General title

Ethics & Ethical

Dilemmas

Evelyn A. Brown, CGFM — Retired

AGA 2011-2012 National Presidentt

Official Definition of Ethics g?

From the Greek word Ethikos (theory of living),

translated as ethos.

Principles or standards of human conduct,

sometimes called morals. Although every culture has developed an ethics of its

own, my comments will be confined to that of Western civilization.

Principles of conduct: (With the history of ethics there are 3)

Happiness or pleasure;

Duty, virtue, or obligation; and

Perfection, the fullest harmonious development

of human potential. (Source: Funk & Wagnall’s new encyclopedia)

Webster’s dictionary: Discipline dealing with what is

good and bad, with moral duty and obligation.

Chief Justice Potter Stewart said it best: Knowing the difference between what you have a right to do

and what is right to do.

History of Ethics

Ancient civilizations — Religion played a role in

the behavior of groups and the individual.

China — The maxims of Confucius were accepted

as a moral code. Egyptians, Sumerians, etc., had

maxims and precepts handed down by secular

leaders.

In the 5th

Century BC, Greek philosophers known

as Sophists, who taught rhetoric, logic, and civil

affairs, were skeptical of moral absolutes. To the

Sophists, human judgment is valid only for

oneself.

late 1980s with failed S&L crisis saw ethics elevated; politicians’ behavior

questioned, and the ethical failures of Enron, WorldCom, etc.

By the late 1990s and early 2000s, it was time to re-

evaluate the role of ethics. The nations concern was heightened about the state of

corporations and govt. leadership and really made govt. and public revaluate the role

of ethics in our everyday lives.

Morals v. Honesty v. Ethics

Morals imply conformity to established sanctioned

codes of accepted notions of right or wrongdoing.

Honesty – what’s really happening in a particular

situation.

Truthfulness is evidence of honesty, but the

truth can differ from person to person.

What does truthfulness depend upon? Your

vantage point. (Example: auto accident or slip and fall in store)

Ethics suggests involvement of more difficult or

subtle questions of rightness, fairness or equity.

Understanding of Ethics – Thinking, understanding &

making judgments (about fairness & common sense)

More on the Terminology

Ethics can be taught. Honesty is what you

have as part of your core behavior

Is there a difference between the truth, the

whole truth and nothing but the truth?

Truth is relative.

Ethics – is about morals, values, honesty,

fairness, rules and regulations as well as

organizational policy. The first 4 emanate from the individual,

the last 2 come from the organization.

YOU as the individual are in control of your

personal ethics

Who controls your personal

ethics?

Observation of unethical behavior in the

workplace. What can you do and what

should you do? Reasonableness vs emotion. Should you talk to the

person? Does it depend on the circumstances? (Example– timekeeper)

Present day ethical standards – customs or

unwritten practices

Golden Rule – as written in bible but may

be ignored. (Example – cutting the line & waiting your turn)

Do you think that ethics mirror a

society’s moral beliefs?

Establishing Professional Ethics

Professional groups – why do groups such

as AGA, AMA, and ABA establish specific

ethical standards? (Operate efficiently/supplement or implement

standards of society.

AGA Ethics Handbook – framework for its members

and non-members to exercise the highest standards of professionalism and personal

conduct to best serve the public interest.

What is the importance of ethics to you?

In our professional association, we consider it so important that

we have an

AGA Ethics Board, CGFM Exam 1, Governmental Environment, is extensively

devoted to ethics.

Pendulum swing - full integration in teaching and examinations (AICPA and State

societies changed) degree of emphasis that the profession places on ethics.

Colleges and universities – moved from separate courses to incorporating

ethics in the FM curriculum. WE have moved from separate. Our professional exams, wide swings as well.

Principles of Professional Ethics (Example) Years ago, the AICPA and the STATE societies – required successful candidates to

pass a separate section on ethics. Later decided that questions on ethics could be

incorporated in various parts of the exam.

Impartiality/objectivity

Openness/full disclosure

Confidentiality

Due diligence/duty of care

Fidelity to professional responsibilities

Avoiding potential or apparent conflict of

interest

Professional Ethics Questions

Is there an ethics issue if you have

corporate stock in the same firm while

being a decision maker in your

organization?

Forensic accounting and auditing –

emphasis on ethics is paramount. Why?

(Recent developments within the profession, newly emerging disciplines)

Professional judgment, personal values and

ethics. Sometimes rebounds/even ones family background has a great influence

on ones values and ethics.

Is there a book or treatise with all of the

answers on ethical dilemmas you will face?

Who do you consult when faced

with ethical dilemmas? We have certain safeguards and aids (you can pick up the phone and call your

AGA colleagues (see if they have similar issues or situations.

Office of Inspector General (OIG) or Ethics

officer (within your organization provided you are comfortable doing that)

Office of Government Ethics (OGE)

US Government Accountability Office (GAO)

Impartiality – major asset

(1) Expands your contacts/helps you navigate the waters/broader reach so that you are

not left hanging out on a limb by yourself.

Why a Code of Ethics?

Code of Ethics and professional standards

are the hallmarks of the profession.

Accounting, auditing, medical profession,

architectural profession, etc. – look at cost

of liability insurance. (for those of you in these professions and if

you really want to make it cogent.

Question – are there any lawyers in the

room? Why is the ethics officer oftentimes a lawyer? Why do we associate ethics

with lawyers?

Why important – Government of Laws.

(some say ethics is “squishy”).

Ethical Dilemmas

Do you sometimes overlook transgressions,

bending the rule to help a colleague,

overlooking information that may be

damaging?

Too busy – not focused sometimes

Back to basics – Ethics is about

Relationships,

Well-informed conscience,

Being true to the idea of who we are and

what we stand for, and

Having the courage to explore difficult

questions and accepting the costs

(accountability and responsibility)

Things to Remember about Ethics

Ethics is about how we lead and live our

lives personally and professionally.

You will not get all the answers that you

need in any book as you traverse your

professional journey.

Watch your habits, they become your

character

Watch it because your character becomes

your destiny

Reputation is who they think you are.

Character is who you really are.

Further Thoughts on Ethics

Advice: If you are new to an organization

what is the first thing you should do?

(My boss knew I was in a jungle. Asked me who I was having lunch with. He said she is

ok. Lesson Learned: Choose your associates carefully.

Questions to ask yourself: Why should

anyone want to lead you? And why should

anyone want to be led by you?

(In managing programs and staff, remember the 5 Es (They’re explained in the Yellow

Book)

Remember the 5 E’s — Economy, efficiency,

effectiveness, ethics and equity

Can you direct the wind?

Ethical Problems in Real Life

Auditing – grants – unauthorized expenditures

Agency – augmentation of appropriations

Acceptance of gifts

Misuse of government property

Hatch Act – prohibition of federal employees from

engaging in partisan political activity at any level of

government (this applies to State and Local offices

too).

Privacy Act - Unauthorized disclosure of information

related to your work that has not been cleared

through the chain of command

Post Employment Violations: Please check with

OGE or your agency’s ethics office.

Final Thoughts

The quality, not the longevity, of one’s life is what is

important.

A genuine leader is not a searcher for consensus but a

molder of consensus. — Dr. Martin Luther King, Jr.

A man can’t ride your back unless it’s bent.

We may all have come on different ships but we’re in the

same boat now.

Public service is a Public Trust. You want people in public

who are not only capable, but who have a well-developed

sense of right and wrong. You want people with energy and

empathy for others, and you want people who are more

concerned about the public good than personal gain.

— David M. Walker, Comptroller General of the United States,

April 3, 2005

General paragraph

AGA is the Thought

Leader in Advancing

Government

Accountability and

Transparency

www.agacgfm.org