ACOI Welcomes our Members to the ACOI Welcomes our Members to the 3rd seminar 3rd seminar in the ACOI lunch time CPD seminar series in the ACOI lunch time CPD seminar series January - June 2012. CPD Reference: January - June 2012. CPD Reference: 2012-0406 Our Event: Our Event: Doing the right thing - a shared commitment to ethics excellence for Financial Services in Ireland. Chaired: Chaired: Mr. Sean Wade, Vice Chairman of Ethics Committee and Head of Group Corporate Services, Friends First Speakers: Speakers: Mr. Niall Gallagher, Chairperson of the ACOI Ethics Committee.
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ACOI Welcomes our Members to the 3rd seminar in the ACOI lunch time CPD seminar series January - June 2012. CPD Reference: ACOI Welcomes our Members to.
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ACOI Welcomes our Members to the ACOI Welcomes our Members to the 3rd seminar in the 3rd seminar in the ACOI lunch time CPD seminar series January - June ACOI lunch time CPD seminar series January - June 2012. CPD Reference: 2012. CPD Reference: 2012-0406
Our Event:Our Event: Doing the right thing - a shared commitment to ethics excellence for Financial Services in Ireland.
Chaired:Chaired: Mr. Sean Wade, Vice Chairman of Ethics Committee and Head of Group Corporate Services, Friends First
Speakers:Speakers: Mr. Niall Gallagher, Chairperson of the ACOI Ethics Committee.
• Upcoming Events
Date Topic
27/03/2012 Lunchtime Seminar: Doing the right thing - a shared commitment to ethics excellence for Financial Services in Ireland.
03/04/2012 Lunchtime Seminar: Regulatory Update for the Funds Industry
17/04/2012 Lunchtime Seminar: Data Protection Directive
08/05/2012 Lunchtime Seminar: CBI Sanctions
15/05/2012 Lunchtime Seminar: FACTA - An Overview & Our Experience to Date
12/06/2012 Technical Workshop: AML / Data Protection
12/06/2012 Technical Workshop: CPC
22/06/2012 Lunchtime Seminar: Buildling a Shared Commitment to Ethics Excellence - A Global Perspective
22/06/2012 Annual Dinner: Celebrating the Buidling of a Shared Commitment to Compliance Excellence
Doing the right thing.-a shared commitment to ethics excellence for financial services in Ireland
• It is legal but is it ethical? Why you follow the ethical route
• What does the Regulator expect
• Where it is not so simple
• How to figure it out for yourself
• How organizations can create the right climate and use the right tools to promote ethical behavior, establish structures and deal with ethical issues
• Barriers to ethical behaviour
• Why things go wrong and how to deal with ethical lapses
• What can ACOI and what can you do to improve the chances of doing the right thing and improving the reputation of Financial Services in Ireland
• Where does ethics fit in today’s business environment?
• Personal and organizational/business ethics“It is true enough said that a corporation has not a conscience. But a corporation of conscientious men is a corporation with a conscience” Henry David Thoreau, American philosopher (1817-1862)
• Ethical values the basic building blocks• The importance of trust – particularly in financial services
IT IS LEGAL BUT IS IT ETHICAL? WHY FOLLOW THE ETHICAL ROUTE.
• Letter and the spirit of the law• Two examples: Company Taxation and Financial Speculation• Ethical perspective: Stakeholder Principle and Corporate Culture
“if you can see the line, you are probably too close to it”.
“To get through each day without being indicted is not a sufficient standard to aspire to”
Conflict of Interest: Darleen Druyun and Boeing US in the 1990sFrom: All you need to know about Ethics and Finance”, John Plender and Avinish D. Persaud,
Longtail Publishing Limited (2007)
Fiduciary Responsibility: A fund manager and a trading error
HOW TO FIGURE IT OUT FOR YOURSELF – WHAT TO CONSIDER IN DEALING WITH ETHICAL ISSUES
Personal Responsibility – the starting point• Three observations:
1. Pause to consider, understand and consult2. Look at other perspectives and viewpoints3. Fairness and justice must be respected and seen to be
• “people are more than five times more likely to do the right thing when they have some time to think about the matter than they are when they have to make a snap decision.”
HOW ORGANIZATIONS CREATE THE RIGHT CLIMATE , USE THE RIGHT TOOLS AND ESTABLISH STRUCTURES TO PROMOTE ETHICAL BEHAVIOUR
• Where we are coming from? – experience is shaped by the past
• Understanding the culture and its receptiveness or otherwise
•“Contrary to what many people believe, values and culture can be measured, and as we know, what can be measured; can be managed. The ability to measure and thus manage and change culture is the missing links between compliance without an ethical underpinning, which does not work, and the ideal “ethical culture” we all talk about. In other words, to put ethics at the heart of the compliance practice you start with values” (emphasis added)
(“Introducing and Implementing an Ethics Programme” Ruth Steinholtz, (Managing Partner of AretéWork LLP, ACOI Seminar May 2011/ Ezine June 2011)
WHY THINGS GO WRONG - HOW TO DEAL WITH ETHICAL LAPSES AND BREACHES
• Recognise the mistake and the consequences• Cover-up is worse than the original “mistake”• Speed of response from those authorised and capable• Corrective action and institutionalizing it (revise policies)• Learn from mistakes• Preserve integrity of the people and the system and act fairly• Deal openly and honestly with the regulator
“The biggest risks most businesses face today stem from human error; and human error often turns on decisions that may appear legal,
but which entail ethical abuses..” (Persaud and Plender)
WHAT CAN WE (ACOI) DO AND WHAT CAN YOU DO TO IMPROVE THE CHANCES OF DOING THE RIGHT THING AND ENHANCE THE REPUTATION OF FINANCIAL SERVICES IN IRELAND?
• Compliance and ethics are boardroom responsibilities but..
• Ethics is an integral part of the compliance profession
• Compliance must focus on the values side - letter and spirit
• Tell stories – get the narrative right through examples/case studies• Ethics by fear does not work - when the crisis is over “normal” behavior is resumed. • There is a key role for ACOI in Ethics education and training
Corporate GovernanceRegulatory compliance codes of practice
Ethics & Values
ETHICS AT THE CENTRE OF BUSINESS DECISON-MAKING
Business Environment Competition
Useful references
Business Ethics and Values, Colin Fisher and Alan Lovell, FT Prentice Hall, 2nd Ed. (2006) Weighty text book – MBA standard - many case studies
All you need to know about Ethics and Finance”, John Plender and Avinish D. Persaud, Longtail Publishing Limited (2007) Excellent, practical guide with case studies
Defining Moments, When Managers Must Choose between Right and Right, Joseph L Badaracco, Jnr. Harvard Business School Press 1997 Brilliant with detailed cases.
Stakeholder Theory, THE STATE OF THE ART, R. Edward Freeman, Jeffrey Harrison, Andrew C. Wicks, Bidhan L.Palmer, Simone De Colle, Cambridge Press (2011). The latest word on stakeholder theory and where ethics fits
Ethical business conduct in BAE Systems plc – the way forward. Woolf Committee Report ,( May 2008)
Websites:
DCU Institute of Ethics www.dcu.ie/institute_ethics
The Ethics and Compliance Officers Association (US) www.theecoa.org
Institute of Global Ethics www.globalethics.org - excellent ethical dilemmas