In Legislating Business Ethics & Compliance: The “Stick” came first!

1. The New Leadership Imperative:From Compliance to DecencySteve HarrisonAuthor & Chairman of Lee Hecht Harrison

5. In Legislating Business Ethics & Compliance: The “Stick” came first! SOX! Sarbanes Oxley Law

6. Did Sox really work?

8. The Compliance & Ethics Function A Golden Opportunity for H.R.!

9. The View from Europe and US Objection!?

10. Survey “Incidents of fraud globally increased 22% in last two years.”(PWC Survey: 2005)

11. “(Although the government can mandate legal compliance) … we cannot legislate ethical behavior.” (Cynthia Glassman, SEC Commissioner)

12. Revised Regulations Public companies must “promote an organizational culture that encourages ethical conduct …” But, what does “ethical conduct” mean?

13. Beyond Compliance, It’s all about …

14. “Tone at the top …” CULTURAL LEADERSHIP

15. Competent Credible/authentic Results driven Tenacious Courageous Collaborative Decisive Energetic Optimistic We want leaders to be: • Good communicator/listener • Trusting • Humble (power of humility) • Integrator • Inspirational/motivational • Visionary (“see around corners”) • Creative/innovative • Enabling (help people win)

16. “Tone at the top …” THREE LEADERSHIP IMPERATIVES • Sense of purpose • Model of integrity • Culture-sensitive "Culture is everything. If it isn't right, nothing goes on.“ Lou Gerstner

17. The Problem “Ethics” and “Integrity”: Too theoretical and conceptual for culture-building?

19. Decencies: Actions that are: • Tangible • Practical • Affordable • Scaleable • Impactful • Sustainable

20. Decencies: • Saying “hello” (the reception area)

22. Decencies: • Saying “hello” (the reception area) • Saying “goodbye” (terminations/layoffs) • Recognition, praise, and thank you … “psychic income” • Avoiding “executive pomposity” • The power of trust • Tolerating innovation failure • The power of humility/accessibility

23. Decency • What’s the “payback”? • What’s the financial return? • Why bother?

25. Employee Retentionand “Engagement”

26. An Iron Fist Can Fit in a Velvet Glove

27. Great Place to Work Institute … A gift to corporate Culture! www.greatplacetowork.com

28. The Leader’s Unwritten Code • Keep a copy of the code of conduct on your desk and be the first to take ethics and compliance training. • Include discussion of the code, values, decencies and culture in all quarterly ops reviews and new-employee orientations. • Forget the “open door policy” … Bring the “open door” to the people spontaneously and sincerely. • Create an enabling, failure-tolerant innovation environment. • Recognize the people behind the scenes. • Reject “executive pomposity”. • Downsize with a velvet glove: You’re making memories. • Trust! • In meetings you schedule, be the first to arrive and last to leave.

29. The Leader’s Unwritten Code • Don’t keep visitors waiting. • Praise in public; Criticize in private. • Share credit; accept blame. • Remember that the words “tough and love” are not incompatible. • Remember: There are no ‘little people”! • Understand the power of humility (“How am I doing?”) • Recognize other people’s acts of decency. • Write “thank you” notes. • Remember: Decencies are a leader’s leverage to build, reinforce and protect an ethical culture. • Remember that everyone’s watching! “It’s always show-time”!

30. UNITY!

31. OPPORTUNITY!

32. Thank you!