Unless you’ve been stranded on a deserted island for the last several years, you know that these concepts are now getting more attention than ever before. And they’ve quickly become core components of just about all leadership and man- agement development activities. The reason is basic and simple. Besides being the right things to do (which alone ought to be enough motivation for committing to them), ethics and values-driven business practices are the SMART things to do. Why smart? Because they help organizations and their people stay out of trouble and stay in business. Keeping You OUT Of Trouble It’s no secret that you live and work in a highly litigious environment. Scores of people – from customers who pay for the products and services you provide, to governmental agencies that monitor and oversee your operations – are watching what you do and responding to what they see. And, they’re ready to take you to task if you’re found to have acted either unlawfully or unethically. The stakes are high: money (fines), jobs, and individual freedom (jail time) are all on the line. Obviously, the fewer improprieties that occur, the less exposure you have to liti- gation, sanctions, and penalties – and the resulting damage to your reputation. Keeping You IN Business Almost across the board, organizations that maintain high ethical standards per- form better than those that don’t. They typically deliver better products and serv- ices, enjoy a higher level of customer loyalty, and attract the best and brightest employees. An extensive study by research professors at DePaul University con- cluded: “Companies committed to ethical business practices do better financially and have significantly greater representation among the top 100 financial perform- ers than companies that do not make ethics a key component of management.” thics. Values. Integrity. E –[       ]– 4

An “Organizational Integrity Survey” conducted by KPMG found that, when man- agement upheld high ethical standards, a significantly greater number of employ- ees would both recommend their organizations to potential recruits and expect many more customer referrals. The evidence continues to mount – integrity is good business. The Critical Role Of Leadership As a leader, the important task of (and responsibility for) building a high-integrity and values-based organization falls squarely on your shoulders. Ethical business starts with ethical leadership. And while everyone in the organization must do their part, it’s ultimately up to you to ensure that your organization avoids the pitfalls of doing wrong and reaps the benefits of doing right. That’s as it is and as it should be. It’s a responsibility that comes with the territory and the title. And providing you with the tools to meet that responsibility is what this handbook is all about. The “10 Characteristics” Through the collective experiences of working with hundreds of organizations    over many years, we’ve identified ten key behavioral characteristics common to ethical organizations and ethical leaders. These traits – which you’ll find on the pages that follow – represent strategies that you can apply to enhance your per- sonal ethical make-up and that of your work group. Review these characteristics carefully. To what degree do they describe you and your leadership counterparts? Which of the ten would others (peers, employees, customers, etc.) say are “strengths” for you? Which would be identified as “developmental needs” or “deficiencies”? What specifically can you do to put the information you receive into practice? How will YOU meet the responsibility of                              ? Leading To Ethics –[       ]– 5

High-integrity, ethical leaders … They regularly communicate and discuss the organization’s shared values, operating principles, and ethical standards – making sure they are understood, supported, and accepted at all levels. They hold themselves and others accountable for ethical behavior. And they have zero-tolerance for values violations because they know that “one bad apple can spoil the bunch.” They recognize that they earn the right to expect others to perform with integrity when they, themselves, “walk the talk.” They apply the organization’s values and guiding principles when making de- cisions – whether big and strategic, or small and seemingly insignificant. They realize that ethics are displayed in everything we do, and everything we do counts. They make sure that rules and standards support the organization’s values and ethics at every level. And, should an ethical dilemma occur, they welcome the opportunity to resolve the issue quickly and without fear of reprisal. Build Values and Ethics Awareness Hold People Accountable Lead By Example Use Values To Drive Decisions Ensure In-Sync Policies and Practices ... Page 8 ... Page 12 ... Page 15 ... Page 19 ... Page 23 10 Key Behavioral Characteristics 1 2 3 4 5 –[       ]– 6

They take the time – and devote the resources – to help employees acquire the confidence and skills necessary to translate good beliefs into good behaviors. They pay close attention to the feelings, opinions, and reactions of their col- leagues, their employees, the customers they serve, and everyone in their circle   of influence. They realize that perceptions ARE reality when it comes to ethics    and integrity. They understand that ethics and values-alignment are “sum total” outcomes and, therefore, place emphasis on “lots” of improvements in “lots” of areas. They use the organization’s mission, vision, and values as criteria for hiring and promotion decisions. And, they ONLY select those individuals who believe in these principles and who behave with integrity. They motivate employees to step up and take the ethical lead instead of complain- ing, pointing fingers, or waiting for others to take the first step. You’ll find more detailed information about them on the following pages. Provide Values and Ethics Education Pay Attention To Perceptions Focus On Steady, Incremental Change Hire and Promote Ethical People Encourage Initiative ... Page 27 ... Page 30 ... Page 35 ... Page 38 ... Page 41 How well do these ten characteristics describe you? 6 7 8 9 10 –[       ]– 7