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Transparency. Social Responsibility. Ethics. Transformation. Hot topics in business today—but, just the flavor of the month or essential values of your organization’s culture of integrity? That is, a culture of productivity, great morale, personal satisfaction, mutual trust and respect, loyalty and high reputation for ethical behavior. The answer depends on leadership’s vision and goals; on employee’s ethical awareness and decision making ability; but, ultimately, it depetnds on how the organization lives out its understanding of what it takes to have a culture of integrity

Having a culture of integrity goes beyond conforming to what is prescribed , or meeting the legal minimum. In the movie, The Company Men, we see an instructive example of the difference – “…a higher standard.” Click here to see a video clip.

New Ripple with Drop
A drop of ethical value starts a ripple of change.

What does it take to live out a culture of integrity? Four profound things: First, recognizing that ethics is about people and relationships; second, recognizing that ethics is about taking personal responsibility for choices made; third, empowering people to prioritize their ethical values; and fourth, equipping leadership and employees with the tools and skills to build and nourish an ethical culture. It begins with this: A small drop of ethical value starts a ripple of change and influence. And, it grows to this: a transformed company that is respected and profitable.


An ethics program that exists on paper but never in the hearts, minds, and actions of the organization’s employees creates a breeding ground for violations.
- "Ethical Culture Building" - A report by The Ethics Resource Center – 2008

Reliance on Compliance for Conforming to an Ethical Culture

For the past several decades, more and more companies have relied on writing ever more detailed Codes of Conduct, Policies and Compliance programs to enforce ethical behavior. The idea here is that an effective compliance system will generate a desire to act appropriately and responsibly. This leads to ethics training that is about conforming people to the codes and policies to achieve compliance. We call this Conformative Ethics.

The continued reliance on an ever increasing number of written prescriptions for driving behavior, or punitive actions for failing to adhere to those prescriptions, has not led to fewer ethical failures. In fact, in most circumstances, little has changed. This means of control often has minimum impact on positive ethical behavior. To the contrary, as more rules are generated, the more people respond negatively to them. The same issues resurface year after year. As Albert Einstein said, “Insanity is doing the same thing over and over and expecting different results.” How insane is your ethics program?

Conformative vs. Transformative Approach to Behavior

A different approach to organizational training that achieves “different results” is available —Transformative Ethics. This approach affirms that standards, policies, manuals and codes of conduct are necessary, both legally and practically, but are not sufficient for managing risk related to behavior. People, relationships, personal responsibility, and accountability are ultimately what ethics is about. Employees taking ownership of their choices, being equipped with the tools to make good ethical choices to build mutual trust, and employees being empowered to use their judgment are the means to transform attitudes and behavior that build a culture of integrity.

The chart below shows the difference between the two approaches to ethics training.

Training Emphasis

Training Effect

Attitude Result

Conformative
Ethics

- Codes of Conduct,
- Standards, Rules, Laws
- External Focus

Compliance

- “I can't, there are rules...”
- Reactive responses

Transformative
Ethics

- Codes of Conduct
- Personal Responsibility
- Internal Focus

Compliance and
Commitment

- “I won't, it is not the right
thing to do...”
- Proactive actions

An Ethical Culture = Profitable Business

A strong ethical culture is an essential aspect of a more profitable business. Recent research results demonstrate that ROI. According to Ethisphere, “Investing in ethics is beneficial for any company, even in a recession.” The graph below compares, from 2007-2011, all the publicly traded 2011 World’s Most Ethical Company honorees (WME Index), against the S&P 500. The graph shows the greater profitability of investing in building a culture of integrity, even in a down economy.

Returns Chart
© 2012 Ethisphere

It takes more than a compliance program that enforces conformity to prescribed behavior to build an ethical culture, it takes the “hearts and minds” of all in the organization. Then, you can move beyond an ethical culture to a building a culture of integrity.

Culture of Integrity

What lies behind us and what lies before us are small matters compared to what lies within us.
– Ralph Waldo Emerson

A culture of integrity is built upon a foundation of skills, tools and ethical awareness that support the ethical culture of a company. The soundness of that ethical structure is evidenced by the ability of people to communicate about ethical concerns, the perception of mutual trust and empowerment, a perceived respect for individual judgment, and an expectation of integrity in performance. Building a culture of integrity starts with prioritizing a relational approach to ethical behavior and then providing the training that equips employees and leadership to make that culture possible.

Transformative Ethics Programs

The TWI approach to ethics is simple: Ethics is about people, relationships and taking personal responsibility for the choices we make. We refer to this as Transformative Ethics because we each have the ability to transform our relationships and our organizations by the ethical choices we make. The TWI Ethics programs move individuals from reacting out of an emotional response to situations, to empowering them to choose to act through reasoned responses to situations and then proactively communicate that choice. This is the beginning of the building of a Culture of Integrity that has the ability to transform people and organizations with an easy to understand and implement process. It provides the tools that demonstrate how to make better decisions.

  • Transformative Ethics - Building Trust Through Values Based Decision Making
  • Leadership: Building an Ethical Culture
  • Ethical Awareness: The Choice Is Yours

Transformative Training© Programs

Rowing

TWI offers a unique and practical communication process, applicable across all facets of a company, that is embedded in the training curriculum of our Transformative Training© programs. This process generates a common language that greatly enhances understanding and trust with both internal and external customers. The knowledge, skills and tools learned through our values-driven customized programs provide a powerful process for developing skills that improve performance for businesses.

Effective Communication is vital in business today if organizations expect to meet their customer’s expectations and grow their business. An essential tool of Leadership is empowerment that great leaders use to exponentially improve their effectiveness. Important elements of leadership that create great companies today are Coaching and Team Building and great leaders of organizations today realize that transformation and empowerment are important. It is more important today than ever before for a company to have excellent Customer Service if they are to succeed. Our society is no longer willing to accept less.

Transformative Training© offers a suite of programs for businesses that develop skills to improve performance in:

Each of these programs is specifically customized to meet your needs and focus on the areas you would like to improve in your organization. By adopting multiple programs, organizations develop a common modality and language to improve communication in your organization. Below are examples of industries where TWI’s Training has been successfully implemented:

Healthcare - TWI has several powerful programs that are customized to and applies specifically to healthcare. The training materials and programs address issues that healthcare professional managers face on a daily basis: motivation, coaching, dealing with difficult people, having tough conversations, leading a diverse team, and other critical leadership skills. Service is the key to a successful healthcare organization. The TWI training programs instill skills and attitudes that focus on both external and internal customers. Healthcare organizations will be more successful by providing quality customer service through servant leadership and fostering an ethical culture where everyone in the organization is focused on providing the best healthcare possible for their community.

Insurance - The insurance industry is in a constant state of change, offering several challenges for leaders and insurance professionals. TWI has worked with a number of major insurance companies to provide leadership training, as well as customer service, sales and coaching training. Our ethics training is particularly effective because of the focus on decision making and accountability.

Finance and Accounting - From credit unions and banks to major accounting firms, the TWI’s training materials and programs have been successfully implemented to increase performance and enhance the skills of leaders, producers and administrators. TWI’s Transformative Ethics model stresses personal responsibility and decision making. Participants learn to determine what is right, care deeply about what is right and do what is right. This suite of courses are designed and customized to focus on areas that are specific to the needs of your organization and employees.


Well-implemented ethics and compliance programs double reporting and lower the rate of misconduct. A strong agency-wide ethical culture also increases reporting and cuts misconduct in half. Coupling a strong ethical culture with a strong ethics and compliance program is the path to the greatest reduction in ethics risk.”
- 2007 National Business Ethics Survey, Ethics Resource Center

For more information about TWI's ethics and VALUES programs contact Tom Rosella or call 480-244-4677.

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