An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner...
-
Upload
truonghanh -
Category
Documents
-
view
218 -
download
5
Transcript of An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner...
![Page 1: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/1.jpg)
An Ethical Afternoon
Mary McLean People Services Business Partner
PEMCO Mutual Insurance Company May 21, 2013
![Page 2: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/2.jpg)
Why are we here today?
CE CREDITS!!!
2
![Page 3: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/3.jpg)
Objectives for Today • Review the ethical landscape of insurance industry
• Exposure to ethics theories
• Observe one company’s Ethics Program journey
• Explore case studies
3
![Page 4: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/4.jpg)
Ethical Landscape
• Company’s core values o The company’s business model
• Employees’ and customers’ values
• Regulatory environment
• Economic pressures
4
![Page 5: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/5.jpg)
Back to School A “Masters” in Ethics
5
![Page 6: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/6.jpg)
Ethics Theories Defined
• Utilitarianism o Do the greatest good for the greatest number of people
• Kant’s categorical imperative o Do what’s right no matter the cost
• Rawls’ justice as fairness o Guaranteeing equal rights and opportunities
• Communitarianism o Shoulder your responsibilities and seek the common good
• Altruism o Love your neighbor, care for others is the deciding factor
6
![Page 7: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/7.jpg)
Utilitarianism
• Do the greatest good for the greatest number of people
• Decision making focuses on the outcome • Create a mental balance sheet
7
![Page 8: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/8.jpg)
Utilitarianism +/- Pros: • Easy to understand • Used frequently, casually • Requires us to anticipate and evaluate
consequences
Cons: • Evaluating all the outcomes isn’t easy • Different person, different result
8
![Page 9: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/9.jpg)
Insurance Example • Consider a western states insurance company writing
for preferred markets only in WA, OR, ID, and CA.
• CA was the last market you entered, so you have the fewest customers in this market.
• CA is proving to be a market where you’re experiencing high severity and frequency of losses with wind and fire claims.
• You’re a senior leader evaluating whether you should pull out of CA or face significantly raising rates in all other states to offset.
9
![Page 10: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/10.jpg)
Kant’s Categorical Imperative
• Do what’s right, no matter the cost • There’s only one right answer
• Everyone will come up with the same right answer
10
![Page 11: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/11.jpg)
Categorical Imperative +/- Pros • Consistent approach • Motivational – feels good • Benefits to society as a whole are considered Cons • The exceptions are endless • Conflicting right answers • Examples not that realistic or common • Difficult to apply, especially under stress
11
![Page 12: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/12.jpg)
Rawls’ Justice as Fairness
• Guaranteeing equal rights and opportunities
• Differences do exist o So protect vulnerable populations
• Concept: “the veil of ignorance”
12
![Page 13: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/13.jpg)
Justice as Fairness +/- Pros • Acknowledges the individual and society • Supports those less fortunate • Shrinks the gap between the haves and have nots Cons • Limited to democratic settings • Whose definition of fair and equal? • Which rights are most important?
13
![Page 14: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/14.jpg)
Communitarianism
• Shoulder your responsibilities and seek the common good
• Healthy communities feature o Diverse and competing interests o Shared values, laws, customs, vision of the future o Teamwork and collaboration o Everyone participates o Sense of community is strong o Community institutions evident
14
![Page 15: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/15.jpg)
Communitarianism +/- Pros • No room to be selfish • Leaders from many areas • Collaboration promotes trust • Develops good character
Cons • Heavy-handed on individual freedoms • Evangelistic factions • One set of values not realistic
15
![Page 16: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/16.jpg)
Altruism
• Love thy neighbor, the ethics of caring
• Help others regardless of personal cost
• Historical roots
16
![Page 17: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/17.jpg)
Altruism +/- Pros • Ancient roots, contemporary application • Important for health of society • Inspirational Cons • Can’t meet every need • Easier to say, harder to do
17
![Page 18: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/18.jpg)
Summary on Theories • No one best approach
o Context really matters
• Provides thoughtful options
• Provides insight into the difficulties of decision making
18
![Page 19: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/19.jpg)
You’re an Ethics Master
19
![Page 20: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/20.jpg)
Getting it Right: One Company’s Ethics Journey
PEMCO facts • Northwest company for over 60 years • Mutual company, personal lines only • Strong culture
o Shared values o Shared language
20
![Page 21: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/21.jpg)
The Challenge • Introduce an Ethics Program in a highly tenured
company
• Process needs to be inclusive
• Outcome needs to reflect who we are, not change who we are o A Code of Ethics should sound like us o How to fit in an ethics hotline?
21
![Page 22: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/22.jpg)
The “Why” Why add an ethics program to an established company without ethical violations issues?
• Belief that ethics leads to good business decisions
• Competitive landscape could create pressures
• New people join us all the time o We need common language o We need something tangible
• Companies just do this, it’s our challenge to do it well
22
![Page 23: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/23.jpg)
Code of Ethics
• First draft a bit frosty, need to warm it up
• Shopping it around for feedback o Feels good! o Looks like just another policy, nothing special
• Making it pretty
23
![Page 24: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/24.jpg)
Ethics Hotline?
• Open Door Policy already in place
• Ethics hotline common, but will it fit?
• Vendor selection process
• Implementation team o Testing the tools o Branding the collateral o Processes for handling incoming concerns
• What do we call it?
24
![Page 25: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/25.jpg)
Implementation Research
• Messaging is key
• Communicate the benefits to the organization
• Be clear it is supported from the top
• No retaliation for coming forward, can’t say this enough
• Appeal to employees’ responsibility to make the program work
25
![Page 26: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/26.jpg)
Sharing it with Employees
• The roll out needs to be “a little different”
• Training program developed • Manager-led face-to-face sessions • Executive video sets the context • Interaction a must • Case studies to make it real
• Bundled with roll out of ethics hotline
• The great debate – signing the Code
26
![Page 27: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/27.jpg)
Ethics Ongoing
• Transition to online training for new hires • But kept the manager interaction
• Not a once-and-done effort • Ownership and accountability • Priority for the company
• Other efforts under consideration • Tone at the Top survey • Ethics Annual Report • Participation in Ethics Week • “What would you do?” interactions
27
![Page 28: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/28.jpg)
Case Studies
• Insurance Sales/Underwriting • Insurance Claims • Insurance Service
28
![Page 29: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/29.jpg)
In Summary We covered • Ethical landscape in the insurance industry • 5 theories of ethics • An ethics program journey • Case studies
29
![Page 30: An Ethical Afternoon - CPCU Society Ethical Afternoon Mary McLean People Services Business Partner PEMCO Mutual Insurance Company May 21, 2013 Why are we here today? CE CREDITS!!!](https://reader034.fdocuments.in/reader034/viewer/2022051723/5ab6f5e47f8b9ab7638e505e/html5/thumbnails/30.jpg)
Thank you! Citation Johnson, C. E. (2012). Meeting the Ethical Challenges of Leadership: Casting Light or Shadow. 4th edition. Thousand Oaks, CA: Sage Publications, Inc.
Contact information: Mary McLean PEMCO Mutual Insurance Company 206-628-5210 [email protected]
30