Building Trust By Strengthening Ethics Processes And Practices By Eric Pillmore

Eric Pillmore May 2004 Building Trust By Strengthening Ethics Processes and Practices

Confusion … New Issues Every Day
Liquidity Crisis… Living Day-to-Day
Weakened Corporate Structure … Leadership Mandate
Board Transition Required
Investors Upset … Stock Price at $8.00
Significant Opportunity to Learn from the Past
Less Than Two Years Ago… A Crisis That Threatened Tyco’s Existence

Lessons learned from troubled companies…
Strong functional leadership and mentoring is critical to the ongoing development of high integrity leaders and employees
Leaders must have a “web of accountability” surrounding them … with process disciplines in place to hold them accountable.
Boards must develop and implement more sophisticated means to evaluate senior management character

Lessons learned from troubled companies…
Leaders must model ethics from the top down and communicate an unyielding commitment to their employees… servant leadership
Multiple “open” communication outlets are critical to ensure bad behavior is surfaced when it does occur
6. Ethics and character matter to employees, customers, suppliers and investors…
Reputation is only who people think you are…
Character is who you truly are…

Building Trust – Ethics & Governance Vision FINANCIAL MANAGEMENT OPERATING MANAGEMENT SHAREHOLDERS SUPPLIERS EMPLOYEES CUSTOMERS BOARD OF DIRECTORS
Developed vision during August 2002
Solicited key inputs from Mike Useem (Wharton School) and Ira Millstein (Weil Gotshal)
Benchmarked best practice governance companies
Interviewed companies that had been involved in similar crises
Clear Vision Helped to Develop Strong Sense of Urgency

Business Priorities Operating Businesses Governance, Compliance & Ethics Operational Excellence Building a Corporate Team

Building Trust - Leadership Values & Behaviors
Drives for Results
Business Acumen
Integrity Excellence Teamwork Accountability
Champions Integrity and Trust
Managerial Courage
Customer Focus
Learning/Change Agility
Builds Effective Teams
Manages Vision and Purpose
Champions Diversity
Unyielding Commitment to Integrity and Accountability

New Board of Directors
New Corporate Team
SVP Corporate Governance
Ombudsman… VP Audit
Building Trust
Increased Employee Communication
Ethical Conduct Training
Externally Communicated Improvements
Board Guidelines & Committee Charters
Delegation of Authority
Guide to Ethical Conduct
Proactively Addressed Shareholder Concerns
New Compensation Plan
Committed to Leadership in Corporate Governance Policy Leadership Communications

Building Trust Stronger, Independent Reporting Relationships Board of Directors Audit Committee Nominating & Governance Compensation Committee CEO VP Audit 110 Auditors 7000 finance employees SVP Corp Gov. CFO General Counsel SVP HR 300 Legal Employees Ombudsman

Building Trust – Ethics & Governance Program FINANCIAL MANAGEMENT OPERATING MANAGEMENT SHAREHOLDERS SUPPLIERS EMPLOYEES CUSTOMERS BOARD OF DIRECTORS A Continuing Work In Progress…
Initiatives underway
Corporate Audit Staff revitalization
Sarbanes-Oxley 404 initiative
Ombudsman Office
Organization and leadership review
Compliance and Risk Assessment Process
We recognize the steps we have taken so far are only the starting point of an ongoing and sustainable Ethics and Governance strategy…

“ Courage is contagious…when a brave man takes a stand, the spines of others are often stiffened” – Billy Graham

Eric Pillmore May 2004 Building Trust By Strengthening Ethics Processes and Practices

Building Trust By Strengthening Ethics Processes And Practices By Eric Pillmore

by Customs Street Advisors on Mar 25, 2009

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Building Trust By Strengthening Ethics Processes And Practices By Eric Pillmore — Presentation Transcript