Honor Codes
From Honorable Intentions to Honorable Behavior
Catherine Finamore Henry, MBA, CIA
Society of Corporate Compliance and Ethics
6500 Barrie Road, Suite 250, Minneapolis, MN 55435, United States
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Definition
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An honor code is a set of ideals governing a group. It is based on
what constitutes honorable behavior among group members. The
use of an honor code depends on the idea that people within the
group can be trusted to act honorably.
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The Connection
Compliance
Honor
Doing things right
Ethics
Ethics
Doing the right thing
Compliance
Honor
Looking for the right thing to do
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Honorable Intentions
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The Dark Side
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Ethical misconduct is high and back at pre-Enron levels.
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More than half of all employees report personally observing
misconduct.
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Employees are fearful of retaliation.
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Employees are skeptical.
•
Strong ethical cultures are seen in only nine percent of companies.
Source: Ethics Resource Center
2007 National Business Ethics Survey
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The Bright Side
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Ethics and compliance programs matter if well-implemented.*
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Strong ethical cultures + well-implemented programs decrease
risks.*
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Values-driven individuals are most successful.
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Values-driven companies are most successful.
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Cultural capital is the new frontier of competitive advantage.
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The culture of an organization reflects the values of its leaders.
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Culture can be measured.
*Source: Ethics Resource Center
2007 National Business Ethics Survey
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Honor Codes and Culture
Honor Codes drive aspirational behavior to:
•
Improve group performance
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Build community responsibility
•
Create a culture that prevents problems
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Discussion
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What values or qualities symbolize HONOR to you?
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Background
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Citizen Honor Codes
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Military Honor Codes
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Academic Honor Codes
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Athletic Team Honor Codes
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Citizen Honor Code (250 BC)
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Greek Honor Code
– Prowess in battle (prowess=bravery, skill, valor)
– Ability to speak eloquently and convincingly
– Duty to family and community
– Kindness to supplicants
– Honor the gods
– Loyalty to friends and fellow soldiers
– Recognition as an honorable warrior
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Military Honor Codes
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Evolved in response military needs
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Multiple Objectives
– Discipline and unity
– Civilian trust
– Psychology
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Woven into the Fiber of the Culture
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Military Honor Codes
•
Bushido (1000AD)
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Chivalry (1200 AD)
– Rectitude
– Courage
– Courage
– Justice
– Benevolence
– Mercy
– Respect
– Generosity
– Sincerity
– Faith
– Glory
– Nobility
– Loyalty
– Hope
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Military Honor Codes - Common Fundamental Values
Military Honor Code Value Propositions
Bushido
Chivalry
US Army
Rectitude
Justice
Honor
Courage
Courage
Courage
Loyalty
Faith
Loyalty
Sincerity
Nobility
Integrity
Generosity
Service
Respect
Respect
Sincerity
Nobility
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Military Honor Codes: Hallmarks and Outcomes
Hallmarks
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Universal value propositions
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Community policing
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Trust
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Public Relations
Outcomes
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Low crime rate
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High public confidence rating
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Academic Honor Codes
Academic Honor Codes are:
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Primarily focused on academic integrity
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Written as a commitment statement, not a commandment
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Affirmed publicly
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Peer enforced
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Academic Honor Codes
US Jeffersonian Codes
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College of William and Mary, 1736
– “[S]pecial care must be taken of their morals, that none of the Scholars
presume to tell a Lie…or do anything else that is contrary to good
Manners.”
•
University of Virginia, 1842
– “I do hereby certify on my honor that I have derived no assistance
during the time of this examination from any source whatsoever.”
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Princeton University
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At Matriculation: “I understand and will abide by the conditions under
which the honor system is conducted.”
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On Papers: “This paper represents my own work in accordance with
University regulations.”
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On Exams: “I pledge my honor that I have not violated the honor
code during this examination.”
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Academic Honor Code Enforcement and Outcome
Enforcement
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Student Councils
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Range of Consequences
– Reprimand
– Expulsion
– F* (pronounced “f star)
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Learning Experience
– Offender and Community
Outcome
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Reduced cheating
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Athletic Honor Codes
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Tight curfews
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High academic standards
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Rules of public conduct
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Training rules
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Singing the alma mater
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Walking arm in arm
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Acknowledgement of breaches
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Proposition
Organizational Honor Codes will drive aspirational behavior to:
•
Improve group performance
•
Build responsibility and accountability
•
Create a culture that prevents problems
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A Comparison of Codes
Codes of Conduct
Honor Codes
Focus on behavior that must be
avoided
Focus on aspirational behavior
Handed down to employees by
executive management
Developed cooperatively by
individuals who will subscribe
Require strict adherence to the
letter of the law
Embrace and promote the letter
of the law
Enforced by high level authority
through discipline
Enforced by peer group
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Discussion
What are honorable corporate values?
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Organizational Honor Codes: Hallmarks
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Local Ownership
– Function
– Department
– Office
– Division
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Early Intervention and Community remediation
– Peer evaluations
– Reviews (Honor Council or Ethics Council)
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Translation into Corporate Environment
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Not for every situation
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Foundation must be in place
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Corporate culture must be ready
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Program Development Levels
Sustainability
Development Levels
Transformation
for
Foundation
Compliance & Ethics
Programs
Foundation
Foundation level programs set the basis for establishing a healthy organizational culture and preventing, detecting
and resolving legal and regulatory compliance violations. The behavioral focus is on compliance and the business
focus is on the organization (people, profit & process).
Transformation
Transformation level programs support a shift from a compliance focus to a compliance and ethics focus. The
behavioral focus is on compliance and ethics promoted by values-based leadership. The business focus is on the
organization and primary stakeholders (customers, suppliers, investors/financiers, communities in operating area).
Sustainability
Sustainability level programs foster aspirational behavior and contribute to the organization’s continued success.
The behavioral focus is on compliance, ethics and honor, collaboration and meaning - all promoted by valuesbased leadership. The business focus is on the organization, primary stakeholders and secondary stakeholders
(special interest groups, media, government, competitors, consumer advocates, global society).
©2008 SmartPros Legal & Ethics, Ltd.
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Tips
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Make sure the organization is ready
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Do not develop the Honor Code under pressure
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Identify common values among group members
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Identify group behaviors that constrain performance
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Identify behaviors that strengthen performance
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Write specific, enforceable rules
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When someone breaches the code, “call it”
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Sample Honor Code
Shared Values
Code
•Accountability
1. Be loyal to the group.
•Home/work balance
2. Share all proposals.
•Cooperation
3. Ask for help, share the credit.
•Efficiency
4. Lend a hand to help teammates.
•Loyalty
5. Be on time for all meetings.
6. Own your actions, don’t place
blame on others.
7. Acknowledge breaches in the
code.
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Questions
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