1 THE FINANCIAL MANAGEMENT INSTITUTE ETHICS - THE CHALLENGES CONTINUE WILLIAM J. CESSFORD, FCMA, CMA

2 OUTLINE OPENING REMARKS\REVIEW PERSONAL ETHICS PROFESSIONAL ETHICS ORGANIZATIONAL ETHICS CONCLUSION QUESTION PERIOD

3 MORALS DEFINE WHAT IS RIGHT OR WRONG

4 ETHICS ARE THE RULES THAT PEOPLE USE TO DEFINE WHAT BEHAVIOUR IS MORAL

5 CATEGORICAL IMPERATIVES

6 CATEGORICAL IMPERATIVES THREE TESTS 1. BE UNIVERSALIZABLE 2. DEMONSTRATE RESPECT FOR INDIVIDUAL HUMAN BEINGS 3. BE ACCEPTABLE TO ALL RATIONAL BEINGS

7 MACHIAVELLIAN BEHAVIOR

8 MANIPULATE MORE ARE PERSUADED LESS PERSUADE OTHERS MORE

9 MACHIAVELLIAN KEY PRINCIPLES WHAT IS TAKES PRECEDENCE OVER WHAT OUGHT TO BE ETHICS MAY GUIDE THE PRIVATE SPHERE BUT EXPEDIENCY REIGNS IN PUBLIC LIFE NO ABSOLUTES IN PUBLIC LIFE, NO CATEGORICAL IMPERATIVES, ONLY CONDITIONAL ONES TO BE APPLIED SITUATIONALLY

10 MYTH # 1 SOME THINGS ARE ETHICAL AND SOME ARE NOT

11 PERSONAL ETHICS

12 TEN UNIVERSAL VALUES

13 TEN UNIVERSAL VALUES HONESTYINTEGRITYPROMISE-KEEPINGFIDELITYFAIRNESSCARING RESPECT CFOR OTHERS RESPONSIBLE CITIZENSHIP PURSUIT OF EXCELLENCE ACCOUNTABILITY

14 CHANGES IN OUR SOCIETY

15 CHANGES IN OUR SOCIETY IMMIGRATION POLICIES HAVE CREATED MORE CULTURAL DIVERSITY RELIGIOUS CHANGES WORKPLACE CHANGES DRUGS, SMOKING, ALCOHOL ISSUES FAMILY ISSUES INTERNET

16 SOURCES OF LEARNING ETHICAL VALUES FAMILYRELIGION CLUBS/VOLUNTEER ORGANIZATIONS SCHOOL PROFESSIONAL ASSOCIATIONS WORKTV/MEDIA

17 MYTH # 2 RESPONSIBILITY FOR ETHICAL EDUCATION RESTS WITH EDUCATIONAL INSTITUTIONS

18 MYTH # 3 ETHICS IS A MATTER OF EDUCATION ALONE

19 MYTH # 4 YOU ARE EITHER AN ETHICAL PERSON OR NOT

20 PROFESSIONAL ETHICS

21 MYTH # 5 PROFESSIONAL ETHICS CAN BE SEPERATED FROM OUR PERSONAL ETHICS

22 ARISTOTLE STATED: “MY CHARACTER IS THE SUM OF ALL MY HABITS”

23 LIBERAL CANIDATE TONY VALERI QUOTE: “APPARENTLY IT ISN’T ENOUGH TO COMPLY WITH THE RULES”

24 CODES OF ETHICS

25 CODES OF ETHICS 1. LEGAL STIPULATIONS OF WHAT IS RIGHT AND WRONG

26 CODES OF ETHICS 1. LEGAL STIPULATIONS OF WHAT IS RIGHT AND WRONG 2. SOCIETY’S BEHAVIORAL NORMS

27 CODES OF ETHICS 1. LEGAL STIPULATIONS OF WHAT IS RIGHT AND WRONG 2. SOCIETY’S BEHAVIORAL NORMS 3. PROFESSIONAL (S) CODE OF CONDUCT

28 CODES OF ETHICS 1. LEGAL STIPULATIONS OF WHAT IS RIGHT AND WRONG 2. SOCIETY’S BEHAVIORAL NORMS 3. PROFESSIONAL (S) CODE OF CONDUCT 4. ORGANIZATIONS/COMPANY’S CODE OF ETHICS

29 CODES OF ETHICS 1. LEGAL STIPULATIONS OF WHAT IS RIGHT AND WRONG 2. SOCIETY’S BEHAVIORAL NORMS 3. PROFESSIONAL (S) CODE OF CONDUCT 4. ORGANIZATIONS/COMPANY’S CODE OF ETHICS 5. MEMBERS OWN PERSONAL CODE OF ETHICS

30 GENERAL NORMAN SCHWARZKOPF STATED: “LEADERSHIP IS A POTENT COMBINATION OF STRATEGY AND CHARACTER, BUT IF YOU MUST BE WITHOUT ONE, BE WITHOUT STRATEGY”

31 ORGANIZATIONAL ETHICS

32 MYTH # 6 BUSINESS ETHICS

33 KEY STRUCTURAL COMPONENTS

34 KEY STRUCTURAL COMPONENTS 1. STANDARDS AND PROCEDURES TO GUIDE OUR EMPLOYEES

35 KEY STRUCTURAL COMPONENTS 1. STANDARDS AND PROCEDURES TO GUIDE OUR EMPLOYEES 2. ADEQUATE STRUCTURES AND SYSTEMS THAT PROVIDE FOR AUTHORITY, RESPONSIBILITY AND ACCOUNTABILITY

36 KEY STRUCTURAL COMPONENTS 1. STANDARDS AND PROCEDURES TO GUIDE OUR EMPLOYEES 2. ADEQUATE STRUCTURES AND SYSTEMS THAT PROVIDE FOR AUTHORITY, RESPONSIBILITY AND ACCOUNTABILITY 3. COMMUNICATION OF STANDARDS, PROCEDURES AND EXPECTATIONS TO OUR EMPLOYEES

37 KEY STRUCTURAL COMPONENTS 1. STANDARDS AND PROCEDURES TO GUIDE OUR EMPLOYEES 2. ADEQUATE STRUCTURES AND SYSTEMS THAT PROVIDE FOR AUTHORITY, RESPONSIBILITY AND ACCOUNTABILITY 3. COMMUNICATION OF STANDARDS, PROCEDURES AND EXPECTATIONS TO OUR EMPLOYEES 4. PROGRAMS THAT MONITOR AND MEASURE EMPLOYEE CONDUCT AND ACTIONS

38 KEY STRUCTURAL COMPONENTS CONTINUED 5. ENCOURAGING EMPLOYEES TO SEEK ADVICE AND REPORT CONCERNS

39 KEY STRUCTURAL COMPONENTS CONTINUED 5. ENCOURAGING EMPLOYEES TO SEEK ADVICE AND REPORT CONCERNS 6. DUE DILIGENCE IN HIRING

40 KEY STRUCTURAL COMPONENTS CONTINUED 5. ENCOURAGING EMPLOYEES TO SEEK ADVICE AND REPORT CONCERNS 6. DUE DILIGENCE IN HIRING 7. ENCOURAGEMENT OF EMPLOYEES TO FOLLOW STANDARDS AND PROCEDURES

41 KEY STRUCTURAL COMPONENTS CONTINUED 5. ENCOURAGING EMPLOYEES TO SEEK ADVICE AND REPORT CONCERNS 6. DUE DILIGENCE IN HIRING 7. ENCOURAGEMENT OF EMPLOYEES TO FOLLOW STANDARDS AND PROCEDURES 8.APPROPRIATE RESPONSES WHEN STANDARDS AND PROCEDURES ARE VIOLATED

42 KEY STRUCTURAL COMPONENTS CONTINUED 5. ENCOURAGING EMPLOYEES TO SEEK ADVICE AND REPORT CONCERNS 6. DUE DILIGENCE IN HIRING 7. ENCOURAGEMENT OF EMPLOYEES TO FOLLOW STANDARDS AND PROCEDURES 8.APPROPRIATE RESPONSES WHEN STANDARDS AND PROCEDURES ARE VIOLATED 9. REGULAR EVALUATIONS OF YOUR PROGRAMS EFFECTIVENESS

43 CODE OF CONDUCT PRINCIPLE OF THE RULE OF LAW IMPARTIALITY/OBJECTIVITYRELIABILITY/TRANSPARENCY DUTY OF CARE PROFESSIONALISM/ACCOUNTABILITY

44 MYTH # 7 ETHICAL DILEMMAS ARE EPISODIC

45 ETHICS INSTITUTE ETHICS PROCESS “DOING ETHICS PROPERLY: CARRYING OUT A STRUCTURAL INFORMED ANALYSIS IN ORDER TO DISPLAY VALUE CHOICES AND DETERMINING WHICH ARE ETHICAL AND WHICH ARE NOT. THEN DECIDING WHICH OF THOSE THAT ARE ETHICAL ARE ETHICALLY PREFERABLE’”

Santa Clara University 46 FRAMEWORK FOR ETHICAL DECISION MAKING 1. RECOGNIZE AN ETHICAL ISSUE 2. GET THE FACTS 3. EVALUATE ALTERNATIVES FROM VARIOUS ETHICAL PERSPECTIVES 4. MAKE A DECISION AND TEST IT 5. IMPLEMENT YOUR DECISION AND EVALUATE THE RESULTS

47 10 TH INTERNATIONAL CONFERENCE ON PUBLIC ETHICS: CONCLUSIONS

48 10 TH INTERNATIONAL CONFERENCE ON PUBLIC ETHICS: CONCLUSIONS 1. “ETHICS CAN BE AUDITED (MEASURED), GIVEN THE PROPER ORGANIZATIONAL ENVIRONMENT….”

49 10 TH INTERNATIONAL CONFERENCE ON PUBLIC ETHICS: CONCLUSIONS 1. “ETHICS CAN BE AUDITED (MEASURED), GIVEN THE PROPER ORGANIZATIONAL ENVIRONMENT… 2. “TOOLS RANGE FROM MEASURING IMPLEMENTATION OF CODES OF CONDUCT, ORGANIZATIONAL SELF- ASSESSMENTS, EMPLOYEE AND CLIENT SURVEYS, RISK PROFILES...”

50 10 TH INTERNATIONAL CONFERENCE ON PUBLIC ETHICS: CONCLUSIONS CONTINUED 3.”IN EMPLOYING THESE TOOLS, IT IS IMPORTANT TO BALANCE THE NEED FOR PRIVACY; TO DISTINGUISH AMONG VALUES, INSTITUTIONAL REQUIREMENTS AND ACTUAL PRACTICES; TO GAUGE THE COMPLIANCE WITH SPECIFIC PROCEDURES AND TO PROMOTE OVERALL ETHICAL CULTURE….”

51 10 TH INTERNATIONAL CONFERENCE ON PUBLIC ETHICS: CONCLUSIONS CONTINUED 4. “THE QUALITY OF ETHICS AUDITS DEPENDS ON THE CONCEPTUAL FRAMEWORKS, VARIABLES BEING MEASURED, QUALITY OF INFORMATION AVAILABLE, AND OTHER BROADER FACTORS SUCH AS THE STRATEGIC OBJECTIVES OF THE ORGANIZATION…..”

52 CONCLUSION

53 THE PEOPLE HIRE HONEST PEOPLE RETAIN AND REWARD HONEST PEOPLE CONTINUALLY TRAIN OUR PEOPLE ON OUR VALUES

54 THE CULTURE ESTABLISH A CODE OF CONDUCT AND MISSION STATEMENT THAT REFLECTS OUR VALUES ESTABLISH A CULTURE OF ACCOUNTABILITY ESTABLISH A LEADERSHIP THAT LIVES OUR VALUES AND VALUES OUR PEOPLE ESTABLISH AN ORGANIZATION THAT TREATS OUR PEOPLE FAIRLY

55 THE DECISION MAKING PROCESS OUR DECISIONS REAFFIRM OUR VALUES OUR DECISIONS RECOGNIZE ALL STAKEHOLDERS IN SEEKING THE MOST ETHICAL COURSE OF ACTION WE RECOGNIZE OUR MISTAKES, TAKE RESPONSIBILITY, APOLOGISE AND WILL TAKE CORRECTIVE ACTION

56 TEN UNIVERSAL VALUES HONESTYINTEGRITY PROMISE KEEPING FIDELITYFAIRNESSCARING RESPEST FOR OTHERS RESPONSIBLE CITIZENSHIP PURSUIT OF EXCELLENCE ACCOUNTABILITY

57 QUOTE HELEN KELLER: “THE WORLD IS MOVED NOT ONLY BY THE MIGHTY SHOVES OF THE HEROES BUT ALSO BY THE AGGREGATE OF THE TINY PUSHES OF EACH HONEST WORKER”

58 THE CHALLENGES WILL CONTINUE

59