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June 19, 2006
5 Tips to Help Executives Create an Ethical and Responsible Culture
PHOTO: The Ethical Fork in the Road
“If ugly things can get swept under the rug, they will, which is why it is essential that organizations have a comprehensive system in place for getting out in front of small problems before they become big problems.”
Commented Alice Peterson an expert in ethics and corporate governance.
According to Syrus Global, from Hollinger to Enron, much has been reported about corporate scandals and poor ethical decisions, but the debate continues as to whether the wrongs were caused by a few bad apples or a culture of playing fast and loose.
Alice Peterson, expert and president of ethics and corporate governance firm Syrus Global, offers five tips to help executives and corporate boards avoid being the focus of the next scandal to hit the headlines.
"Creating an honest culture is certainly aided by the much ballyhooed 'tone at the top,' but that's not enough," said Alice Peterson. "You need to be sure that when your employees make decisions, they come up with answers that serve the shareholders' best long-term interests -- meaning a good economic outcome is probable and good ethical judgment has been exercised. Employees need to be educated about what the law says you can and cannot do. When an employee (or a vendor or other partner) knows about violations of their company's accepted code of conduct -- and boy, do they know -- they must be able to anonymously and safely let someone know about it without any fear of reprisal."
According to a recent report by the Association of Certified Fraud Examiners (ACFE), as many as sixty percent of employees have observed violations of law or company standards. Other studies report similar results.
Peterson offers the following tips to help you create a culture that will discourage ethical lapses and strengthen your corporate reputation:
1. Listen to your employees, partners and vendors: Encourage employees, partners and vendors to come forward regarding wrongdoing they might have witnessed. Tell them repeatedly that your company doesn't tolerate retaliation, and encourage use of the "open door." Provide them with confidential ways to report wrongdoing that ensure anonymity. You will glean critical information when employees, partners and vendors know they can speak up comfortably and anonymously. According to the 2004 ACFE report, the most common way employers detect fraud, by far, is anonymous tips.
2. Have a disciplined process for dealing with reports of wrongdoing: According to Alice Peterson, "As the saying goes, 'what gets measured gets done.' If ugly things can get swept under the rug, they will, which is why it is essential that organizations have a comprehensive system in place for getting out in front of small problems before they become big problems." Consolidate findings from internal audits, the ethics office and confidential employee reporting into a single database. If you can identify problems and patterns of unethical behavior as they emerge, you can address them before they escalate into bigger issues.
PHOTO: Taking the Ethical High Road
3. Take swift and determined action when it is called for: Make it clear to employees that illegal activity is not tolerated, and that your company expects of its employees an even higher standard of values and code of conduct than is required by law.
4. Provide effective learning opportunities for employees: Most people are willing to do the right thing, but they may need to be educated about what the law really says or how your company's values are interpreted in the everyday. Stuart C. Gilman, past president of the Ethics Resource Center (ERC), has publicly called it both "naïve and dangerous to assume that everyone knows 'ethics.'" A systematic training program for employees helps establish the seriousness of a specific code of business conduct that begins on the employee's first day on the job. And, the ERC's 2005 National Business Ethics Study® found that formal programs can indeed make a difference in weaker cultures. "It's like the lines on the highway," says Peterson. "If there are none, you're likely to drive a bit all over the place -- but when shown where to drive, people stay within the lines."
5. Ensure that your board of directors vigilantly oversees the creation of an ethical culture: Peterson, who is also a member of public company and non-profit boards, says, "It starts in the boardroom. Directors are charged with hiring and regularly reviewing the CEO, overseeing strategy and planning, and understanding risk. Assuring that a company has a strong ethical culture is part of their monitoring and oversight. They must ask tough questions, and not settle for lame answers."
"Building an ethical and responsible culture is the first step to creating a strong reputation -- and a strong reputation creates pathways to greatness. If your company turns a blind eye to unethical behavior, the storms that will inevitably ensue will be difficult and costly to weather," adds Peterson. "Set a strict standard and make sure people know that ethics are non-negotiable. That way, when you turn up on CNN, it's more likely to be for the right reasons."
PHOTO: Think About It
A few comments from the Reputation Doctor for all of us regarding ethics in the workplace:
Don’t treat employees who report unethical behavior like criminals, instead treat them like confidential heroes.
We need to stop treating unethical behavior inappropriately. A huge step in the right direction is to treat employee who report inappropriate behavior as confidential heroes and not criminals! Purging the corporation of wrongdoing should be the goal and to do so it requires the purging of attitudes of protection and creating an atmosphere and culture of truth.
Transparency and accountability are two very important bricks in reputation management..
Reputations are built with bricks. Transparency must be demonstrated. To do so, executives must have several consistency examples each month to allow all to see the corporation will build integrity by praising and rewarding ethical behavior and have zero tolerance and punishment for unethical behavior.
How are you doing with ethics as both a corporate leader and a human being?
Ethics is often described as science or study of morality or the principles of conduct governing an individual or group; concerns for what is right or wrong, good or bad. Let’s see. If you had to be evaluated today, would you have an excellent ethical evaluation? Here is a new and important ethical measurement tool for us all: conduct yourself in private the same way you do when your boss, wife, parent and children are seated in front of you. Imagine a hidden camera can see all of your decisions no matter where you are. Here is an even bigger challenge. If you believe in God, isn’t doing the right thing, honesty, accountability, transparency, humility and consistency all supposed to be our behavioral standard every day because He sees all? This is something to think about very seriously. Ethical behavior defines who you really are.
Remember, do the right thing when your reputation is in crisis and seek the counsel of an experienced reputation management expert. It will be a major challenge, but ultimately the rewards of repairing your reputation will be great. Why? Because Your Reputation Is Everything! ™
About Mike Paul
Mike Paul is editor of The Reputation Doctor blog. The Reputation Doctor is a nickname given to him by various clients. Mike's blog is located at www.ReputationDoctor.com. He appears regularly on Fox News Channel, CNN, MSNBC, Court TV, ABC News, ESPN, CBS News, BBC, and others as a weekly contributor and expert in the global news regarding leaders, celebrities, corporations and other organizations with reputations in crisis. Mr. Paul is also president and senior counselor of MGP & Associates PR (www.mgppr.com), a leading strategic public relations and reputation management firm based in New York. For interview requests, speeches, senior counseling or other business opportunities with Mr. Paul, call 212-595-8500 or email info@mgppr.com.
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June 11, 2006
Enron Juror Shares Truthful Reputation
PHOTO: Only the Jury Told the Truth
“Be truthful, no matter what the consequences. It always comes out in the end.”
Commented Freddy Delgado, former Enron trial juror and Houston elementary school principal, as he recently spoke to a class of high school government students.
According the Houston Chronicle, the speaker asked the following question: "How many of you know about Enron?"
The teens sat as still as mannequins, their eyes assiduously studying the wood grain of the tables in the Davis High School library in Houston. Nary a hand rose.
"OK," Freddy Delgado acknowledged. "No one."
Friday was Enron day at the Texan school as Delgado, principal of Golfcrest Elementary, shared his experiences as a juror in the trial of Ken Lay and Jeff Skilling with students in Robert Lee's senior U.S. government class for the summer term.
Lee hoped the students would hear a rousing endorsement of the jury system — one that would propel them to the courthouse on the wings of civic pride when their own jury summons came. But for at least some, Enron was just a name on a sports stadium.
Then came a startling admission: Delgado confided that he, too, had known nothing about the failed energy giant. Eyes snapped to attention. Then he confessed that he desperately had tried to shuck his jury duty. "I told them I had more important things to do," he said. "I had a school to run."
The students were hooked.
For the next 60 minutes, Delgado taught a lesson in civic responsibility, corporate morality and the beauty of the U.S. justice system that had the now-attentive students sitting on the edge of their seats.
PHOTO: Integrity is the Goal
"Always tell the truth," he admonished them, calling that adage the primary lesson to be learned from Enron's collapse and Lay and Skilling's convictions. "Be truthful, no matter what the consequences. It always comes out in the end."
Lay and Skilling didn't, he said, and, as a result, likely will serve prison time.
"These were very smart men," Delgado said. "Mr. Lay was older. He was well-respected. He gave millions to the community ... Maybe it started small and they kept on hiding. One thing wrong, and they just kept on building. Why they did it — who knows?"
Delgado, a dapper, slightly pudgy man with a schoolmaster's sure sense of his audience, confessed that the 61 days of trial testimony at times were befuddling. Although attorneys largely succeeded in simplifying abstruse business practices, jurors often had to put their heads together to comprehend witnesses' testimony.
"They were accountants," Delgado told the students. "They mumbled, and I didn't know anything about what they talked about. Math never was my best subject. Fortunately, we got to take notes."
Delgado said he and other jurors vacillated — first thinking the defendants were innocent, then guilty.
"We considered all the evidence," he said. "We were very thorough. We had 20 boxes of evidence. We had videos. Whenever we had a question about what was said, we'd look at the videos. But we went back and forth ... That went on until the last day."
"Did you ever think of not going back?" one student asked.
"I had to," Delgado answered. "If I hadn't, I would have been arrested by a U.S. marshal."
"Fortunately, I got Fridays off," he continued. "At least I could go and check on things at school. The jurors were like a little family. Some of the women cooked. One brought ropa vieja, that's a Cuban dish. I brought the black beans."
Delgado told students he hoped the fate of Lay and Skilling would send a cautionary message to business leaders everywhere.
Later, he added that he hoped it would send a message to the students as well: If you go to work in corporate America, don't allow yourself to be corrupted by a desire for wealth.
PHOTO: What Do You Stand For?
Michael Zamora, a 16-year-old student who aspires to be a lawyer, said he found Delgado's presentation insightful. "I followed the trial in the newspaper, and I heard so much about it," he said. "It was an honor that someone who went through the trial would come talk to us. Enron was so big. It affected the economy.
"And the basic lesson is simple: Tell the truth."
A few comments from the Reputation Doctor for all of us regarding lessons from the principal and the Enron jury:
Principal Delgado is a man with a reputation of integrity.
We should be proud there are still many excellent teachers and principals in the U.S. education system. We hear some much about the crises and so little about the victories. Principal Delgado is truly a man with a reputation of integrity. He did the right thing in providing a valuable service to the public as an excellent juror and he was willing to share his experience with humility and honesty with high school students. He is worthy of praise.
The entire Enron jury should also be praised for quickly returning to their private lives without turning the verdict into a Hollywood sideshow..
The Enron jury could have lost their integrity by seeking to cash in on the Enron verdict immediately after the verdict, but didn’t. For doing so, they should be praised and earned a reputation of humility themselves. In a world now filled with shock journalism for all, their example is an excellent one for all of us. They did an excellent job on the jury and moved on. Three cheers for the Enron jury.
If integrity is not around you, seek it wherever it is.
An important message for high school kids seeking to do the right thing everywhere: if integrity is not found at home or at school, seek integrity wherever it is. Whether it is within a mentor, a trustworthy friend, pastor, counselor, your grandparents or even an elderly friend, the search will be well worth it and hopefully stay with you for a lifetime. Flee from the knuckleheads in your life and seek friendships, relationships and work with others on the path towards truth and integrity. Doing so will help you build an excellent reputation.
Remember, do the right thing when your reputation is in crisis and seek the counsel of an experienced reputation management expert. It will be a major challenge, but ultimately the rewards of repairing your reputation will be great. Why? Because Your Reputation Is Everything! ™
About Mike Paul
Mike Paul is editor of The Reputation Doctor blog. The Reputation Doctor is a nickname given to him by various clients. Mike's blog is located at www.ReputationDoctor.com. He appears regularly on Fox News Channel, CNN, MSNBC, Court TV, ABC News, ESPN, CBS News, BBC, and others as a weekly contributor and expert in the global news regarding leaders, celebrities, corporations and other organizations with reputations in crisis. Mr. Paul is also president and senior counselor of MGP & Associates PR (www.mgppr.com), a leading strategic public relations and reputation management firm based in New York. For interview requests, speeches, senior counseling or other business opportunities with Mr. Paul, call 212-595-8500 or email info@mgppr.com.
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June 1, 2006
Elizabeth Taylor Defends Her Reputation on CNN’s Larry King Live
PHOTO: Liz Taylor with Larry King
“Oh my God. Am I dead? Am I alive?”
Said Elizabeth Taylor, the 74-year-old legendary actress this week on CNN’s Larry King Live to defend her reputation.
According to E! Entertainment, Elizabeth Taylor is speaking out against tabloid "death watch" reports that she's gravely ill and fighting a losing battle—or any battle—with Alzheimer's disease.
In her first television interview in three years, the legendary Dame scoffed at the rumors on Larry King Live Tuesday night, claiming she's never suffered from the debilitating disease and that reports to the contrary are simply "dirty."
"Oh, come on, do I look like I'm dying?" she said on the CNN show. "Do I look like or sound like I have Alzheimer's?"
When asked by King what prompted the widely circulated death bed reports, Taylor placed the blame squarely on the press, saying they publish the made-up tales "because they have nothing else dirty to write about anybody else. They won't let me retire."
The suspendered host kicked off the questioning by asking to "clear up some things. A lot of tabloid stories about you."
"Oh, my god," Taylor said. "Am I dead? Am I alive?"
The 74-year-old screen legend has recently been the subject of a flurry of grave headlines that came in the wake of a National Enquirer cover story titled "Liz Alzheimer's Tragedy." The story, appearing in the tabloid's June 5 issue, cited a "longtime friend" of the actress alleging that Taylor was being treated for the onset of the disease and that doctors were worried the one-woman perfumery was "slipping mentally."
"Do you think any friends of mine would say things like that?" she said when asked about the National Enquirer story.
"I think they're trying to sell magazines and the only way they can do it is by being dirty...They like filth. And if they want to hear that I'm dead, sorry, folks, I'm not. And I don't plan on it."
While Taylor is far from her death bed, she did admit that she's not quite at the peak of her health, responding to King's query over why she was in a wheelchair.
"My back, which has been chronically bad since I was a teenager," she said. "I was born with scoliosis. But not too many people—you know now."
PHOTO: CNN’s Larry King
"Do you think about [dying]?" King asked.
"No...No. I've been there, I've done that," Taylor said, referring to a bout of pneumonia she battled in London which resulted in doctors pronouncing her dead no fewer that four times.
The three-time Oscar recipient also touched on a relationship that's left many baffled, her longtime friendship with Michael Jackson.
She said that she befriended the eccentric pop star after attending a concert but leaving halfway through after her seats in the nose-bleed section kept her from being able to see or hear the performance.
"Michael heard that I had left halfway through, and called me the next day, and was like in tears because he had heard that I'd walked out," she said. "I hadn't walked out. I just couldn't see anything."
She said the duo talked on the phone for upwards of three hours and kept talking and eventually met and "just became really good friends."
"We're very much alike," she said.
PHOTO: Michael Jackson’s Mug Shot
As for the child-molestation charges brought against Jackson in 2004, Taylor said simply, "I've never been so angry in my life."
She also appeared to dash the hopes of any eager fans awaiting the release of Jackson's long-promised Hurricane Katrina charity single, telling King she doubted her friend would ever work or live in the U.S. again.
"Well, really, why should he? He's been treated like dirt here," she said.
A few comments from the Reputation Doctor regarding Liz Taylor:
To maintain your good reputation, you must consistently defend it.
Elizabeth Taylor was very wise to go on Larry King's show to defend her reputation and prove by sight and sound that she is doing well and very much alive. However, if she defended her reputation and honor much earlier, she would have done a much better job of reputation management and reduced the damage to her reputation with a proactive strategy.
As a legendary star, you must remember you will always be a public personality for the rest of your life.
As I have told all of my entertainment and celebrity clients over the years, when you sign your name on the dotted line with your first contract in the entertainment business, you gain a lot and also give up a lot. You gain the opportunity to have a successful career, lots of money and a celebrity reputation. You also give up most of your private life for the rest of your life and you are expected to be a role model in society and the opinion of the critics, fans and others in society matter, if you value your reputation. Remember, when you enter show business, you are always in show business and you also have a public responsibility whether you like it or not.
Your reputation is always greatly influenced by the friends you keep too.
Liz Taylor’s friendship with Michael Jackson is also allowing mud to splatter on her own reputation. The mud is not because she is simply friends with Michael, but because she is not willing to speak out against his behavior. Bottom line: love the person, but be honest and transparent about his inappropriate behavior with children. As a friend, this is best to help Michael Jackson with accountability and also best to maintain your own reputation.
Remember, do the right thing when your reputation is in crisis and seek the counsel of an experienced reputation management expert. It will be a major challenge, but ultimately the rewards of repairing your reputation will be great. Why? Because Your Reputation Is Everything! ™
About Mike Paul
Mike Paul is editor of The Reputation Doctor blog. The Reputation Doctor is a nickname given to him by various clients. Mike's blog is located at www.ReputationDoctor.com. He appears regularly on Fox News Channel, CNN, MSNBC, Court TV, ABC News, ESPN, CBS News, BBC, and others as a weekly contributor and expert in the global news regarding leaders, celebrities, corporations and other organizations with reputations in crisis. Mr. Paul is also president and senior counselor of MGP & Associates PR (www.mgppr.com), a leading strategic public relations and reputation management firm based in New York. For interview requests, speeches, senior counseling or other business opportunities with Mr. Paul, call 212-595-8500 or email info@mgppr.com.
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