Success Through Ethics PDF

Success through Ethics: Business Integrity as Profiled by a Retired FBI Agent FBI SPECIAL AGENT JEFF LANZA (RETIRED) 1988 © 2015 Communication Dynamics, LLC 2 Leadership Ethics: How Professionals Can Ensure a Future of Success with Integrity 1 2 3 Introduction The Criminal Landscape Why Good P...

Success through Ethics: Business Integrity as Profiled by a Retired FBI Agent FBI SPECIAL AGENT JEFF LANZA (RETIRED) 1988 © 2015 Communication Dynamics, LLC 2 Leadership Ethics: How Professionals Can Ensure a Future of Success with Integrity 1 2 3 Introduction The Criminal Landscape Why Good People Go Bad © 2015 Communication Dynamics, LLC 3 1 Leadership Ethics: How Professionals Can Ensure a Future of Success with Integrity 4 5 6 Possible Solutions Hiring Ethical People Ensuring Integrity © 2015 Communication Dynamics, LLC 4 Leadership Ethics: How Professionals Can Ensure a Future of Success with Integrity 4 5 6 Possible Solutions Hiring Ethical People Ensuring Integrity © 2015 Communication Dynamics, LLC 5 © 2015 Communication Dynamics, LLC 6 2 The Criminal Landscape © 2015 Communication Dynamics, LLC 7 L I S T © 2015 Communication Dynamics, LLC 8 L EADERS IN S UITS T ESTIFYING © 2015 Communication Dynamics, LLC 9 3 Home Mortgage © 2015 Communication Dynamics, LLC 10 Investment Banking © 2015 Communication Dynamics, LLC 11 Hedge Funds © 2015 Communication Dynamics, LLC 12 4 Automobiles © 2015 Communication Dynamics, LLC 13 Oil © 2015 Communication Dynamics, LLC 14 “I can’t perform a ‘Jedi mind meld’ to get Republicans to agree on a deal.” —President Obama © 2015 Communication Dynamics, LLC 15 5 FBI Current Cases 17,000 White Collar Crimes Characterized by deceit, concealment, or violation of trust © 2015 Communication Dynamics, LLC 16 Anthony Marshall © 2015 Communication Dynamics, LLC 17 © 2015 Communication Dynamics, LLC 18 6 “For the love of money People will steal from their mother.” - The O'Jays (For The Love of Money) © 2015 Communication Dynamics, LLC 19 Galleon Group October 2009 Arrested by FBI May, 2011 Found guilty on 14 counts Raj Rajaratnam Ten phone lines October, 2011 Sentenced to 11 years in prison 550 different people 18,150 wiretapped communications © 2015 Communication Dynamics, LLC 20 Telephone Call August 15, 2008 Raj Raj: Topic: Abu Dhabi’s investment of $ 8.4 Billion in AMD Anil Kumar Hello Anil: Hey Raj. Raj: Yea hi Anil. Anil: Hi. So yesterday they agreed on or at least they’ve shaken hands and said they’re going ahead with the deal. © 2015 Communication Dynamics, LLC 21 7 October 8, 2008 AMD and Advanced Technology Investment Co., a recently formed investment firm owned by Abu Dhabi’s government, Tuesday said they will become joint owners in a new company that will take over AMD’s factories in Germany. The firm will make a $1.4 billion initial investment in the new venture, temporarily called Foundry Co., and make a $700 million payment to AMD for its share of the new company’s assets. © 2015 Communication Dynamics, LLC 22 Vincent Tabone Former New York Assemblyman Accepted a $25,000 Bribe © 2015 Communication Dynamics, LLC 23 © 2015 Communication Dynamics, LLC 24 8 © 2015 Communication Dynamics, LLC 25 © 2015 Communication Dynamics, LLC 26 “fake income” “cooking the books” “accounting tricks” “clueless auditor” © 2015 Communication Dynamics, LLC 27 9 The New York Times, August 3, 2014 Sharon Sloane, CEO Will Interactive “I have noticed a lot more ethical misconduct and loss of integrity among people we do business with…people not living up to contract terms, or misrepresenting their roles or intentions. People I know in all kinds of different businesses are saying the same thing.” © 2015 Communication Dynamics, LLC 28 A Gallup Poll in 2013 asked: How do you rate the honesty and ethical standards of people in these different fields – very high, high, average, low or very low? © 2015 Communication Dynamics, LLC 29 Percentage of People Rating High or Very High 12% Stockbrokers 9% Car Sales People 8% Telemarketers 8% Congress 6% Lobbyists © 2015 Communication Dynamics, LLC 30 10 52% Clergy 43% Accountants 26% Journalists 19% Lawyers 18% Business Executives © 2015 Communication Dynamics, LLC 31 84% Nurses 73% Pharmacists 70% Medical Doctors 62% High School Teachers 54% Police Officers © 2015 Communication Dynamics, LLC 32 Criminal Intelligence © 2015 Communication Dynamics, LLC 33 11 Intelligences Abstract thought Communication Emotional intelligence Visual processing Knowledge Problem solving Creativity Learning Memory Reaction time Reasoning Understanding © 2015 Communication Dynamics, LLC 34 Epidemic # 1 1930’s - Hoodlums © 2015 Communication Dynamics, LLC 35 The fill-in-the-blank ransom note © 2015 Communication Dynamics, LLC 36 12 The fill-in-the-blank ransom note Do not notify police, if you do, and they start making it hot for us, you will never see________alive again. © 2015 Communication Dynamics, LLC 37 The fill-in-the-blank ransom note Do not notify police, if you do, and they start making it hot for us, you will never see________alive again. We are holding _________ for Sixty Thousand Dollars. © 2015 Communication Dynamics, LLC 38 © 2015 Communication Dynamics, LLC 39 13 Al Capone Eddie O’Hare © 2015 Communication Dynamics, LLC 40 Orchard Depot Airport O’Hare Airport Butch O’Hare © 2015 Communication Dynamics, LLC 41 Epidemic # 2 1980’s - Mobsters © 2015 Communication Dynamics, LLC 42 14 © 2015 Communication Dynamics, LLC 43 © 2015 Communication Dynamics, LLC 44 © 2015 Communication Dynamics, LLC 45 15 Visitors to Las Vegas in 1945 - 34 Visitors to Las Vegas in 2013 - 34 Million © 2015 Communication Dynamics, LLC 46 © 2015 Communication Dynamics, LLC 47 © 2015 Communication Dynamics, LLC 48 16 © 2015 Communication Dynamics, LLC 49 © 2015 Communication Dynamics, LLC 50 Epidemic # 3 Today – White Collar Crime Jefferson City, Missouri © 2015 Communication Dynamics, LLC 51 17 © 2015 Communication Dynamics, LLC 52 1988 © 2015 Communication Dynamics, LLC 53 Kansas City Corruption © 2015 Communication Dynamics, LLC 54 18 Kansas City Corruption “…could lead voters to think less of politicians.” © 2015 Communication Dynamics, LLC 55 Kansas City Corruption © 2015 Communication Dynamics, LLC 56 Nature or Nurture? © 2015 Communication Dynamics, LLC 57 19 James “Whitey” Bulger Notorious Mob Boss William Bulger President University of Massachusetts © 2015 Communication Dynamics, LLC 58 © 2015 Communication Dynamics, LLC 59 “Habitual patterns of criminality arise from association with those who commit crime rather than with those who do not commit crime.” —Edwin Sutherland © 2015 Communication Dynamics, LLC 60 20 Ex-Pharmacist Robert Courtney Owned and Operated Research Medical Center Pharmacy Kansas City, Missouri © 2015 Communication Dynamics, LLC 61 Courtney admits guilt and apologizes to victims “I’ve had a long period of time while confined in isolation to reflect on my conduct, asking myself, ‘Why?’ Why did I commit these inordinate crimes, …no rational explanation for this conduct. There is no rational explanation.” —Robert Courtney, in a statement to the court on Feb. 26, 2002 © 2015 Communication Dynamics, LLC 62 Why Good People Go Bad © 2015 Communication Dynamics, LLC 63 21 HOW IT HAPPENS 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 64 Highest Paid CEO (adj. for inflation) 1998 $ 1,200,000,000 1988 $ 77,000,000 1978 $ 10,000,000 1968 $ 5,200,000 1948 $ 4,700,000 © 2015 Communication Dynamics, LLC 65 © 2015 Communication Dynamics, LLC 66 22 Ken Lay $ 12,000,000 Penthouse in Houston Twelve Homes Four Properties In Aspen, Colorado Median listing price: $ 4,229,558 © 2015 Communication Dynamics, LLC 67 Ken Lay’s Income $ 200,000,000 1998 - 2000 © 2015 Communication Dynamics, LLC 68 Short Term Perspective Andrew Fastow © 2015 Communication Dynamics, LLC Bernie Ebbers 69 23 Ken Rice (Pres. of Enron Broadband) When EBS was going to miss its earnings targets for the first quarter of 2001, Rice testified that the division took "one more hit of crack cocaine" by booking future revenue immediately. “I felt we were so addicted to quarterly earnings, we were selling our future earnings potential to make the numbers.” © 2015 Communication Dynamics, LLC 70 Short Term Perspective Andrew Fastow Bernie Ebbers Nancy Temple Dave Duncan The Auditor © 2015 Communication Dynamics, LLC 71 November 2001 © 2015 Communication Dynamics, LLC 72 24 November 2002 © 2015 Communication Dynamics, LLC 73 FBI Current Cases 17,000 White Collar Crimes 726 Corporate Fraud © 2015 Communication Dynamics, LLC 74 The Wall Street Journal June 19, 2014 © 2015 Communication Dynamics, LLC 75 25 Culture 1. Resistance to Raising Issues Some witnesses said that there was resistance or reluctance to raise issues or concerns in the GM culture and suggested a fear of retaliation. Some witnesses provided examples where culture, atmosphere, and the response of supervisors may have discouraged individuals from raising safety concerns. © 2015 Communication Dynamics, LLC 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture 76 © 2015 Communication Dynamics, LLC 77 © 2015 Communication Dynamics, LLC 78 26 © 2015 Communication Dynamics, LLC 79 © 2015 Communication Dynamics, LLC 80 Tom Hanks © 2015 Communication Dynamics, LLC 81 27 “I trusted her totally.” © 2015 Communication Dynamics, LLC 82 “She was a trusted employee. She was darn near a member of the family.” —Company Attorney © 2015 Communication Dynamics, LLC 83 Rita Crundwell, City Comptroller Dixon, Illinois © 2015 Communication Dynamics, LLC 84 28 How did it get started? Why wasn’t it enough? © 2015 Communication Dynamics, LLC 85 “I knew what I was doing was wrong, indeed criminal. When I began the Ponzi scheme, I believed it would end shortly and I would be able to extricate myself and my clients.” —Bernie Madoff © 2015 Communication Dynamics, LLC 86 Stephen DiCarmine Regarding a $150 million debt offering: “They always intended to pay back the firm’s lenders and bond investors.” Steven Davis Dewey & LeBoeuf Executives © 2015 Communication Dynamics, LLC “They did not understand complex, arcane and nuanced accounting rules. “They lacked the intent to deprive the law firm’s creditors of their money.” 87 29 Psychology of Fraud – Notre Dame Study Ethical Frame Business Frame Made ethical choices Significantly more likely to lie Cognitively activates one set of goals – to be competent, successful and focused. © 2015 Communication Dynamics, LLC 88 When does 17,000 = 343,000 ? George Young and Kathleen McConnell defrauded bankers and ranchers in a $160 million cattle scam. Coordinated bank audit led to bankruptcy filing and criminal investigation. © 2015 Communication Dynamics, LLC 89 Jeb Magruder Special Assistant to President Richard Nixon © 2015 Communication Dynamics, LLC 90 30 Watergate Defendant Chuck Colson: “I learned one thing in Watergate: It was rationalized illegal behavior.” © 2015 Communication Dynamics, LLC 91 Graduated magna cum laude from Harvard Law School Edited the Law Review U.S. Supreme Court Clerk The Honorable Patrick J. Schiltz, U.S. District Court, District of Minnesota Law firm partner Faculty member at Notre Dame Law School © 2015 Communication Dynamics, LLC 92 “On Being a Happy, Healthy, and Ethical Member of an Unhappy, Unhealthy, and Unethical Profession.” The Honorable Patrick J. Schiltz, U.S. District Court, District of Minnesota “Unethical lawyers do not start out being unethical; they start out just like you--as perfectly decent young men or women who have every intention of practicing law ethically.” © 2015 Communication Dynamics, LLC 93 31 “On Being a Happy, Healthy, and Ethical Member of an Unhappy, Unhealthy, and Unethical Profession.” The Honorable Patrick J. Schiltz, U.S. District Court, District of Minnesota “They do not become unethical overnight; they become unethical just as you will (if you become unethical)--a little bit at a time.” © 2015 Communication Dynamics, LLC 94 “On Being a Happy, Healthy, and Ethical Member of an Unhappy, Unhealthy, and Unethical Profession.” The Honorable Patrick J. Schiltz, U.S. District Court, District of Minnesota “And they “Unethical “They do not do lawyers become not become dounethical not unethical start out overnight; being by shredding unethical; they they startunethical become incriminating out just documents like just you--as as you or bribing will perfectly (ifjurors; youdecent become they young men unethical)--a become unethical orlittle women just bit at as who ayou time.” have are every likely intention to – by of practicing cutting a corner law ethically.” here, by stretching the truth a bit there.” © 2015 Communication Dynamics, LLC 95 Written Confession “I diluted the prescription by 10%.” © 2015 Communication Dynamics, LLC 96 32 Albert Gonzalez Age 14 © 2015 Communication Dynamics, LLC 97 Hacked Into Computers At These Companies © 2015 Communication Dynamics, LLC 98 © 2015 Communication Dynamics, LLC 99 33 The Rationalization: “I just didn’t like what they did. The clothes were poorly made and the employees poorly paid. ” “It is just everything I hate about this country in one store.” © 2015 Communication Dynamics, LLC 100 © 2015 Communication Dynamics, LLC 101 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 102 34 Maslow’s Hierarchy of Needs Self-actualization Esteem Love/Belonging Safety Physiological © 2015 Communication Dynamics, LLC Money 103 Maslow’s Hierarchy of Needs Self-actualization Esteem Love/Belonging Safety Physiological © 2015 Communication Dynamics, LLC 104 “Greed, for lack of a better word, is good.” © 2015 Communication Dynamics, LLC 105 35 “Greed, for lack of a better word, is good.” Gordon Gekko “Wall Street” - 1987 © 2015 Communication Dynamics, LLC 106 Who directed both “Wall Street” movies? a. Ang Lee b. James Cameron c. Oliver Stone d. Quentin Tarantino © 2015 Communication Dynamics, LLC 107 © 2015 Communication Dynamics, LLC 108 36 Jefferson Sachdeva McDonnell © 2015 Communication Dynamics, LLC 109 “A Christmas gift from his wife.” Virginia Gov. Bob McDonnell January 2012 © 2015 Communication Dynamics, LLC Jefferson Sachdeva © 2015 Communication Dynamics, LLC 110 McDonnell Crundwell Ganim 111 37 © 2015 Communication Dynamics, LLC FBI Credential Photo 112 FBI Arrest Photo © 2015 Communication Dynamics, LLC 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 113 114 38 “Everyone is doing it.” — Johan Bruyneel, Postal Service Team Director © 2015 Communication Dynamics, LLC 115 © 2015 Communication Dynamics, LLC 116 April 15, 1983 © 2015 Communication Dynamics, LLC 117 39 Ethical culture in the Missouri State Capitol had eroded © 2015 Communication Dynamics, LLC 118 “I've got this thing and it’s (expletive) golden.” — Illinois Gov. Rod Blagojevich, speaking of U.S. Senate seat vacated by Pres. Obama, 2008 © 2015 Communication Dynamics, LLC 119 “What’s really at the core of our problem isn’t one politician, but this notion of a culture of corruption…we’ve been disappointed so many times.” —Patrick Collins Director of commission to end a pattern of corruption in Illinois © 2015 Communication Dynamics, LLC 120 40 How many Illinois Governors have gone to prison? One Two Four All of them © 2015 Communication Dynamics, LLC 121 Illinois Four Governors 19 Judges 30 Aldermen 1,000 Others Convicted on corruption charges since 1970 Former Governor George Ryan – Released after serving a six-year prison term © 2015 Communication Dynamics, LLC 122 Illinois Secretary of State Paul Powell Top Salary = $ 30,000 per year Found in shoe boxes in his residence when he died: $800,000 © 2015 Communication Dynamics, LLC 123 41 © 2015 Communication Dynamics, LLC 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 124 125 Why is it so hard to come back to the side of the angels? © 2015 Communication Dynamics, LLC 126 42 © 2015 Communication Dynamics, LLC 127 © 2015 Communication Dynamics, LLC 128 © 2015 Communication Dynamics, LLC 129 43 Norwalk, Connecticut – Circa 1973 © 2015 Communication Dynamics, LLC © 2015 Communication Dynamics, LLC 130 131 Possible Solutions © 2015 Communication Dynamics, LLC 132 44 Bernie Kerik © 2015 Communication Dynamics, LLC 133 Judge: “You have a toxic combination of self-minded focus and arrogance.” July 14, 2014 May 17, 2010 © 2015 Communication Dynamics, LLC 134 Possible Solutions 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 135 45 Vision What you want to be. Mission How you are going to get there. © 2015 Communication Dynamics, LLC 136 © 2015 Communication Dynamics, LLC 137 © 2015 Communication Dynamics, LLC 138 46 © 2015 Communication Dynamics, LLC 139 © 2015 Communication Dynamics, LLC 140 Drifting Away From a Vision © 2015 Communication Dynamics, LLC 141 47 Drifting Away From a Vision © 2015 Communication Dynamics, LLC 142 …clear “loosening and chipping” of ethical standards… © 2015 Communication Dynamics, LLC 143 HILTON Hospitality Integrity Leadership Teamwork Ownership Now “To reinforce them, we are constantly referring to the letters—in newsletters, in town halls— almost to the point where we are driving people crazy. But it works.” —Christopher J. Nassetta, President and Chief Executive of Hilton Worldwide © 2015 Communication Dynamics, LLC 144 48 “There are no short cuts to any place worth going.” —Beverly Sills, opera star © 2015 Communication Dynamics, LLC 145 Website April 15, 2010 Our commitment to safe, reliable and responsible operations starts with the group chief executive Tony Hayward and his leadership team: a commitment that filters down through the organization and is regularly communicated to all staff. © 2015 Communication Dynamics, LLC 146 In an e-mail on April 16, 2010, a BP well team leader said: “It will take 10 hours to install them. I do not like this. Who cares, it’s done, end of story, will probably be fine.” © 2015 Communication Dynamics, LLC 147 49 © 2015 Communication Dynamics, LLC 148 Tony Hayward: “There’s no one who wants this over more than I do. I would like my life back.” “It's relatively tiny compared to the very big ocean.” © 2015 Communication Dynamics, LLC 149 Possible Solutions 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 150 50 To Overcome the Power of Self Justification Humility © 2015 Communication Dynamics, LLC 151 “Humility is the solid foundation of all virtues.” —Confucius © 2015 Communication Dynamics, LLC 152 What hedge fund executive made these purchases while his company was under investigation by the FBI for insider trading? Picasso’s “Le Rêve” $155 million © 2015 Communication Dynamics, LLC $ 60 Million 153 51 © 2015 Communication Dynamics, LLC 154 © 2015 Communication Dynamics, LLC 155 EGO Ability to Justify Behavior © 2015 Communication Dynamics, LLC 156 52 © 2015 Communication Dynamics, LLC 157 Humility © 2015 Communication Dynamics, LLC Wilbur Mills Chairman 1957-1975 158 House Ways and Means Committee  Social Security  Medicare  Unemployment Benefits Dan Rostenkowski Chairman 1981-1994 © 2015 Communication Dynamics, LLC Charles Rangel Chairman 2007-2010 159 53 “Memento mori” © 2015 Communication Dynamics, LLC 160 © 2015 Communication Dynamics, LLC 161 © 2015 Communication Dynamics, LLC 162 54 To Overcome the Power of Self Justification Recognition © 2015 Communication Dynamics, LLC 163 The Life Cycle of Lost Integrity 1 Honesty Decent Incorruptible 2 Temptation Problem Greed © 2015 Communication Dynamics, LLC 164 The Life Cycle of Lost Integrity 1 Honesty Decent Incorruptible 2 Temptation Problem Greed © 2015 Communication Dynamics, LLC 165 55 The Life Cycle of Lost Integrity 3 Cross the Line Justification Acceptance 4 Dependency Physical Psychological © 2015 Communication Dynamics, LLC 166 Former New York Times Reporter Jayson Blair “I remember crossing that line and telling myself, ‘Man I am not going to do that again. Tomorrow, I am going back to the side of the angels and I am going to do the things they way they were supposed to be done.’” © 2015 Communication Dynamics, LLC 167 Former New York Times Reporter Jayson Blair “At every moment of potential weakness, or where I felt I couldn’t do something…it was so much easier to jump back over the ethical line.” Dependency © 2015 Communication Dynamics, LLC 168 56 “I started hacking for monetary reasons.” “The service’s salary wasn’t enough and I needed the money. By then I had already created a snowball and had to keep doing it. I wanted to quit but couldn’t.” © 2015 Communication Dynamics, LLC 169 The Life Cycle of Lost Integrity 5 Discovery Obfuscate Cover-up 6 Denial Defiance Blame Another Claim Not Wrong © 2015 Communication Dynamics, LLC 170 The Life Cycle of Lost Integrity 5 Discovery Obfuscate Cover-up 6 Denial Defiance Blame Another Claim Not Wrong © 2015 Communication Dynamics, LLC 171 57 The Life Cycle of Lost Integrity 5 Discovery Obfuscate Cover-up 6 Denial Defiance Blame Another Claim Not Wrong © 2015 Communication Dynamics, LLC 172 The Life Cycle of Lost Integrity 5 Discovery Obfuscate Cover-up 6 Denial Defiance Blame Another Claim Not Wrong © 2015 Communication Dynamics, LLC 173 The Life Cycle of Lost Integrity 5 Discovery Obfuscate Cover-up 6 Denial Defiance Blame Another Claim Not Wrong © 2015 Communication Dynamics, LLC Day 1 174 58 The Life Cycle of Lost Integrity 5 Discovery Obfuscate Cover-up 6 Denial Defiance Blame Another Claim Not Wrong Day 12 © 2015 Communication Dynamics, LLC 175 The Life Cycle of Lost Integrity 7 Conviction Remorse Apologize “What I did was wrong. Period. And oddly enough, I spent the last five days of my life crying in Argentina.” Mark Sanford Former Governor South Carolina © 2015 Communication Dynamics, LLC 176 Possible Solutions 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 177 59 What Do These Three States Have in Common? © 2015 Communication Dynamics, LLC Connecticut Governor New Jersey Governor 178 New York Governor Power Tie © 2015 Communication Dynamics, LLC Connecticut Governor 179 New Jersey Governor New York Governor Power Tie Authority, Power, Passion © 2015 Communication Dynamics, LLC 180 60 Connecticut Governor New Jersey Governor New York Governor Power Tie Authority, Power, Passion “I am in trouble but I am still a powerful person!” © 2015 Communication Dynamics, LLC Connecticut Governor 181 New Jersey Governor New York Governor Light Blue Jacket and Pearls © 2015 Communication Dynamics, LLC Connecticut Governor 182 New Jersey Governor New York Governor Light Blue Jacket and Pearls Dignity, Youth, Integrity © 2015 Communication Dynamics, LLC 183 61 Connecticut Governor New Jersey Governor New York Governor Light Blue Jacket and Pearls Dignity, Youth, Integrity “He’s Guilty…” © 2015 Communication Dynamics, LLC Connecticut Governor 184 New Jersey Governor New York Governor Light Blue Jacket and Pearls Dignity, Youth, Integrity “He’s Guilty…” “I’m NOT!” © 2015 Communication Dynamics, LLC 185 Integrity Affirmation I’m going to: Seek the truth and tell the truth I’m going to: Remind myself of the consequences of my actions I’m going to be: Humble and compassionate © 2015 Communication Dynamics, LLC 186 62 Everybody Has a Bad Day © 2015 Communication Dynamics, LLC 187 Take the High Road © 2015 Communication Dynamics, LLC 188 Surround Yourself With Good People Watergate Defendant Chuck Colson “You cannot live your life other than walking in the truth.” “Your means are as important as your ends.” © 2015 Communication Dynamics, LLC 189 63 Have a Copilot © 2015 Communication Dynamics, LLC 190 Accountability Crisis Began: February 1998 Crisis Began: March 7, 2008 Crisis Ended: Has Not Ended Crisis Ended: March 12, 2008 © 2015 Communication Dynamics, LLC Damage is Done © 2015 Communication Dynamics, LLC 191 Accountability Control Damage Worsen Damage Truthful Untruthfulness Accountability Defensiveness Empathy Cover-up 192 64 Possible Solutions 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 193 Policies and Platitudes: © 2015 Communication Dynamics, LLC 194 Culture Establish a Culture of Ethics and High Integrity Have employees read and sign your standards of conduct on an annual basis. Leaders Must Walk the Walk © 2015 Communication Dynamics, LLC 195 65 Culture Establish a Culture of Ethics and High Integrity STANDARDS OF BUSINESS CONDUCT Leaders Must Walk the Walk © 2015 Communication Dynamics, LLC 196 R I C E © 2015 Communication Dynamics, LLC 197 RESPECT I NTEGRITY COMMUNITY E XCELLENCE © 2015 Communication Dynamics, LLC 198 66 Cynicism An Attitude of Scornful or Jaded Negativity; A Distrust of the Integrity of Others © 2015 Communication Dynamics, LLC 199 The Importance of Culture on an Individual’s Moral Compass © 2015 Communication Dynamics, LLC 200 The Triangle of Fraud Moral Compass Need © 2015 Communication Dynamics, LLC 201 67 © 2015 Communication Dynamics, LLC 202 President of ADM Talking to Biggest Competitor: “We have a saying here at the company that penetrates the whole company. It’s a saying that we, we, ah, Our competitors are our friends. Our customers are the enemy.” © 2015 Communication Dynamics, LLC 203 © 2015 Communication Dynamics, LLC 204 68 Sample Commencement Speeches World 296 life or live 263 job/work/career 243 economy/money 33 war 40 joy/happiness 39 dream/spirit 53 friendship 28 love/passion 118 Integrity - 0 © 2015 Communication Dynamics, LLC © 2015 Communication Dynamics, LLC © 2015 Communication Dynamics, LLC 205 206 207 69 Is it Legal? Is it consistent with company values? Would it look OK in a news story? NO NO Ethics Flow Chart Don’t do it. NO OK © 2015 Communication Dynamics, LLC 208 Hurd Would it look OK in a news story? © 2015 Communication Dynamics, LLC 209 “I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP.” © 2015 Communication Dynamics, LLC 210 70 How to Hire Ethical People © 2015 Communication Dynamics, LLC 211 © 2015 Communication Dynamics, LLC 212 Look for Three Qualities in New Hires Integrity Intelligence Energy © 2015 Communication Dynamics, LLC 213 71 © 2015 Communication Dynamics, LLC 214 A Googley person embodies the values of the company - a willingness to help others, an upbeat attitude, a passion for the company, and the most important, humility. © 2015 Communication Dynamics, LLC 215 Interview Techniques 1 Ask open-ended questions 2 Provide scenarios 3 Use the dead-air technique © 2015 Communication Dynamics, LLC 216 72 Background Investigation  A pre-employment background investigation include checks and verifications in the following areas:  Employment history  Education  Professional accreditation  Military record © 2015 Communication Dynamics, LLC 217 She embezzled more than $543,000 from one employer and admitted that she stole more than $188,000 from a subsequent employer. © 2015 Communication Dynamics, LLC 218 Background Investigation  Also these areas  Arrests  Workplace violence or threatening behavior  Credit history  Motor vehicle record © 2015 Communication Dynamics, LLC 219 73 Detecting Deceit © 2015 Communication Dynamics, LLC 220 The Most Common Lying Gestures Mouth Cover Eye Rub Ear Grab 221 © 2015 Communication Dynamics, LLC The Most Common Lying Gestures The Neck Scratch The Collar Pull © 2015 Communication Dynamics, LLC 222 74 © 2015 Communication Dynamics, LLC 223 The Tight-Lipped Smile Has an opinion or attitude that they are not sharing. © 2015 Communication Dynamics, LLC 224 Ret. FBI Agent Jeff Lanza © 2015 Communication Dynamics, LLC 225 75 Ethics in Cyberspace © 2015 Communication Dynamics, LLC 226 School: “Your demeanor and lack of professional behavior surrounding this event did not exemplify the professional behavior that we expect in the nursing program.” Attorney: She was deprived of due process and nothing in the school’s code of conduct addresses photographs or social media. © 2015 Communication Dynamics, LLC 227 Don’t Rely Only on Technology to Uncover Fraud © 2015 Communication Dynamics, LLC 228 76 Software developed by the FBI and Ernst & Young has revealed the most common words used in email conversations among employees engaged in corporate fraud. Cover up Nobody will find out Write off Grey area Illegal Do not volunteer information Off the books They owe it to me Failed Investment Not ethical © 2015 Communication Dynamics, LLC 229 © 2015 Communication Dynamics, LLC 230 © 2015 Communication Dynamics, LLC 231 77 © 2015 Communication Dynamics, LLC 232 Bernie Madoff Guilty Plea split strike conversion strategy © 2015 Communication Dynamics, LLC American Express noticed that a customer’s personal card account balances were being paid using several large wire transfers originating from a Koss bank account. © 2015 Communication Dynamics, LLC 233 Sujata Sachdeva Former VP of Finance 234 78 Technology Fails! Technology Protects Us! © 2015 Communication Dynamics, LLC 235 What About the People Who See Unethical Activity – But Don’t Do Anything to Stop It? An elementary school teacher was one of seven teachers—nicknamed “the chosen”—who sat in a locked windowless room every afternoon during the week of state testing, raising students’ scores by erasing wrong answers and making them right. Beverly Hall, District Superintendent The American Association of School Administrators named her superintendent of the year in 2009. $500,000 in bonuses © 2015 Communication Dynamics, LLC 236 How to Get Advice or Report Concerns on Ethical Issues Our Code of Ethics addresses the most common issues you might encounter, but it can’t cover everything. If you have questions or need to report concerns of possible violations of the Code, use these resources: © 2015 Communication Dynamics, LLC 237 79 Contact your manager (or higher levels of management, if need be). Contact your Human Resources partner. Call the Ethics Line. Available 24 hours a day, seven days a week, 365 days a year. No method of identifying callers is used, and you may choose to remain anonymous when you call. Use the Ethics Line Web Form. Visitors to the site aren’t tracked, and you may make your submission anonymously, if you wish. © 2015 Communication Dynamics, LLC 238 Do The Right Thing © 2015 Communication Dynamics, LLC 239 ONE YEAR LATER © 2015 Communication Dynamics, LLC 240 80 © 2015 Communication Dynamics, LLC 241 TEN YEARS LATER © 2015 Communication Dynamics, LLC 242 © 2015 Communication Dynamics, LLC 243 81 Summary 1 Short Term Perspective 2 Self Justification 3 Priority Positioning 4 Corporate Culture © 2015 Communication Dynamics, LLC 244 If you have to call the FBI….it’s too late. © 2015 Communication Dynamics, LLC 245 Thank You Jeff Lanza 816-853-3929 [email protected] www.thelanzagroup.com © 2015 Communication Dynamics, LLC 246 82