Values and Ethics Discussion

1. Values and Ethics Discussion David McGraw Business Services Division Director

2. Values are important beliefs and desires that shape attitudes and motivate actions. What are Values? 2000 Josephson Institute, Ethics in the Workplace Adapted from John W. Gregg’s (director of Controls & Accountability, UC Davis) Ethics presentation

3. Integrity Doing the right thing when no one is looking Fairness (Safety & Trust) Respect and Appreciation for the individual Individual & Collective Accountability • One’s expertise • One’s opinion • A person’s uniqueness • (Diversity is valued) • Reciprocal generosity • -We encourage responsible & • informed risk taking (judgment) • -We focus on positive reinforcement • To ourselves & our profession • To each other • To management • To the Laboratory BSD Shared Values

4. Berkeley Lab Core Values Integrity Responsibility Respect Fairness Excellence Integrity as the Keystone.

5. Relationship Between Values & Policy Documents • Berkeley Lab Core Values • Integrity • Responsibility • Respect • Fairness • Excellence Berkeley Lab Ethics Statement Principles of Community

6. Berkeley Lab Core Values • Integrity • Responsibility • Respect • Fairness • Excellence

7. Benefits of Shared Values • A sense of common direction for all staff & guidelines for daily behavior • The social energy & esprit de corps that moves the organization into action • Basis of individual and shared accountability • Basis of thoughtful decision making • A sense of stability & continuity in a rapidly changing environment

8. VALUES Are we, as leaders, really developing our team members to create an organization of excellence?

9. Relationship Between Values & Performance Organizational Values Harmony in Values Discord in Values Positive Impact On Performance Negative Impact On Performance

10. VALUES ETHICS TO Effective codes of ethics flow from core values which seek the best of an institution’s culture. • Berkeley Lab Core Values • Integrity • Responsibility • Respect • Fairness • Excellence

11. Ethics Moral principles of duty and virtue that prescribe how we should behave; the foundation of our internal control. Integrity Responsibility Respect Fairness Excellence Adapted from John W. Gregg’s (director of Controls & Accountability, UC Davis) Ethics presentation

12. Ethics Transcends the Law There is a big difference between what you have a right to do and what is right to do. Rights 2000 Josephson Institute, Ethics in the Workplace Adapted from John W. Gregg’s (director of Controls & Accountability, UC Davis) Ethics presentation

13. Ethics is not about words. It's about actions. • It’s not about what we say, or intend, nor is it simply a written code or a framed credo. It's what we do. • 2000 Josephson Institute, Ethics in the Workplace • Adapted from John W. Gregg’s (director of Controls & Accountability, UC Davis) Ethics presentation

14. Dilemmas & Decision-making Skills • “Thorny judgment calls” • Dealing with • Changing norms • Mixed messages • Ambiguity • Competing pressures “Business Ethics: Setting the Right Course”’ Mary C. Gentile, Risk Management, Sept. 1998 Adapted from John W. Gregg’s (director of Controls & Accountability, UC Davis) Ethics presentation

15. Framework for Ethical Decision Making • Who will be affected by my decision? • What general rules or principles underlie my decision? Are you handling similar matters consistently? • What are the implications of my decision for the University and the Laboratory? • What does my decision say about my values? (We all know people who say one thing & do another.) • One can be unethical without breaking the law. • What is right, what is fair and what is in your best interest may not be the same. Put your bias aside.

16. Ethical Leadership

17. The Importance of Ethical Leadership • Influences employee behavior • Can help shape value systems that last • a working lifetime • Can be one of a leader’s legacies

18. Ethics & Corporate Governance To be truly effective, ethics must: • Be an integrated part of the organizational culture rather than an appendage grafted onto administrative systems • Be modeled by the leadership team, even when it is painful (audit disclosure) • Be designed to prevent problems before they occur & resolve issues when they arise • Prevent concealment or obfuscation • Encourage recruitment & retention of the best & the brightest • Increase public confidence

19. Most of the time, we know what we should do. The real test of ethics and character is whether we are willing to do the right thing … even when it is likely to cost more than we want to pay. 2000 Josephson Institute, Ethics in the Workplace Adapted from John W. Gregg’s (director of Controls & Accountability, UC Davis) Ethics presentation

20. The Six Pillars of Character • TRUSTWORTHINESS • Honesty • Integrity • Reliability • Loyalty • RESPECT • Civility, Courtesy and Decency • Dignity and Autonomy • Tolerance and Acceptance • RESPONSIBILITY • Accountability • Pursuit of excellence • Diligence • Perseverance • Continual improvement

21. The Six Pillars of Character • FAIRNESS • Process • Impartiality • Equity • CARING • The heart of ethics • It is scarcely possible to be truly ethical and yet unconcerned with the welfare of others • CITIZENSHIP • Civic virtues and duties that prescribe how we ought to behave as part of a community.

22. Senior Leader Imperatives • Establish shared values • Establish a positive leadership climate • Develop self & others • Think strategically • State & communicate your intent • Decentralize • Empower the work force • Emphasize continuous improvement In closing... Note: An organization takes on the character of its leader! Note: An organization takes on the character of its leader!

23. Importance of Corporate Values “Let us suppose that we were asked for one all-purpose bit of advice for management, one truth that we were able to distill from the excellent companies research. We might be tempted to reply, ‘Figure out your value system. Decide what your company stands for.’ Clarifying the value system and breathing life into it are the greatest contributions a leader can make.” -Peters & Waterman, In Search of Excellence

24. “Consider any great organization, one that has lasted over the years, I think you will find that it owes its resiliency not to its form of organization or administrative skills, but to the power of what we call beliefs (values) and the appeal these values have for its people.” “This then is my thesis: I firmly believe that any organization, in order to survive and achieve success, must have a sound set of beliefs (values) on which it premises all of its policies and actions.” -Thomas Watson, Jr., CEO, IBM