scce cei session 105 honor codes - scce official site · 2014-09-03 · 1 society of corporate...

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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

Honor Codes

From Honorable Intentions to Honorable Behavior

Catherine Finamore Henry, MBA, CIA

www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 2

Definition

• An honor code is a set of ideals governing a group. It is based on

what constitutes honorable behavior among group members. The

use of an honor code depends on the idea that people within the

group can be trusted to act honorably.

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The Connection

Compliance

Ethics

Honor

Ethics

Doing the right thing

Compliance

Doing things right

Honor

Looking for the right thing to do


Honorable Intentions

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The Dark Side

• Ethical misconduct is high and back at pre-Enron levels.

• More than half of all employees report personally observing

misconduct.

• Employees are fearful of retaliation.

• Employees are skeptical.

• Strong ethical cultures are seen in only nine percent of companies.

Source: Ethics Resource Center

2007 National Business Ethics Survey


The Bright Side

• Ethics and compliance programs matter if well-implemented.*

• Strong ethical cultures + well-implemented programs decrease

risks.*

• Values-driven individuals are most successful.

• Values-driven companies are most successful.

• Cultural capital is the new frontier of competitive advantage.

• The culture of an organization reflects the values of its leaders.

• Culture can be measured.

*Source: Ethics Resource Center

2007 National Business Ethics Survey

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Honor Codes and Culture

Honor Codes drive aspirational behavior to:

• Improve group performance

• Build community responsibility

• Create a culture that prevents problems


Discussion

• What values or qualities symbolize HONOR to you?

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Background

• Citizen Honor Codes

• Military Honor Codes

• Academic Honor Codes

• Athletic Team Honor Codes


Citizen Honor Code (250 BC)

• Greek Honor Code

– Prowess in battle (prowess=bravery, skill, valor)

– Ability to speak eloquently and convincingly

– Duty to family and community

– Kindness to supplicants

– Honor the gods

– Loyalty to friends and fellow soldiers

– Recognition as an honorable warrior

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Military Honor Codes

• Evolved in response military needs

• Multiple Objectives

– Discipline and unity

– Civilian trust

– Psychology

• Woven into the Fiber of the Culture


Military Honor Codes

• Bushido (1000AD)

– Rectitude

– Courage

– Benevolence

– Respect

– Sincerity

– Glory

– Loyalty

• Chivalry (1200 AD)

– Courage

– Justice

– Mercy

– Generosity

– Faith

– Nobility

– Hope

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Military Honor Codes - Common Fundamental Values

NobilitySincerity

RespectRespect

ServiceGenerosity

IntegrityNobilitySincerity

LoyaltyFaithLoyalty

CourageCourageCourage

HonorJusticeRectitude

US ArmyChivalryBushido

Military Honor Code Value Propositions


Military Honor Codes: Hallmarks and Outcomes

Hallmarks

• Universal value propositions

• Community policing

• Trust

• Public Relations

Outcomes

• Low crime rate

• High public confidence rating

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Academic Honor Codes

Academic Honor Codes are:

• Primarily focused on academic integrity

• Written as a commitment statement, not a commandment

• Affirmed publicly

• Peer enforced


Academic Honor Codes

US Jeffersonian Codes

• College of William and Mary, 1736

– “[S]pecial care must be taken of their morals, that none of the Scholars

presume to tell a Lie…or do anything else that is contrary to good Manners.”

• University of Virginia, 1842

– “I do hereby certify on my honor that I have derived no assistance during the time of this examination from any source whatsoever.”

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Princeton University

• At Matriculation: “I understand and will abide by the conditions under

which the honor system is conducted.”

• On Papers: “This paper represents my own work in accordance with

University regulations.”

• On Exams: “I pledge my honor that I have not violated the honor

code during this examination.”


Academic Honor Code Enforcement and Outcome

Enforcement

• Student Councils

• Range of Consequences

– Reprimand

– Expulsion

– F* (pronounced “f star)

• Learning Experience

– Offender and Community

Outcome

• Reduced cheating

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Athletic Honor Codes

• Tight curfews

• High academic standards

• Rules of public conduct

• Training rules

• Singing the alma mater

• Walking arm in arm

• Acknowledgement of breaches


Proposition

Organizational Honor Codes will drive aspirational behavior to:

• Improve group performance

• Build responsibility and accountability

• Create a culture that prevents problems

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A Comparison of Codes

Enforced by peer groupEnforced by high level authoritythrough discipline

Embrace and promote the letter of the law

Require strict adherence to the letter of the law

Developed cooperatively by individuals who will subscribe

Handed down to employees by executive management

Focus on aspirational behaviorFocus on behavior that must be avoided

Honor CodesCodes of Conduct


Discussion

What are honorable corporate values?

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Organizational Honor Codes: Hallmarks

• Local Ownership

– Function

– Department

– Office

– Division

• Early Intervention and Community remediation

– Peer evaluations

– Reviews (Honor Council or Ethics Council)


Translation into Corporate Environment

• Not for every situation

• Foundation must be in place

• Corporate culture must be ready

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Program Development Levels

Foundation

Transformation

Sustainability

Foundation

Foundation level programs set the basis for establishing a healthy organizational culture and preventing, detecting and resolving legal and regulatory compliance violations. The behavioral focus is on compliance and the business focus is on the organization (people, profit & process).

Transformation

Transformation level programs support a shift from a compliance focus to a compliance and ethics focus. The behavioral focus is on compliance and ethics promoted by values-based leadership. The business focus is on the organization and primary stakeholders (customers, suppliers, investors/financiers, communities in operating area).

Sustainability

Sustainability level programs foster aspirational behavior and contribute to the organization’s continued success. The behavioral focus is on compliance, ethics and honor, collaboration and meaning - all promoted by values-based leadership. The business focus is on the organization, primary stakeholders and secondary stakeholders (special interest groups, media, government, competitors, consumer advocates, global society).

©2008 SmartPros Legal & Ethics, Ltd.

Development Levels

for

Compliance & Ethics

Programs


Tips

• Make sure the organization is ready

• Do not develop the Honor Code under pressure

• Identify common values among group members

• Identify group behaviors that constrain performance

• Identify behaviors that strengthen performance

• Write specific, enforceable rules

• When someone breaches the code, “call it”

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Sample Honor Code

Shared Values

•Accountability

•Home/work balance

•Cooperation

•Efficiency

•Loyalty

Code

1. Be loyal to the group.

2. Share all proposals.

3. Ask for help, share the credit.

4. Lend a hand to help teammates.

5. Be on time for all meetings.

6. Own your actions, don’t place

blame on others.

7. Acknowledge breaches in the code.


Questions

scce cei session 105 honor codes - scce official site · 2014-09-03 · 1 society of corporate...

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