1. Steven Cordery UTC Corporate Ombudsman Europe, Middle East & Africa
The International Pharmaceutical Regulatory and Compliance Congress
June 6-7, 2007
Brussels, Belgium

2. Ombudsman & DIALOG REVENUES $42.7 billion (2005)
61% outside United States
EMPLOYMENT 220,000 employees (2005) 67% outside the United States.

3. Ombudsman & DIALOG Key Events
1986 – DII – 6 Principles of business ethics and conduct
Launch of Ombudsman / DIALOG Program
1990 – Code of Ethics first published
1991 – US Sentencing Guidelines
2004 – Sarbanes–Oxley Act
2006 – Code of Ethics Refreshed & Strengthened
2006 – 20th Anniversary Ombudsman / DIALOG Program

4. Ombudsman & DIALOG
Ombudsman
An American Idea?
Something New?

5. Ombudsman - Origins and Etymology
The origin of the word is found in Old Swedish umbuðsmann, and the word umbuds man, meaning representative and is non-gender specific. The first preserved use in Swedish. From 1552, it is also used in the other Scandinavian languages such as the Icelandic "umboðsmaður", the Norwegian "ombudsmann" and the Danish "ombudsmand".
The modern use of the term began in Sweden, with the Swedish Parliamentary Ombudsman instituted in 1809, to safeguard the rights of citizens by establishing a supervisory agency independent of the executive branch.
A prototype of modern ombudsmen flourished in China during Qin Dynasty (221 BC), and in Korea during the Choseon Dynasty. The Romans also grappled with the problem, but it was the example of the second Muslim Caliph, Umar ( ) and the concept of Qadi al-Qadat (developed in the Muslim world), which influenced the Swedish King, Charles XII. In 1713, fresh from self-exile in Turkey, Charles XII created the Office of Highest Ombudsman. The Scandinavians subsequently moulded the Office into its contemporary form.

6. Ombudsman & DIALOG
Why have an Ombudsman?

10. UTC Employee Options
Established, open channels Alternate, confidential channels
Supervisor Human Resources Legal DIALOG Ombudsman
Environmental Health & Safety
Business Practices
(in writing, usually (usually via telephone; not legal or issues tend to be complicated in more complex, legal nature) in nature)

11. Cornerstones
Confidential
Neutral
Independent

12. Cannot promise Can promise confidentiality confidentiality
Company Representatives Ombudsman & DIALOG
Accepts “notice” Does not accept “notice”
Investigates issues Does not investigate
Exists to protect Neutral, independent the organization
Cannot promise Can promise confidentiality confidentiality

13. The Role of the Ombudsman
Confidential, independent, neutral resource to address issues
Abides by The International Ombudsman Association Code of Ethics and Standards of Practice.
Reports to UTC HQ
Independent of any company management structure
No other roles or responsibilities that could compromise this position.
Listen, coach and assist in developing options
Provides feedback on trends, issues, concerns (RADAR)
Recommends policy review or change
Oversees DIALOG Program.

14. The DIALOG process is…. in the organisation
an effective, confidential, two-way, communication channel
an alternative to the normal communication channels in the company
a communication tool that enables employees: to ask questions,
raise concerns, submit ideas, without fear of reprisal,
a way in which employees can help bring about change
in the organisation

15. Considerations…. Local Laws Leadership & Management Style
Culture – Company & Country

16. Since August 1986…
75,454 DIALOG inquiries
11,753 Ombudsman cases

17. Ombudsman & DIALOG Volume
North America
EMEA
Asia/Pacific
South America

18. Program Effectiveness - UTC
Ombuds/DIALOG Program – since January 1998
No change requested
22%
Reviewed but no change
36%
Resulted in change
42%

19. Steven Cordery UTC Corporate Ombudsman Europe, Middle East & Africa
The International Pharmaceutical Regulatory and Compliance Congress
June 6-7, 2007
Brussels, Belgium