The Dollars and Sense of Ethical Behavior

Transcription

1 The Dollars and Sense of Ethical Behavior 1 e-factor! / EUC Marcy Maslov CPA (Illinois), MBA (Duke), Certified Professional Co-Active Coach. 25+ years Fortune 500 accounting 12+ years as Business and Executive Coach 8+ years using Gamification to enhance results Empowerment Unlimited Coaching, LLC Copyright 2008-Present All Rights Reserved 2 1

2 What would you do in my shoes? Empowerment Unlimited Coaching, LLC Copyright 2008-Present All Rights Reserved 3 Ethical Dilemma You are informed that the stockroom manager is taking her toolbox home with her and using the tools for private use. You decide to do nothing because you see the stockroom manager return the toolbox every day. What are the potential costs and consequences of this decision? Your team can award 1, 2 or 3 PEPs based on their acceptance of your answer. (Scenario courtesy of e-factor!. Copyright 2007-present.) Empowerment Unlimited Coaching, LLC Copyright 2008-Present All Rights Reserved 4 2

3 Does It Really Matter? 80% of people say they decide to buy a firm s goods or services partly on their perception of its ethics Survey, Wirthlin Worldwide 5 Another View It takes years to build a good business reputation, but one false move can destroy it overnight. - Edson W. Spenser former Chairman, Honeywell 6 3

4 Dollars & Sense Quick Stats Unethical behavior costs $154K or 5% of Revenue $145K median Average time to detect fraud 18 months Most common fraud detection method Tip by employee report-to-nations.pdf 7 Unethical Behavior 1. What is the most unethical behavior in your organization? 2. How much does this behavior cost your organization annually? 3. Who is most likely to commit unethical behavior? 8 4

5 Types of Unethical Behavior Measurable Theft of inventory, supplies, time Declining productivity, engagement Employee turnover, absenteeism Leads to Loss of Clients Intangible Diminishing reputation, brand value, morale More challenging recruitment Leads to Lack of Trust 9 How Much Is It Costing You? Where are you spending money to prevent unethical behavior or fraud? ID theft prevention Vendor audits Inventory counts.. Internal and/or external audits... Security and surveillance. Expense reimbursements Billing practices. Training... Total Annual Cost. 10 5

6 Hacking and identity theft Measurable Costs Retaliation Employee turnover Productivity 11 Leader vs. Staff vs. Client Empowerment Unlimited Coaching, LLC Copyright 2008-present All Rights Reserved 12 6

7 Ethics Scenario Revisited You are informed that the stockroom manager is taking her toolbox home with her and using the tools for private use. You decide to do nothing because you see the stockroom manager return the toolbox every day. What are the potential consequences of this decision? Your team can award 1, 2 or 3 PEPs based on their acceptance of your answer. (Scenario courtesy of e-factor!. Copyright 2007-present.) 13 Dollars & Sense Positive Benefits Business valuation increases Employee productivity and loyalty Lower turnover Reduction in fines and penalties PRICELESS: Increases in Employee morale Business Reputation Business Relationships 14 7

8 Pop Quiz What were the costs identified in the ACFE 2014 Report to Nations What is one measurable cost of fraud and one intangible cost? What was the outcome of your scenario discussion with your peers? 15 Using Games to Make Your Point Most effective adult training method 90% vs 10-15% Who uses games? Google Deloitte US Military 16 8

9 Empowerment Unlimited Coaching, LLC Copyright All Rights Reserved 17 What Games Can Do 1. Create safe, effective, fun space Transfer and share knowledge Simulate existing conditions and situations Discuss and resolve real problems 2. More effectively utilize training dollars Multiple levels of activity Accelerate learning from months to days Establish specific outcomes or goals Complete lesson plan in a box 18 9

10 What Did You Learn? Most memorable scenario Teamwork and leadership Higher retention and application Training can be fun and Address specific challenges Incorporate policies/procedures 19 Your Action Plan What is one action you can take from today s program to enhance the effectiveness of your ethics training? 20 10

11 What s next? Challenge: write your own game plan What s your biggest issue to resolve Choose a game type or game element Identify a reward for solving the issue Quantify potential savings Be open to various options My gift to you: 20 minutes to help you craft your game plan. Schedule at 21 The Dollars and Sense of Ethical Behavior 22 11