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A talk given to an international law firm on how corporate culture can lead to fraud and environmental disasters and the pressure to stop employees speaking up against wrongdoing.
CEO of Speak Up At Work and co-founder of Speak Up Academy
A talk given to an international law firm on how corporate culture can lead to fraud and environmental disasters and the pressure to stop employees speaking up against wrongdoing.
4.
‣ Corporate Culture:
‣ Toxic, fear
‣ Pressure - targets
‣ Protect company - hide,
deny, cover-up, lie
‣ Normalised Deviance:
‣ No company sanctions
against persons charged
‣ Disregard for US law,
arrogance
‣ No external whistleblowing
SPEAK UP
6.
What must be admitted – very painfully – is that this
was a disaster “Made in Japan.” Its fundamental
causes are to be found in the ingrained conventions
of Japanese culture: our reflexive obedience; our
reluctance to question authority; our devotion to
‘sticking with the program’; our groupism; and our
insularity.
Kiyoshi Kurokawa, Chairman of the Fukushima Nuclear
Accident Independent Investigation Commission
THE FUKUSHIMA DISASTER SPEAK UP
7.
Residents of Iitate village listen to Mayor Norio Sugano,right back to camera, explain a government plan to
evacuate residents from the village that's about 40 kilometers (24 miles) from the radiation-spewing
Fukushima Dai-ichi nuclear plant in northeastern Japan, on Wednesday April 13, 2011. (Kyodo News)
SPEAK UP
8.
‣ Power Dynamics:
‣ Collective obedience
‣ Don’t question authority
‣ Ignorance, arrogance
‣ Enables incompetence
‣ Disempowerment:
‣ Regulatory capture
‣ Comply with convention,
not open to best practices
‣ Structure enables
avoidance of
responsibility, hide, non
transparent
SPEAK UP
10.
I really look
forward to working
with you
SPEAK UP
11.
I agree Flynn is a good
guy
I hope you can see your way clear to letting
this go, to letting Flynn go. He is a good guy. I
hope you can let this go
SPEAK UP
12.
I agree Flynn is a good
guy
I hope you can see your way clear
to letting this go, to letting Flynn
go. He is a good guy. I hope you
can let this go
I was a bit stunned and
didn't have the presence
of mind. I don't know. I
don't want to make you
sound like I'm captain
courageous. I don't know
if I would have said to the
president with the
presence of mind, sir,
that's wrong. In the
moment, it didn't come
to my mind. What came
to my mind is be careful
what you say.
?
SPEAK UP
13.
I will see what we
can do
lift the cloud hanging over me…
Because I have been very
loyal to you, very loyal; when
had that thing you know.
SPEAK UP
14.
I will see what we
can do
lift the cloud hanging over me…
Because I have been very
loyal to you, very loyal; when
had that thing you know.
It was kind of a cowardly
way of trying to avoid
telling him, we're not going
to do that. That I would see
what we could do. It was a
way of kind of getting off
the phone, frankly, and
then I turned and handed it
to the acting deputy
attorney general.
?
SPEAK UP
15.
‣ Grooming
‣ Expectation of loyalty
‣ Harassment:
‣ Reminder of job security
‣ Environment: alone in the
room, phone calls
‣ Threats - covert & overt
‣ Aggression - shame,
distraction via social media
‣ Indirect orders
‣ Behaviour - focus on
specificity but ignoring larger
risks
WILL NO ONE RID ME OF
THIS MEDDLESOME PRIEST?
SPEAK UP
16.
DID YOU KNOW HOW MANY ISSUES STAY UNREPORTED? SPEAK UP
EY Asia Pacific Fraud Survey 2017
https://fraudsurveys.ey.com/media/1334/ey_apac_fraud2017_preview-single.pdf
PwC Global Economic Crime Survey 2016
https://www.pwc.com/gx/en/economic-crime-survey/pdf/
GlobalEconomicCrimeSurvey2016.pdf
17.
STEPS TO TAKE
C U LT U R E
S T R U C T U R E
S Y S T E M S
P O L I C Y
SPEAK UP
18.
STEPS TO TAKE: POLICY
C U LT U R E
S T R U C T U R E
S Y S T E M S
P O L I C Y
• Harassment Free Policy
• Speak Up/Whistleblowing Policy. No Retaliation
SPEAK UP
19.
STEPS TO TAKE: SYSTEMS & PROCESSES
C U LT U R E
S T R U C T U R E
S Y S T E M S
P O L I C Y
SPEAK UP
• Independent & Anonymous
Hotline
• Clear avenues for reporting
fairly handled,
independent to avoid bias,
follow up with reporter,
take action and enforce
policy
• Written Process
communicated to all
including on boarding
process
20.
STEPS TO TAKE: STRUCTURE
C U LT U R E
S T R U C T U R E
S Y S T E M S
P O L I C Y
• Corporate Governance practices
ensuring clear separation between
oversight and management
• Compliance, Legal, Audit heads report
to Board/Risk Committee. High risk
issues (Safety, ABAC) direct to Board
• Tiered reporting of issues. High level
to Board, bypass management
SPEAK UP
21.
STEPS TO TAKE: CULTURE
C U LT U R E
S T R U C T U R E
S Y S T E M S
P O L I C Y
SPEAK UP
Organisational Culture
• Open, transparent, encourage challenging. No
echo chamber
• Encourage and reward intervention
• Low power dynamics
• Diversity
Leadership
• Tone from the top. Leadership training - how to
be open and receive feedback, No Blame
Culture.
• Ongoing awareness sessions and training.
22.
THE JOURNEY SPEAK UP
Assess ExecuteSet Vision
& Goals
Re-evaluateAnalyse
Adjust
23.
SPEAK UP
ANIMAH KOSAI
LinkedIn
Twitter @SpeakUpAtWork
animahspeakup@gmail.com