Economic Development and Ethics, TN Basic Economic Development Course 2013

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April Eads, CEcD …

April Eads, CEcD
Bristol TN Essential Services

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  • ICMA has developed this list of questions to assist professionals in making ethical decisions. Answering these questions can be a quick guide to ethical decision making in most situations.
  • While some of these can be beyond the control of leadership, they can focus on developing and implementing systems in their organizations that address the last 2 – lack of understanding about code of conduct + improper or inadequate training

Transcript

  • 1. Economic DevelopmentEthics TrainingInternational Economic Development CouncilWashington, DC
  • 2. INTRODUCTION
  • 3. Introduction• Codes of conduct become paramount to the longterm viability of the economic developmentprofession• This training session and accompanying materials:– Provide guidance on the importance of integrity in decisionmaking,– Provide tools for making ethical decisions, and– Discuss the 10 tenets of the IEDC Code of Ethics– Use interactive case study examples to demonstrate ethicaldecision making in difficult situations
  • 4. History of the Development ofIEDC Code of Ethics• Proposed by the Board of Directors of IEDC• IEDC adopted the Code of Ethics in October 2008 as anaspirational statement– IEDC membership needs to be educated about the code beforeenforcement• Studied policies and procedures– International City Managers Association (ICMA)– American Planning Association (APA)• Evaluate insurance costs for enforcement• Begin ethics curriculum and training in 2010• Begin enforcement in 2011 – discussed later
  • 5. UNDERSTANDING ETHICS
  • 6. Ethical Behavior“Ethics is knowing thedifference between what youhave a right to do and what isright to do”Potter Stewart
  • 7. • Ethics is about choices that people makeabout ordinary and extraordinary decisionsin day-to-day life• Ethics is about upholding higher standardsof conduct than simply adhering to therules or the lawEthical Behavior
  • 8. • Is it legal?• Does it violate the spirit of the law?• Does it comply with our rules and regulations?• Is it consistent with our organizational values?• Does it match our stated commitments?• Am I the only or primary beneficiary?• Will I feel okay and guilt free if I do this?• Is bias or emotion clouding my judgment?• Would I do it to my family and friends (or myself)?• Would the most ethical person I know do this?Making Ethical Decisions
  • 9. Focus on Strong Values• Organizations need to:– Clearly establish organizational values– Integrate them into operations and provide supportsystems for upholding the values– Promote them through effective communication withthe members, outside stakeholders, media, generalpublic, etc.– Connect them with policies and decision makingprocesses
  • 10. PROMOTING AN ETHICALCULTURE
  • 11. Promoting an Ethical Culture• Ethical behavior needs to be promoted from thetop• Policies should enable employees to make ethicaldecisions• Tools that help support an ethical culture:– Established Code of Ethics– Education and training– A defined process for reviewing violations• IEDC Code of Ethics can be used as a model fororganizations
  • 12. Reasons for Unethical Behavior• Pressure to perform (unrealistic business/organizationgoals, deadlines, etc.)• Pressure from peers• Lack of understanding of consequences for one’s actions• Uncharted territory• Personal loyalties• Lack of long term perspective or failure to see it at thetime• Personal costs for doing the right thing may be too high• Poor judgment• Lack of clear understanding of expected organizational/professional code of conduct• Improper and/or inadequate training
  • 13. Promoting Ethical Behavior• An ethical culture starts from the top• Organizations should provide ethics educationprograms for all employees• Ethical programs should:– explain the underlying ethical principles– clarify proper ethical behavior– explain the difference between ethical behavior andlegal/illegal actions– present practical ways of carrying out proceduralguidelines
  • 14. Three Components• Code of Conduct– Written code of conduct– Written policies and procedures forinvestigation• Ethics education– Involve the staff– Be a role model– Incentives for ethical behavior• Performance assessment– Discussions and debates– Role play
  • 15. 7 Step Checklist for Ethical Dilemmas1. Recognize and clarify the predicament.2. Gather all essential facts.3. List all of your options.4. Analyze each option by asking yourself: "Is it legal? Is itright? Is it beneficial?"5. Draw your conclusions, and make your decision.6. Double check your decision by asking yourself: "Howwould I feel if my peers and superiors found out aboutthis? How would I feel if my decision was made publicby the media?"7. Take action.
  • 16. IEDC CODE OF ETHICS
  • 17. IEDC Code of Ethics1. Professional economic developers shall carryout their responsibilities in a manner to bringrespect to the profession, the economicdeveloper, and the economic developer’sconstituencies.
  • 18. 2. Professional economicdevelopers shall practicewith integrity, honesty,and adherence to thetrust placed in them bothin fact and inappearance.IEDC Code of EthicsAuthorityWho isaccountable forwhat?PurposeWhat is myintent?INTEGRITYPrinciplesWhat I standfor?
  • 19. 3. Professional economic developers will holdthemselves free of any interest, influence, orrelationship in respect to any professional activitywhen dealing with clients which could impairprofessional judgment or objectivity or which in thereasonable view of the observer, has that effect.IEDC Code of EthicsConductingOfficial DutieswithBipartisanshipConflictofInterest
  • 20. 4. Professional economic developers are mindfulthat they are representatives of the communityand shall represent the overall communityinterest.IEDC Code of EthicsCommunityInterestPublicPrivate Non-ProfitSocial
  • 21. IEDC Code of Ethics5. Professional economic developers shall keep thecommunity, elected officials, boards and otherstakeholders informed about the progress andefforts of the area’s economic developmentprogram.
  • 22. 6. Professional economicdevelopers shallmaintain in confidencethe affairs of any client,colleague ororganization and shallnot disclose confidentialinformation obtained inthe course ofprofessional activities.IEDC Code of EthicsTry to Find the MostEffective BalanceReportingRequirements
  • 23. IEDC Code of Ethics7. Professional economicdevelopers shall openlyshare information withthe governing bodyaccording to protocolsestablished by thatbody. Such protocolsshall be disclosed toclients and the public.Try to Find the MostEffective BalanceReportingRequirements
  • 24. 8. Professional economic developers shall cooperate withpeers to the betterment of economic developmenttechnique, ability, and practice, and to strive to perfectthemselves in their professional abilities throughtraining and educational opportunities.IEDC Code of EthicsSharingKnowledgeandInformationEfficiencyGoes UpProductivityRisesRespect andConfidencein theProfessionGrows
  • 25. IEDC Code of Ethics9. Professional economic developers shall assurethat all economic development activities areconducted with equality of opportunity for allsegments of the community without regard torace, religion, sex, sexual orientation, nationalorigin, political affiliation, disability, age or maritalstatus.
  • 26. 10. Professionaleconomic developersshall abide by theprinciples establishedin this code andcomply with the rulesof professionalconduct aspromulgated by IEDC.IEDC Code of EthicsProfessionalConductAct EthicallyBehaveRespectfullyTeachEffectivelyAsses FairlyActProfessionallySolicitFeedbackSupport PeersEnsureQualityProvideOpertunitiesLearnWillinglyThink Braodly
  • 27. CASE STUDIES
  • 28. Case Studies• Groups of 8-10 attendees• Identify a spokesperson for the group• Discuss the case study scenario(s) andquestion(s) as a group• Report back discussion to the entireaudience
  • 29. Case Study 1: Starting your Own Businesswhile still Employed• Part I:– Is this an ethical dilemma?– What if he is using city property – computersand other office supplies?• Part II:– Is there a conflict of interest here?– If you were John how would you justify youractions in both instances?
  • 30. • Moving from employee to entrepreneur– Pick a date– Develop a plan– Set clear boundaries– Be cautious about how you use social mediaCase Study 1: Starting your Own Businesswhile still Employed
  • 31. Case Study 2: Travel ExpenseFraud and Confidentiality• Is this an ethical dilemma?• If you were Jane’s employer what would be yournext step?• Does Jane have a right to seek legal counsel inregards to breach of confidentiality?
  • 32. • Travel and related expenses represent oneof the largest expenditures for manyorganizations• Weak expense reporting controls andmanual processes make a companyvulnerable to fraud and errors related tocost and budget allocationsCase Study 2: Travel ExpenseFraud and Confidentiality
  • 33. Case Study 3: Investing inCities where you Work• Is there a potential conflict of interest here?• What should Johns next step be, disclosure orconcealment of his investments?
  • 34. Case Study 4: Accepting Gifts• Is there an ethical dilemma here?• If you were Jane what course of actionwould you take if any?
  • 35. • Part I:– If you were the department supervisor givenresponsibility for dealing with Jane’s complaint, whatwould you do?– What, if any, would be appropriate remedy for Jane?What, if any, would be appropriate action to takeagainst John?– If you were Jane, what would you have donedifferently?– What might this organization do to prevent arecurrence of the problem?Case Study 5: Sexual Harassment
  • 36. • Part II:– If you were an economic development professionalwho witnessed this event, how would you react?– Should John’s place of work be notified by this event?– What repercussions will this bring to John back at hislocal place of work?Case Study 5: Sexual Harassment
  • 37. Case Study 6: A Suspected Victim ofDomestic Violence• If you were an employee observing thewoman in question, what would you do?• Despite being a non-workplace matter doyou have an ethical obligation to reportsuch behavior?
  • 38. Case Study 7: My Boss Asked Me To• What course of action should Jane take ifany?• How could this ethical dilemma have beenavoided?
  • 39. Case Study 8: Bribe or Finders Fee?• Is this a bribe or just creative marketing?• What ethical principles should be adheredto in economic development marketing?
  • 40. Case Study 9: Shopping the Project Around• Has the consultant committed an ethicalbreech? If so, what is the proper channelfor censure?• Should the local economic developer reportthe consultant for shopping the projectafter the location decision has seeminglybeen made by the owner?
  • 41. Case Study 10: Start-upDevelopment Company• Is there an ethical dilemma here?• Is this an instance of unconscious sexism?• What would you do if you were the youngwoman?
  • 42. • Sexism in the workplace can make for avery tense and uncomfortable workenvironment• Economic developers should have aheightened awareness of their languageand behavior as to not engage in any formof sexist behaviorCase Study 10: Start-upDevelopment Company
  • 43. Case Study 11: Padding your Resume• Should Jane be fired on the spot for beingdishonest?• Because she has proven to be a good employee,should the incident be overlooked and keptbetween John and Jane?• Is a reprimand is in order, and if so to whatextent?• What should John do? What are his options?
  • 44. • Consequences of padding– Cause damage to your reputation– Humiliation when caught– Assignment to lower skill projects– Can set into motion a series of lies to cover upthe initial lie– Termination from job without the ability to suefor wrongful termination or discriminationCase Study 11: Padding your Resume
  • 45. • Consider adding a “Statement of Accuracy”to your job application processCase Study 11: Padding your Resume
  • 46. Case Study 12: The Out-of-State Developer• Which option would you choose? Why?• If you were the economic developer for theWasatch Front, what would you do?
  • 47. Case Study 13: ManagingConflicts of Interest• Is their a conflict of interest here?• Was the lawsuit filed by historic preservationgroups appropriate or was it extreme?• The planning commission member sought legalcounsel before partaking in the vote. What elsecould he have done to further avoid theappearance of a conflict on interest?
  • 48. Case Study 14: RespectingRoles and Responsibilities• Should the manager have remained inorder to hear the comments and perhapsoffer his input?
  • 49. Case Study 15: Acceptance & Withdrawal• Did John commit an ethical violation?• Should the city of Vermont take actionagainst John? If so what?
  • 50. WORKING WITH VIOLATIONS
  • 51. Working with Ethics Violations• Chances of violations can never beeliminated• In addition to promoting ethical culturesand training, establish procedures thatenable review and sanctions, if proved.
  • 52. Reviewing Ethical Violations• Main components of reviewing ethics violations:– Initial review of the complaint to determine violationor not– If yes, conduct an independent and detailedinvestigation of the case– If violation found, the organization may imposesanctions of the person(s)• Important to engage all parties in an impartialenvironment, maintain written documentation,and allow for an appeals process
  • 53. IEDC Ethics Violations Review• Committee of Professional Conduct (CPC) isthe main body for reviewing andinvestigating alleged violations, as well asdetermining sanctions if proved.• Peer-review process– Staff support provided to CPC as needed
  • 54. • Proposed Structure– Vice Chair of the Board– Immediate Past Chair– Past Chair who is also a CEcD– Private sector representative of the Board tobe appointed by the Chair– Public sector representative of the Board to beappointed by the IEDC Chair• At any given time, there will be at least 2CEcDs on the CPC.Committee on ProfessionalConduct
  • 55. Filing an Alleged Ethical ViolationComplaint• Avenues to bring complaint– IEDC Board Member– IEDC Board Chair– IEDC President & CEO– CPC• Complaints can also be initiated by CPC or at therequest of the Board Chair or CEO• Complaint must be submitted in writing withsubstantial written or electronic documentationto support the allegation
  • 56. Review of Alleged Violation• Step I – Due Diligence (Information Review)• Step II – Initial Review of the Complaint– Are sufficient information and details provided tomerit a full review, AND– Does the alleged violation constitute a violation of theIEDC Code of Ethics• Step III – Detailed Review of the Complaint– Fact Finding Committee (FFC)– Review by CPC– Hearings• Appeals submitted to IEDC GovernanceCommittee in writing
  • 57. Sanctions• Private Censure• Public Censure• Suspension of Membership (time limits)• Termination of IEDC Membership /Cancelation of CEcD Certification / Removalfrom IEDC Board of Directors