Business Ethics “Sweat the Small Stuff” 2003 Winter Meeting Kevin C. Swailes Chairman & CEO Swailes & Co.

Business Ethics The World’s Perception

Corporate Ethics “A New Era”

Corporate Ethics “A New Era”

20 03 Business Ethics

Barnes & Noble (Houston-wide) 20 03 Business Ethics

Barnes & Noble (Houston-wide)

Barnes & Noble (Houston-wide) 125 Titles In The Computer None in Stock Throughout City 20 03 Business Ethics

Barnes & Noble (Houston-wide)

125 Titles In The Computer

None in Stock Throughout City

Barnes & Noble (Houston-wide) 125 Titles In The Computer None in Stock Throughout City “ Not Sold Out, Just Don’t Carry” 20 03 Business Ethics

Barnes & Noble (Houston-wide)

125 Titles In The Computer

None in Stock Throughout City

“ Not Sold Out, Just Don’t Carry”

20 03 Business Ethics

20 03 Business Ethics Publishing Capital of the World New York City, Rockefeller Center

Publishing Capital of the World

New York City, Rockefeller Center

“Plenty of Selection” 20 03 Business Ethics

“Plenty of Selection”

“ Plenty of Selection” No Business Ethics Books Found 20 03 Business Ethics

“ Plenty of Selection”

No Business Ethics Books Found

“ Plenty of Selection” No Business Ethics Books Found Business Etiquette ?? 20 03 Business Ethics

“ Plenty of Selection”

No Business Ethics Books Found

Business Etiquette ??

“ Plenty of Selection” No Business Ethics Books Found Business Etiquette ?? “ You Mean Like Enron?” 20 03 Business Ethics

“ Plenty of Selection”

No Business Ethics Books Found

Business Etiquette ??

“ You Mean Like Enron?”

A Study in Ethics? Books About Enron

Index Reveals. . . Ethics

Index Reveals. . . Mark to Market Accounting Obstruction of Justice Anti-Emission Treaties Auditing Conflicts of Interest Core Values Ethics

Index Reveals. . . Mark to Market Accounting Obstruction of Justice Anti-Emission Treaties Auditing Conflicts of Interest Core Values No Reference to Ethics Ethics

Academia and Ethics Trip to the University Library

Multiple Titles

Multiple Titles

Multiple Titles Very Detailed Works

Multiple Titles

Very Detailed Works

Multiple Titles Very Detailed Works First Use of the Word “Ethics” as a Branch of Philosophy - by Aristotle .

Multiple Titles

Very Detailed Works

First Use of the Word “Ethics” as a Branch of Philosophy - by Aristotle .

Multiple Titles Very Detailed Works First Use of the Word “Ethics” as a Branch of Philosophy - by Aristotle . It’s Meaning In Greek was literally “What pertains to a man’s character.” Source: David Bostock, Oxford University Press, 2000

Multiple Titles

Very Detailed Works

First Use of the Word “Ethics” as a Branch of Philosophy - by Aristotle .

It’s Meaning In Greek was literally “What pertains to a man’s character.”

A lot of Great Information. . .

A lot of Great Information. . . But Nowhere to Go!

Business Ethics A Different Approach?

NY Times Best Seller

Malcolm Gladwell

Malcolm Gladwell Former business and science writer at the Washington Post and currently a staff writer for The New Yorker.

Former business and science writer at the Washington Post and currently a staff writer for The New Yorker.

Malcolm Gladwell Former business and science writer at the Washington Post and currently a staff writer for The New Yorker. His book draws from psychology, sociology and epidemiology.

Former business and science writer at the Washington Post and currently a staff writer for The New Yorker.

His book draws from psychology, sociology and epidemiology.

Malcolm Gladwell Former business and science writer at the Washington Post and currently a staff writer for The New Yorker. His book draws from psychology, sociology and epidemiology. Small Factors influence Large Epidemics (Counterintuitive to Cause & Effect.)

Former business and science writer at the Washington Post and currently a staff writer for The New Yorker.

His book draws from psychology, sociology and epidemiology.

Small Factors influence Large Epidemics (Counterintuitive to Cause & Effect.)

Theory in Criminology Presented in The Tipping Point

Broken-Windows

Dr. Philip Zimbardo

Dr. Philip Zimbardo Professor of Psychology at Stanford University

Professor of Psychology at Stanford University

Dr. Philip Zimbardo Professor of Psychology at Stanford University 1969 Experiment

Professor of Psychology at Stanford University

1969 Experiment

Dr. Philip Zimbardo Professor of Psychology at Stanford University 1969 Experiment 2 - 1959 Oldsmobile Vehicles No License Plates, Hoods Raised

Professor of Psychology at Stanford University

1969 Experiment

2 - 1959 Oldsmobile Vehicles

No License Plates, Hoods Raised

Dr. Philip Zimbardo Professor of Psychology at Stanford University 1969 Experiment 2 - 1959 Oldsmobile Vehicles No License Plates, Hoods Raised One in the Bronx One Near Stanford’s Campus

Professor of Psychology at Stanford University

1969 Experiment

2 - 1959 Oldsmobile Vehicles

No License Plates, Hoods Raised

One in the Bronx One Near Stanford’s Campus

How Long Did the Olds sit in the Bronx before it was targeted?

10 Minutes How Long Did the Olds sit in the Bronx before it was targeted?

10 Minutes A Family - A Father, Mother, & Son Took the Radiator and Battery How Long Did the Olds sit in the Bronx before it was targeted?

How Long Did the Olds sit by Stanford University?

How Long Did the Olds sit by Stanford University? 1 Week Untouched

Dr. Philip Zimbardo Source: Wilson, James. George Kelling, The Atlantic Monthly, March 1982.

Dr. Philip Zimbardo Used an additional “releaser signal” for the Stanford Vehicle. Took a sledgehammer and smashed part of the vehicle. Source: Wilson, James. George Kelling, The Atlantic Monthly, March 1982.

Used an additional “releaser signal” for the Stanford Vehicle.

Took a sledgehammer and smashed part of the vehicle.

Dr. Philip Zimbardo Used an additional “releaser signal” for the Stanford Vehicle. Took a sledgehammer and smashed part of the vehicle. Soon, passersby were joining in. Source: Wilson, James. George Kelling, The Atlantic Monthly, March 1982.

Used an additional “releaser signal” for the Stanford Vehicle.

Took a sledgehammer and smashed part of the vehicle.

Soon, passersby were joining in.

Dr. Philip Zimbardo Used an additional “releaser signal” for the Stanford Vehicle. Took a sledgehammer and smashed part of the vehicle. Soon, passersby were joining in. “Within a few hours, the car had been turned upside down and utterly destroyed.” Source: Wilson, James. George Kelling, The Atlantic Monthly, March 1982.

Used an additional “releaser signal” for the Stanford Vehicle.

Took a sledgehammer and smashed part of the vehicle.

Soon, passersby were joining in.

“Within a few hours, the car had been turned upside down and utterly destroyed.”

The Atlantic Monthly James Q. Wilson Political Scientist & George L. Kelling Criminologist

March 1982

March 1982 Broken Windows is Title of an Article by Wilson & Kelling that references Zimbardo study.

Broken Windows is Title of an Article by Wilson & Kelling that references Zimbardo study.

March 1982 Broken Windows is Title of an Article by Wilson & Kelling that references Zimbardo study. About Community Policing.

Broken Windows is Title of an Article by Wilson & Kelling that references Zimbardo study.

About Community Policing.

March 1982 Broken Windows is Title of an Article by Wilson & Kelling that references Zimbardo study. About Community Policing. States that Broken Windows that remain unrepaired will result in more Broken Windows.

Broken Windows is Title of an Article by Wilson & Kelling that references Zimbardo study.

About Community Policing.

States that Broken Windows that remain unrepaired will result in more Broken Windows.

When People Sense No Apparent Authority. . . Crime Escalates

New York City “A Case Study of Transformation”

A Case Study in NYC

A Case Study in NYC New York City had Big Problems – Rampant Crime (8,000 people shot in 1990) and Subway was “close to collapse”

New York City had Big Problems – Rampant Crime (8,000 people shot in 1990) and Subway was “close to collapse”

A Case Study in NYC New York City had Big Problems – Rampant Crime (8,000 people shot in 1990) and Subway was “close to collapse” David Gunn, Director of Transit Authority Proposes a Broken-Windows Approach to the Problem.

New York City had Big Problems – Rampant Crime (8,000 people shot in 1990) and Subway was “close to collapse”

David Gunn, Director of Transit Authority Proposes a Broken-Windows Approach to the Problem.

A Case Study in NYC New York City had Big Problems – Rampant Crime (8,000 people shot in 1990) and Subway was “close to collapse” David Gunn, Director of Transit Authority Proposes a Broken-Windows Approach to the Problem. Not a Very Popular Viewpoint.

New York City had Big Problems – Rampant Crime (8,000 people shot in 1990) and Subway was “close to collapse”

David Gunn, Director of Transit Authority Proposes a Broken-Windows Approach to the Problem.

Not a Very Popular Viewpoint.

Deal with the Graffiti What about the Major Crime?

NYC Subway Car Source: Prof Chris Leo urban development gallery Circa 1982

NYC Subway Car Source: Prof Chris Leo urban development gallery Circa 1982 Every Car - Every Day - No Graffiti

NYC - A Case Study

Hired William Bratton to head the Transit Police Department NYC - A Case Study

Hired William Bratton to head the Transit Police Department

Hired William Bratton to head the Transit Police Department Bratton Initiates Broken-Windows and announces he will go after the fare-beaters. NYC - A Case Study

Hired William Bratton to head the Transit Police Department

Bratton Initiates Broken-Windows and announces he will go after the fare-beaters.

Hired William Bratton to head the Transit Police Department Bratton Initiates Broken-Windows and announces he will go after the fare-beaters. Again, opposition is vocal. What about Major Crime? NYC - A Case Study

Hired William Bratton to head the Transit Police Department

Bratton Initiates Broken-Windows and announces he will go after the fare-beaters.

Again, opposition is vocal.

What about Major Crime?

Fare-Beaters are checked for weapons and outstanding warrants. NYC - A Case Study

Fare-Beaters are checked for weapons and outstanding warrants.

Fare-Beaters are checked for weapons and outstanding warrants. Correlation is apparent. NYC - A Case Study

Fare-Beaters are checked for weapons and outstanding warrants.

Correlation is apparent.

Fare-Beaters are checked for weapons and outstanding warrants. Correlation is apparent. Crime starts to Reduce NYC - A Case Study

Fare-Beaters are checked for weapons and outstanding warrants.

Correlation is apparent.

Crime starts to Reduce

NYC Takes Notice

Bratton is recruited as Commissioner of Police. NYC Takes Notice

Bratton is recruited as Commissioner of Police.

Bratton is recruited as Commissioner of Police. Takes on Squeegee Men & Vagrants NYC Takes Notice

Bratton is recruited as Commissioner of Police.

Takes on Squeegee Men & Vagrants

Bratton is recruited as Commissioner of Police. Takes on Squeegee Men & Vagrants Again, Vocal Opponents NYC Takes Notice

Bratton is recruited as Commissioner of Police.

Takes on Squeegee Men & Vagrants

Again, Vocal Opponents

RESULTS?

RESULTS? YES Look at NYC Today

Who Do You Think Got The Credit?

Our Favorite Mayor Who Do You Think Got The Credit?

2003 Mexico City “Broken-Windows”

New York City Broken Windows Graffiti Giuliani Dr. Zimbardo

What’s Your Point? New York City Broken Windows Graffiti Giuliani Dr. Zimbardo

Corporate Ethics Program Volume 1-49 Lofty Goals In Search of Business Ethics

Corporate Ethics Program Volume 1-49 Too Many Controls Complicated Program

Corporate Ethics Program Volume 1-49 Too Many Controls Complicated Program Getting a Drink from a Fire Hose

Corporate Ethics Program Volume 1-49 Ms. Becky Johnson, Ethics Compliance Officer “ Do This, Or Else!”

Corporate Ethics Program Volume 1-49 Some Ideas Are Good

Corporate Ethics Program Volume 1-49 Some Ideas Are Good But They May Have APPLICATION PROBLEMS

What Are Your Broken Windows?

Saying One Thing . . . But Doing Another?

Saying One Thing . . . But Doing Another?

How Important is Leading By Example?

Keith C. Swailes

Keith C. Swailes Handwritten Notes

Handwritten Notes

Keith C. Swailes Handwritten Notes Entrepreneur’s Class

Handwritten Notes

Entrepreneur’s Class

Keith C. Swailes Handwritten Notes Entrepreneur’s Class 30 Years Ago

Handwritten Notes

Entrepreneur’s Class

30 Years Ago

Keith C. Swailes Handwritten Notes Entrepreneur’s Class 30 Years Ago The Importance of “Situational Ethics”

Handwritten Notes

Entrepreneur’s Class

30 Years Ago

The Importance of “Situational Ethics”

Keith C. Swailes Handwritten Notes Entrepreneur’s Class 30 Years Ago The Importance of “Situational Ethics” Teaching by Example

Handwritten Notes

Entrepreneur’s Class

30 Years Ago

The Importance of “Situational Ethics”

Teaching by Example

Can Behavior Change Organizational Ethics?

“ Don’t Ask, Don’t Tell” In the Oil Patch

A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition

A Client had Lost Valuable Information to Competition “ There’s A Mole!” A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition

“ There’s A Mole!”

A Client had Lost Valuable Information to Competition “ There’s A Mole!” Interview of Contract Landman A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition

“ There’s A Mole!”

Interview of Contract Landman

A Client had Lost Valuable Information to Competition “ There’s A Mole!” Interview of Contract Landman Asked about Two Companies in AMI A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition

“ There’s A Mole!”

Interview of Contract Landman

Asked about Two Companies in AMI

A Client had Lost Valuable Information to Competition “ There’s A Mole!” Interview of Contract Landman Asked about Two Companies in AMI Company 1 - “People always talk.” A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition

“ There’s A Mole!”

Interview of Contract Landman

Asked about Two Companies in AMI

Company 1 - “People always talk.”

A Client had Lost Valuable Information to Competition “ There’s A Mole!” Interview of Contract Landman Asked about Two Companies in AMI Company 1 - “People always talk.” Company 2 - “We NEVER TALK” A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition

“ There’s A Mole!”

Interview of Contract Landman

Asked about Two Companies in AMI

Company 1 - “People always talk.”

Company 2 - “We NEVER TALK”

A Client had Lost Valuable Information to Competition “ There’s A Mole!” Interview of Contract Landman Asked about Two Companies in AMI Company 1 - “People always talk.” Company 2 - “We NEVER TALK” There’s No Mole, There’s A Hole A Case Study of “Front Running”

A Client had Lost Valuable Information to Competition

“ There’s A Mole!”

Interview of Contract Landman

Asked about Two Companies in AMI

Company 1 - “People always talk.”

Company 2 - “We NEVER TALK”

There’s No Mole, There’s A Hole

Broken Windows Today

Lack of Consistency Policies with No Action Broken Windows Today

Lack of Consistency Policies with No Action Broken Windows Today Breakdown of Ethics. . . Malfeasance Increases

Light at the End of the Tunnel

Business Practices & Ethics Programs Left Unattended, will (over time) Create Larger and More Complex Problems. A perception of “Lacking Authority” or “Nobody Really Cares” Creates a Climate Conducive to Breakdown. Empirical Data

Reversing the Trend In Today’s Business Climate

Reversing the Trend In Today’s Business Climate Small Things Make the Difference

Small Things Make the Difference Management Example Situational Ethics Decide What Side of the Counter Standards must be Reasonable

Management Example

Situational Ethics

Decide What Side of the Counter

Standards must be Reasonable

Small Things Make the Difference Management Example Situational Ethics Decide What Side of the Counter Standards must be Reasonable Ethics Briefing at Time of Hire

Management Example

Situational Ethics

Decide What Side of the Counter

Standards must be Reasonable

Ethics Briefing at Time of Hire

Small Things Make the Difference Management Example Situational Ethics Decide What Side of the Counter Standards must be Reasonable Ethics Briefing at Time of Hire Senior Management Support

Management Example

Situational Ethics

Decide What Side of the Counter

Standards must be Reasonable

Ethics Briefing at Time of Hire

Senior Management Support

Small Things Make the Difference Management Example Situational Ethics Decide What Side of the Counter Standards must be Reasonable Ethics Briefing at Time of Hire Senior Management Support Auditing & Monitoring Behavior against Standards

Management Example

Situational Ethics

Decide What Side of the Counter

Standards must be Reasonable

Ethics Briefing at Time of Hire

Senior Management Support

Auditing & Monitoring Behavior against Standards

Small Things Make the Difference Management Example Situational Ethics Decide What Side of the Counter Standards must be Reasonable Ethics Briefing at Time of Hire Senior Management Support Auditing & Monitoring Behavior against Standards Speed of Follow-up & Investigation is Critical Indicator of Importance

Management Example

Situational Ethics

Decide What Side of the Counter

Standards must be Reasonable

Ethics Briefing at Time of Hire

Senior Management Support

Auditing & Monitoring Behavior against Standards

Speed of Follow-up & Investigation is Critical

Indicator of Importance

Small Things Make the Difference Management Example Situational Ethics Decide What Side of the Counter Standards must be Reasonable Ethics Briefing at Time of Hire Senior Management Support Auditing & Monitoring Behavior against Standards Speed of Follow-up & Investigation is Critical Indicator of Importance Confidential Reporting via Hot Line

Management Example

Situational Ethics

Decide What Side of the Counter

Standards must be Reasonable

Ethics Briefing at Time of Hire

Senior Management Support

Auditing & Monitoring Behavior against Standards

Speed of Follow-up & Investigation is Critical

Indicator of Importance

Confidential Reporting via Hot Line

Small Things Make the Difference Companies are Shy to Publish Prosecution Press Releases can be Valuable

Companies are Shy to Publish Prosecution

Press Releases can be Valuable

Small Things Make the Difference Companies are Shy to Publish Prosecution Press Releases can be Valuable Internal Advisories

Companies are Shy to Publish Prosecution

Press Releases can be Valuable

Internal Advisories

Small Things Make the Difference Companies are Shy to Publish Prosecution Press Releases can be Valuable Internal Advisories Educate - Ethics Are not Free Sometimes There Are Costs

Companies are Shy to Publish Prosecution

Press Releases can be Valuable

Internal Advisories

Educate - Ethics Are not Free

Sometimes There Are Costs

Small Things Make the Difference Companies are Shy to Publish Prosecution Press Releases can be Valuable Internal Advisories Educate - Ethics Are not Free Sometimes There Are Costs Annualize Employee Acknowledgement

Companies are Shy to Publish Prosecution

Press Releases can be Valuable

Internal Advisories

Educate - Ethics Are not Free

Sometimes There Are Costs

Annualize Employee Acknowledgement

Small Things Make the Difference Companies are Shy to Publish Prosecution Press Releases can be Valuable Internal Advisories Educate - Ethics Are not Free Sometimes There Are Costs Annualize Employee Acknowledgement Ongoing Ethics Briefings using Sanitized Examples (Very Powerful to Deter & Detect )

Companies are Shy to Publish Prosecution

Press Releases can be Valuable

Internal Advisories

Educate - Ethics Are not Free

Sometimes There Are Costs

Annualize Employee Acknowledgement

Ongoing Ethics Briefings using Sanitized Examples (Very Powerful to Deter & Detect )

Simplicity of Message Ethics in Action &

Simplicity at West Point

Honor Code

General Douglas MacArthur

General Douglas MacArthur Formalized the Cadet Honor Code

Formalized the Cadet Honor Code

General Douglas MacArthur Formalized the Cadet Honor Code Cadet at West Point 1899-1903

Formalized the Cadet Honor Code

Cadet at West Point 1899-1903

General Douglas MacArthur Formalized the Cadet Honor Code Cadet at West Point 1899-1903 Superintendent 1919-1922

Formalized the Cadet Honor Code

Cadet at West Point 1899-1903

Superintendent 1919-1922

General Douglas MacArthur Formalized the Cadet Honor Code Cadet at West Point 1899-1903 Superintendent 1919-1922 2nd Father of West Point

Formalized the Cadet Honor Code

Cadet at West Point 1899-1903

Superintendent 1919-1922

2nd Father of West Point

General Douglas MacArthur Retired in 1937, But Returned to Service in 1941 per President Roosevelt’s Request

Retired in 1937, But Returned to Service in 1941 per President Roosevelt’s Request

General Douglas MacArthur Retired in 1937, But Returned to Service in 1941 per President Roosevelt’s Request Supreme Allied Commander

Retired in 1937, But Returned to Service in 1941 per President Roosevelt’s Request

Supreme Allied Commander

General Douglas MacArthur Retired in 1937, But Returned to Service in 1941 per President Roosevelt’s Request Supreme Allied Commander He accepted the Surrender of Japan on Sept. 2, 1945

Retired in 1937, But Returned to Service in 1941 per President Roosevelt’s Request

Supreme Allied Commander

He accepted the Surrender of Japan on Sept. 2, 1945

General Douglas MacArthur Final Visit to West Point - 1962

Final Visit to West Point - 1962

General Douglas MacArthur Final Visit to West Point - 1962 To Be Honored with the Thayer Award

Final Visit to West Point - 1962

To Be Honored with the Thayer Award

General Douglas MacArthur Final Visit to West Point - 1962 To Be Honored with the Thayer Award Famous Speech

Final Visit to West Point - 1962

To Be Honored with the Thayer Award

Famous Speech

General Douglas MacArthur Final Visit to West Point - 1962 To Be Honored with the Thayer Award Famous Speech Did not Bask in the Glory of the Moment

Final Visit to West Point - 1962

To Be Honored with the Thayer Award

Famous Speech

Did not Bask in the Glory of the Moment

General Douglas MacArthur Final Visit to West Point - 1962 To Be Honored with the Thayer Award Famous Speech Did not Bask in the Glory of the Moment Used his time for a Simple Message

Final Visit to West Point - 1962

To Be Honored with the Thayer Award

Famous Speech

Did not Bask in the Glory of the Moment

Used his time for a Simple Message

Ethics of the American Soldier Duty Honor Country

Ethics of the American Soldier Duty Honor Country