Protecting the Organization – When People Behave Badly PART ONE

1. Protecting the Organization –When People Behave BadlyPART ONE North Dakota EMS Association June 6-7, 2016

2. Part One The Five Elements of Planning

3. “It takes 20 years to build a reputation, and five minutes to ruin it.” Warren Buffett Notable Quotable

4. Introduction

5. #1 Get Your Brain in OrderImportant and Urgent – the WHY • Protection of your brand and your reputation • Because it’s the right thing to do • To build customer trust and loyalty • To build stakeholder confidence • To gain/retain public acceptance and recognition SOURCE: American Management Association

6. Fiduciary Responsibility • Duty of Care • Care that a prudent person would exercise • In a like position and similar circumstances • Duty of Loyalty • The standard of faithfulness • Undivided allegiance to the organization • Not use information gained for personal gain • Duty of Obedience • Faithful to mission • Never act in conflict with the goals of the organization

13. Behaving Badly DefinedMalfeasance, Nonfeasance and Misfeasance • Stealing time/money/stuff • Being an Empty Seat • Presenting Undo Influence • in hiring decisions • In contracting • In membership • In partnerships • In programs, service, quality

14. Five core values that are universal to all cultures • Honesty and trust • Responsibility • Compassion • Fairness • Respect SOURCE: Institute for Global Ethics

15. # 2 Get Your Paperwork in Order • Make rules when you are happy – so that you can use them ….. when you are not! • Choose “collective development” of values statements, codes of conduct, expectations of performance, and policies • Don’t take “yes” for an answer • Look to best practices in a changing market-place • Legal is necessary ….. it is not enough!

16. “Either you’re ethical or you’re not. You have to make that decision; all of us do. And there’s no in-between. Presumably you will decide to be ethical.” Michael M. Sears Former Boeing CFO (fired for discussing Boeing’s pending employment of a Pentagon official while engaged with her in contract negotiations.) Notable Quotable

17. The PLUS rule: Framework for Ethical Readiness • P - Policies and professional standards • L - Laws and/or regulations • U - Universal/organizational values • S - Self/personal values/standards

18. #3 Automate Your Daily Practice • Don’t assume people “know” • Don’t assume people “remember” • Don’t’ assume people will “do the right thing” • Have the difficult conversations --- over and over again…… • Revisit the paperwork – collectively

19. The CLICK rule: filter for ethical decision-making • What are the CONSEQUENCES if I do this? Who will benefit? Who will suffer? • Is it LEGAL? • Would I like to see this as my IMAGE on the front page of the newspaper? Would I like to tell this to my kids? • Does this decision support or damage our corporate CULTURE and values? • Does it cause a KNOT in my stomach?

20. “What executives do and value is minutely watched throughout the whole organization. And nothing is noticed more quickly – and considered more significant – than a discrepancy between what executives (leaders) preach and what they expect their associates to practice.” Peter Drucker Notable Quotable

21. DO: Reinforce that ethical behavior is everyone’s responsibility Encourage interaction and participation Solicit conflicting points of view for discussion Encourage people to trust their instincts and use their common sense Encourage advanced understanding of best practices DON’T: Imply that there are simple and straightforward answers for each set of circumstances that arise Trivialize any potential scenario or issue Frighten people with horror stories….. Attempt to “preach” good and bad ethics Daily Practices

22. Reasons employees DO NOT report observations of ethical misconduct • 54% - I don’t believe action would be taken • 40% - I would have had to report the misconduct to the person involved • 36% - I feared retaliation from at least one source (supervisor/management/co-workers) • 25% - I was not aware of any mechanism to report anonymously SOURCE: National Business Ethics Survey, Ethics Resource Center (2007)

23. #4 Honor the Messenger • Post the code of conduct • Assure effective training is delivered • Build organizational social responsibility programs • Assure an ombudsman is available • Consider an ethics helpline SOURCE: American Management Association

24. #5 Implement Crisis Plans • Crisis planning is NOT just for pandemics or weather disasters • Build meaningful communication and practice plans to use if and when “the storm” comes….. • Go back to the paperwork “playbook” • Keep notes of what’s working and what is not • Assess methods to repair and protect

25. Ethical decisions require three qualities: • COMPETENCE to recognize ethical issues and to think through the consequences of alternative resolutions • SELF-CONFIDENCE to seek out different points of view and then decide what’s right at a given time and place, in a particular relationship and circumstance • COURAGE - a willingness to make decisions when all that needs to be known can’t be known and when the questions that press for answers have no established and incontrovertible solutions

26. Some closing advice: • ALWAYS tell the truth • ALWAYS stand up and be counted • NEVER be afraid to appeal • NEVER give up

27. “If you can’t explain it to your mother or your grandmother, don’t do it!” Glen Salow Executive VP and CIO American Express Margaret’s Personal Rule:

28. Thank You! 818 S. Hawthorne Avenue Sioux Falls, South Dakota 57104-4537 (605) 336-0244 or (888) 4-SUMPTION www.sumptionandwyland.com