Within organisations the processes, roles, training and conversations relating to Ethics differ significantly.
In your experience, how have you seen Ethics implemented effectively in an organisation?
To achieve a mature Ethical process within your organisation, it is important to consider these questions:
1. Is there a process in place to train employees on ethics and do you have access to the ethics policy?
2. Who should be responsible for Ethics within an organisation?
Should this be a function on its own under a Chief Operating Officer, Chief Human Resources, Chief of Compliance or Chief Finance Officer for example, or be managed by a Chief of Ethics?
Is there a member of your Board that is responsible for Ethics?
3. Is there a process for Executives to deal with complex ethical decisions at a strategic level?
4. Who funds your ethics department and how do you make the function sustainable within the organisation?
5. Do you have an Ethics Review Committee who supports very challenging ethical dilemmas in your organisation to facilitate ethical decision making?
6. How important is Ethics in your organisation?
I look forward to your thoughts on this topic. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Hi Lissa,
good to see you here. Good set of questions.
I am answering from my experience at IBM, PwC and PMI
ad 1 training, policy
yes, I saw annual trainings with a test and certification as well as on demand training for specific ethical areas (e.g. dealing with customers)
I saw apps that present the policy and also take questions answered by bot if possible and also accept complaints
Also an ethics hotline and ethics mentors to talk to if facing a dilemma
ad 2 responsibility rests with the highest level, the Board or the CEO, daily work can be delegated to a chief ethics officer, it should not rest with legal or HR as they have their biases. The Board responsibility should NOT change annually, if this is standard, the CEO would be a better choice.
ad 3 executives - not seen such process
ad 4 its budgeted and chartered, similar to HR, Finance, Internal Audit
ad 5 yes, and it should be independent from other functions
ad 6 not much, its a bit of a lip service similar to sustainability or DEI - money rules
...
1 reply by Lissa Muncer
Aug 24, 2022 4:53 AM
Lissa Muncer
...
Thank you Thomas - it is always so good to get your input into our EIT and approach, considering your wealth of experience and Fellow and previous Board member of PMI. Very thought provoking comments - it is a great challenge regarding lip service relating to Sustainability, Diversity etc. Look out for my blog in September on this very topic!
Is there a member of your Board that is responsible for Ethics? It is a VP role but not a board member. Big companies have many layers.
3. There is an ethics department and a legal department, with defined processes for evaluating ethics issues large and small.
4. Not sure who funds it, but in a safety critical industry, if you don't have an ethics department you might as well shut your doors before the regulators beat you to the punch.
5. Covered by the ethics department.
6. How important is Ethics in your organisation?
This is the most interesting. Organizations are not people and as such they have no values other than those of the leaders. Leaders change as do their priorities. Ethical behavior may be critical to the continued existence of an organization, but it can be overlooked when the leaders are only focusing on short term objectives. I'm not saying that is right, but it does happen.
Often, ethics training and focus is reactive rather than proactive. If I have to take training every year that I can't bribe foreign government officials, it's not because I will ever be in that position. Instead it is because someone in an executive role was publicly exposed being very naughty. The message is often: Don't act like your former executives.
The messaging is typically that ethics is of paramount importance, but as T.S. Elliot wrote:
Between the idea
And the reality
Between the motion
And the act
Falls the Shadow
...
1 reply by Lissa Muncer
Aug 24, 2022 4:56 AM
Lissa Muncer
...
Hi Keith, interesting to see Ethics falling under Chief of Compliance which seems a good and appropriate approach. I agree that training needs to be very proactive and empower our staff to be adequately educated and this is the same around cyber, diversity, sustainability etc.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Lisa
Great topic and input from your side. I worked with large international firms and also small local ones and the answer to those 6 questions that you raise differ from one organziation to another just like you said so I totally agree with you on this point. It also differs from one industry to another. In my current work place, which is a small privately owned firm:
1) Main ethical behaviour is mentioned as part of employees contract.
2+3) Everyone in the firm is responsible for this and we review periodically as a team.
4 + 5) No and No but again, because of the nature and size of the firm.
6) Ethics and ethical behaviour is of utmost importance in our organziation.
RK
...
1 reply by Lissa Muncer
Aug 24, 2022 4:54 AM
Lissa Muncer
...
Thank you Rami for your comments. It really does differ from organisation to organisation so appreciate your input as to what good looks like.
Saving Changes...
Gretta KelziOperations Manager/Ethics Insights Team| Esri Lebanon/PMIJdeidet Al Maten, Al Maten, Lebanon
Lissa , very interesting set of questions... you triggered me to do some research for both local and global (mother company) of where I work and as quick answers:
Both of them have a business conduct statement and policy, stated by the highest level of the organization.
Both have the same reporting structure of violation: functional managers or human resources.
None of them have a dedicated role, team or framework in place for decision making.
As for the how important Ethics, both of them have core values that, I personally feel, they strictly respect and abide by, because I sensed that the employer - employee relationship is people oriented. (this is my personal experience).
With your set of questions you awakened bunch of thoughts of why I feel comfortable of where I work.
...
1 reply by Lissa Muncer
Aug 24, 2022 4:30 AM
Lissa Muncer
...
Thanks Gretta for your comments. I am pleased that these questions were able to validate your organisation's approach to Ethics. Thank you for your leadership in this space.
Lissa , very interesting set of questions... you triggered me to do some research for both local and global (mother company) of where I work and as quick answers:
Both of them have a business conduct statement and policy, stated by the highest level of the organization.
Both have the same reporting structure of violation: functional managers or human resources.
None of them have a dedicated role, team or framework in place for decision making.
As for the how important Ethics, both of them have core values that, I personally feel, they strictly respect and abide by, because I sensed that the employer - employee relationship is people oriented. (this is my personal experience).
With your set of questions you awakened bunch of thoughts of why I feel comfortable of where I work.
Thanks Gretta for your comments. I am pleased that these questions were able to validate your organisation's approach to Ethics. Thank you for your leadership in this space. Saving Changes...
good to see you here. Good set of questions.
I am answering from my experience at IBM, PwC and PMI
ad 1 training, policy
yes, I saw annual trainings with a test and certification as well as on demand training for specific ethical areas (e.g. dealing with customers)
I saw apps that present the policy and also take questions answered by bot if possible and also accept complaints
Also an ethics hotline and ethics mentors to talk to if facing a dilemma
ad 2 responsibility rests with the highest level, the Board or the CEO, daily work can be delegated to a chief ethics officer, it should not rest with legal or HR as they have their biases. The Board responsibility should NOT change annually, if this is standard, the CEO would be a better choice.
ad 3 executives - not seen such process
ad 4 its budgeted and chartered, similar to HR, Finance, Internal Audit
ad 5 yes, and it should be independent from other functions
ad 6 not much, its a bit of a lip service similar to sustainability or DEI - money rules
Thank you Thomas - it is always so good to get your input into our EIT and approach, considering your wealth of experience and Fellow and previous Board member of PMI. Very thought provoking comments - it is a great challenge regarding lip service relating to Sustainability, Diversity etc. Look out for my blog in September on this very topic! Saving Changes...
Great topic and input from your side. I worked with large international firms and also small local ones and the answer to those 6 questions that you raise differ from one organziation to another just like you said so I totally agree with you on this point. It also differs from one industry to another. In my current work place, which is a small privately owned firm:
1) Main ethical behaviour is mentioned as part of employees contract.
2+3) Everyone in the firm is responsible for this and we review periodically as a team.
4 + 5) No and No but again, because of the nature and size of the firm.
6) Ethics and ethical behaviour is of utmost importance in our organziation.
RK
Thank you Rami for your comments. It really does differ from organisation to organisation so appreciate your input as to what good looks like. Saving Changes...
Is there a member of your Board that is responsible for Ethics? It is a VP role but not a board member. Big companies have many layers.
3. There is an ethics department and a legal department, with defined processes for evaluating ethics issues large and small.
4. Not sure who funds it, but in a safety critical industry, if you don't have an ethics department you might as well shut your doors before the regulators beat you to the punch.
5. Covered by the ethics department.
6. How important is Ethics in your organisation?
This is the most interesting. Organizations are not people and as such they have no values other than those of the leaders. Leaders change as do their priorities. Ethical behavior may be critical to the continued existence of an organization, but it can be overlooked when the leaders are only focusing on short term objectives. I'm not saying that is right, but it does happen.
Often, ethics training and focus is reactive rather than proactive. If I have to take training every year that I can't bribe foreign government officials, it's not because I will ever be in that position. Instead it is because someone in an executive role was publicly exposed being very naughty. The message is often: Don't act like your former executives.
The messaging is typically that ethics is of paramount importance, but as T.S. Elliot wrote:
Between the idea
And the reality
Between the motion
And the act
Falls the Shadow
Hi Keith, interesting to see Ethics falling under Chief of Compliance which seems a good and appropriate approach. I agree that training needs to be very proactive and empower our staff to be adequately educated and this is the same around cyber, diversity, sustainability etc. Saving Changes...
Anonymous
1. Is there a process in place to train employees on ethics and do you have access to the ethics policy?
Done several times a year, and yes. It would be emailed out to the employees when the time came to complete ethics training, but to find it any other time, it was not exactly easy.
2. Who should be responsible for Ethics within an organisation?
Should this be a function on its own under a Chief Operating Officer, Chief Human Resources, Chief of Compliance or Chief Finance Officer for example, or be managed by a Chief of Ethics?
Everyone should be held accountable. There is a special division dedicated to Ethics and Compliance, that anyone could anonymously report to, in addition to discussing with your immediate manager/supervisor.
Is there a member of your Board that is responsible for Ethics?
Yes.
3. Is there a process for Executives to deal with complex ethical decisions at a strategic level?
Yes, in theory.
4. Who funds your ethics department and how do you make the function sustainable within the organisation?
I believe the company itself funded everything. They paid for a neutral third party, to audit them, and present them with awards demonstrating how ethical they were, and how much things have changed since several members were "released from the company," and/or placed under house arrest/sent to jail.
5. Do you have an Ethics Review Committee who supports very challenging ethical dilemmas in your organisation to facilitate ethical decision making?
Yes, in theory.
6. How important is Ethics in your organisation?
Despite the massive push of ethics and compliance, I believe the company was only paying lip service and touting ethics because they got caught with their hand in the cookie jar, multiple times.
The company made international news due to major ethics violations in several countries, and even caused a bit of a crisis within the Canadian Government due to the perception that the Prime Minister treated his Attorney General in an unethical manner to "protect" this company in order to "buy votes in Quebec," which is where company headquarters is located.
The company has many divisions within divisions. There was often a disconnect between what "corporate" was doing compared to some of these smaller divisions within divisions.
Corporate was always sending out emails stating how ethical they were, and how much they had "changed" after getting caught.
Parts of the company still engage in unethical behavior. There are a lot of things being hidden from their clients, as well as the average employees themselves. When an employee brings up an issue, it is met with "we can't do that, we can't let the client know" by management, buried, and those employees are often penalized/bullied.
I believe the low level employees are ethical and honest, but senior management within many of the divisions are not. Again, the company is a large, global corporation with many moving parts. Some divisions/employees may be more ethical than others. A lot of them weren't, and many employees felt insulted that they constantly had to prove how ethical they were, while constantly being treated in an unethical manner by the employer. The company has a poor retention rate, and is having some difficulties attracting new talent. Saving Changes...
Albert AgbemenuManaging Director| Seag Focus Ghana LtdAccra, Ghana
Thank you so much Lissa for this very important topic. My current client, which happens to be a large global multinational company takes ethics very seriously. See below my response to your questions as enumerated:
1. Yes. In my client's company, there is a handbook on ethics as an employee compliance handbook which is given to all employees and contractors/consultants at the time of onboarding.
2. The organization has a Regional Compliance Manager at the Regional head office who receives all complaints. Every country office also has a Site Compliance Committee let by a Compliance Officer who then receives the complaints from the regional office and leads in the investigation process on all reported cases. Complaints are made anonymously through a reporting system that protects the identity of the complainant.
I think Chief of Compliance must be the one responsible for ethics in any organization that takes ethics seriously.
3. Yes, my client's company deals with this right from the regional head office. These cases are taken very seriously and complainants are given the highest level of protection. Identity of complainants are not disclosed.
4. This department is part of the organizational structure and funded as part of the company’s overhead costs
5. Yes, as I mentioned earlier.
6. Ethics is extremely important and very effective in this company.
Thank you once again for bringing this up. A very interesting and important topic. Saving Changes...
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