Session 305: The Values
Based Approach
The sustainable way of achieving consistent ethical
behavior Ruth N. Steinholtz, London, UK
[email protected] Compliance & Ethics Institute SCCE 8th Annual September 13-16, 2009 | Las Vegas, NV
“It is exceedingly difficult to realise the economic benefits of an ethical orientation
without actually having an ethical orientation”
Dr. Lynn Sharpe Paine
Rules vs. Values
• Why people respond differently to these different approaches
• Why has the compliance approach
predominated so far, even though there is evidence it isn’t sufficient/working?
Why measure values and how to
develop them
• Organisations express their values through their culture
• Rules misaligned with values or limiting values in the culture cause compliance failures
• Cultural bias from headquarters leads to passive resistance and failure to embed your policy
Approaches to values management
• Random development • Enforcement approach
You can’t just make up values and
put them out there
• The need to understand the culture • There is a relationship among values:
Respect
Accountability Integrity
Does the order matter?
Richard Barrett
Richard Barrett
Maslow’s Needs to Barrett’s
Consciousness
Know and Understand
Physiological Safety Love & Belonging
Self-esteem
Self-Actualization
Abraham Maslow
Abraham Maslow UnderstandKnow and
Needs
Stages in the Development of Organisational Consciousness
Service
SERVICE TO HUMANITY AND THE PLANET Social responsibility, future generations, long-term perspective, ethics, compassion, humility
External Cohesion
STRATEGIC ALLIANCES AND PARTNERSHIPS Collaboration, environmental awareness, community involvement, employee fulfillment, coaching/mentoring
Internal Cohesion
BUILDING CORPORATE COMMUNITY Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
Transformation
CONTINUOUS RENEWAL AND LEARNING Accountability, adaptability, empowerment, delegation, teamwork, innovation, goals orientation, personal growth
Self-Esteem
HIGH PERFORMANCE
Systems, processes, quality, best practices, pride in performance,
Relationship
EMPLOYEE RECOGNITION
Loyalty, open communication, customer satisfaction, friendship,
Survival
FINANCIAL STABILITY
Shareholder value, profit, organisational growth, employee health
and safety
Positive Focus / Excessive FocusExcessive Focus
Control, Corruption, Greed Bureaucracy, Complacency
Manipulation, Blame
Placement of values by level
Current Culture 100 Employees
Top Ten Values
1. tradition (L) (59) 2. diversity (54) 3. control (L) (53) 4. goals orientation (46) 5. knowledge (43) 6. creativity (42) 7. productivity (37) 8. image (L) (36) 9. profit (36) 10. open communication (31) Service Service External cohesion External cohesion Internal cohesion Internal cohesion Transformation Transformation Self-esteem Self-esteem Relationship Relationship Survival Survival 4 4 2 2 55 7 7 9 9 6 6 8 8 3 3 1 10
Cultural Entropy – Definition
CULTURAL ENTROPY
Cultural entropy is the amount of energy in an organization that is consumed in unproductive work. It is a measure of the friction,
and pent-up frustration that exists within an organization.
CULTURAL ENTROPY
Cultural entropy is the amount of energy in an organization that is consumed in unproductive work. It is a measure of the friction,
and pent-up frustration that exists within an organization.
Flexlite (53) Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1
Personal Values Current Culture Values Desired Culture Values
PL= 10-0 | IRS (P)= 5-5-0 | IRS (L)= 0-0-0 PL= 4-7 | IROS (P)= 0-0-4-0 | IROS (L)= 0-4-3-0 PL= 11-0 | IROS (P)= 1-5-5-0 | IROS (L)= 0-0-0-0
Matches PV - CC 0 CC - DC 1 PV - DC 2 1. honesty 27 Level 5 2. commitment 24 Level 5 3. accountability 20 Level 4 4. adaptability 18 Level 4 5. reliability 18 Level 3 6. responsibility 18 Level 4 7. trust 17 Level 5 8. fairness 16 Level 5 9. caring 15 Level 2 10. humor/fun 15 Level 5
Black Underline = PV & CC Orange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DC Blue= PV & DC (white circle) R = Relationship S = Societal
1. blame (L) 27 Level 2 2. long hours (L) 24 Level 3 3. profit 23 Level 1 4. bureaucracy (L) 22 Level 3 5. control (L) 21 Level 1 6. cost reduction 20 Level 1 7. productivity 20 Level 3 8. short-term focus (L) 18 Level 1 9. manipulation (L) 15 Level 2 10. continuous improvement 14 Level 4
11. power (L) 14 Level 3
1. customer satisfaction 31 Level 2 2. accountability 26 Level 4 3. continuous improvement 24 Level 4
4. commitment 20 Level 5 5. quality 15 Level 3 6. teamwork 15 Level 4 7. cooperation 14 Level 5 8. employee fulfillment 14 Level 6 9. employee recognition 14 Level 2 10. information sharing 13 Level 4 11. respect 13 Level 2
What do you do next ?
• Mission/Vision
• Tools for decision making rather than detailed complex rules to follow
• Developing and telling stories
• Workshops and discussions at meetings • Monitoring and measurement over time
It’s a Question of Ethics
Our values drive our actions
Exceed NimblicityTM
Responsible Respect
We are leaders in Health, Safety and the Environment We are good neighbours wherever we operate We do business according to high ethical standards
We involve people and communicate in a straightforward way We work together -helping and developing each other We are “One Company” - building on diversity
Our customers’ and owners’ success is our business
We win through commitment and innovation We deliver what we promise - and a little bit more
We are fit, fast and flexible
We create and capture opportunities We seek the smart and simple solutions
Decision Tree
Use the Decision Tree to help you decide whether a course of action is correct when you cannot
otherwise find the answer in the Borealis Ethics Policy
Framework
For the occasions on which an issue or situation arises which falls into
a ‘grey area’, use the following ‘Framework’ to guide your thinking
New (?) skills for professionals
• Beyond the subject matter
• Cross-functional/interdisciplinary – team work, not silos
• Openness to the values of others – there may be no right way to do a wrong thing, but there are plenty of right ways to do a right thing!
Soft skills
• Listening • Facilitation
• Strong influencing skills • Story telling (and creating) • Team development
• An ability to read the organisation from a “gestalt” perspective
Leadership, leadership
Leadership
Strong values led leadership is only
a start however
• System alignment is critical • Performance measures
• Incentives and compensation
• Reporting and information gathering • Investigation protocols
• Disciplinary procedures and actions
We are living in an important
moment for ethics & compliance
We have a responsibility to develop sustainable approaches
It’s a Question of Ethics
