The document summarizes key findings from an OECD survey of 88 companies regarding corporate integrity policies and culture. Some of the main points from the 3-sentence summary are: - 80% of boards were strongly involved in designing and implementing integrity policies, while 20% reported budget increases of 25-50% for these policies over 5 years. - 60% viewed integrity policies as an investment rather than an expense, and almost two-thirds had oversight of these policies delegated to a specific committee like audit or compliance. - Two-thirds of boards or senior management had severed relationships with business partners or revised projects due to risks of misconduct, though less than half of boards had received in-person training on the

1. The ICSA
ANNUAL
CONFERENCE 2016
Peter Montagnon
Associate Director, IBE

2. Corporate culture:
the new frontier
Peter Montagnon, Associate Director
Institute of Business Ethics
© IBE 2

3. Anthony Salz on culture
“Culture exists regardless. If left to
its own devices, it shapes itself,
with the inherent risk that
behaviours will not be those
desired. Employees will work out
for themselves what is valued by
leaders to whom they report.”
The Salz Review of Barclays Business Practice
© IBE 3

4. OECD survey of 88 companies
 80% of boards strongly involved in design and implementation of
integrity policy
 20% say budget increased between 25% and 50% over last five
years
 60% say is an investment rather than an expense
 Almost two thirds have mandated oversight to a specific committee (
commonly audit or compliance)
 Two thirds of boards or senior management had severed relationship
with a business partner or revised projects because of risk of
misconduct
 Fewer than half of boards had received in person training in
company’s integrity policy
Source: Trust and Business, Corporate Governance and Business Integrity, OECD 2015
© IBE 4

5. Business Ethics
Ethics
Values
Conduct
Risk
Behaviour &
Culture
Trust &
Reputation
Opportunity
Financial &
Operational
performance
© IBE 5

6. Building an Open Culture
Communication
&
Awareness
Campaigns
Supporting
Context &
Culture
Code of Ethics
Training
&
Reinforcement
Monitoring
&
Accountability
Embed Values  Influences Behaviour & Conduct
Ethical Values
Reflected in the business model, purpose, strategy,
governance, ethics policy and decision-making process in the
organisation
© IBE 6

7. © IBE 7

8. © IBE 8

9. © IBE 9

10. © IBE 10

11. © IBE 11

12. Thank You
Peter Montagnon, Associate Director
Institute of Business Ethics
© IBE 12

13. The ICSA
ANNUAL
CONFERENCE 2016
How do strong values improve
organisations?

14. How do we measure Culture?
Peter Neville Lewis MIRM
ICSA – March 8-9, 2016

15. How Values, Decisions & Culture
are linked
Think
•Values gives us
•Character which forms our
Decide
•Judgement helps us make
•Decisions which lead to
Act
•Actions - repeated become
•Behaviours = CULTURE of a GROUP
15

16. Decisions - A Dual Function
Decision MAKING
(Strategic & Holistic)
Decision TAKING
(Execution & Delivery)

17. Do you know how all the people in
your organisation make and take
Decisions?
• Q. Are your Values clearly articulated?
• Q. Are Values integrated into Decisions?
• Q. Are the Behaviours expected monitored?
• Q. Are Governance and Principles aligned?
• Q. Is there an Audit trail for critical decisions?
• Q. Is your Culture always to do the right thing?

18. Measuring Values and Ethics
• If we could determine the core Values of an organisation and
the key Ethical positions of its members we would have a better
insight into its Culture, how Decisions are made and how
People are likely to behave.
• MORALDNA™ can provide these insights and the basis for a
detailed Culture Audit.

19. MORALDNA™ Profiling -
the evidence
We measure 13 Factors
10 x Moral VALUES
3 x Ethical Consciences
www.MoralDNA.org
(140, 000 profiles to date)
19

20. Integrity–Integritas
Aristotle & Ibn Rushd
Fortitude = Courage (Moral)
Justice = Fairness
Temperance = Self-Discipline/Thrift
Prudence/providentia(Lat) = Wisdom
Faith =Trust, Hope = Belief,
Charity/Xaris(Grk) = Love/Care
Honesty, Humility, Excellence
20

21. How we manage Ego and Decisions
3 Ethical Consciences
OBEDIENCE (Law)
REASON (Logic)
CARE (Love)

22. 22

23. 23

26. Rules = $100 Billion +???
26

27. What are the Rules?
Acting with Personal Integrity?
Who is this Good for?
Who could we Harm?
Do we test for Transparency?
Rules
Integrity
Good
Harm
Transparency
Ethical decision making is
doing what’s RIGHT
27

28. 28

29. 29
Integrity has no need of Rules
Albert Camus (1913 – 1960)
Integrity cannot be regulated. It comes
from within
Mark Carney – Governor, Bank of England
It’s not hard to make decisions when you
know what your Values are
Roy Disney
The final decision lies within us all

30. Questions???
Thank you for listening!
Peter Neville Lewis MIRM
Hon Research Fellow, Brunel University, London
peter@principledconsulting.biz

31. Financial Decision Making
Jenny Robertson, ExCel London, 9 March 2016

32. Schedule for today’s session
1. Examination and requirements
2. Syllabus areas
3. Analysis of November 2015 examination questions and answers to include:
• syllabus area
• structure of the question
• approaches to tackling the question
• level of detail needed in answer
4. Summary and advice
5. Any questions

33. Examination and requirements
• 3 hour paper
• 15 minutes reading time
• Answer four questions from six
• Mix of numerical and discursive questions based on scenarios
• Financial information
• 25 marks per question
• Question parts and mark allocation

34. Examination and requirements
For numerical questions:
• Layout of your answer
• Show all workings
• Analysis and interpretation
For discursive questions:
• Read the question carefully
• Identify the instruction
• Relevant discussion

35. Syllabus areas
• Financial governance: objectives and environment –weighting 10%
• Management performance measurement –weighting 5%
• Making distributions to shareholders –weighting 10%
• Long-term investment decisions –weighting 20%
• Business combinations and share valuation –weighting 15%
• Capital markets and long-term financing decisions –weighting 20%
• Working capital management and short-term financing –weighting 10%
• Corporate risk management –weighting 10%
Remember, the whole syllabus is examinable.

36. November 2015 examination and answers
Question 1
• Working capital management/management performance measurement
• Explanation and analysis using key ratios
• Overtrading: meaning and symptoms
• Select suitable ratios, accurate calculations for both years, interpretation
• Key areas of credit management: credit analysis, credit control and collection
system

37. November 2015 examination and answers
Question 2
• Long-term financing/corporate risk management
• Cost of equity using dividend growth model (DGM) and CAPM
• Numerical and discursive (briefing paper)
• Calculations: growth rate over 4 years, formulae for DGM and CAPM
• Explain Beta. Assumption of models for comparison and validity

38. November 2015 examination and answers
Question 3
• Raising equity finance and stock market efficiency
• Numerical, evaluative and discursive
• Calculations for rights issue
• Identification of options available and evaluation using calculations
• Explain the meaning of semi-strong form efficiency and implications for financial
managers

39. November 2015 examination and answers
Question 4
• Making distributions to shareholders
• Briefing paper: discursive
• Theory and practical factors regarding both dividend policy and the project
• Reasons for share buy-backs

40. November 2015 examination and answers
Question 5
• Long-term investment decisions. Investment appraisal- sensitivity analysis
• Numerical (mainly) and discursive
• Calculate NPV: timing of cash flows, annuity tables
• Sensitivity analysis calculations (amounts and percentages) and comment
• Strengths and weaknesses and other methods for handling risk (scenario
analysis, probabilities and expected NPV)

41. November 2015 examination and answers
Question 6
• Long-term investment decisions/divestment decision (business combinations)
• Numerical and discursive
• DCF analysis for evaluation: all cash inflows and cash outflows. Capital
allowances and taxation
• Reasons for divestment

42. Key recurring problems
• Poor time management
• Poor presentation
• Inappropriate/irrelevant discussion
• Disorganised answers
• Use of bullet points instead of discussion

43. Summary and advice
• Learn the whole syllabus: don’t try to question spot
• Answer four questions: time management
• Read each question carefully and answer each part fully
• Practise technical and analytical areas
• Understand the implications and limitations of the calculations required
• Lay your work out clearly and show all workings

44. Questions…

45. Thank you

46. 4646
Modern Slavery Act 2015
Transparency in Supply Chains – the new
reporting requirements
Ron Reid Peter Mc Allister
Partner Executive Director
Shoosmiths LLP Ethical Trading Initiative
ethicaltrade.org | shoosmiths.co.uk

47. 4747
Part 6 : Transparency in Supply Chains
• An organisation must prepare a slavery and human trafficking
statement of each financial year of the organisation (s 54(1))
• A commercial organisation must comply with the Act if:
it supplies goods and services, and
has an annual turnover of £36m; and
it carries on business or part of a business in the UK
• Came into force on 29 October 2015
• Statutory guidance published

48. 4848
The Statement
• A statement of the steps the organisation has taken during the financial
year to ensure that slavery and human trafficking is not taking place:
In any of its supply chains; and
In any part of its own business
OR
• a statement that the organisation has taken no such steps

49. 4949
When will statements be due?
• Transitional provisions:
‾ Organisations with a year end date between 29 October 2015 and
30 March 2016 will not be required to publish a statement for the
2015-16 financial year of the organisation
‾ Organisations with a year end of 31 March 2016 will be the first
businesses to publish a statement for the 2015-16 financial year

50. 5050
Websites
• If the organisation has a website it must:
Publish the slavery and human trafficking statement on that website;
and
Include a link to the slavery and human trafficking statement in a
prominent place on that website’s homepage.
• If the organisation does NOT have a website it must:
Provide a copy of the slavery and human trafficking statement
to anyone who makes a written request for one; and
do so before the end of the period of 30 days beginning with the
day on which the request is received.

51. 5151
Penalties
• Civil proceedings:
In High Court of England and Wales: injunction brought by Secretary of State;
or
In Court of Session in Scotland: specific performance of a statutory duty
under section 45 of the Court of Session Act 1988
• Breach of an injunction is punishable with an unlimited fine

52. 5252
Contents of statement
• The organisation’s structure, its business and supply chains
• Policies in relation to slavery and human trafficking
• Due diligence processes relating to slavery and human trafficking in its business
and supply chains
• The parts of its business and supply chains where there is a risk of slavery and
human trafficking taking place and what steps has it taken to assess and manage
that risk
• Its effectiveness in ensuring that slavery and human trafficking is not taking place
in its business or supply chains, measured against key performance indicators
• The training about slavery and human trafficking available to its staff

53. 5353
Due Diligence
Due diligence should:
be proportionate to the identified modern slavery risk
the severity of the risk, and
level of influence an organisation has
be informed by broader risk assessments that have been conducted
include an ongoing assessment of risk
Include an expectation that the integrity of investigations is ensured
i.e. that it is not just lip service

54. 5454
Assessing and managing risk
• Research and identify the risks where the organisation has
operations or supply chains
• Prioritise those risks
• Allocate appropriate resources to assess and manage risk
• Include goods and services e.g. agency staff
• Country risks
Exposure may be greater in countries where protection against
human rights abuses are limited
Check whether workers retain their ID/papers and if work
arrangements using agents is commonplace

55. 5555
Steps to take now
• Review your policies relating to modern slavery
• Review due diligence and auditing processes implemented
• Review contracts with suppliers and third parties
• Ensure slavery and human trafficking is covered in your human rights/CSR policy
• Amend your whistleblowing policy to cover concerns about slavery, human
trafficking, servitude and forced or compulsory labour
• Ensure the risk assessment includes identifying high risk suppliers and arrange a
site visit to those suppliers
• Amend any audit regime of suppliers that you may have in place to add
compliance with slavery legislation
• Don’t promise what you can’t deliver!

56. 5656
Questions and Answers

57. 5757
Contact Details
Peter McAllister - Ethical Trading Initiative
0207 841 4350
Peter.Mcallister@eti.org.uk
Ron Reid – Shoosmiths LLP
03700 868471
ron.reid@shoosmiths.co.uk

58. Jonathan Orchard
9 March 2016
Charity governance: maintaining internal
financial controls

59. Who’d be a charity trustee?
59

60. The trustees are collectively responsible for
 Everything the charity does
 How it does it
 Exercise duty of care & duty of prudence
 Compliance with law & regulation
Trustees must make sure the charity
 Pursues its aims
 Uses its assets exclusively to achieve the charity’s aims
 Acts in the interest of its beneficiaries
 Delivers public benefit
Basic legal context
60

61. • available time is limited
• commitment is to the cause not compliance
• their role is governance not management
And expectations on trustees are only set to increase
But they are volunteers…..
61

62. • Internal control is a process
• Constantly evolving to reflect changing risk
• People are central – they exercise the controls
• Only provide reasonable assurance
• Understand cost/benefit of the control
• What is enough?
 Combination of experience, judgement and attitude to risk
Features of internal controls
62

63. • Operational staff
• Supervisory staff
• Managers
• Senior managers
• Chief executive
• Audit committee
• Trustees
Responsibility for internal control
63

64. Three lines of defence
64
First line Second line Third line
Operations Oversight
Independent
assurance
• Frontline staff
• Line
managers
• Support and
compliance
functions
• Senior
management
• Internal and
external audit
• Regulatory
assessment
Assurance

65. • Organisation culture
• Set financial strategy/parameters
• Get regular assurance from
management
• Seek independent review when
needed
How can trustees meet the challenge?
65

66. • Tone from the top
• Risk appetite
• Delegation of authority
• Policies & procedures
• Compliance
• Transparency
Organisation culture
66

67. • Reserves policy
• Understand underlying business model & associated
financial risks
• Parameters for longer term financial planning
• Agree budgets or KPIs
Financial strategy & sustainability
67

68. • Management accounts
• Cash flow
• Assess financial performance alongside programme
outputs
• Risk management processes (operation of internal
controls)
• External audit
Regular assurance
68

69. Internal review of internal
controls (eg CC8)
Regular internal review of
high risk areas
Extend external audit
Develop tools for in-house
internal audit
Commission internal audits
on one-off basis
Recruit an internal auditor
Outsource internal function
‘Independent’ review
69Cost

70. Conclusion
70

71. Jonathan Orchard
jonathan.orchard@sayervincent.co.uk
020 7841 6360
www.sayervincent.co.uk
@orchardj
@sayervincent
Sayer Vincent contact details
71

72. Mindfulness and your Emotional
Intelligence
Jutta Tobias PhD
Cranfield University School of Management
Centre for Business Performance

73. What we will cover
1. Mindfulness generates space
2. The good news
It is a valid and reliable catalyst for developing
“soft” skills, e.g. emotional intelligence
3. The bad news
It requires continuous practice (like physical
exercise)
4. Take away 1 practical action for you

74. My Work
3.55
3.6
3.65
3.7
3.75
3.8
3.85
3.9
3.95
1 2
Wave 1
Wave 2
40
45
50
55
60
Before training After training

75. Emotional Intelligence
Awareness of myself Connecting with others
Controlling my impulses Developing relationships
75
adapted from Mayer & Salovey (1997)

76. Emotional Intelligence
Awareness of myself Connecting with others
Controlling my impulses Developing relationships
76
adapted from Mayer & Salovey (1997)

77. What is mindfulness?

78. Slowing Down to Speed Up

79. Creating space
Stimulus (Re)Action
79

80. What’s the business case?

81. How we make decisions
based on Dan Kahneman’s System 1 & System 2 theory
81

82. How to?

83. Noticing
83

84. What did you notice?
Any useful intel?

85. Mindfulness in Oil Rigging?
85

86. Emotional Intelligence
Awareness of myself Connecting with others
Controlling my impulses Developing relationships
86
adapted from Mayer & Salovey (1997)

87. Impulse Control
87

88. How many of us today deal with
difficulty
88

89. How to?

90. Slowing Down to Speed Up

91. Breathing in a box
91

92. Why should we?

93. How tuning into the present works
93

94. Cranfield working memory study
The Data The Story
40
45
50
55
60
Before training After training
Workingmemory
“After a career spent at 100mph,
The opportunity to take charge of my mind
Dealing with the stressors and strains of daily life
Whilst increasing my performance
Is a real opportunity for me.” 94© Jutta Tobias 2016

95. Mindfulness champion
95

96. Mindfulness Condition
Positive Emotions
Focusing on the Present
Better Decision-Making
Predicts
Predicts
Predicts
Predicts
Significantly predicts
Andrew Hafenbrack et al. 2013
The Link to Decision-Making

97. Emotional Intelligence
Awareness of myself Connecting with others
Controlling my impulses Developing relationships
97
adapted from Mayer & Salovey (1997)

98. How to?

99. Checking in with others
99

100. Why should we?

101. How we interact
101

102. Why don’t we?

103. Descartes’ Error
103

104. Emotional Intelligence
Awareness of myself Connecting with others
Controlling my impulses Developing relationships
104
adapted from Mayer & Salovey (1997)

105. What will you (really) remember about today?

106. Maya Angelou (1928-2014)
10
6

107. How to?

108. Perspective taking
 Think of someone who has frustrated you
 Write down 3 conceivable reasons for his/her
actions/attitudes
 How would you think or feel at work if these reasons applied
to you?
 How can you connect with and inspire someone whose
actions may be based on these reasons?
adapted from Flaxman & Bond, 2013
10
8

109. What next?

110. Mental exercise
11
0

111. Creating space for you
Stimulus (Re)Action
11
1

112. Do try this at home
1. Mindfulness generates space
2. The good news
It is a valid and reliable catalyst for developing
“soft” skills, e.g. emotional intelligence
3. The bad news
It requires continuous practice (like physical
exercise)
4. Take away 1 practical action for you

113. Email: jutta.tobias@cranfield.ac.uk
@juttko http://www.huffingtonpost.co.uk/jutta-tobias/
Thank you!
https://www.youtube.com/watch?v=OJFlLJw42uo
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