©2008, all rights reserved elise farnham dba illumine consulting business ethics and leadership...

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

Business Ethics and Leadership

Fostering a Culture of High Business Ethics and Integrity

Presented by:

Elise M. Farnham

CPCU, ARM, AIM, CPIW

President, Illumine Consulting

www.elisefarnham.com

770-367-3148



The Birth of Business Ethics

Traditionally the domain of philosophers, academics and social critics

Focused on Philosophical analysis Anthologies Case studies Social responsibility



So, what is business ethics?

Coming to know what is right or wrong in the workplace and doing what’s right, in the context of Products and services Relationships to stakeholders

Two broad areas: Management mischief Moral mazes



Organization Values When culture clashes with compliance When employees’ values differ from

corporate values

Photo courtesy E. Farnham



Benefits of Managing Ethics… Help avoid E&O Managed values impact the entire

organization Promote good will Strengthens the bottom line Ensure that policies are legal



Additional benefits…

Improve society Help maintain a moral course Cultivates teamwork and productivity Support employee growth and meaning It’s the right thing to do…



How to describe an ethical organization?

“It is truly enough said that a corporation has no conscience. But a corporation of conscientious men is a corporation with a conscience.”

Henry David ThoreauAmerican naturalist and writer



Where do I start?

“All organizations have ethics programs, but

most do not know that they do.”Stephen Brenner

Professor, article in “Journal of Business Ethics”



Credos v. Codes

Thou shalt’s v. Thou shalt not’s



Managing Ethics in the Workplace It’s a process Focus on encouraging

preferred behavior (prevention)

Find ways to avoid dilemmas

Group resource

Diverse design team Learn and value

forgiveness Make decisions public,

as appropriate Communicate continually



The Best Ethics Trainer

“We start our training even in our job ads,

but the best trainer

is the behavior of our leaders.”

Bill Goodman,

Chief HR Officer, Aveda



Dilemma: Clashing of Values

Truth vs. Loyalty Individual vs. Community Short-term vs. Long-term Justice vs. Mercy

Photo Courtesy IMSI



Resolving Ethical Dilemmas

Test for relevant information decision makers consequences fairness values universal appeal perception of others Photo Courtesy IMSI



The Influential Leader

Study at Holiday Inn The greater the number of positive responses to,

“My manager delivers on promises” and “My manager practices what he preaches.”

The more profitable the property

“Leaders with character develop cultures of character…”

Carol and Robert Turknett

Decent People, Decent Company



References and Resources “Complete Guide to Ethics Management: An

Ethics Toolkit for Managers” http://www.mapnp.org/library/ethics/ethxgde.htm

The Josephson Institute of Ethics http://www.charactercounts.org

U. S. Sentencing Commission http://www.ussc.gov

The Ethics Resource Center http://ethics.org

©2008, all rights reserved elise farnham dba illumine consulting business ethics and leadership...

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