Managing ethics and legal compliance (2) Geoffrey G. Bell, PhD, CA University of Minnesota Duluth December, 2003

Using rewards systems to reinforce the ethics message Many firms are using their reward and compensation system to reinforce the message. Performance bonuses can be modified to account for ethical / unethical choices. Especially important when making the right choice hurts the determinants of bonuses.

Evaluating ethics programs Hard to do an effective evaluation. Satisfaction indicators don’t measure effectiveness. People may be happy with ethics program, yet their behavior not change. Surveys are common evaluation tool. Target knowledge, attitudes, skills, and behaviors, not satisfaction. Administer some time after training to see what’s changed.

Values and compliance approaches to ethics Values approach is proactive and aspirational. Emphasizes expected behavior and effort to achieve high standards. Compliance approach focuses on required behavior, and obeying what’s expected. Disciplinary measures inherent in compliance. Many firms need both approaches.

Globalizing ethics Many firms are trying to globalize their ethics programs. UTC has global ombudsperson program, including language interpreters. Neutral point of contact for concerned employees. Employees guaranteed anonymity. Question – how to not be culturally imperialistic.