Ethics Practitioners’ Association of Canada

Strategies for Effective Ethics Programs:The Importance of Codes of Ethics and

Conduct

December 7, 2010

Keith T. Darcy, Executive Director Ethics & Compliance Officer Association (ECOA)

Mark Deier, $400 million Marcus Schrencker, $100 million Arthur Nadel, $300 million Joseph Forte, $100 million Nicholas Cosmo, $300 million Paul Greenwood, $900 million Danny Pang, $100 million Milowe Brost, C$400 million Bertran Earl Jones, C$50 million Weizhen Tang, C$60 million

----- Bernard Madoff, $65 billion -----

Satyam Computer - $1 billion Siemens - $1.6 billion settlement Halliburton - $599 million ABB - $850 million reserves Stanford Financial Group - $8 billion Galleon Group - $1 billion BAE - $400 million Daimler - $400 million Pfizer - $2.3 billion Novartis - $422.5 million Glaxco - $75o million

“Four Sama Dubai Employees Are Held In Corruption Probe”

“Ex-Head of Bank of Italy to Go on Trial” “Bahrain Kickback Investigation Widens” “Siemens Excluded from World Bank Contracts for Two

Years” “Control Components Admits to Violating FCPA in 36

Countries” “Ex-Sinopec Corporate Chairman Sentenced to Death for

Bribery” “China Executes 2 For Role in Tainted Milk Scandal” “Chevron Offers Evidence of Bribery Scheme in Ecuador

Lawsuit” “Maybey & Johnson To Be Sentenced in Bribery Case” “Postmaster General in India Held for Corruption” “UN Cuts Back on Investigating Fraud” “Rio Tinto Employees Admits to Taking Bribes in China” “Nine British Companies in US Bribe Inquiry” “Alstom UK Directors Arrested in SFO Bribery

Investigation”

“Greece Condemned for Falsifying Data” “Nortel Will Liquidate Assets” “Italian Notables Feel Heat in Corruption Scandal” “Ex-Gome Head is Sentenced” “How German Companies Bribed Their Way to Greek

deals” “Avon Bribery Probe” “BHP Billiton in US Anti-Corruption probe” “Alcatel Agrees to Pay $137 Million to Avoid U.S.

Prosecution” “Russia’s Two Top IKEA Execs Sacked Over Suspected

Bribery” “Nexus Technologies and Three Employees Plead Guilty

to Paying Bribes to Vietnamese Officials” “Bribe Case Focuses on Negotiator for Alcoa” “Total Indicted for Alleged Corruption in Iraq”

“Canada Too Soft on Bribery”

“eHealth Scandal Cost $1 Billion”

“Quebec: The Most Corrupt Province”

“Nortel Being Liquidated”

“Quebec’s Liberal Government Engulfed By Scandals”

“Inquiry into Sell-Off of Taseko in Canada”

“Corruption Scandals Widen in Quebec”

“The Disgrace at Veterans Affairs Canada”

Code of Conduct

What is it?

Code of Conduct

A set of conventional principles and expectations that are considered binding on any person who is a member of a particular group.

A set of rules outlining the responsibilities of or proper practices for an individual or organization.

Rules of correct or appropriate behavior of a group, organization or profession.

Policies defining the manner in which an organization, employees, contractors and services providers are expected to conduct business.

Google

Code of Conduct

A code of professional conduct is a necessary component to any profession to maintain standards for the individuals within that profession to adhere. It brings accountability, responsibility and trust to the individuals that the profession serves.

Registry of Interpreters for the Deaf

Code of Conduct

Why have a code of ethics/conduct?

Why have a code?

To define accepted/acceptable behaviors

To promote high standards and practices

To establish a framework for professional behavior and responsibility

To tell the world who you are, what you stand for and what to expect when conducting business with you.

Why have a code?

“The very exercise of developing a code is in itself worthwhile; it forces a large number of people…to think through their mission and the important obligations they as a group and as individuals have with respect to society as a whole.”

Prof. Richard DeGeorge

What will be its purpose?

To regulate behavior?

To inspire?

What will be its purpose?

“We must remember that good laws, if they are not obeyed, do not constitute good government. Hence, there are two parts to good government: one that is the actual obedience of citizens to the laws; the other part is the goodness of the law which they obey.”

Aristotle (Politics, 1294a306)

How should you proceed (process)?

1. Tailor the code to the needs and values of your organization

2. Consider creating a mission statement, and identify the organization’s core values

3. Consider two components: (a) aspirational statement; (b) rules or principles to adhere to

4. Create a multidisciplinary advisory group5. Consult key stakeholders6. Seek out good examples of other codes7. Consider drafting from a stakeholder

perspective8. Be clear about scope, and specific about

implementation9. Be clear about enforcement10.Consider renewal of your code in the future

Values and Ethics Code for the Public Service

“The role of the Public Service of Canada is to provide for peace, order and good government.”

“The Values and Ethics Code for the Public Service sets forth…to guide and support public servants in all their professional activities.”

Values and Ethics Code for the Public Service

Public Service Values

Democratic Values -Helping Ministers, under the law, to serve the public interest.

Professional Values-Serving with competence, excellence, efficiency, objectivity and impartiality

Ethical Values-Acting in all ways to uphold the public trust

People Values-Demonstrating respect, fairness and courtesy in their dealings with both citizens and fellow public servants

You can’t legislate trust.