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Society of Corporate Compliance and Ethics
6500 Barrie Road, Suite 250, Minneapolis, MN 55435, United States
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
“JUST BECAUSE ITS LEGAL, DOESN’T MEAN ITS ETHICAL”
Paul Fiorelli - ([email protected])
(513)745-2050
Director, Cintas Institute for Business Ethics Xavier University
1998-1999 Supreme Court Fellow, United States Sentencing Commission
Ad Hoc Advisory Group Member - USSC
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 2
Supreme Court Fellows Program
The Value of Values for Small Business: Compliance and Ethics for the Rest of Us,University of Dayton Law Review (2008).
Beyond Compliance? Journal of Healthcare Compliance (July-August 2007).
Why Comply? The Sentencing Guidelines Offer a Safer Harbor in the Storm, 32 Journal of Corporation Law (Spring 2007).
How to Pump Up Your Organization’s Ethical Muscle Memory, Journal of Healthcare Compliance (2006)
Will U.S. Sentencing Commission Amendments Encourage a New Ethical Culture Within Organizations?, Wake Forest L. Rev. (2004).
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 3
AGENDA
• The Value of Values
• Name that Scandal/Name that Scoundrel
• The Parable of the Sadhu
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 4
WHAT IS THE VALUE OF VALUES?
John Pepper
Former CEO of P&G
Current Chairman of Disney
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 5
ETHICAL ISLANDS
RAISE YOUR HAND IF YOU CONSIDER YOURSELF ETHICAL
DO YOU THINK YOU ARE “MORE ETHICAL” THAN YOUR CO-
WORKERS?
DISCUSSING ETHICS IS DIFFICULT, BUT TALKING ABOUT IT ALLOWS YOU TO SEE YOUR COLLEAGUES ARE ALSO CONCERNED ABOUT ETHICS
THIS CAN EMPOWER PEOPLE TO “PUSH” BACK, WHEN ASKED TO DO SOMETHING YOU BELIEVE IS IMPROPER
Lynn Brewer -
Confessions of An Enron Executive: A Whistleblower’s Story
http://www.theintegrityinstitute.org/
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
COGNITIVE MORAL DEVELOPMENT
PRE-CONVENTIONAL
CONVENTIONAL
POST-CONVENTIONAL
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 7
PROCESS FOR MORAL DECISION MAKING
–Right v. Wrong
–How much can I make?
–What are the odds I’ll get
caught?
–If I get caught, how much will I
pay back in money or jail time?
–Right v. Right
–What is the greater good?
ROGER FINE
FORMER GENERAL COUNSEL
JOHNSON & JOHNSON
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 8
Reputation
•Warren Buffet: “If you lose dollars for the firm by bad decisions, I will be understanding. If you lose reputation for the firm, I will be ruthless.”
Warren Buffet: It takes 20 years to build a reputation
and five minutes to ruin it.
Honor is better than Honors - Abraham Lincoln
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 9
NAME THAT SCANDAL
NAME THAT SCOUNDREL
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 10
•“Every company is just one bad decision or
one bad employee away from scandal ... one
scandal away from a salacious headline ... and
one headline away from a flood of lawsuits.”
•Bill Lytton - former EVP and General Counsel, Tyco International
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 11
PARABLE OF THE SADHU
•HOW COULD BUZZ MCCOY EVEN CONSIDER LEAVING THE SADHU? IS HE INHERENTLY EVIL?
•WHAT ARE SOME OF THE FACTORS GOING THROUGH BUZZ’S MIND WHEN HE’S MAKING A DECISION WHETHER TO SAVE THE SADHU?
•HOW WAS THE SADHU DRESSED? DID HE ACCEPT RESPONSIBILITY FOR HIS OWN ACTS?
•HOW OFTEN WILL YOU GET A 6 MONTH SABBATICAL?
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 12
PARABLE OF THE SADHU
•IS THERE A LEGAL DUTY TO RESCUE ?
•WHAT ABOUT AN ETHICAL DUTY?
•WHAT'S THE DIFFERENCE?
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 13
PARABLE OF THE SADHU
•“Hewlett-Packard contends pretexting is not ‘generally unlawful’except when it involves banks or other financial institutions. The company has a point. There is no state or federal law that explicitly bans pretexting.”(9/16/06 San Francisco Chronicle)
•“As for the steroids, if McGwire used them or not is largely irrelevant. What is important is that, if he did, at the time it was not illegal.”(12/5/06 USA Today)
•Apple is among the largest of nearly 200 companies that have acknowledged or are being investigated in connection with the practice. Backdating stock options is not illegal, but not disclosing the practice to investors or falsifying documents to cover it up may be a crime. (12/30/06 - Washington Post)
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 14
PARABLE OF THE SADHU
•Once you have established group goals or procedures, how difficult is it for an individual to contradict and change them.
•Imagine your first day at work, and your boss asks you to do something that doesn’t sound “right”.
•Groups can get us to do things we ordinarily might not do on our own, but their influence is often indirect, simply modeling the normative behavior that the group wants us to imitate and practice. (The Lucifer Effect: Undestanding How Good People Turn Evil,” by Phillip Zimbardo)
•Teamwork?
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 15
WHY DO WE
NEED LAW &
REGULATIONS
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 16
The Secret of Success
•Roger Fine•Former General Counsel•Johnson & Johnson
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www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 17
ANY QUESTIONS?
Please Contact
Paul Fiorelli
(513)745-2050