Retaliation: It s About the Culture!

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1 Retaliation: It s About the Culture! SCCE Southwest Regional Meeting December, 2014 Steve Priest INTEGRITY INSIGHT INTERNATIONAL, LLC Andrea Falcione, CCEP PRICEWATERHOUSECOOPERS LLP What will we cover today? Culture is everything. Retaliation is a symptom of a corporate culture gone bad. When your organization and people believe they suffer from retaliation, it's time to start anew by focusing on the real root cause: culture. Technology and social media pose retaliation risks and true cultural rewards. 1

2 Culture is everything Culture wins. When a rule or a policy or a Code conflicts with an organization s culture, the culture prevails most of the time. Therefore, in order to ensure against retaliation, a company needs to pay as much attention to culture as to policies, training, auditing, etc. Culture, defined: A pattern of shared basic assumptions about how to adapt, survive and thrive. --Steve Priest One culture, many cultures No such thing as an ethics culture or safety culture or customer service culture. One culture, many manifestations. Complex organizations have complex cultures micro cultures by country, site, line of business, profession, legacy company. Manage the culture or it manages you. --Ed Schein 2

3 A healthy culture improves performance Profit Safety Integrity The Value of Corporate Culture (2013, U of Chicago A healthy culture is one where Doing the right thing is the expected practice every day, and actions that depart from the norms such as retaliation stands out and is addressed 6 3

4 Key Attributes of a Healthy Culture Clear Standards/ Norms Commitment Values in Action Accountability 7 Commitment Organizational attributes Mission and values reflect true commitment to doing the right thing Balanced approach: o Performance AND Principles o Short term AND Long term o Shareholders AND Customers AND Employees o Compliance AND Innovation Leadership attributes Personal and professional commitment to mission, values, Code, doing the right thing Personal integrity and respect Authenticity Accountability Open communications Clear standards Commitment Values in Action Open Communications 4

5 Clear Standards Organizational attributes Clear, consistent formal communications o Mission, vision, values o Code of Conduct o Policies o Communications and Training Structures and incentives to align management communications Leadership attributes Talk the Talk formal and informal, MBWA Consistent, clear, honest messages on o Personal commitment and the organization s o Expectations on performance and ethics/compliance o Business plans and performance o Evaluation of employee Clear standar ds Open commu n ications Commitme nt Values in Action Account ability Values in Action Organizational attributes Respect Fair process Compassion Courage No conflicts of interest Leadership attributes Walk the Talk Clear standards Accountability Open communications Commitment Values in Action 5

6 Accountability Organizational attributes Performance and principles built into HR systems Fair processes Consistent disciplinary approach for all Leadership attributes Hold others and themselves accountable Vigilance Responsiveness + Clear standards Values Open communications Commitment Values in Action - - Performance + Accountability Open Communications Organizational attributes Core practice up, across and down Anti-retaliation policies effective Alternative reporting channels available and trusted Leadership attributes Be accessible Listen with an open mind Do not retaliate Respond appropriately Clear standards Accountability Open communications Commitment Values in Action 6

7 Why don t employees report? 1. Nothing will be done, will not solve problem 2. Fear of retaliation 3. Won t be listened to 4. Could be labelled, harm career progress 5. Not sure of facts 6. Shy, timid personality 7. Inconsistent with culture (of country) 8. Not sure where to go 9. Not committed to organization, fellow employees 10.Personal actions meaningless Focus on the root cause 7

8 Tried and failed Safety Integrity Jack Welch s three tools Police (Audit, and to an extent Compliance and HR) Schools (Training, OD, HR) Media (Corporate Communications and many others) 8

9 Shaping a culture E&C can nudge the culture Training emphasizing key cultural attributes Marketing/ communications/code Conspire with HR o Performance appraisal o Coaching o Disciplinary processes Big change requires partners Senior management Human Resources Legal Finance/Audit Communications Target your efforts And their supervisors & managers 18 9

10 For more information: Steve Priest INTEGRITY INSIGHT INTERNATIONAL, LLC 2009 Ethical Leadership Group 20 10

11 Technology and social media: retaliation risks and cultural rewards 21 Some pitfalls (not an exhaustive list) Cyber bullying it s not just for the school yard anymore - Stewart v. CUS Nashville, LLC: threatening social media posts following a FLSA claim = retaliation Successful retaliation claims by employees fired for their use of social media - Private and public employers - More expansive employee rights Greater access to information about employee rights Use of social media to air complaints could amount to a report Don t forget that old fashioned communication method, it poses real retaliation dangers 22 11

12 Social media risk is real but not a separate priority 23 How can we use social media to our advantage in the culture war? 24 12

13 Why should we use social media to enhance culture? Our employee base is changing Employees and other stakeholders expect to interact with us through their choice of digital channels Our ability to engage employees in ethics and compliance will depend on delivering a best-in-class digital experience 25 Our cultural stakeholders Don t want In-depth, long content Time-bound events * - average open rates are dropping as numbers of s rise Want Data visualizations, charts, graphics, slideshows Short snippets of information Content that can be shared Use Smartphones Tablet devices PC's Social media Traditional media *Of course, we don t always get what we want! 26 13

14 What they want* A modern experience rooted in your traditional strengths The ability to set rules of engagement how, when, whom Access to people, content and thinking anywhere Content that respects their time Ideas that can easily be shared internally and externally Digital interaction to augment static content An organization open to dialogue and collaboration *Of course, we don t always get what we want! 27 Social media as a cultural tool Social media can be used across different focus areas Organizational Focus Employee Enterprise Knowledge Communities Innovation Training Dialogue Ethics & Values Productivity Efficiency Networking Teamwork Enterprise Finder Communication Personalization Engagement Corporate Brand Building Customer Relationships Customer Service Innovation Recruiting/Alumni Ethics & Values Networking Career Development Personal Brand Building Connection to Organization Internal Community Focus External 28 14

15 Current use of social media in ethics and compliance Addressing the fast-changing social media landscape will require speed and agility Q19 In which of the following ways does your company use social media in your compliance and ethics program? We communicate about compliance and ethics topics through internal social media channels We monitor social media sites for postings suggesting potential misconduct We communicate about compliance and ethics topics through external social media channels 41% 42% 41% 42% 51% 57% We review public social media and other sources as part of our pre hiring due diligence 40% 45% Base: (358, 223) Don't know Other 5% 1% 2% 3% State of Compliance Survey Getting there with a focused program by Aligning your platforms with stakeholder preferences as well as ethics and compliance needs Moving your content closer to your market and its needs Activating your people and their networks Underpinning these activities with a governance program 30 15

16 Platforms Goal The creation of a flexible and dynamic technical environment which supports the publication, syndication and serialization of content and allows that content to reach your stakeholders through new, more preferred channels. Potential Activities New content management system Alignment with Global IT Integration into existing engagement platforms Mobile app Mobile center of excellence Evaluation of social platforms 31 Content Goal To develop a digital publishing model that delivers content in a form fit for the digital age, allows your staff to engage and share content with your stakeholders, enables employees to share (and collaborate) with you and each other and is optimized for multiple platforms. Potential Activities Develop network-wide content standards Increase production and use of multimedia content Develop and share models of leading practice Enable sharing and distribution within and beyond your company 32 16

17 Networks Goal To assess the limitations of current activities for fully exploiting the potential of the digital age. To develop ethics and compliance content to deliver through better networked behavior on digital channels. Specifically, around interacting and collaborating using your content. Potential Activities Provide boot camp training to selected SMEs Develop templates for initiatives Communicate and provide training to broader ethics and compliance and other (e.g., HR, IA) teams Re-align content creation, publishing and measurement Target social influencers * Develop internal network of digital SMEs *More on this later 33 Governance Goal To identify current network constraints on implementing a new digital strategy. To create global protocols which enable you to share and collaborate around content and networks. To identify and manage any legal impediments that create exceptions. Potential Activities Define policies and guidelines Agree on priority areas Dispute resolution and escalation Monitoring Communications and change management 34 17

18 Engaging social networkers as agents of cultural change Companies can learn from social networking employees to get a better picture of what employees do and how they communicate. Engaging social networkers will ultimately help: Enhance the company s reputation Strengthen employees ethical performance Create a closer relationship between company and employees Create more transparency 35 Key challenges * Delivering globally content options in an everchanging flexible IT roadmap Development of a environment that recognizes known unknowns Availability of funding in what will certainly become a state of permanent change *Not an exhaustive list! Development of pilots and early adopters to road test the plan Policies and enforcement that will work locally and Ability to integrate with both in-house and third-party systems Support for local implementation of centralized strategic deliverables Skills development around native mobile apps and mobile web technologies Flexible and dynamic process to respond to changing user behaviour Changing current content production and publishing model 36 18

19 How can we use social media? Texts Campaigns Blogs Videos Polls Social networks 37 Who to contact Andrea Falcione, CCEP Managing Director, Performance GRC Office: Mobile: PricewaterhouseCoopers LLP 125 High Street, Boston, MA

20 This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. US helps organizations and individuals create the value they re looking for. We re a member of the network of firms with 169,000 people in more than 158 countries. We re committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at PricewaterhouseCoopers LLP. All rights reserved. In this document, refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity