hidden Costs of Unethical Behavior. Note J: Survey performed by The Hudson Institute published in