Business Ethics
Assessment & Training

FINANCIAL LEADERSHIP CORPORATION WITH ITS PARTNER ETHIXBIZ
offers cutting-edge business ethics assessments, analysis, and training. Successful ethics programs are an integral part of an organization’s overall compliance program. We work with internal auditors and management to enhance compliance efforts in areas such as Sarbanes-Oxley and the Foreign Corrupt Practices Act. In addressing entity-level controls, for example, we can provide needed documentation related to a company’s integrity and ethical values. If a company operates overseas, our hands-on international experience enables us to evaluate and support a company’s efforts to operate consistently and ethically across borders. We go beyond flowcharts and incorporate what our surveys and interviews suggest about the true nature of your corporate culture. Learn more about our services in:

» Code of ethics creation/revision
» Ethics and values communication/training
» Ethics and values audits/assessments

Code of ethics creation/revision
An organizational code of ethics (or statement of “principles of business conduct”) has become a management essential. Since the early 1990s the US Federal Sentencing Guidelines for white-collar crime have allowed for up to a 40% reduction in penalties if the offending company has in place a code of ethics. A code of ethics, if done well, is a statement of “how we do the things we do” in our organization. It is a call to operational standards that are more than just a minimalist compliance with the law. Rather than deciding questions of organizational practice on a dangerous ad hoc basis an organization with a code of ethics has an accepted, carefully designed roadmap to guide its movements.

Our approach to creating (or reviewing and revising) an organizational code of ethics includes the following elements:

• Initial meeting(s) with the appropriate organizational executive(s) to clarify the purpose, scope, and timeline of the code project.
• Research to gather the company’s historical and current codes or code-like statements of behavioral guides (e.g., on hiring, harassment, compensation philosophy).
• Research on codes of ethics/conduct of competitor companies in the same industry (especially those most admired by your company).
• General mapping of organizational practice areas (e.g., marketing, finance, human resources).
• Identification of managers and in-the-trenches practitioners to be primary resources (focus groups, interviews, survey/questionnaires) during writing of the code of ethics.
• Specific mapping of critical business practices within each practice area---and delineation of guidelines (boundaries to respect, mandates to pursue) for each critical practice.
• Identification of actual and potential specific ethical temptations, challenges, and pitfalls in each business practice area --- and delineation of guidelines to avoid each potential problem.
• Draft of Code of Ethics version 1.0
• Critical review of Code 1.0 by appropriate executives, managers, and practitioners.
• Revision and draft of Code version 2.0
• Review and approval by appropriate executives, managers, and practitioners.
• Publication

Ethics and values communication/training
It does little or no good to have an organizational code of ethics and then fail to teach or use it. In fact it may be worse to have one and not use it because that can create cynicism about the whole ethics enterprise. A code of ethics is like a roadmap for the organization. The map should be studied and understood at some basic level before embarking on a business journey; but the real value of a map can only be understood in the process of successful travel. Ethics training needs to be given at all levels of the organization from new hires, through the rank and file, to managers, executives, and directors. It needs to include not just explanations of the guidelines but practice in recognizing and resolving ethical dilemmas. Ethics and values training is best done as a combination of in-person group training and individual on-line training. While on-line training has the merits of easy replicability and individualized access, it cannot adequately convey a team/collegial approach to ethical reflection and decision-making nor the ambiguity and situational wisdom that characterizes most ethical experience. Hence our push for a blended training approach: on-line and in-seminar.

Our approach to creating or upgrading an organizational ethics and values training program includes the following elements:

• Initial meeting(s) with the appropriate organizational executive(s) to clarify the purpose, scope, and timeline of the ethics and values training project.
• Research into the company’s current ethics communication and training programs. Assessment of strengths and weaknesses, successes and failures (through evaluations, surveys, focus groups, as needed).
• Research on ethics and values training among competitor companies in the same industry (especially those most admired by your company) --- and of companies of similar size and geographic distribution.
• Identification of training target segments of the company (e.g., new hires, board of directors, executives, marketing division, manufacturing, accounting, etc.). Where is specialized training essential? When (if at all) is company-wide training appropriate?
• Draft proposal for communication of company values and ethics by means such as (a) wall posters, statements, (b) coffee cups, mouse pads, etc., (c) articles in company newsletter, (d) print versions of company guidelines and values, (e) on-line statements and resources, including blogs and archives of FAQs, etc.
• Draft proposal for in-person ethics and values group training sessions and for multi-year thematic approach. Curriculum writing. Facilitator training.
• Draft proposal for on-line individual ethics and values training in parallel to in-person group training.
• Critical review of proposals by appropriate executives and training leaders.
• Pilot project testing and revision.
• Review and approval.
• Roll-out of training program.

Ethics and values audits/assessments
The quality and effectiveness of ethics codes and training programs cannot be taken for granted. Therefore, a rigorous ethics and values audit/assessment system must be created and implemented. We reject the one-size-fits-all approach in favor of building customized systems for each organization.

Our approach to ethics and values audit/assessments includes the following elements.

• Initial meeting(s) with the appropriate organizational executive(s) to clarify the purpose, scope, and timeline of the ethics and values assessment project.
• Research into the company’s current self-assessment and audit systems and processes (ethics, strategy, technology, job satisfaction, etc.). Evaluation of strengths and weaknesses, successes and failures (through surveys, focus groups, interviews, as needed) of self-assessment systems in place.
• Research on ethics and values auditing among competitor companies in the same industry (especially those most admired by your company) --- and of companies of similar size and geographic distribution.
• Compilation of existing flowcharts (or creating flowcharts) related to the ethics and code of conduct program.
• Identification of the key questions for which answers are being sought. For example, most ethics and values assessments will want to find out (a) knowledge and understanding of the values and ethical guidelines, (b) attitudes toward company values and ethics, especially regarding the company and its leaders’ performance on stated values and guidelines, (c) performance/compliance in the various sectors of the company, and (d) suggestions for improvement of guidelines, reporting, and training.
• Creation of employee questionnaire/survey forms including (a) computable multiple choice responses, (b) fill-in the answer questions, and (c) space to write open and honest comments. This is evaluation “up” and “around” the organization.
• Creation of guidelines for managers doing performance evaluations of direct reports: rubrics and suggestions for covering values and ethics knowledge and performance. This is evaluation “down” the organization.
• Review of draft proposals. Revisions.
• Testing of systems. Revisions.
• Approval and Roll-out.

Contact Financial Leadership: gregz@financialleadership.com