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Ethics Matter! NCLGBA Summer ConferenceJuly 20141Key to ethics

2Why Ethics Matters

Is everyone using the same playbook? Loss of public trust Bad stories undermine progressPersonal reputations are harmed 3What Is Ethics?The standard of conduct expected at work ...notThe lawMy personal beliefsJust what the community expectsChoices and use of discretion matterRight values , right way, right outcome

ICMA University4We often have much more discretion to make decisions than we think we do.Many government decisions are often shades of gray, not black and white.

In those areas of discretion, there is an expectation that we apply appropriate public service values in doing the right things the right ways.

An organizations ability to maintain the publics trust is only as great as its weakest link.Everyone has a responsibility to do the right thing the right way, regardless of their title or role.Core Public Service ValuesEquityTransparency and trustHonorIntegrityCommitmentStewardshipICMA UniversityValues in actionBe fair and impartial in decisionsRespect and protect public assetsCommunicate clearly and truthfullyPersonal and professional conduct merits trust Avoid conflicts of interest6 Common Conflicts of Interest

Buying city or county propertyPersonal work with vendors or individuals who do work for the city/countyYour adult child is applying for a position with the countyYou are seeking employment with a firm that may bid on a county projectYou are having conversations about future employment with a developer whose project is in the approval pipeline You recommend a personal friend for a consulting project7Values in actionDont leverage your office for personal gainGifts.8Gifts: Free Cheese in A Mousetrap

This is a great visual! Gifts are offered because of your official capacity with the organziation: Just say no!

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Former CEO of CalPERS pleads guilty to fraud, corruption charge

A former chief executive of the country's biggest public pension fund admitted that he took more than $250,000 in bribes and other valuable gifts from a friend and co-defendant in an influence-peddling scandal that rocked the pension investment world five years ago.11

12Report Puts City Among Elite Group of Frauds A culture of obfuscation and denial so corrupted San Diego's financial management that its meltdown reached the historic levels of such poster children of governmental and corporate malfeasance as Orange County, Enron and WorldCom, according to a long-awaited report released Tuesday. August 2006 13The worst headline possible for a class A place with professional management. Reading the SEC report:2 managers who proposed solutions for the pension system and transactions between the pension board and the city that proved to be illegal but at a minimum challenged the spirit of the laws and funding agreements in place. Sewer rate issue:Elected officials didnt step up to the plate and do the right thingStaff didnt hold their feet to the fire And the house of cards unravels over a public bond for the stadium.And while a blue ribbon commission is in place after the scandal comes to light, you have a manager praising an employee (via email) for containing the BRC so that the facts wouldnt come out at an inopportune moment. The leaders responsibility Your personal conductWhat others did that you knew aboutWhat others did that you didnt know about14Fundamentals of LeadershipAdaptive CapacityAbility to engage others through shared meaningA distinctive voiceUnshakeable integrityWarren G. Bennis and Robert J. ThomasLeading for a Lifetime15The Integrity TripodBalancing of ambition, competence, and moral compass Warren G. Bennis and Robert J. Thomas, Leading for a Lifetime

Stories abound of the leader who had ambition and competence but no moral compassWho comes to mind? Chain saw AL: took apart numerous companiesEnrons Ken Lay and Jeff Shilling Pete Rose approach: technical competence trumps ethics

16The Good LeaderBeing seen as someone who can be trusted, who has high integrity, and who is honest and truthful is essential.

James M. Kouzes and Barry Z. PosnerA Leaders LegacyThey were part of a team at Santa Clara U who did a survey across business and professional lines about essential traits for effective leaders.

How to measure your trustworthinessIs my behavior predictable or erratic?Do I communicate clearly or carelessly? Do I treat promises seriously or lightly? Am I forthright or dishonest?

James M. Kouzes and Barry Z. PosnerA Leaders LegacyPreserve the IntangibleIt takes 20 years to build a reputation and five minutes to ruin it. If you think about that youll do things differently.

Warren Buffett19Leadership MattersWho inspires you? Who do you inspire?

20The Ethical ChallengeLack of reflection results in failure to identify an ethical challengeDont evaluate impact of alternativesYou can easily fool yourself when facing an ethical challengeLack a leader who believes in ethical decision making? The organization will not act ethically.

21The Ethical ChallengeCulture matters! What is and is not informally talked about is importantWhat conduct/behavior do we reward? Im not the problem, you are! Decision makers commonly engage in unethical behavior without realizing it.

The struggle between want and should 22We all have blind spotsWhen it comes time to make a decision, our thoughts are dominated by thoughts of how we want to behave; thoughts of how we should behave disappear.

Max H. Bazerman & Ann E. Tenbrunsel, Blind SpotsHow could they have let this happen? The proper question is: How can we ourselves overcome our natural tendency to evade and self-deceive23

If the deal sounds too good to be true.

County manager purchased 4 iPhones and 1 iPad for $900.in cash paid to county IT director Everyone knew about it Ok because all county employees could do thisWeve done it before I trusted her Equipment was charged to county ($2400) and the IT director pocketed the cash!

24No Filters

Facebook is not privateEmail is not privateInstagram is not privateSnapchat is not privateTexts are not private

25Common MistakesInappropriate travel expensesUnfiltered Facebook, twitter, email Failure to see/disclose conflicts of interestGossiping about city or county mattersIgnoring policyMisusing public resourcesMisusing private resources DUI while textingMixed messages

26What message does this send?

27Or this?

28Six Steps to an Ethical Decision The Law: Is it legal?Does it meet the spirit of the law? The Rules: Am I violating a policy/breaking a rule that everyone else must follow? Integrity: Am I breaking my word, a trust, a promise, or a value? Appearances: Do I have a conflict of interest in fact or appearance?Am I the only or prime beneficiary of an offer or service?Clear Thinking: Is emotion or bias clouding my judgment?Perspective : Is this my finest hour or one I might regret? 29The Ethics Challenge

Make Your Organization a Shining Example of Ethical Conduct!Or not!

32Leaders.Set the toneModel the conduct you want to see in othersYou are always on active dutyDont walk by something wrongDont create ethical dilemmas for othersTake action to champion ethical behaviorTest how we are doingrelentless focusMoral Compass points NorthWhere is true north???

34What did you know?When did you know it?What did you do about it?When An Ethical Problem Comes to Light, Be Ready to Answer

In your leadership position you will have career defining moments. What do you do when you learn about an unethical situation? How will you handle yourself?

Its always better to assume everything you and others do will be on the front page of the newspaper. You may be called to account and these three questions will be asked.35Ask YourselfCan you live with your Google legacy when it hits the media? Are you being candid or just answering the question asked? Will you think well of yourself when you look back on this decision in ten years? Is it keeping you up at night? If you have to think twice about it, dont do it?

The Last WordThere is only one way to achieve happiness on this terrestrial ball,And that is to have either a clear conscience or none at all.Ogden Nash

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