Ethics in the Workplace Jim Corkill | Controller Business and Financial Services Controller’s Office Good Morning. 1st class offered in the series of the Financial Management Program We will be using Optionfinder today. Give acknowledgement to Josephson, and David Clous of Lockheed-Martin We probably all think of ourselves as ‘ethical’ How many of you broke the law today? None of us? Right? Did any of you exceed the speed limit coming to work? 25 miles on campus? Qualifications - personal ethics We are going to talk about the things we deal with everyday - not the $4.5M cash theft.

Today’s Goals Awareness Areas of Concern Tools for Decision Making UC Standards of Ethical Conduct Role of the Business Officer Resources

Ethics: A definition “Relating to what is good or bad, having to do with moral duty and obligation.” 1 (Moral is defined as relating to principles of right and wrong.) “Ethics is not about being better than someone else; it’s about being the best we can be.” 2 Our focus is on what is Right and Wrong Try to do the “right thing.” Example “We’re not as bad as they are” Morals – concerned with the principles or rules of right conduct or the distinction between right and wrong; ethical; moral attitude Principles or habits with respect to right or wrong conduct 1Webster’s New World Dictionary, 3rd College Edition 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Personal Ethics vs. Business Ethics Is there a difference? Shopping Cart in Parking Lot 10 items or less - cash only Returning items to their original place – Peas vs. Potato Chips Too Much Change We are who we are - whether at work or at home. It is not easy to do the right thing, when the consequences are greater -school story -donations-taxes (charitable)

Business Ethics Acting with an awareness of the need for complying with rules, such as the laws of the land, the customs and expectations of the community, the principles of morality, the policies of the organization, and such general concerns as the needs of others and fairness. Introduce another level with ‘compliance,’ policies…rules. Three top factors to cause people to compromise ethical standards Pressure to meet unrealistic business objectives/deadlines a desire to further one’s career Desire to protect one’s livelihood

When the stakes are higher, doing the right thing is harder. Consequences When the stakes are higher, doing the right thing is harder. Talk about changing address to send your child to better school. Falsification of records Reference check on campus- another campus dept asking for reference of employee you don’t want to lose More about “Ethics in your Personal Life” to get them thinking.

Consequences to UCSB Public Trust Public Image Loss of Funding Stakeholders Taxpayers Donors Funding Agencies Parents Students Public Image Loss of Funding Perception of Department or Organization Criminal or Civil Investigation Resources: Staff/Dollars Damage to Reputation Have Group fill out Ethical Dilemma Sheet Maybe you have suggestion for the Daily Dilemma column? OPTIONFINDER: Icebreaker and Discussion Questions

Areas of Concern Travel Conflict of Interest Personal Use of Goods, Services and Staff Resources Hiring/Staffing Practices

Travel Taking the maximum daily meal allowance Meal reimbursement even though meals were provided as part of cost of event Purchase airline tickets from a carrier that offers free miles even though the fare might be higher than another carrier Are there others? Valet? Alcohol?

Conflict of Interest Personal gain or gain for friend/relative Accepting gifts from vendors Hiring friend/relative as an employee or contractor Avoid the perception of conflict Conflict of Interest - Policy #5005 Vendors - Gift Acceptance Examples: Ramada Inn lunch Receptions

Personal Use of Goods and Services Office supply cabinets University equipment/vehicles Computing resources UCSB Others?? Printing Xerox Web - Surfing the Net

Personal Use of Staff Asking clerical assistance for external committee involvement Asking someone to order flowers for a friend Asking someone to make personal travel arrangements while they are making business travel arrangements Others? Making Drs. Appointment

Hiring/Staffing Practices Falsifying hours worked, timekeeping Allowing a limited appointment FTE to work even though their paperwork has not been formally processed/approved Misrepresenting work performance on performance evaluation Not communicating work performance issues to employee Be Fair and Consistent

Making the Right Choice: How Can You Be Sure? Listen for the bells warning you are on “thin ethical ice” “Well, maybe just this once” “No one will ever know” “It sounds too good to be true” “Everyone does it” “Audit will never catch it” “We have always done it this way” 1Lockheed Martin: Code of Ethics and Business Conduct, July 1999 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Making the Right Choice: How Can You Be Sure? Ask yourself - are my actions legal? Check to see if there are regulations or rules which restrict your choices Will I sleep soundly tonight? How will your decision look in the News-Press? To your family? 1Lockheed Martin: Code of Ethics and Business Conduct, July 1999 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Tools for Decision Making What would a reasonable person do, or how would they perceive your decision? Think of someone whose moral judgment you respect - what would that person do? How would my family perceive my actions? Policy Compliance Evaluate the options, issues, and consequences If you are uncertain, talk with someone you trust, or a campus resource, e.g. Ombuds 2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Tools for Responding How do you respond to someone who asks you to do something that you think is inappropriate, unethical and/or a violation of UC Policy? Share your concerns Use University policy Offer alternatives, options Seek advice UC Standards of Ethical Conduct Talk about how to try and not say “no”, but “I will find out” kind of approach…. I’m busy with University projects, I’m not sure University policy allows…. Tone, approach is important Stall…… I’ll check with my supervisor

UC Standards of Ethical Conduct Statement of UC’s belief in ethical, legal and professional behavior in all of our dealings inside and outside the University. Statement of Ethical Values: Integrity Excellence Accountability Respect Recently the University released a fairly new UC Standards of Ethical Conduct.. There are four values. Handout help us in our daily work by giving us framework, guidelines to draw from when confronted with an ethical dilemma….

UC Standards of Ethical Conduct Fair Dealing Individual Responsibility and Accountability Respect for Others Compliance with Applicable Laws, Regulations, University Policies, Procedures and Other Forms of Guidance Conflicts of Interest or Commitment Ethical Conduct of Research Records: Confidentiality/ Privacy and Access Internal Controls Use of University Resources Financial Reporting Reporting Violations and Protection from Retaliation Talked about UC resources, conflict of interest, fair dealing, treating each other as we’d want to be treated

UC Standards of Ethical Conduct Recent events involving public review of UC compensation practices UCSB’s “climate” for ethical conduct

Policy Compliance Do we follow policy only to avoid audit issues, or do we follow policy because it is the right thing to do? Policies exist for a reason Policies protect not only the University but also the employee Examples: Hiring of outside contractors, caterers If you don’t understand why the policy exists, then ask why. Soccer Match Women’s World Cup USA vs. China Game ended 0 - 0; Went to Penalty Kicks Penalty Kicks are 1 on 1; 1 player vs. the goalie - pretty easy to make a goal Team with the most goals after 5 attempts on each side wins. USA was able to block one shot - resulting in a score of 5 for US, 4 for China - USA WINS! USA Goalie’s comments – “I crossed the line on the prior kick and the ref didn’t call it – so I did it again and blocked the kick” “It isn’t cheating if the ref doesn’t call it.” The greater the consequences, harder to do the right thing.

Perception Often times, perception is just as bad as the real thing. Even if something is allowed, should you do it? Attending vendor reception or accepting gift Use this slide to talk about San Francisco Chronicle issues….perception of our campus as a result….perception of the UC System?

Real Life Situations What are the options? What are the issues? What are the consequences? What is the right thing to do?

Discussion Item #1 Your chair asks you to purchase software for her personal use using the University contract. By using the contract, she will benefit from the University discount. The chair plans to pay the department back. Is this ok? What are the Options? Go ahead with the purchase Do not make the purchase Tell someone VOTE What are the Issues? Violates conflict of interest - using Univ. resources for personal gain Does not follow policy Attempt at a work around Are we in compliance with federal regulations? Does the equipment benefit the project? Either project? What if the money isn’t paid back? Contract could be terminated What are the consequences of making the purchase? Dept. loses money Puts the UC agreement at risk Disallowance by federal auditors Loss of funding to the institution What if PI #1 leaves the campus? Setting a precedent

Discussion Item #2 A faculty member’s award will run out in June, so she asks you to pay a student in June for time the student will work in the summer. What do you do? What are the Options? Pay the student Don’t pay the student VOTE What are the Issues? Does not follow policy Attempt at a work around How do you monitor? Keep track of the hours Are we in compliance with federal regulations? What are the consequences? Student leaves and never works the hours The student doesn’t do the work assigned - not motivated Poor example for the student

Discussion Item #3 A career employee is hired on September 1, and lives paycheck to paycheck. For the December holidays he wants to be with his aged father who lives on the east coast, but he is short eight hours of vacation time. What do you do? What are the Options? VOTE What are the Issues? Policy Union Contract Benefit to the employee Overtime What are the consequences? Precedent

Role of the Business Officer Faculty/Staff rely on you to explain the rule/policy Be able to say no and explain why Ethical leadership Be the example, not the exception “Ethics are what you would do, if you were sure no one would see you.”1 Let someone know Be consistent Try to offer alternatives 1Larry Hubbard & Associates, “Ethical Risks - What You Don’t Know Can Hurt You”

Campus Resources Department Chair Control Point Audit & Advisory Services Business & Financial Services Policy Office of the Ombuds Whistleblower Policy

Office of the Ombuds Confidential, informal, independent, and neutral resource. Provides informal and private consultation. Helps with identifying options to effectively address a complaint, dispute, or conflict. Safe, confidential, and impartial.

Questions? OPTIONFINDER Evaluation Questions - Course and Instructor