Marked as Read: The Story of the Ineffective Code of Conduct
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- Brendan Singleton
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1 Marked as Read: The Story of the Ineffective Code of Conduct Presented by Ed Petry Vice President, Advisory Services Elizabeth Lewis Content Director, NAVEX Engage Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 0 Agenda Code Basics What Employees May Not Be Telling You (and you need to know) Critique Your Code Better Code Practices Break Build Your Code: Planning, Writing, Design and Interactivity Q & A Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 1
2 Code Basics: The Cornerstone of an Ethical Culture Not just functional foundational Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 2 Think About It What Other Company Document: - Draws a connection for your employees between your mission and values and everyday behavior? - Shines a light not just on what your company does, but how you do it? - Garners as much visibility, both internally and externally? - Gives employees the tools and resources they need to do the right thing? Your Code is not just a policy or collection of policies; it s the starting point, the foundation, the one document that captures your values and unique culture Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 3
3 What s Required Standards, Codes and Policies: The organization shall establish standards and procedures to prevent and detect criminal conduct USSG 8B2.1(b)(1) The organization shall takereasonable steps to communicate periodically and in a practical manner its standards and procedures USSG 8B2.1(b)(4) Common practice: Codes of Conduct pages (or more) Additional documentation, websites, communications Employee handbook Policy and procedures Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 4 The Basics Common Code Elements Company s values or guiding principles Opening letter from leadership Navigation aides (Table of contents, index, etc.) Guidelines for decision-making Statement of how to report ethics and compliance issues Information about your internal reporting system/helpline/hotline Statement of company s opposition to retaliation Summary of employees and leaders ethics and compliance responsibilities Statement on the importance of compliance with laws and regulations Graphics/design features Q&As or scenarios Statement on to whom the Code applies Summary of policies/standards pertaining to selected risk areas Annual Code certification Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 5
4 Advance Your Organization s Culture and Values USE IT TO: Communicate the premium you place on ethical behavior Lift up the topics that are the most relevant for your organization Set the standard Bring your values to life: show how they apply to specific situations Address the unspoken rules: the ones that really drive behavior Explain/show who you are Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 6 What Employees May Not Be Telling You and you need to know Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 7
5 You re Not Alone - Too Often a Missed Opportunity COULD THESE BE YOUR EMPLOYEES? I suppose they re required to have a Code like this, but it s just CYA. Our Code is from the Compliance Office. You know, they re the people who say no. The Code is the lawyers list of what I can t do. Written by lawyers, for lawyers. I wish they would just tell me what I need to know. Our Code isn t useful or practical The information is outdated and hard to find I never use it. They say it s up-dated every year, but mostly it s the same code we had 10 years ago The topics don t track with what I need or what I see every day as actual issues. Most of it doesn t apply to me. Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 8 You re Not Alone - Too Often a Missed Opportunity COULD THESE BE YOUR EMPLOYEES? I ve seen other company codes and ours just doesn t measure up unfortunately it gives you a clear sense of what our priorities really are and ethics isn t one of them. I think we re a good ethical company with good people but that doesn t come across in the code. It doesn t reflect us. Does anyone in the Compliance Office realize it s not 1995? Have they heard of the internet? They ve asked me every year if ve read the code and of course I say yes. Who would say no? Sometimes I think they actually believe we ve read it. I don t know anyone who has. Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 9
6 Most Common Reasons Companies Tell Us They Need Help Our code is too long and complicated difficult to read. We need to make it simple and clear. I m sure we aren t covering all the topics we need to cover. It doesn t reflect our values/principles/culture. We ve undergone major organizational changes and need a new, revised code. It s been too long since we updated our code it s outdated/stale/not in line with who we are today. We had an external review of our program and our code scored poorly. We started a draft but Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 10 Critique Your Code Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 11
7 Does Your Code Common Code Elements Company s values or guiding principles Opening letter from leadership Navigation aides (Table of contents, index, etc.) Guidelines for decision-making Statement of how to report ethics and compliance issues Information about your internal reporting system/helpline/hotline Statement of company s opposition to retaliation Summary of employees and leaders ethics and compliance responsibilities Statement on the importance of compliance with laws and regulations Graphics/design features Q&As or scenarios Statement on to whom the Code applies Summary of policies/standards pertaining to selected risk areas Annual Code certification Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 12 Does Your Code Have a theme or tag line? Connect your mission and values with everyday behavior? Include a message from your CEO? Your Compliance Officer? Address responsibilities of employees and leaders? Use clear, simple language? Define key terms? Address the risk areas that are relevant to your organization? Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 13
8 Does Your Code Have a design that draws employees in? Reflect your corporate brand? Include photos or images? Include Q&A and other comprehension aids? Leverage iconography? Link to more detailed policies? Promote ease of navigation? Allow readers one-click access to any section from the Table of Contents? Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 14 Better Practices Code Spotlight Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 15
9 Inspire Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 16 Engage the Reader Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 17
10 Point to Don t Parrot Your Policies Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 18 General Motors Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 19
11 Hershey Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 20 Build Your Code Planning, Writing, Design and Interactivity Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 21
12 Getting Started Build the Business Case for an Updated Code 1. What do your employees really think? 2. Benchmark your peers and best practice Codes 3. Be up-to-date on external pressures Regulatory requirements Demands from business partners Changing public expectations 4. Tackle the budget head on, make the case for ROI Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 22 Getting Started Assembling a Team Get key constituents on board early Senior leadership Key SMEs (including global partners) Corporate Communications / Branding team Digital content production partner (if including links to policies and resources) Identify likely obstacles and address them early and often Establish consensus on theme, content organization, format Have a clear concept and a practical plan to maintain alignment especially if new Code represents a major change Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 23
13 Getting Started Create a Realistic Project Plan and Timeline Include ample time for feedback and reviews Coordinate with other related efforts (training, culture initiatives, strategic changes) Engage with IT, training, marketing and communications Plan plenty of time for reviews/edits Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 24 Getting Started Collect the Information and Resources You Need for Success Gather existing resources there may be more than you think Gather opinions, discuss likes, dislikes limitations Assess current and emerging Ethics and Compliance risk areas Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 25
14 Be Realistic Common Obstacles Late to the party -SMEs and Leadership not on the same page as your code team resulting in major back tracking and/or revisions Values vs. Compliance Code vs. Policies Home country vs. global stakeholders The Kitchen Sink Loss of focus on key messages and relevant topic areas Unrealistic Plans -Delays-Hurry up and wait -Other priorities Focus Groups Key decision-makers on board early and often Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 26 Good Writing, Good Results The Best Codes Say it in a way that employees at every level can understand Keep in mind: audience demographics and any global implications Use words and language that match what employees see and hear throughout the organization Use short, direct sentences Define key terms Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 27
15 Good Writing, Good Results Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 28 Engage the Reader The Best Codes Are scan-able Include a variety of comprehension aids Call-out boxes Q&A Decision tree graphics Iconography Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 29
16 Aim for Authentic The Best Codes Are an authentic expression of a company in look, feel and style Align seamlessly with a company s brand Include words and images that are relevant to, and resonate with, employees Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 30 Aim for Authentic Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 31
17 Incorporate Interactive Features The Best Codes Include an interactive Table of Contents that provides one-click navigation to any Code topic Include hyperlinks to all policies and resources listed in the Code Include persistent navigation on each page that allows for: Page-forward and page-back functionality Link to the Table of Contents page Link to the Resources/Contacts page Link to your Hotline/Helpline Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 32 Incorporate Interactive Features Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 33
18 Plan for Translations Develop content with your global workforce in mind Identify in-country partners Review any country-specific requirements Ensure understanding and consensus on Code purpose, theme, roll-out plan Leave time to address country-specific concerns/questions Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 34 Plan the Code Launch Develop two-three year communications, awareness and training plans with tie-ins to the Code Assign roll-out tasks to management and address questions and concerns Consider s, posters, brochures, supervisors guides, etc. Update Code-related resources: policies, employee handbook, CSR publications, website, Don t neglect third parties supply chain Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 35
19 Questions? Copyright 2016NAVEX Global, Inc. AllRights Reserved. Page 36 Thank You! Ed Petry, Vice President, Advisory Services Elizabeth Lewis, Content Director, NAVEX Engage Copyright Copyright 2016NAVEX 2016NAVEX Global, Inc. Global, AllRights Inc. AllRights Reserved. Reserved. Page 37 Page 37
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