Ethical Enlightenment as a Foundation for Business Health

Ethical Enlightenmentas a Foundation for Business Health Sponsored by ASBA, IKEA, and Empowerment Unlimited Coaching, LLC

Agenda • Overview of today’s ethical environment • Live simulation of e-Factor!TM • Ethical impacts debrief • Action plan and evaluation

Ethics - Definition • Ethics: “Character or custom” • “The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.” - Ferrell and Fraedrich, 1997 • Main Entry: • eth·ic • Pronunciation: • \e-thik\ • Function: • noun • Etymology: • Middle English ethik, from Middle French ethique, from Latin ethice, from Greek ēthikē, from ēthikos • Date: • 14th century • 1 plural but sing or plural in constr: the discipline dealing with what is good and bad and with moral duty and obligation 2 a: a set of moral principles : a theory or system of moral values <the present-day materialistic ethic> <an old-fashioned work ethic> —often used in plural but singular or plural in construction <an elaborate ethics><Christian ethics> b plural but sing or plural in constr: the principles of conduct governing an individual or a group <professional ethics> c: a guiding philosophy d: a consciousness of moral importance <forge a conservation ethic> 3 plural: a set of moral issues or aspects (as rightness) <debated the ethics of human cloning>

Corporate Social Responsibility • Multi-faceted • Examples of success and failure

Thinking Man…

But Where’s the Ethics? E-T-H-I-C-A-L B-E-H-A-V-I-O-R 6

Does It Really Matter? “80% of people say they decide to buy a firm’s goods or services partly on their perception of its ethics.” - 2003 Survey, Wirthlin Worldwide

Another View… “It takes years to build a good business reputation, but one false move can destroy it overnight.” -Edson W. Spenser former Chairman, Honeywell

The Ethical Landscape “Despite new regulation and significant resources dedicated to decreasing misconduct and increasing report of misconduct, the ethics risk landscape in business is as treacherous as it was before implementation of the Sarbanes-Oxley Act of 2002.” - Ethics Resource Center’s 2007 National Business Ethics Survey (www.ethics.org)

The Bad News • “Ethical misconduct in general is very high and back at pre-Enron levels – during the past year, more than half of the employees saw ethical misconduct of some kind.” • “Many employees do not report what they observe – they are fearful about retaliation and skeptical that their reporting will make a difference. In fact, one in eight employees experiences some form of retaliation for reporting misconduct.” • “The number of companies that are successful in incorporating a strong enterprise-wide ethical culture into their business has declined since 2005. Only nine percent of companies have strong ethical cultures.” - Ethics Resource Center’s 2007 National Business Ethics Survey

Ethics Risk IndexSM - Ethics Resource Center’s 2007 National Business Ethics Survey

Current Ethics Deliveries • Live training seminars • On-line training with test • Code of conduct/stated values • Speeches by attorneys, ethicistsand felons • Just in time (call the attorney)…

Role Models “ ________, I taught you better than that! So now, _____________…” What did Mom know?

Behavior Culture • Expectations/parameters/consequences • Learn by experiences and mistakes • High engagement in the process • Encouragement, pride, rewards, and leading by example • Character, reputation, integrity

The News Good • “The number of formal ethics and compliance programs is on the rise. Furthermore, in companies with well-implemented programs, there is increased reporting, reducing ethics risk.” • “The 2007 NBES has been able to show definitively that companies that move beyond a singular commitment to complying with laws and regulations and adopt an enterprise-wide ethical culture dramatically reduce misconduct.” • “The 2007 NBES has identified the characteristics that comprise an effective ethical culture, providing a blueprint for individuals within companies responsible for corporate governance and compliance.” - Ethics Resource Center’s 2007 National Business Ethics Survey

Strong Enterprise-Wide Culture • “Ethical leadership: tone at the top and belief that leaders can be trusted to do the right thing.” • “Supervisor reinforcement: individuals directly above the employee in the company hierarchy set a good example and encourage ethical behavior.” • “Peer commitment to ethics: ethical actions of peers support employees who ‘do the right thing’.” • “Embedded ethical values: values promoted through informal communications channels are complementary and consistent with a company’s official values.” - Ethics Resource Center’s 2007 National Business Ethics Survey

If You Think It Can’t Happen Here… Real-Life Story of Marcy Maslov, creator of e-Factor!TM

Are YOU ready to “engage” in a tool that’s foundational to ethical culture and behavior?

e-Factor!TM Game Play • Simulate creation and launch of new product • Your team is in charge and has authorization to make all decisions for this new product

e-Factor!TM Game Play • Metrics for the project

e-Factor!TM Game Play • How to win the game • Explanation of PEPs • Choose your team token • Icons on the board and Milestones

e-Factor!TM Game Play • Character cards • 2-Minute Drill: How would your character guide the team? • Roll die to select starting player

Let’s Play!

e-Factor!TM Debrief • List key learnings you experienced • Share two (2) key learnings with your teammates • Team chooses top two (2) learnings to share with everyone

e-Factor!TM Debrief How did the game play make you feel? Give one or two-word descriptions Respectful – Enlightened – Sad – Angry – Surprised – Brave

e-Factor!TM Debrief How would an experience like this simulation be useful to an organization? - 5 Minute Discussion -

Summary Journey from discussion of ethics in general to a live simulation to a sharing of potential outcomes Experiential learning accelerated your understanding of this complex topic

Ethics Action Plan • Take a moment to answer these questions: • What is one action regarding ethical enlightenment that you could implement in your organization today? • What type of ethical culture do you choose for your organization?

for your participationand interest

For more information, please contact:Marcy Maslovmarcy@e-factorgame.comDave Cohrsdavid@e-factorgame.com Empowerment Unlimited Coaching, LLC

Ethical Enlightenmentas a Foundation for Business Health Sponsored by ASBA, IKEA, and Empowerment Unlimited Coaching, LLC

Ethical Enlightenment as a Foundation for Business Health