When Corporate Culture Makes You Cringe Why Today`s Emphasis

When Corporate Culture Makes You
Cringe
Common and Not-So-Common Mistakes
When Building a Corporate Culture
Ed Petry, Ethical Leadership Group
SCCE, September, 2007
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
1
Why Today’s Emphasis on
Corporate Culture?
The DOJ’s H/T/M Memo - indicting a company
may be necessary “to be a force for positive change
of corporate culture”
SEC - emphasized “that firms need to create a culture
of compliance….”
Guidelines - “promote an organizational culture that
encourages ethical conduct and a commitment to
compliance with the law.”
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
2
1
Why Today’s Emphasis on
Corporate Culture?
•
Culture trumps compliance
•
Culture is the chief factor in determining the
effectiveness of your ethics and compliance
program
Q: How Was Culture Incorporated into The
Guidelines? - Key Factors …
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
3
Key Factors
Impact on Ethics Program

Whether there is consistency and clarity regarding
the limits of acceptable behavior.

The extent to which the Board and all managers act
in accordance with their responsibilities to build
and sustain a commitment to ethics.

Whether ethics or even legal requirements – or the
people responsible for them at a company – are
marginalized.
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
4
2
Key Factors
Impact on Ethics Program

Whether performance goals and incentives
encourage and put unreasonable pressure on
employees to act contrary to ethics standards.

The ease with which employees can ask questions
or raise concerns.

Whether bad conduct is tolerated – especially at the
senior level.
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
5
Key Factors
Impact on Ethics Program

Is the ethics/compliance message actually
reaching employees?

Do employees believe that it is possible to behave
ethically and achieve objectives at the company?

Do employees understand and trust the upward
communications channels available to them?
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
6
3
Your Role

Identify Existing Corporate Culture (s)

Assess Cultures with Respect to Risk

Implement Plan to Build, Revise Culture to
Support Ethical Decision-making and the
Ethics and Compliance Program
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
7
“One Bank”
B of A and MBNA
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
8
4
Common and Not-So-Common
Mistakes
How Does This Happen?
•
Lack of Perspective
•
Strong Desire to Fit-In
•
No One Tells the Emperor …
•
Dissent Discouraged – “That’s Not How We Do
Things Here”
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
9
Common and Not-So-Common
Mistakes
Warning Signs:

Is Your Culture Only Understood by Insiders?

Best Kept Private?

Pass the Spouse Test?

Has it Driven Employees Underground?
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
10
5
Common and Not-So-Common
Mistakes
Well Intentioned, Yet Cringe-Worthy
A Case Study

Improve Customer Service
Encourage Empathy
Day-Long Values Training
Empathy
Listening Skills
Self-Awareness, Root Out “Negativity”
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
11
Common and Not-So-Common
Mistakes
Positives:

Demonstrated Company Commitment

Created a Common Language

Raised Awareness and Values-Literacy
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
12
6
Common and Not-So-Common
Mistakes
Negatives:

Created “Company-Speak”, Insiders/Outsiders

Driven Many (?) Employees Underground

Gave Senior Leadership False Sense of Security

Marginalized the Ethics Program
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
13
Common and Not-So-Common
Mistakes
Imposed, Top Down, Insiders’ (Narrow) View
One Size Fits All
Not Risk-Based
Supporting Ethics Not Part of Design
Identifies Values and Culture with Emotions
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
14
7
Common and Not-SoCommon Mistakes
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
15
Moving Ahead
Describe, Assess, Improve
Preliminary Assumptions
Identifying and Describing
The Survey Problem
Build a Culture that Supports Ethical Decisions and
Supports the Ethics Program
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
16
8
Preliminary Assumptions

Don’t Assume You Already Know
More than a Slogan, May Not be Captured
by Your Values
Recognize Multiple Sub-cultures:

Senior Leadership
Regional
Acquisitions
Business Units, Functional Areas
Generational
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
17
Look for Cultural Drivers
Cast a Wide Net:

Written and Unwritten Rules
History
CSR, Philanthropy
Traditions, Folklore and the “Grapevine”
Customs and Routines
Perceptions Beyond Employees
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
18
9
Look for Cultural Drivers
Cast a Wide Net:

What Does Senior Leadership Say
What Do Others Hear, Especially Middle
Managers
Mixed Messages, Perks and “the little
things”
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
19
Look for Cultural Drivers
Cast a Wide Net:

HR Practices

Recruiting Material
Exit and Entrance Interviews
Incentives
Performance Reviews
Discipline
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
20
10
Some Red Flags for Us…

Leaders “unavailable” to meet with us
Poor attendance, arrive late/leave
early, or poor attention at focus group
meetings
No questions, no curiosity
Secrets, “elephants in the room”
Employees lingering or returning “to
chat”
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
21
A Caution: Internal Surveys

The More Demographics the Less Reliable

Leading Questions “Do You Know that You
Can call Anonymously…”

Survey Fatigue

Manipulation/Preparation
“We Know What answers we need to have…”
Worse when Used in Performance Reviews

Conflict Avoidance
“The wrong answers mean more training, more
attention”
“I don’t want to get anyone in trouble”

Describe your Culture and Subcultures
Maintain Broad Perspective
Integrate with Risk Assessment
Periodically Reassess
Build a Culture that is Understood by All to
be a Strategic, Business Asset and that
Supports Ethics
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
24
12
Questions?
Copyright 2007, Ethical Leadership Group All rights reserved. May be used only under license
25
13

Download Report

When Corporate Culture Makes You Cringe Why Today`s Emphasis

Paperzz.com

Your Paperzz