1. CEOCEO A Chief Ethics Officer?? Business Ethics Team 4 >>>>>>

2. Agenda >>>>>> Who is a Chief Ethics Officer? Case summary Case questions

3. Who is a CEO? >>>>>> ‘’ deals with fostering and maintaining integrity & ethical behavior, handles complaints about business practices responsible for regulatory & compliance work in the organisation’’ Responsibilities: Ethics and Compliance Association http://www.theecoa.org/Whatis.asp

4. Who is a CEO? >>>>>> Annual losses $ 400 billion: Arthur Anderson Survey, 1999 Between 31% and 52% U.S. workers have witnessed co-workers operating unethically ECOA :16 founding members in 1992, to 1,250 today Total compensation for Top Global Ethics and Compliance Executives approaching $750,000: 2005 EOA Survey Real life examples; HP, Dell, Nortel Networks, Novartis, Deloitte,

5. Case Summary >>>>>> Financial scandals created new full time senior management position In Canada corporate secretary or compliance-tasked vice president perform similar job CEO at MCI (WorldCom’s post-bankruptcy incarnation)  Chief executive: ensure no unethical behavior taking place  CEO: prepare infrastructure people can raise concerns CEO at Dell  Responsible for promote an individual accountability for ethics

6. Case Questions >>>>>> The CEO is just the latest fad in corporate governance as a response to recent corporate scandals. Not a fad. Ethics themselves should be addressed;appointing the CEO is not the solution in itself Organisations that already have a strong ethical culture may not choose to appoint a CEO.

7. To what extent can ethical standards be imposed top down? >>>>>> Case Questions Ethical standards CAN NOT BE IMPOSED There must be fit. Ethical conditions can be “set” from top management to operational level through … Self example Clear & continuous message from top management Ethical training Written policies – easy to understand Involvement of all employees – team consultant Business decisions that provide ethical examples espoused and encouraged

8. Case Questions >>>>>> What are the arguments pro and con firms appointing ‘CEO’? Pros Shows dedication of business to the issue of ethics Portrays a good public image of the company Allows for increased dialogue for potential whistleblowers Cons Negative portrayal of CEO of company Negative portrayal of company

9. Case Questions >>>>>> Would appointing one reduce the level of unethical behavior of firms? Yes it would, keeping in mind the approach adopted Authoritative or viewed as a mentor or facilitator; Assumption 80-90% can be controlled; Bagel man; opportunity?? Extreme cases not affected Resistance to change on part of employees

10. Alternatively… >>>>>> What if the CEO is not ethical…?? CEO? Want a piece of me huh?? How was I supposed to know?