Ethics i sa5483

Ethically SpeakingEthically Speaking

Part 1

A Moment of Silence….

OUR COMPANY VALUES

IntegrityAt Paul Davis Restoration, we believe strongly in the importance of integrity. It guides us in our selection of

franchisees, employees, and the trades people with whom we work. We do what we say we are going to do, and we make every attempt to do things right—the first time. We write our repair and remodeling estimates fairly and never seek excessive profits.

RespectWe believe it is important to show respect to our clients and customers in every encounter. We respect and

appreciate those whose jobs impact our work including insurance adjusters, building inspectors and material suppliers. We respect our fellow employees and value their insight and input.

CompassionWe understand that many of our customers come to us only after they have had a traumatic event such as a fire

or a flood. We have chosen this line of work because we can use our skills to help those in need. We also use these skills to help those that are not as fortunate, as when we provide our services to non-profit organizations.

CommunicationOur core competency is project management. We know that most problems stem from inadequate or improper

communication. We strive to establish expectations with our customers, and we stay on schedule

What are Ethics?According to Aristotle: • Ethos is a Greek term from which ethics is

derived and is referred to as ethical appeal in the rhetorical context.

• The basis of rhetoric is formed from the author's attitude and character toward his audience.

• His character is what gives value to his words and thus, provides support and proof to his arguments.

Definitions• 1. ethics

– A set of principles of right conduct.

– A theory or a system of moral values: “An ethic of service is at war with a craving for gain”

• 2. ethics

– The study of the general nature of morals and of the specific moral choices to be made by a person; moral philosophy.

• 3. ethics– The rules or standards governing the conduct of a person or

the members of a profession.The American Heritage® Dictionary of the English Language, Fourth Edition

Definitions

• ethics

– 1: motivation based on ideas of right and wrong

– 2: the philosophical study of moral values and rules

• WordNet ® 1.6, © 1997 Princeton University

The Golden Rule

• The Golden Rule or ethic of reciprocity is an ethical code, or a morality, that is essentially expressed in these two forms

The Golden Rule

• Treat others as you would like to be treated • Do not treat others in ways you would not like

to be treated (also called the Silver Rule)

Backup of Sewer Drain – Sump pump failure endorsement

Water from nonfunctioning sumps and from backup through drains in basement floors can cause substantial loss, varying according to the nature of the property-real and personal-that is exposed and damaged. Such loss is not covered by basic homeowners policies but may be covered by an optional endorsement.

A water damage exclusion common to homeowners policies applies to damage caused by water from three sources:

1. flood, surface water, waves, tidal water or overflow of a body of water 2. water below the surface of the ground that exerts pressure on or leaks

through or into a structure 3. water that backs up through sewers or drains or overflows from a sump.

In terms of ethics, what do you think of when I show you the following pictures?

National Claims Assignment Center: 1-888-4-PDR-NOW

National Claims Assignment Center: 1-888-4-PDR-NOW

National Claims Assignment Center: 1-888-4-PDR-NOW

Morality .vs. Ethics

• Right .vs. Wrong IS NOT Ethics

• Right .vs. Wrong IS Morality

• Right .vs. Right IS Ethics

Moral and/or Legal Decisions

• Honesty .vs. Lying

• Paying .vs. Stealing

• Playing by the Rules .vs. Cheating

Ethical Decisions• Honesty .vs. Loyalty

I need to honestly answer your question .vs. I promised to keep the information confidential.

• Short-Term .vs. Long-Term Go on expensive vacation with the kids .vs. Save for College Education

• Justice .vs. MercyYou embezzled money, so you’re fired .vs. I know you’re having problems at home, so lets work out a payback schedule and never let this happen again.

• Individual .vs. CommunityI know a college degree from night school will get you out of that dead-end job, but the kids hardly ever see you now.

THE CANONS AND RULES OF THE CODE OF PROFESSIONAL ETHICS Canon 1 CPCUs should endeavor at all times to place the public interest above their own.

Canon 2 CPCUs should seek continually to maintain and improve their professional knowledge, skills, and competence. Canon 3 CPCUs should obey all laws and regulations, and should avoid any conduct or activity which would cause unjust harm to others. Canon 4 CPCUs should be diligent in the performance of their occupational duties and should continually strive to improve the functioning of the insurance mechanism. Canon 5 CPCUs should assist in maintaining and raising professional standards in the insurance business. Canon 6 CPCUs should strive to establish and maintain dignified and honorable relationships with those whom they serve, with fellow insurance practitioners, and with members of other professions. Canon 7 CPCUs should assist in improving the public understanding of insurance and risk management. Canon 8 CPCUs should honor the integrity of the CPCU designation and respect the limitations placed on its use. Canon 9 CPCUs should assist in maintaining the integrity of the Code of Professional Ethics.

CODE of ETHICS Independent Insurance Agents & Brokers of America, Inc. I believe in the value and importance of the insurance business and its future, and that the Independent Insurance Agent plays a critical role in serving consumers throughout the insurance process. I support the Independent Agency System, which has developed insurance to be a fundamental component in the economic fabric of our nation, and I pledge to support right principles and oppose bad practices in the insurance business. I respect the importance of the relationship between Independent Insurance Agents and the public, insurance companies, and other Independent Insurance Agents, and believe that the rights of the client are paramount. To the Public I believe that serving the public as an Independent Insurance Agent is an honorable occupation, affording me a special opportunity to serve society and offer valuable insurance products and services to the public. I believe that as an Independent Insurance Agent, I am serving the interests of my clients by responding to their expressed insurance needs. I will strive to further the public's understanding of insurance, endeavor to promote safety and loss control in my community, and strive to participate in civic and philanthropic activities that contribute to my community. To the Insurance Companies I Represent I will respect the authority vested in me by the insurance companies I represent, and work to maintain open lines of communication with them. To Other Independent Insurance Agents I will strive to maintain positive relations with other insurance agencies in my community, competing with them on an honorable and fair basis. I will follow all insurance laws relative to the conduct of my business. I will work with other Independent Insurance Agents for the betterment of the insurance business, and endeavor to elevate the standards of my occupation by following this Code of Ethics and encouraging other Independent Insurance Agents to do likewise. © 2002. Independent Insurance Agents & Brokers of America, Inc. (Ver. 090302)

The Basics of Insurance Ethics• Honesty --Truthful,straightforward, sincere

• Integrity -- honorable, courage of conviction, stands up for beliefs

• Respect for Others --Freedom, dignity, and rights

• Caring/Compassion -- not selfish, manipulative, or controlling

• Fiduciary Responsibility -- Fidelity, Loyalty, Disclosure

• Personal Responsibility --Accountability, considers action

• Trust --Confidant, promise-keeper, reliable, dependable

• Altruistic -- puts others first

• Good Judgement --makes the right choices, fair, not prejudice

What stands in the Way?

• 1 in 6 Americans regularly drinks or uses drugs on the job.

• 1 in 2 Americans genuinely believes you get ahead by politics and cheating, not by work.

• American workers admit they spend more than 20% of their work day “goofing off”.

• Americans feel the #1 cause of business decline is low executive ethics.

Are you a “Professional” ?

• Commitment to High Ethical Standards• Prevailing Attitude of Altruism• Mandatory Education Preparation / Training• Mandatory Continuing Education• A formal Association or Society• Independence• Competence

Ethics Resource Center

Ethics Resource Center

Ethics Resource Center

Ethics Resource Center

VALUES vs. ETHICSValues

• Pam is a 55 year old professional.• She will tell you that family is at the

very center of her life.• She has re-arranged her hours

around her family.• She has located her office near the

day care center.• It is not just lip service, Pam values

Family.

Ethics

• Pam has put aside sufficient money for college and needs.

• Pam purchased a new luxury car.• Her children are careful with her car.• The car is a symbol of Pam’s hard work

and success.• While pulling into the garage, Pam

hears an unmistakable scraping noise, stops the car and demands to know what happened.

• Her youngest daughter opened her door too soon striking the side of the garage causing considerable damage.

VALUES vs. ETHICS

Values are what you believe. Ethics are what you do.

Can Ethics be Taught?

• Imprinting

• Training

• Ethical Re-Education

• Look to our Peers

Ethics Training Classes• Results indicate that far fewer hours spent on Ethics

Training than on Sales Training.• No significant relationship between Ethical

Intent/Behavior and having received training, or the number of hours or training.

• Ineffective Training cannot be expected to improve ethical conduct.

• Must take a clear and communicated stand on issues and rewards--Ethics Nobel Prize?

• Must be the “centerpiece” of strategic operations.

Opposition to Training Classes

• I already know Right from Wrong-Insulted“No Brainer’s” and “Grey Areas”

• Don’t have the Time- Too busy, not a priority.• No benefit to me--I have to produce for a living.• I’m just a CSR.• Management doesn’t have to attend.• Just another “edict” from above, attend the class

and they’ll forget about it in a week.

Ethics and the Law

• Federal and State Laws• NJDOBI• Criminal and Civil Actions• Licensing Requirements• E & O Insurance• Just because it’s Legal….. is it Right?

Illegal Acts of an Agent• Misrepresentation• Windowing• Altering Applications• Improper Handling of Monies• Not Complying with License Requirements• Rebating / Twisting / Churning• Practicing Law or Accounting• Discrimination / Redlining• Fraud • False Advertising

Error’s & Omissions

• Breach of Carrier Contract• Intentional Acts• Criminal Acts• Acting as a Finance Company• Privacy Act (GLB), Sarbanes-Oxley, HIPPA• MVR’s, CLUE, Credit Reports• Altering Certificates of Insurance

Why do people break the Rules?

• Ignorance

• Greed

• Temptation

• Virtues and Vices

Do the Rules Change?• Does it Depend on the Situation?

• Situational Based Ethics-- what is the best possible outcome

• Rule Based Ethics--the rule is the rule, ignorance is no excuse

• People Based Ethics--the Golden Rule, Universally accepted

• No Right Answers• Two equally honest and ethical people can

come up with different answers

• Shows a wide variance in the specific types of people Americans trust.

•Business leaders and stockbrokers join car dealers and HMO managers as the least trusted.

•Teachers and Nurses are the most trusted group of people.

CNN/USA Today/Gallup Poll

Why be Ethical ?

• Religion / Beliefs• Personal Ideals• Public Image• Fear of Punishment• Reduce E & O Exposure• Peer Example / Pressure• Set an Example

Questions?

Thank You Thank You For Coming!For Coming!