How To Build and HR Strategy That is Ethical, Mission-Driven

and Gets Results

An eCornell webinar with Susan Alevas, Esq.

Management  Guru    Peter  Drucker  Once  Said…  

“Culture  eats  strategy  for  breakfast.”  

And  at  the  crossroads  of  Culture  and  Strategy  is  the  

Organiza<on’s  Ethics  

HR’s  Cri:cal  Role  • Partner  with  the  Business  • Guardian  of  the  Business  Values  and  Ethics  

Corporate  Values    •  Establish  the  organiza<onal  norms    •  Direct  the  way  people  behave  

(founda<on  of  corporate  culture)  •  Corporate  culture  reinforces  the  

brand  reputa<on  (good  or  bad!).  

WHAT  EMPLOYEES  VALUE  

According  to  a  report  recently  released  by  the  Ethics  Resource  Center,  employees  judge  senior  leaders/managers  on:    •  overall  character  of  their  leaders  as  experienced            through  personal  interac<ons;  •  how  senior  managers  handle  crises;  and    •  the  policies  and  procedures  adopted  by  senior  leaders  to  manage  the  company.  

•  2014  Study  conducted  by  Ethics  Resource  Center  www.erc.org  

WHAT  THE  EXPERTS  RECOMMEND  

•  Seek  out  personal  character  when  hiring  and  make  24-­‐7  integrity  a  job  expecta<on.  

•  Educate  managers  about  the  way  employees  evaluate  leaders  

•  Encourage  leaders  to  share  credit  for  success  and  seek  honest  feedback  from  employees.  

•  Annually  review  business  objec<ves  and  policies  to  ensure  they  promote  ethical  performance.  

2014  Study  conducted  by  Ethics  Resource  Center  www.erc.org  

BUSINESS    ETHICS  

"  Would you embrace this as a strong Code of Ethics?

"  Would it help Employees do the “Right Thing?”

BUSINESS    ETHICS  

"   Do you know what Company published this award-winning Code of Conduct?

We  Shouldn’t  Be  Surprised…  

If  we  don’t  set  the  stage  for  a  strong  workplace  culture,  the  weak  business  results  shouldn’t  be  surprising…no  maZer  how  sound  the  business  strategy!  

Someone  once  said…  The  probability  of  somebody  watching  you  is  directly  propor<onate  to  the                stupidity  of  your  ac<ons.”  

And  yet  the  organiza:onal  challenges  con:nue…  

Some  Sobering  Sta:s:cs  •  Nearly  one-­‐third  of  employees  surveyed  say  their  coworkers  condone  ques:onable  ethics  prac:ces;  

•  Most  frequent  misconduct  includes:  in:mida:ng  behavior  (21%),  misrepor:ng  of  hours  worked  (20%),  lying  (19%)  and  withholding  needed  informa:on  (18%)  

•  Nearly  3  in  5  employees  who  report  misconduct  are  sa:sfied  with  their  organiza<on’s  response.      

Source:    Watson  WyaZ  

   

Unethical  Business  Prac:ces  Impac:ng  Culture  and  Strategy  

• Abusive  or  In<mida<ng  Behavior  • Accurate  but  Incomplete  Disclosures  • Discrimina<on  against  Protected  Classes  • Receiving/Offering  Bribes,  Kickbacks  or  Incen<ves  •  Thee  or  Fraud:  Personal  Use  of  Company  Property  or  Expense  Account    • Misrepresenta<ons  •  Sexual  Harassment  •  Separa<on  without  Fair  No<ce  or  Cause  • Cuing  corners  on  health/safety  issues  

ETHICS  AND  THE  LAW  •  Legal Requirements often represent an

Ethical Minimum •  Personal Ethical Standards Generally

Exceed Legal Standards

ETHICS LAW

•  Laws  are  ethical  issues  with  societal  implica:ons  as  interpreted  by  a  Federal  or  State  Legislature    

•  Personal  ethics  have  broader  context  and  applica:on  

FORCES  THAT  SHAPE    BUSINESS  ETHICS  

Is the Decision or Behavior Ethically and Socially Responsible?

Beliefs and Values Moral Development Ethical Framework

Founder History Defining Moments

Government Regulations Customers/Clients Special Interest Groups Market Forces

Structure Policies and Rules Code of Ethics Reward System Selection and Training

External Stakeholders Organizational Systems

Personal Ethics Organizational Culture

Business  Bias    in  Ethical  Decisions  

When  confron<ng  ethical  issues,  generally,  organiza<ons  seek  to  preserve/address:  •  the  Organiza<on  •  Customer  Rela<onships  •  Employee  Concerns  

   

Need  to  be  “SELF”  Focused  Consider  short-­‐,  mid-­‐  and  long-­‐range  impact  in  the  areas  of:  q Strategy  q Ethics  q Legal  q Fiscal  This  requires  an  ongoing  business  conversa<on.    Source:  Dr.  Patrick  Wright,  Associate  Professor,  ILR  School,  Cornell  University  

 

Highly  Ethical  Organiza:ons  

•  They  are  at  ease  interac<ng  with  diverse  internal  and  external  stakeholders.  

•  Every  individual  assumes  personal  responsibility  for  ac<ons  within  the  organiza<on,  making  individuals  responsible  to  themselves.    

•  These organizations are obsessed with fairness.

•  They view their activities in terms of purpose and this purpose is a way of operating that clients/

employees value.  

Classifications of Business Ethical Issues

•  Conflicts  of  Interest  •  Fairness  and  Honesty  •  Communica<ons    •  Organiza<onal  Rela<onships  •  External  Rela<onships  within  

Industry,  with  Customers/Clients,  etc.  

Seven-­‐Step  Analysis  •  Define  the  problem  •  Iden:fy  the  stakeholders  and  obtain  all  necessary  facts  

•  Iden:fy  all  possible  alterna<ves  •  Objec:vely  evaluate  all  alterna<ves  •  Make  a  decision  and  test  it  against  the  four  considera<ons  above  (legal,  company  policies,  organiza<onal  values  and  personal  values)  

•  Implement  the  decision  •  Evaluate  the  decision  and  make  adjustments,  as  needed.  

Ethics  Resources    and  Support  • Code  of  Ethics  (Standards)    

• Code  of  Conduct  (Ac<ons)  • Communica<ons  Network:    Formal  and  Informal  Processes  for  Reinforcing  and    Refreshing  

• Con<nuing  Educa<on  

Ethical  Leadership  • Decision-­‐making  includes  personal,  

organiza<onal  and  societal  values  •  Ethical  values  are  always  open  to  discussion  

and  cri<cism  subject  to  “fire  wall”  between  indisputable  standards  and  case-­‐by-­‐case  excep<ons  

• Accepts  responsibility  for  sound  moral  judgments:  It’s  in  everyone’s  job  descrip<on  to  be  a  “Chief  Ethics  Officer”  

Recrui:ng  for    Ethical  Behavior  

• Skills  and  knowledge  not  enough  

• Iden<fy  those  behavioral  characteris<cs  that  support  a  strong  ethical  culture  

Key  Behavioral  A\ributes  •  Ability  to  maintain  strong  ethical  stance  even  in  the  face  of  strong  opposi<on  to  the  contrary  

•  Ability  to  balance  compe<ng  business  interests  in  a  way  that  supports  strong  ethical  values  

Ethical  Leaders…  

•  Regularly  communicate  and  discuss  the  organiza<on’s  shared  values,  opera<ng  principles,  and  ethical  standards  

•  Lead  by  strong  personal  example    •  Use  values  to  drive  decisions  •  Devote  training  resources  to  

empower  employees  with  understanding  

Source: Leading by Ethics (Harvey, Smith and Sims)

•  Pay  aZen<on  to  percep<ons  (avoid  even  the  mere  appearance  of  impropriety)  

•  Focus  on  steady,  incremental  change  (focus  on  “lots”  of  improvements  in  “lots”  of  areas  

•  Hire  and  promote  ethical  people  (ONLY  select  those  individuals  who  believe  in  these  principles  and  who  behave  with  integrity.)  

•  Hold  people  accountable  

The  Lesson  of  the    Business  Card  

The  Final  Test    of  a  Leader…  

is  that  he/she  leaves  behind  in  others  the  will  and  the  convic<on  to  carry  on.  Source:    Walter  Lippmann  on  Leadership  

ETHICAL  LEADERSHIP    IN  ACTION  

Final Thoughts

•  “Character  is  the  sum  total  of  all  our  everyday  choices.”  –  Margaret  Jensen  

 •  “Some  men  succeed  by  what  they  know,  some  by  what  they  do;  and  a  few  by  what  they  are.”  –  Elbert  Hubbard  

And My Personal Favorite…

“Never  bargain  away  that  which  is  invaluable…your  reputa?on  is  invaluable.”    –  Peter  Alevas,  Jr.  (1926  –  1978)    

Culture Eats Strategy for Breakfast

•  Protect  your  reputa<on  •  Guard  your  organiza<on’s  brand  •  Foster  an  ethical  workplace  culture  that  is  strategically,  legally  and  ethically  sound  

•  Posi<on  the  en<re  team  to  execute  the  business  strategy  

•  Celebrate  organiza<onal  and  individual  successes  (reinforces  the  culture)  

Thank  you!