Half day interactive open workshop in Toronto on ethics.

1. Ethics-is it a place near Lake Erie? by Toronto Training and HR March 2011

2. Contents 3-4 Introduction to Toronto Training and HR 5-6 The new ethical management 7-9 Ethics and integrity 10-11 How the best-intentioned managers get derailed 12-13 Drill 14-15 Barriers to an ethical organization 16-21 Ethics-based culture change 22-24 Dealing with malicious gossip 25-26 Transformative nature of accountability 27-28 Dimensions of work ethic 29-36 Employees mirroring the work ethic around them 37-38 Character traits 39-40 Ethical decision-making 41-43 Stakeholders 44-45 Overcoming disconnects 46-48 Self-sabotage of high performers 49-50 Advantages in acting ethically 51-52 Conclusion and questions

3. Page 3 Introduction

6. Improving employee engagement & morale

8. Page 6 The new ethical management What is it? Where did it come from? Where is it going?

9. Page 7 Ethics and integrity

10. Page 8 Ethics and integrity 1 of 2 Relationships with your family and friends Attitude and behaviour towards money Commitments to others, especially in the business/work

11. Page 9 Ethics and integrity 2 of 2 Identify men and women of great character Analyze your key relationships Keep your word

12. Page 10 How the best-intentioned managers get derailed

13. Page 11 How the best-intentioned managers get derailed Goals that reward unethical behaviour Conflicts of interest that motivate people to ignore bad behaviour when they have something to lose by recognizing it A tendency to overlook dirty work that’s been outsourced to others An inability to notice when behaviour deteriorates gradually A tendency to overlook unethical decisions when the outcome is good

14. Page 12 Drill

15. Page 13 Drill

16. Page 14 Barriers to an ethical organization

17. Page 15 Barriers to an ethical organization Ill-conceived goals Motivated blindness Indirect blindness The slippery slope Overvaluing outcomes

18. Page 16 Ethics-based culture change

19. Page 17 Ethics-based culture change 1 of 5 You can’t force culture—you can only create environment You are on the outside what you are on the inside—no debate Success is doing the right things the right way People do what they are incentivised to do Input=Output

20. Page 18 Ethics-based culture change 2 of 5 Embracing ethical values can change how your company runs—it can revitalize your purpose, policies, and practices People who don’t fit are immediately weeded out People respect their leaders and each other

21. Page 19 Ethics-based culture change 3 of 5 CREATING AN ETHICAL VALUES COMPASS Ask your colleagues: What do you want this company to look like? Narrow the answers Translate these ethical values into behaviours you can monitor Figure out where a course change is in order Settle in for the long haul

22. Page 20 Ethics-based culture change 4 of 5 CHARACTERISTICS SETTING EMPLOYERS APART Leaders encourage a two-way dialogue about business conduct The organization’s code of ethics is a living document Ethics isn’t a “program” but a way of doing business Training about ethics is relevant, maybe even fun Employees are actively engaged as corporate citizens, aligned with the company’s values

23. Page 21 Ethics-based culture change 5 of 5 SIMPLE ADDITIONS TO EXISTING PRACTICES Make ethics a priority Set a good example of ethical conduct Keep commitments Provide information about culture and compliance Consider ethics in decision-making Talk about ethics in the workplace

24. Page 22 Dealing with malicious gossip

25. Page 23 Dealing with malicious gossip 1 of 2 When you pass information, casually or not, do so in a manner that ensures that the message heard by those listening is as accurate as possible. Avoid insinuations, quibbling, and half-truths. If you are not sure of the information's accuracy, don't repeat it.

26. Page 24 Dealing with malicious gossip 2 of 2 If it is a case of obvious rumour spreading or malicious gossiping, try to stop it in an appropriate manner such as interrupting the speaker and questioning the source of information. Let it be known that you do not approve of such activity. Seek help from co-workers, team members, supervisor, manager or Human Resources - whatever is appropriate to stop the rumour mill.

27. Page 25 Transformative power of accountability

28. Page 26 Transformative power of accountability To see it To own it To solve it To do it

29. Page 27 Dimensions of work ethic

30. Page 28 Dimensions of work ethic Self-reliance Morality/ethics Leisure Hard work Centrality of work Wasted time Delay of gratification

31. Page 29 Employees mirroring the work ethic around them

32. Page 30 Employees mirroring the work ethic around them 1 of 7 BELL CURVE FACING MANAGERS On the far right are the most helpful of the group, those "dedicated co-operators" who by personal conviction will contribute their best to the common cause without worrying much about what the rest are doing. On the far left are a few "dedicated free riders," people who in almost any situation will let the others do the heavy lifting and keep their own resources for themselves.

33. Page 31 Employees mirroring the work ethic around them 2 of 7 BELL CURVE FACING MANAGERS In between the extremes are those who reciprocate to various degrees. This majority of people will meet cooperation with cooperation and selfishness with selfishness.

34. Page 32 Employees mirroring the work ethic around them 3 of 7 CRUCIAL FACTS First, even though there are incentives to freeload from the very beginning, a large proportion of people start by venturing some of their money, maybe to test the waters, maybe out of a sense of morality. They arrive at a job fully prepared to cooperate with the group- if they find cooperation to be the norm.

35. Page 33 Employees mirroring the work ethic around them 4 of 7 CRUCIAL FACTS Second, without any way of holding team members accountable for their work on the group's behalf, some will coast. Taking advantage of the group in this way creates resentment that causes many of those originally willing members to withhold what they control, and this snowballs into an almost perfectly selfish workgroup that loses the chance of making solid profits.

36. Page 34 Employees mirroring the work ethic around them 5 of 7 CRUCIAL FACTS Second, without any way of holding team members accountable for their work on the group's behalf, some will coast. Taking advantage of the group in this way creates resentment that causes many of those originally willing members to withhold what they control, and this snowballs into an almost perfectly selfish workgroup that loses the chance of making solid profits.

37. Page 35 Employees mirroring the work ethic around them 6 of 7 CRUCIAL FACTS Third, even when it is personally expensive to punish another team member, many participants will "invest" in keeping the game fair. Researchers call this "altruistic punishment" because it requires a player to spend his own money to enforce the group's interest. " This suggests that even with performance-based bonuses that create a risk of neglecting their own rewards for a while, employees' attention can be seriously diverted when a bad apple is in the barrel.

38. Page 36 Employees mirroring the work ethic around them 7 of 7 CRUCIAL FACTS Fourth, if team members can be punished for slacking, the slackers behave better and the naturally cooperative people, seeing a fairer system, become more willing to invest. The group's profits rise.

39. Page 37 Character traits

40. Page 38 Character traits Vocation Stewardship Virtue Heart

41. Page 39 Ethical decision making

42. Page 40 Ethical decision making Transparency Effect Fairness

43. Page 41 Stakeholders

44. Page 42 Stakeholders 1 of 2 shareholders trustees guarantors investors funding bodies distribution partners marketing partners licensors licensees approving bodies

45. Page 43 Stakeholders 2 of 2 regulatory authorities endorsers and 'recommenders' advisors and consultants employees customers suppliers the local population (community) the regional general public national general public international communities humankind

46. Page 44 Overcoming disconnects

47. Page 45 Overcoming disconnects Generational Short-termism Trust

48. Page 46 Self-sabotage of high performers

49. Page 47 Self-sabotage of high performers 1 of 2 BEHAVIOR EMERGES FROM… awed by success, we project a “halo” around the head of those who achieve it, signifying they can do no wrong the “halo” influences how we view and describe them and biases how they view and describe themselves they seek to protect themselves against having to admit failure or weakness and suffer shame

50. Page 48 Self-sabotage of high performers 2 of 2 HELPING VICTIMS OF SUCCESS Resisting help-remove resistance, a safe learning opportunity Self-conception-redirect the need to achieve, detachment

51. Page 49 Advantages in acting ethically

52. Page 50 Advantages in acting ethically Competitive advantage Improved employee retention and attraction Investment Morale and culture Reputation Legal and regulatory reasons Legacy

53. Page 51 Conclusion & Questions

54. Page 52 Conclusion Summary Questions