Doing business ethically….. foster back presentation .pdf · A value in action is a virtue It is...

Doing business ethically…..

Insurance Brokers Association of New Zealand

Conference 19th August 2010

Philippa Foster Back OBE

Director

Institute of Business Ethics

www.ibe.org.uk

doing business ethically…

… makes for better business

© IBE ....doing business ethically

makes for better business….

Topics

What is business ethics?

Where dilemmas arise

Your professional role

Why does this matter?

Summary




IBE definition is …..

The application of ethical values to

business behaviour………



Identifying company values

Customer focus

Business values

Ethical values

Respect

Openness

Integrity

Transparency

HonestyEfficiency

Profitability

Quality

Trust

Customer

focus

Forward

thinking

Performance Reliability

Teamwork

Responsibility

Fairness



Ethical Values

Business Behaviourthe way we do business

Governance

Ethical commitments / Corporate Responsibility

- to whom we are responsible:

- ways of working

- relationships with stakeholders

Goals, Strategies,Policies & Codes

Core businessstrategy



doing things ethically

Corporate Responsibility

approach to Corporate Responsibility

Ethics Policy & Code

Ethical Values underpin….

CSR (Social) Policy

doing ethical things



When does a problem involve

ethics?

When it is not covered by the law

If it raises moral problems for you or a

member of the team

If it makes you reflect on what is a correct

and incorrect response

If you are forced to consider where your

obligations and duties lie.



Where dilemmas arise



Where Ethical Dilemmas Arise

Societal Values

Corporate ValuesPersonal Values

Professional Values



Identifying Personal

Values

What matters to you?

Think of someone you respect, why?

On reflection what have been the three most important lessons in your life? Why?

Who are you at your best?

What would you like to see written on your tombstone?



Ethical Values e.g. Honesty

Transparency

Integrity

Openness

Humour

Kindness

Generosity

Empathy

Service to others

Trust

Respect

Fairness

Responsibility

Happiness

Compassion

Commitment

Family

Loyalty



Your Professional Role



Characteristics of a

Profession

Skills based on theoretical knowledge

Knowledge and competence tested

Continuous training

Licensed to trade

Individual responsibility & autonomy

Professional body

Professional code of ethics

Exercise of professional

judgement…..

IBANZ Code of Practice

A reminder…..

A Professional Dilemma…

Table Discussions

Why ethics are important

A value in action is a virtue

It is all about behaviour

Underpinning Risk

Management

1. Corporate

Objective:

Reduce risk of misconduct,

or integrity risk

INTEGRITY

FAILUREProxy for:

Ethical lapse,

irresponsible

behaviour etc.

Reputation

risk

Operational

risk

Other risks

Other

consequences

e.g. consequences

for the economy,

adverse effect on

the well being of

individuals and

societies

CONSEQUENCESDRIVERS

Insufficient

ethics policy

and control

mechanisms

Behaviour of

individuals pursuing

their own interests

(advancing career,

protecting livelihood

etc)Target

culturePressure from

financial markets

to produce

short-term

results

Wanting to help

company to

survive

Organisational

culture and

climate

©IBE



What are the integrity risks

most likely to be

encountered?



• Advertising and sales practices

• Use of company computers

• Data protection

• Money collection practices

• Gifts & hospitality

• Bribery, corruption

•Harassment, discrimination & bullying

• Environmental responsibility

• Human rights

• Money laundering

• Employee Security• Exec Pay

• Whistleblowing

• Conflicts of interest

• Governance•Procurement/ Supply chain

• Ethical Investment

• Work/home balance

• Lobbying and political donations

• Facilitation payments

Risk areas



Here are some of the more

common risks that need to

be addressed:

Unethical or fraudulent behaviour

Taking „short cuts‟ in for instance, health and safety

Not declaring a potential conflict of interest

Paying bribes of any sort

Accepting high value gifts and hospitality



Some red flagsIf you hear someone say any of

these, you can expect something unethical is about to happen!

“Well, maybe just this once.”

“No one will ever know.”

“It doesn‟t matter how it gets done as long as it gets done.”

“Everyone does it.”

“Don‟t worry, it‟s part of the culture.”

“Shred that document.”

“We can hide it.”

““What‟s in it for me?”

“We didn‟t have this conversation.”

“I don‟t want to know.”



COMPANY

employees

shareholders

NGOs media

regulators

suppliers

communities customers

stakeholders

interested parties

competitors

Who is interested?



Nigeria sues drugs giant Pfizer

Business Fraud on Rise Amid Credit Crunch

BA Executives face charges

over price-fixing

Profit and the price of life

What companies are doing

Summary



Why do companies implement

ethics programmes?

Core ethical values

Expressed in an Ethics Policy

and Code

Influences conduct

&decision making

Reinforces a culture of

trust & integrity

Supported by an effective ethics programme

individuals the company



Ethical Code Process

• Identify a champion

• Draft a policy based on company‟s values

• Wide consultation

• Sign off at board level

• Publish to staff, website, et al

• Provide training and support

• Review policy/code from time to time



How to manage an ethical

dilemma

Find out the facts

Be aware of the emotions involved

Identify the relevant (ethical) issues

Consult the code of ethics

Consult a colleague

Consider the alternative courses of action

Consider the consequences

Communicate the decision quickly

Take measures to prevent re-occurrence

Learn the lessons



Code of Ethics

cf

code of conduct

Communication

&

Awareness

Campaigns

Training

&

Reinforcement

Elements of an effective ethics programme

Supporting

context and

Culture

Monitoring

&

Accountability

Ethical Values -> Ethics Policy

induction; on-line;

dilemmas, debate;

incentives …

Leadership;

strategy; polices;

resources,

business goals;

compliance; CR,

CSR ; speak up…

what, why, how;

understanding as

well as information

…

surveys,

stakeholder

engagement;

business review;

internal and

external audit…

•Guidance for Staff

•The Way We Work

• Business Principles

•Our Commitments

& Standards …

embed, implement, make operational …

Embed values -> behaviour

Underpinning Risk

Management

2. Personal



YOU

employees

family

NGOs media

officials

your

company

communities colleagues

stakeholders

interested parties

fellow

professionals

Who is Interested?



Ethical Leadership Today Identify ethical issues

Dialogue and engagement

Make the connections

Set the tone

Lead by example

Behaviour

Openness

Transparency

Personal attributes and behaviours



Attributes



Behaviours

Summary



Simple ethical tests for a

business decision

Is it legal?

Transparency:Do I mind others knowing what I have decided?

Effect:Who does my decision affect or hurt?

Fairness:Would my decision be considered fair by those affected?

Who benefits?Am I doing this for my own benefit, or because I think it is the right thing to do?



Business Ethics

Values

Trust &

Ethics Culture Reputation

Conduct

Financial

Risk Performance



The IBE was established to encourage

high standards of business behavior

based on ethical values.

About the IBE

Advisory

Research

Publications

www.ibe.org.uk

Training

Forums

Education



IBE in New Zealand

Contact Jane Arnott, IBE Associate on

[email protected]

Available in conjunction with IBE to:

1. Run IBE courses,

2. Assist with in-house ethics training

programmes

3. Assist with design and implementation of

codes of ethics

4. Provide support to corporate subscribers

mailto:[email protected]

Doing business ethically….. foster back presentation .pdf · A value in action is a virtue It is...

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