Creating a Global Ethics & Compliance Program that Will ...€¢ Print Advertising • Television Advertising ... Integrated Ethics Marketing ... SCCE UE 2009 JRogers.ppt Author:

1

Society of Corporate Compliance and Ethics

6500 Barrie Road, Suite 250, Minneapolis, MN 55435, United States

www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977

Creating a Global Ethics & Compliance Program

that Will Truly Promote and Reinforce Ethical Behavior

Joel Rogers, VP Ethics, Compliance, and Content Strategy

Kaplan EduNeering

Monica Francois Marcel, Partner,

Language & Culture Worldwide LLC




Regulatory Requirements

2

www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 3

U.S. Federal Sentencing Guidelines (2004)

� “promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.” U.S. Sentencing Guidelines, §8B2.1(a),(a1),(a2)

• “communicate periodically and in a practical manner [aspects of an organization’s] … compliance and ethics program” U.S. Sentencing Guidelines, §8B2.1(b)(4)(A)

� “establish [a] communication…[program that] is ongoing, requiring “periodic updates” Commentary, 2004 Federal Sentencing Guidelines

� “publicize a system…whereby…employees and agents may report or seek guidance regarding potential or actual criminal conduct without fear of retaliation” U.S. Sentencing Guidelines, §8B2.1(b),(5),(c)


Sarbanes – Oxley (2002)

Section 301

• publicly traded companies must establish procedures for the confidential and

anonymous submission of concerns regarding accounting or auditing matters

• Communication that encourages reports and details reporting procedures is

essential

Section 404

• requires that CEOs and CFOs certify adequacy of system of internal controls

to result in accurate financials

3


Federal Acquisition Regulation (FAR) (2007)

• Now requires ongoing business ethics and business conduct awareness program

• Within 90 days of engagement for qualifying contracts




Building an Ethical Culture

4


Ethics Resource Center2007 National Business Ethics Survey Results

Six elements of a “negative work environment” include:

• Lack of information from top management

• Lack of trust that top management will keep promises and

commitments

• Lack of satisfaction with information from supervisors

• Lack of trust that supervisors will keep promises and commitments

• Lack of trust that coworkers will keep promises and commitments

• Rewards for employees who are successful, even if through

questionable means


ERC Survey Findings

Greater number of negative factors = increased misconduct

0%

20%

40%

60%

80%

100%

Zero One Two Three Four Five

%

5


Communication and Trust

• Actions, not just words

• Tone at the top

– Top management’s actions demonstrate commitment to ethical

standards

• Tone at the middle

– Who does the employee see as leader?

– Who holds them accountable?


Responsibilities of Management at Every Level

• Abide by principles and serve as a good example

‡ Be willing to talk about ethical implications of all actions and ideas

• Support compliance and ethics initiatives

• Provide guidance to subordinates

• Consider excellence in business ethics as part of the performance evaluation

• Encourage questions and reports

– No retaliation

– Action will be taken

– Standards do not change due to circumstances e.g. “bad economy”

• Seek ideas and vision from employees

– They will have ideas on how the Company can be progressive as well as sustainable.

6




Best Practices Ethics Programs


A Code of Conduct…

…that communicates the distinct ethical culture of the company

7


U.S. Federal Sentencing Guidelines (2004)

� “promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.” U.S. Sentencing Guidelines, §8B2.1(a),(a1),(a2)

� “communicate periodically and in a practical manner [aspects of an organization’s] … compliance and ethics program” U.S. Sentencing Guidelines, §8B2.1(b)(4)(A)

� “establish [a] communication…[program that] is ongoing, requiring “periodic updates” Commentary, 2004 Federal Sentencing Guidelines

� “publicize a system…whereby…employees and agents may report or seek guidance regarding potential or actual criminal conduct without fear of retaliation” U.S. Sentencing Guidelines, §8B2.1(b),(5),(c)


Ongoing Communication

• Once a year Code of Conduct training is not enough

• Lessons learned from advertisers and marketers

• A second exposure to an ad increases familiarity and

believability by 14%-28%

• A third exposure to an ad doubles the effect of one

exposure

• Consumers have to be exposed to an ad on average

between 9 and 21 times before they are ready to buy

8


Multiple Learning Styles


Integrated Product Marketing

• Public Relations

• Print Advertising

• Television Advertising

• Product Placement

• Dealer Meetings and Promotions

• Billboards

• Trade Shows

• Face-to-Face Sales

• Web and Email Strategies

9


Integrated Product Marketing

• Public Relations

• Print Advertising

• Television Advertising

• Product Placement

• Dealer Meetings and Promotions

• Billboards

• Trade Shows

• Face-to-Face Sales


• Articles – Company

Newsletters/Magazines

• Ads in Company Publications

• Company TV Network

• Integrate Ethics Message into Orientation

• Manager’s Training

• Facility Bulletin Boards

• Kiosk or Table at Company Events

• Instructor-Led Trainings


Integrated Ethics Marketing


10


Create a Communications Plan

• Defines communication & training elements and timeline

for deployment

• Identify Company Communication Channels

• Plan to Develop Communication Tools

• Create Timeline for Deployment


Multi-year Skill Building Code of Conduct Training…

YEAR 4YEAR 3YEAR 2YEAR 1

Ethical Decision MakingTraining for New Employees

Ethical Decision Making Training for All Employees

Building TrustTraining for All Employees

Raising Issues, Reporting, RetaliationTraining for New Employees

Raising Issues, Reporting, Retaliation

Training for All Employees

Code of ConductTraining for New Employees

Code of Conduct Training for All Employees

11




Creating A Global Ethics Program


Primary Concerns of Global Programs

• 266 Ethics Officers/General Counsels asked about Global

Ethics/Compliance Programs in a 2007 Benchmarking Survey

• “What are the primary concerns you have regarding the successful

implementation of a global program?”

1. Language & Culture

2. Communication & Education

3. Oversight & Administration

4. Program Acceptance & Support

12


Consequences of a Non-Localized Approach

• Exposure to substantial risk when the organization assumes that

understanding or consensus has been built around the code, when

in fact such understanding or consensus is not present

• Lost opportunities for the larger organization to learn about and

benefit from the context and experience of local markets and an

engaged global workforce; when a workforce feels disconnected to

the organization’s values—synergies, loyalty, and innovations are

not possible

• Attrition and reduced productivity—as a result of employees not

feeling connected to or engaged around their own core values and

national cultural norms


Local Opportunities for Global Programs

• Be BOTH ethical/compliant AND cross-culturally competent

• Develop new understanding around how policies will be seen,

implemented and played out in different national cultural contexts by

well-meaning and conscientious employees (benefit of doubt)

• Be more creative, empathetic, and effective in elaborating ethics and

compliance messages or solutions that are effective across national

cultures

• Achieve greater insight regarding culture's

impact on investigations and program planning

in cross-national and cross-cultural scenarios

13


State of the Practice Among Responding Organizations

• 90%:

– Engage local representatives

• 75%:

– Translate their code of conduct and provide helpline interpretation

– Meetings / Teleconferences with local representatives

• Roughly 50%:

– Adapt or modify code for non-US locations (beyond translation)

– Involve local employees in code development

– Training in employees’ local language “always” or “most of the time”

• Only 35%:

– Formal communications or training to domestic and international consultants, vendors, and/or joint-venture partners

– Involve international employees in the development of training materials.

– Modify training to incorporate cultural differences, local laws and policies


� Fewer Concerns Raised Internationally

� More Complicated International Disciplinary Process

� Less Face-to-Face Training

� No Formal Review of Helpline

Ongoing Challenges

14


Opportunities Within Your Organization

• Support Your Managers and Leaders:

– To better determine when and if local cultural differences need to be considered

– To anticipate and plan for how organization-wide policies will play

out in different cultural contexts

– To uncover new risk areas where, for example, cultural differences and a lack of clarity may currently mask vulnerabilities to the business

• Support Your Local (worldwide!) Employees:

– To better understand what your organization expects of them in their day-to-day duties and work life

– To perform at a higher level and develop their own understandingof how to navigate, meet, and exceed the organization's expectations

– To reconcile their own cultural values and beliefs with corporate

policy, without giving up their own cultural identity




Questions?

=

Creating a Global Ethics & Compliance Program that Will ...€¢ Print Advertising • Television Advertising ... Integrated Ethics Marketing ... SCCE UE 2009 JRogers.ppt Author:

Documents