'

The truth about “Tone from the Top”

Понравилась презентация – покажи это...





Слайд 0

The truth about “Tone from the Top”


Слайд 1

Are your executives telling the truth when they say “ethics matter”?


Слайд 2

FIFA protects the integrity of football and is fighting corruption in football. -FIFA Football Governance “The guardians of the game” 20 November 2014


Слайд 3

We stand for respectable, honest actions in everyday business that are in accordance with rules... - The Volkswagen Group Code of Conduct Source: http://www.volkswagenag.com/content/vwcorp/content/en/the_group/compliance.html


Слайд 4

The “Tone from the Top” at FIFA and Volkswagen share a common element What is it?


Слайд 5

They are lying.


Слайд 6

They are not alone.


Слайд 7

Management or the CEO is involved in 53% of bribery cases; Senior executives know about 86% of corporate fraud cases


Слайд 8

If you wanted to design an incubator for generating misconduct, it would look a lot like the C-Suite


Слайд 9

What makes the C-Suite so susceptible to corruption?


Слайд 10

Management readily sees cause and effect between bribery and sales


Слайд 11

Companies that bribe have greater sales growth compared to control firms for 3 years before and 3 years after winning a major contract through bribery


Слайд 12

But...


Слайд 13

But there are negative side effects of corruption


Слайд 14

Companies that bribe have poorer net profit margin (net income divided by sales revenue) for the same 6 year period


Слайд 15

Companies that bribe have poorer cumulative abnormal returns (difference between the sum of the monthly returns for bribing firms versus control firms) for the same 6 year period


Слайд 16

Companies that bribe perform poorer on nearly every corporate metric used to measure success


Слайд 17

If you endorse corruption to achieve a goal, you endorse corruption (full stop)


Слайд 18

If you lie, your employees will lie


Слайд 19

If you cheat, your employees will cheat


Слайд 20

If you give bribes, your employees will take bribes


Слайд 21

Tone from the top is not what you say, it’s what you do


Слайд 22

81% of all frauds are perpetrated by at least one insider


Слайд 23

5% of all revenues are lost due to occupational frauds


Слайд 24

Companies are more often victims of corruption than beneficiaries


Слайд 25

How can you change a culture of corruption?


Слайд 26

Start changing traditional ethics training


Слайд 27

When the big people get in trouble, the little people get ethics training.


Слайд 28

Target the “big people” about how corruption causes internal fraud


Слайд 29

CEOs are prone to viewing the company’s success as indistinguishable from their own.


Слайд 30

When bribery hurts shareholder value it hurts the CEO


Слайд 31

Use targeted motivators in your ethics training


Слайд 32

Motivation: Shareholder Value & Exec. Mgmt; Career Opportunity & Middle Mgmt; Job Security & General Employee Base


Слайд 33

How do whistleblowers help?


Слайд 34

Whistleblowers are effective at discovering external fraud, and even more effective at discovering internal fraud


Слайд 35

Discovering Internal Frauds


Слайд 36

Median Losses After Discovery


Слайд 37

Reduction in Median Losses with Effective Internal Controls


Слайд 38

Whistleblowers are one of many internal controls that support an ethical culture that reduces internal corruption


Слайд 39

An ethical culture that reduces internal corruption sustains a profitable culture


Слайд 40

Sustained profits make your CEO a superhero


Слайд 41

So your executives can tell the truth when they say “ethics matter”


Слайд 42

Please like & share


Слайд 43

About the Author Background Eric Pesik is currently the Associate General Counsel and Compliance Officer for Seagate Singapore International Headquarters Pte Ltd. He also serves as an Adjunct Assistant Professor with the University at Buffalo, State University of New York, in the School of Management. He has been a lawyer since 1997 and is a member of the State Bar of California, USA. He is also admitted to the US Court of International Trade in New York and the US Supreme Court in Washington, DC. Many of Mr. Pesik’s presentations are available on SlideShare at: http://www.slideshare.net/ericpesik Disclaimer This work represents the opinions of the author alone, and is not the opinion his employer. Creative Commons Attribution License You are free to share, copy, distribute, and transmit this work; to remix or adapt this work; and to make commercial use of this work, under the condition that you must attribute this work to Eric Pesik (but not in any way that suggests that I endorse you or your use of this work). Each slide contains source attributions and URL; before reusing, you must obtain the original images from the original sources, and you must comply with any applicable license restrictions imposed by the original source. http://creativecommons.org/licenses/by/3.0/


×

HTML:





Ссылка: