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 1986 – DII – 6 Principles of business ethics and conduct 1986 - 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 – 20 th Anniversary Ombudsman / DIALOG Program Key Events

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

5. 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".Old SwedishSwedishIcelandicNorwegianDanish 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.SwedenSwedish Parliamentary Ombudsman1809executive 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 (634-644) 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.ChinaQin DynastyKoreaChoseon DynastyRomansUmarQadiCharles XIITurkey Ombudsman - Origins and Etymology

6. Ombudsman & DIALOG Why have an Ombudsman?

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

11. Cornerstones Confidential Neutral Independent

12. Accepts “notice”Does not accept “notice” Investigates issuesDoes not investigate Exists to protectNeutral, independent the organization Cannot promiseCan promise confidentialityconfidentiality Company Representatives Ombudsman & DIALOG

13. 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. The Role of the Ombudsman

14. The DIALOG process is…. 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. 75,454 DIALOG inquiries 11,753 Ombudsman cases Since August 1986… Since August 1986…

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

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

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