Professional Ethics: The Three Monkeys in the Room

5/14/2015

5/14/2015

PROFESSIONAL ETHICSTHE THREE MONKEYS IN THE ROOM

Presented by:Elaine Nissley, Principal

Samuel BowerCraft, Senior Manager

INTRODUCTIONS

Elaine Nissley, MBA, CISA, PMP, CRISC, CRMA• Principal • Key leader of the firm’s Internal Audit &

Management Consulting segment• Over 20 years of experience in risk management,

internal audit, internal controls assessments, and project management.

Samuel BowerCraft, MIS, CISA• Senior Manager• Key member of the firm’s Internal

Audit & Management Consulting practice

• Expert experience in information technology, strategic planning, and process and controls consulting.

LEARNING OBJECTIVES

• Understand the theory of ethics

• Understand ethical perspective and the social contract

• Relate Ethics and the social contract to behavior

THEORY OF ETHICS“One swallow does not

make a summer,neither does one fine day; similarly one day or brief

time of happiness does not make a person entirely

happy.” Aristotle

• Religion Based• A general pattern or “way of life”

• Professional Ethics• A set of rules of conduct or “moral code”

• Branch of Philosophy• Inquiry about ways of life and rules of

conduct

THEORY OF ETHICS

• Self-Interest“There are two levers to set a man in motion, fear and self-interest.”

-Napoleon Bonaparte

THEORY OF ETHICS

• Results or Consequences“The creed which accepts as the foundation of morals, Utility, or the Greatest Happiness Principle, holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness.”

-John Stuart Mill

THEORY OF ETHICS• Rights and Obligations

“In law a man is guilty when he violates the rights of others. In ethics he is guilty if he only thinks of doing so.” - Immanuel Kant• Categorical Imperative

I ought never to act except in such a way that I can also will that my maxim should become a universal law.

• Practical ImperativeAct in a way that you always treat humanity, whether in your own person or in the person of any other, never simply as means, but always at the same time as an end.

THEORY OF ETHICS

• Justice and Fairness“A society regulated by a public sense of justice is inherently stable.” - John Rawls• Procedural Justice

Administer justice in a fair and transparent manner.• Distributive Justice

Treat equals equally and unequals in proportion to their differences.

THEORY OF ETHICS

• Virtue

“We do not act rightly because we have virtue or excellence,

but rather have those because we have acted rightly.”

-Aristotle

APPLICATION OF ETHICS

Systemic Corporate Individual

CORPORATE ETHICS

• Organizational Ethics• The principles standards, and values by which

businesses operate• Code of Ethics• Set of principles that guide the organization

• Employee Ethics• Ethical behavior of the organization’s workers

INDIVIDUAL ETHICS

BEHAVIOR ASSESSMENT TOOLS

• Leadership Ethics Self-Assessment• Successes• Opportunities for Improvement• Action Plan

• Balanced Scorecard for Ethics• Measure Corporate Ethics• Self-Assessment• Independent Third Party Assessment

LEADERSHIP ETHICS

• How do you demonstrate that ethics is a priority?• How do you communicate your expectations

for ethical practices?• Do you practice ethical decision making?• Do you support your local ethics program?

ETHICAL BEHAVIOR

SOCIAL CONTRACTS

CORPORATE SOCIAL CONTRACTS

• Ethical Values• Significant Stakeholders• Stakeholder Impact Analysis• Modified Five Questions• Modified Moral Standards• Modified Pastin

MODIFIED FIVE QUESTIONS

• Is it profitable?• Is it Legal?• Is it fair to all stakeholders?• Is it right? What are the impacts• Stakeholders• Environment

• Does it uphold the organizations virtues?

MODIFIED MORAL STANDARDS

• Will it provide a net benefit to society?• Is it fair to all stakeholders?• Is it right?• Does it demonstrate the virtues

expected by the organization’s stakeholders?

Is it the truth?

Is it fair to all concerned?

Will it build goodwill and better friendships?

Will it be beneficial to all concerned?

MODIFIED PASTIN APPROACH

• Ground Rule Ethics• End-Point Ethics• Rule Ethics• Problems of the Commons

CONCLUSION

Contact us at:

Elaine Nissley Samuel Bower-CraftENissley@macpas.com SBowerCraft@macpas.com

Visit our website for news and updates

WWW.MACPAS.COM

THANK YOU QUESTIONS?

5/14/2015

5/14/2015

5/14/2015

Contact us at:

Elaine Nissley Samuel Bower-CraftENissley@macpas.com SBowerCraft@macpas.com

Visit our website for news and updates

WWW.MACPAS.COM

THANK YOU QUESTIONS?

5/14/2015