Ethics in the Workplace Jim Corkill Controller Accounting Services & Controls (Rev. 8/09)

Ethics in the WorkplaceEthics in the Workplace

Jim CorkillControllerAccounting Services & Controls(Rev. 8/09)

Today’s GoalsToday’s Goals

Awareness Areas of Concern Tools for Decision Making UC Standards of Ethical Conduct Role of the Business Officer Resources

Ethics: A definitionEthics: A definition

“Relating to what is good or bad, having to do with moral duty and obligation.” 1

(Moral is defined as relating to principles of right and wrong.)

“Ethics is not about being better than someone else; it’s about being the best we can be.” 2

1Webster’s New World Dictionary, 3rd College Edition2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Personal Ethics vs.Personal Ethics vs.Business Ethics Business Ethics

Is there a difference?Is there a difference?

Business EthicsBusiness Ethics

Acting with an awareness of the need for complying with rules, such as the laws of the land, the customs and expectations of the community, the principles of morality, the policies of the organization, and such general concerns as the needs of others and fairness.

ConsequencesConsequences

When the stakes are higher,doing the right thing is harder.

Consequences to UCSBConsequences to UCSB Public Trust

– Stakeholders Taxpayers Donors Funding Agencies Parents Students

Public Image Loss of Funding Perception of Department or Organization Criminal or Civil Investigation

Areas of ConcernAreas of Concern

Travel Conflict of Interest Personal Use of Goods, Services and Staff

Resources Hiring/Staffing Practices

TravelTravel

Taking the maximum daily meal allowance

Meal reimbursement even though meals were provided as part of cost of event

Purchase airline tickets from a carrier that offers free miles even though the fare might be higher than another carrier

Conflict of InterestConflict of Interest

Personal gain or gain for friend/relative Accepting gifts from vendors Hiring friend/relative as an employee or

contractor

Personal Use of GoodsPersonal Use of Goodsand Servicesand Services Office supply cabinets University equipment/vehicles Computing resources

UCSB

Personal Use of StaffPersonal Use of Staff

Asking clerical assistance for external committee involvement

Asking someone to order flowers for a friend

Asking someone to make personal travel arrangements while they are making business travel arrangements

Hiring/Staffing PracticesHiring/Staffing Practices

Falsifying hours worked, timekeeping Allowing a limited appointment FTE to work

even though their paperwork has not been formally processed/approved

Misrepresenting work performance on performance evaluation

Not communicating work performance issues to employee

Making the Right Choice: Making the Right Choice: How Can You Be Sure?How Can You Be Sure? Listen for the bells warning you are on

“thin ethical ice”– “Well, maybe just this once”– “No one will ever know”– “It sounds too good to be true”– “Everyone does it”– “Audit will never catch it”– “We have always done it this way”

1Lockheed Martin: Code of Ethics and Business Conduct, July 19992 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Making the Right Choice: Making the Right Choice: How Can You Be Sure?How Can You Be Sure? Ask yourself - are my actions legal? Check to see if there are regulations or

rules which restrict your choices Will I sleep soundly tonight? How will your decision look in the News-

Press? To your family?

1Lockheed Martin: Code of Ethics and Business Conduct, July 19992 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Tools for Decision MakingTools for Decision Making

What would a reasonable person do, or how would they perceive your decision?

Think of someone whose moral judgment you respect - what would that person do?

How would my family perceive my actions? Policy Compliance Evaluate the options, issues, and consequences If you are uncertain, talk with someone you trust,

or a campus resource, e.g. Ombuds

2 © 2000 Josephson Institute of Ethics - Reprinted with permission.

Tools for RespondingTools for Responding

How do you respond to someone who asks you to do something that you think is inappropriate, unethical and/or a violation of UC Policy?– Share your concerns– Use University policy– Offer alternatives, options– Seek advice– UC Standards of Ethical Conduct

UC Standards of Ethical Conduct UC Standards of Ethical Conduct

Statement of UC’s belief in ethical, legal and professional behavior in all of our dealings inside and outside the University.

Statement of Ethical Values:– Integrity– Excellence– Accountability– Respect

UC Standards of Ethical ConductUC Standards of Ethical Conduct– Fair Dealing – Individual

Responsibility and Accountability

– Respect for Others– Compliance with

Applicable Laws, Regulations, University Policies, Procedures and Other Forms of Guidance

– Conflicts of Interest or Commitment

– Ethical Conduct of Research

– Records: Confidentiality/ Privacy and Access

– Internal Controls– Use of University

Resources– Financial Reporting– Reporting Violations

and Protection from Retaliation

UC Standards of Ethical UC Standards of Ethical ConductConduct Recent events involving public review of UC

compensation practices– UCSB’s “climate” for ethical conduct

Policy CompliancePolicy Compliance

Policies exist for a reason Policies protect not only the University but

also the employee– Examples: Hiring of outside contractors,

caterers

Do we follow policy only to avoid audit issues, or do we follow policy because it is the right thing to do?

PerceptionPerception

Often times, perception is just as bad as the real thing.

Even if something is allowed, should you do it?

Real Life SituationsReal Life Situations

What are the options? What are the issues? What are the consequences? What is the right thing to do?

Discussion Item #1Discussion Item #1

Your chair asks you to purchase software for her personal use using the University contract. By using the contract, she will benefit from the University discount. The chair plans to pay the department back. Is this ok?

Discussion Item #2Discussion Item #2

A faculty member’s award will run out in June, so she asks you to pay a student in June for time the student will work in the summer. What do you do?

Discussion Item #3Discussion Item #3

A career employee is hired on September 1, and lives paycheck to paycheck. For the December holidays he wants to be with his aged father who lives on the east coast, but he is short eight hours of vacation time. What do you do?

Role of the Business OfficerRole of the Business Officer

Faculty/Staff rely on you to explain the rule/policy– Be able to say no and explain why

Ethical leadership– Be the example, not the exception– “Ethics are what you would you do, if you were

sure no one would see you.”1 Let someone know Be consistent

1Larry Hubbard & Associates, “Ethical Risks - What You Don’t Know Can Hurt You”

Campus ResourcesCampus Resources Department Chair Control Point Audit & Advisory Services Accounting Services & Controls Policy Office of the Ombuds Whistleblower Policy

Office of the OmbudsOffice of the Ombuds Confidential, informal, independent, and

neutral resource. Provides informal and private consultation. Helps with identifying options to

effectively address a complaint, dispute, or conflict.

Safe, confidential, and impartial.

Questions?Questions?