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ETHICAL LEADERSHIP

Ethical Leadership - Mike Bell, Terra Grande Staff. 2. 2008. APICS Code of Ethics. To maintain and improve sound business practices and foster high standards of professional conduct.To hold in professional confidence any information gained of the business of a fellow member's company and to refrain

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ETHICAL LEADERSHIP

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    1. 2008 Ethical Leadership - Mike Bell, Terra Grande Staff 1 “ETHICAL LEADERSHIP” APICS Ethics: Should they be situational?

    2. Ethical Leadership - Mike Bell, Terra Grande Staff 2 2008 APICS Code of Ethics To maintain and improve sound business practices and foster high standards of professional conduct. To hold in professional confidence any information gained of the business of a fellow member’s company and to refrain from using such information in an unethical manner. To seek success without taking unfair advantage or questionable acts that would comprise one’s self-respect. To neither engage in nor sanction any exploitation of one’s membership, company, or profession. To encourage and cooperate in the interchange of knowledge and techniques for the mutual benefit of the profession. To be careful with one’s criticisms and liberal with one’s praise; to build and not to destroy. When a doubt arises as to the right or ethics of one’s position or action, to resolve such doubt according to generally accepted standards of truth, fair dealing, and good taste. To maintain high personal standards of moral responsibility, character, and business integrity.

    3. Ethical Leadership - Mike Bell, Terra Grande Staff 3 2008 Ethical Leadership Business ethics is not always simple or necessarily “Black and White.”

    4. Ethical Leadership - Mike Bell, Terra Grande Staff 4 2008 Topics Trust Model Avoiding conflicts of interest Business amenities Confidential information Financial / Slush funds Values-based decisions Summary

    5. Ethical Leadership - Mike Bell, Terra Grande Staff 5 2008 Trust Model A Step-by-step process that enables you to break down situations to smaller & simpler segments. This enables you to analyze a situation more objectively. T = Think about the situation objectively * Clearly understand the situation. * Know the facts. *Identify the real issues. R = Recognize and analyze motivations. * If the situation troubles you, ask yourself why. * Consider the other party’s motivations. U = Understand applicable laws, rules, and policies * Consider all options * Research the Standards of Business Conduct & other policies * Know whom and when to ask for help S = Satisfy the headline test * Ask yourself if you feel comfortable seeing your actions reported in the news * Consider the consequences of your decision: on APICS, customer, yourself T = Take responsibility for your actions * Make an appropriate choice & act accordingly * Remember, you are accountable for the outcome of your decisions.

    6. Ethical Leadership - Mike Bell, Terra Grande Staff 6 2008 Avoiding conflicts of interest You are an active APICS member. You serve on the chapter board, attend PDM’s, and teach certification courses. You are approached by a member company that has a need for on-site courses that you teach & ask if these could be available. You’ve been thinking about starting a consulting business on the side. This seems like it might be a good way to get started. You are considering making an offer.

    7. Ethical Leadership - Mike Bell, Terra Grande Staff 7 2008 Avoiding conflicts of interest You are the chapter facilities or program director. Your brother-in-law just called & said he has a new job selling event & group meals with a hotel & he wants your chapter’s business. The chapter has a contract with a hotel they are satisfied with. The contract can be broken easily. You are happy with the current hotel, but he is your wife’s brother & you might be able to save a few bucks up front if you make a deal.

    8. Ethical Leadership - Mike Bell, Terra Grande Staff 8 2008 Avoiding conflicts of interest You have been working with particular supplier (privately held co) for several years. You have grown close thru your interactions. The supplier gets routinely reevaluated for continued business based on published guidelines. The president of this company invites your board to a celebration event. At this party the supplier mentioned to you that she is selling her company car, which would be perfect for your daughter. She said she would cut the price in half “just because it is you.” You can save a lot of money, but while tempting, you think there could be feelings by the board that you are “too friendly” with this person.

    9. Ethical Leadership - Mike Bell, Terra Grande Staff 9 2008 Avoiding conflicts of interest You are recruited to serve on your chapter’s board. You are told it will take a couple of hours a week, a few phone calls & emails. Seemed OK & you accept. You discover that there is are many phone calls, email traffic, & other activities required during business hours. Your company has policies about using company assets, equipment, systems for non company related business. You believe that both you & the company will benefit from your APICS involvement.

    10. Ethical Leadership - Mike Bell, Terra Grande Staff 10 2008 Business amenities A business partner suggests a business meeting with the chapter board this Friday at his family’s vacation home, which happens to be on the ocean. Afterward, he has invited you & your family to spend the weekend there enjoying the house and the beach.

    11. Ethical Leadership - Mike Bell, Terra Grande Staff 11 2008 Business amenities A chapter supplier whom you have been doing business for several years has offered to transport you to a joint conference via its private company jet.

    12. Ethical Leadership - Mike Bell, Terra Grande Staff 12 2008 Confidential information You are an active APICS certification course instructor. Your students complain that the courseware is not offered on-line through the chapter. You and a friend together have the ability to develop an online version of the current APICS courseware. You are considering this and the possibility of marketing it through your friend.

    13. Ethical Leadership - Mike Bell, Terra Grande Staff 13 2008 Confidential information A college friend of yours who is with ISM has been working on an opportunity with a customer, and APICS is also bidding on the deal. At a recent trade show, your friend tells you that he’s able to offer the service at a rock- bottom price ( & he blurts out the price) & suggests that you persuade the chapter to back out of the deal in return for a lead on another opportunity.

    14. Ethical Leadership - Mike Bell, Terra Grande Staff 14 2008 Financial / Slush funds Your chapter is conducting an on-site certification course for a member company. The night before the course starts there ended up being 5 more students participating than planned. You do not have documents and student guides for these additions The company is a new customer and you do not want to delay or start off badly. You are considering making copies of the student guides for use.

    15. Ethical Leadership - Mike Bell, Terra Grande Staff 15 2008 Financial / Slush funds You are conducting an on-site course at a major member company. There are 5 more students in the course than agreed to in the contract. You have enough student guides and the instructor is ok with the addition, so you agree to continue on with the additions. The contract And invoice do not reflect this increase. Previous experience with this company makes you consider not changing the paperwork and telling the responsible company manager that you will just make up the difference on a future course.

    16. Ethical Leadership - Mike Bell, Terra Grande Staff 16 2008 Financial / Slush funds Your chapter’s board has approved money for a major event in your area of responsibility. The event came in under the approved budget. You are considering spending the remaining funds on a fun dinner party to recognize the few key people that made this event a success.

    17. Ethical Leadership - Mike Bell, Terra Grande Staff 17 2008 Values-based Decisions Let’s take another look at the trust model to see if we are using that process to make the best decisions…. Remember there could be more than one correct answer depending on the situation… We are looking for the best decision!

    18. Ethical Leadership - Mike Bell, Terra Grande Staff 18 2008 Trust Model A Step-by-step process that enables you to break down situations to smaller & simpler segments. This enables you to analyze a situation more objectively. T = Think about the situation objectively * Clearly understand the situation. * Know the facts. *Identify the real issues. R = Recognize and analyze motivations. * If the situation troubles you, ask yourself why. * Consider the other party’s motivations. U = Understand applicable laws, rules, and policies * Consider all options * Research the Standards of Business Conduct & other policies * Know whom and when to ask for help S = Satisfy the headline test * Ask yourself if you feel comfortable seeing your actions reported in the news * Consider the consequences of your decision: on APICS, customer, yourself T = Take responsibility for your actions * Make an appropriate choice & act accordingly * Remember, you are accountable for the outcome of your decisions.

    19. Ethical Leadership - Mike Bell, Terra Grande Staff 19 2008 Summary Read, review, & post the APICS Code of Ethics with your chapter board & members Include in one of your board meetings some ethics discussions or training (you can use this package if you do not have something available) Review the TRUST Model & compare to past & current situational decisions Remember the “Headline Test” When in doubt review available guidelines, policies, laws & seek assistance One bad decision may not be fatal, but it takes a lot more effort to overcome the error & win back favorable perceptions from others than it does to make the best decision at the start.

    20. Ethical Leadership - Mike Bell, Terra Grande Staff 20 2008 Questions, Comments, thoughts...

    21. Ethical Leadership - Mike Bell, Terra Grande Staff 21 2008 Bonus Exercise You notice that an officer of your chapter who is employed at the same company is writing an article for the chapter newsletter with his company email address listed for responses. In the article he is asking for feedback and comments to survey questions from the 650 chapter members. You are concerned that this may be inappropriate use of the company’s time, equipment, & systems. You are also concerned it might look bad for APICS & you (you recruited this person) if discovered.

    22. Ethical Leadership - Mike Bell, Terra Grande Staff 22 2008 Bonus Exercise You having lunch with one of your chapter’s members. When the bill came, she insisted on paying. In passing, she said that she can afford it because of the extra money she was making from her side business. When you ask about this business, she explained she was teaching APICS type courses at a company member’s site on the weekends. The company had mentioned a future need while she was conducting a chapter on-site course in the past. She did not think that the chapter was still providing courses at this company, so she set-up a corporation in her husband’s name & contracted with the company. She went on to say it has been very successful, making enough money to cover her family’s 3 car payments

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