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

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©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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

The Birth of Business Ethics

Traditionally the domain of philosophers, academics and social critics

Focused on Philosophical analysis Anthologies Case studies Social responsibility

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

corporate values

Photo courtesy E. Farnham

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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…

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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”

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

Credos v. Codes

Thou shalt’s v. Thou shalt not’s

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

Dilemma: Clashing of Values

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

Photo Courtesy IMSI

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

Resolving Ethical Dilemmas

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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

©2008, all rights reservedElise Farnham dba Illumine

Consultingwww.elisefarnham.com

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

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