ETHICAL LEADERSHIP

1
ETHICAL LEADERSHIP

• APICS Ethics
• Should they be situational?

2
APICS Code of Ethics

• To maintain and improve sound business practices
  and foster high standards of professional
  conduct.
• To hold in professional confidence any
  information gained of the business of a fellow
  members company and to refrain from using such
  information in an unethical manner.
• To seek success without taking unfair advantage
  or questionable acts that would comprise ones
  self-respect.
• To neither engage in nor sanction any
  exploitation of ones membership, company, or
  profession. To encourage and cooperate in the
  interchange of knowledge and techniques for the
  mutual benefit of the profession.
• To be careful with ones criticisms and liberal
  with ones praise to build and not to destroy.
• When a doubt arises as to the right or ethics of
  ones position or action, to resolve such doubt
  according to generally accepted standards of
  truth, fair dealing, and good taste.
• To maintain high personal standards of moral
  responsibility, character, and business
  integrity.

3
Ethical Leadership

• Business ethics
• is not always simple
• or necessarily
• Black and White.

4
Topics

• Trust Model
• Avoiding conflicts of interest
• Business amenities
• Confidential information
• Financial / Slush funds
• Values-based decisions
• Summary

5
Trust ModelA Step-by-step process that enables
you to break down situations to smaller simpler
segments. This enables you to analyze a situation
more objectively.

• T Think about the situation objectively
• Clearly understand the situation.
• Know the facts.
• Identify the real issues.
• R Recognize and analyze motivations.
• If the situation troubles you, ask yourself
  why.
• Consider the other partys motivations.
• U Understand applicable laws, rules, and
  policies
• Consider all options
• Research the Standards of Business Conduct
  other policies
• Know whom and when to ask for help
• S Satisfy the headline test
• Ask yourself if you feel comfortable seeing
  your actions reported in the news
• Consider the consequences of your decision on
  APICS, customer, yourself
• T Take responsibility for your actions
• Make an appropriate choice act accordingly
• Remember, you are accountable for the outcome
  of your decisions.

6
Avoiding conflicts of interest

• You are an active APICS member.
• You serve on the chapter board,
• attend PDMs, and teach
• certification courses. You are
• approached by a member company
• that has a need for on-site courses
• that you teach ask if these could
• be available. Youve been thinking
• about starting a consulting
• business on the side. This seems
• like it might be a good way to get
• started. You are considering
• making an offer.

What should you do?
7
Avoiding conflicts of interest

• You are the chapter facilities or
• program director. Your brother-in-law
• just called said he has a new job
• selling event group meals with a
• hotel he wants your chapters
• business. The chapter has a contract
• with a hotel they are satisfied with.
• The contract can be broken easily.
• You are happy with the current hotel,
• but he is your wifes brother you
• might be able to save a few bucks
• up front if you make a deal.

What should you do?
8
Avoiding conflicts of interest

• You have been working with particular
• supplier (privately held co) for several
• years. You have grown close thru your
• interactions. The supplier gets routinely
• reevaluated for continued business
• based on published guidelines. The
• president of this company invites your
• board to a celebration event. At this
• party the supplier mentioned to you that
• she is selling her company car, which
• would be perfect for your daughter. She
• said she would cut the price in half
• just because it is you. You can save a
• lot of money, but while tempting, you
• think there could be feelings by the board
• that you are too friendly with this person.

Special Deal Just for You
What should you do?
9
Avoiding conflicts of interest

• You are recruited to serve on your
• chapters board. You are told it will
• take a couple of hours a week, a
• few phone calls emails. Seemed
• OK you accept. You discover
• that there is are many phone calls,
• email traffic, other activities
• required during business hours.
• Your company has policies about
• using company assets, equipment,
• systems for non company related
• business. You believe that both
• you the company will benefit
• from your APICS involvement.

What should you do?
10
Business amenities

• A business partner suggests a
• business meeting with the chapter
• board this Friday at his familys
• vacation home, which happens to
• be on the ocean.
• Afterward, he has invited you
• your family to spend the weekend
• there enjoying the house and the
• beach.

What should you do?
11
Business amenities

• A chapter supplier whom you
• have been doing business for
• several years has offered to
• transport you to a joint
• conference via its private
• company jet.

What should you do?
12
Confidential information

• You are an active APICS
• certification course instructor.
• Your students complain that the
• courseware is not offered on-line
• through the chapter. You and a
• friend together have the ability to
• develop an online version of the
• current APICS courseware. You
• are considering this and the
• possibility of marketing it through
• your friend.

What should you do?
13
Confidential information

• A college friend of yours who is
• with ISM has been working on an
• opportunity with a customer, and
• APICS is also bidding on the
• deal. At a recent trade show,
• your friend tells you that hes
• able to offer the service at a rock-
• bottom price ( he blurts out the
• price) suggests that you
• persuade the chapter to back out
• of the deal in return for a lead on
• another opportunity.

What should you do?
14
Financial / Slush funds

• Your chapter is conducting an
• on-site certification course for a
• member company. The night
• before the course starts there
• ended up being 5 more students
• participating than planned. You
• do not have documents and
• student guides for these additions
• The company is a new customer
• and you do not want to delay or
• start off badly. You are considering
• making copies of the student guides for use.

What should you do?
15
Financial / Slush funds

• You are conducting an on-site
• course at a major member
• company. There are 5 more
• students in the course than
• agreed to in the contract. You
• have enough student guides and
• the instructor is ok with the
• addition, so you agree to continue
• on with the additions. The contract
• And invoice do not reflect this
• increase. Previous experience with
• this company makes you consider
• not changing the paperwork and
• telling the responsible company
• manager that you will just make up
• the difference on a future course.

What should you do?
16
Financial / Slush funds

• Your chapters board has
• approved money for a major
• event in your area of
• responsibility. The event came in
• under the approved budget. You
• are considering spending the
• remaining funds on a fun dinner
• party to recognize the few key
• people that made this event a
• success.

What should you do?
17
Values-based Decisions

• Lets take another look at the trust model to see
  if we are using that process to make the best
  decisions.
• Remember there could be more than one correct
  answer depending on the situation
• We are looking for the best decision!

18
Trust ModelA Step-by-step process that enables
you to break down situations to smaller simpler
segments. This enables you to analyze a situation
more objectively.

• T Think about the situation objectively
• Clearly understand the situation.
• Know the facts.
• Identify the real issues.
• R Recognize and analyze motivations.
• If the situation troubles you, ask yourself
  why.
• Consider the other partys motivations.
• U Understand applicable laws, rules, and
  policies
• Consider all options
• Research the Standards of Business Conduct
  other policies
• Know whom and when to ask for help
• S Satisfy the headline test
• Ask yourself if you feel comfortable seeing
  your actions reported in the news
• Consider the consequences of your decision on
  APICS, customer, yourself
• T Take responsibility for your actions
• Make an appropriate choice act accordingly
• Remember, you are accountable for the outcome
  of your decisions.

19
Summary

• Read, review, post the APICS Code of Ethics
  with your chapter board members
• Include in one of your board meetings some ethics
  discussions or training (you can use this package
  if you do not have something available)
• Review the TRUST Model compare to past
  current situational decisions
• Remember the Headline Test
• When in doubt review available guidelines,
  policies, laws seek assistance
• One bad decision may not be fatal, but it takes a
  lot more effort to overcome the error win back
  favorable perceptions from others than it does to
  make the best decision at the start.

20
Questions, Comments, thoughts...
Mike Bell [phone] email
mike.bell2_at_hp.com
21
Bonus Exercise

• You notice that an officer of your chapter who is
  employed at the same
• company is writing an article for the chapter
  newsletter with his company
• email address listed for responses. In the
  article he is asking for
• feedback and comments to survey questions from
  the 650 chapter
• members. You are concerned that this may be
  inappropriate use of the
• companys time, equipment, systems. You are
  also concerned it might
• look bad for APICS you (you recruited this
  person) if discovered.

What should you do?
22
Bonus Exercise

• You having lunch with one of your chapters
  members. When the bill came, she
• insisted on paying. In passing, she said that she
  can afford it because of the
• extra money she was making from her side
  business. When you ask about this
• business, she explained she was teaching APICS
  type courses at a company
• members site on the weekends. The company had
  mentioned a future need
• while she was conducting a chapter on-site course
  in the past. She did not
• think that the chapter was still providing
  courses at this company, so she set-up
• a corporation in her husbands name contracted
  with the company. She went
• on to say it has been very successful, making
  enough money to cover her
• familys 3 car payments

What should you do?