1. EXECUTIVE WORKSHOP THE BOARD’S ROLE IN ENSURING AN ETHICALLY-SOUND CREDIT UNION CANADIAN CONFERENCE FOR CREDIT UNION EXECUTIVES DAVID NITKIN ETHICSCAN CANADA MAY 2003

2. AGENDA  Dilemmas… an ethics quiz  The language of ethics  Stakeholder and public expectations  Ethics guidance  Ethics training and reinforcement  A check list

3. ETHICS QUIZ  The customer or member is always right  Ethics is about keeping everyone happy  The first obligation is survival  Ethics doesn’t always pay

4. ETHICSCAN CANADA  Original Corporate Responsibility Research: reports, database  Ethics Consulting: codes, audits  Public Education: books, journals, courses, guides

5. PUBLIC EXPECTATIONS  Yearning for confidence, trust in institutions  Crisis downsides Shareholder outrage; Lost business Lawsuits; Prison terms  Increased demand for more business-like, responsible conduct– but not perfection  Return to older verities Fairness; Honesty; Good Governance

6. THE LANGUAGE OF ETHICS VALUES MORALITY LAW ETHICS

7. STAKEHOLDER EXPECTATIONS  Across OECD countries, but especially in Canada: Companies do the right thing  Devote selves to progressive staff policies, and community engagement, more than quarterly bottom line  Consumers, investors and regulators want to reward the good, avoid the rest, and punish the irresponsible

8. BOARD DIRECTOR’S ROLE (1)  Set expectations in Ethics Triangle  Ask for independent triple bottom line report  Walk the talk– and be seen to be doing so  Require consistent application in areas of Executive performance contracts Partnerships Strategic alliances

9. BOARD DIRECTOR’S ROLE (2) International Standards Best of Breed Credit Union: Visions, Values

10. BOARD DIRECTOR’S ROLE (3)  Mandate report on SEE Risk Analysis (Social, Environmental and Ethical)  Benchmark performance  Adopt latest governance practices  Evaluate performance of Board  Individually; Collectively  Apply Int. Principles of Co-operation

11. ETHICS GUIDANCE  Review, Update Code of Ethics Endorsements; Confidential information Gift giving; Loans criteria  Performance feedback from Staff; Members; Regulators Ex-members; Host communities Opinion leaders; Press  360 degree performance appraisals

12. ETHICS TRAINING  Explore current good governance ideas Integrity Test for staff Professional Director liability training  Support proactive public and member complaints mechanisms  Reinforce code with training New hires; Retraining Sign-off on code of practice

13. ETHICS REINFORCEMENT  Recognize and reward exemplary behaviour  Ensure system is in place to screen suppliers, partners, contractors  Link social and environmental objectives to performance contracts  Diversity in composition Board

14. CHECKLIST  New wave code of practice  Benchmark SEE Risk  Values and ethics training  Empower staff in application of leadership  Director education, assessment  Reward walking the talk  Triple bottom line audit