Ethics and Corporate Governance Presented by Cheryl Procter-Rogers, A Step Ahead Public Relations, USA All Africa Public Relations Association Conference Mombasa, Kenya November 23-26, 2011 Greetings and gratitude… As leaders, we must create environments that epitomize the level of excellence we desire in the workplace. And, through our leadership, champion ethics. We must create environments where ethical dilemmas are faced with clearly defined moral standards that are practiced at all levels of the organization. We must lead by example. Every organization and individual will, at some point, face an ethical dilemma. Do you… hire someone from your competitor because he promises to reveal confidential information? market a product in your country that has been banned in the US? release information, knowing that critical facts are being omitted? The subject of ethics is not always clear. Situation ethics can present clear judgment dilemmas— take the cases in the US of corporate bonuses for failing companies and arriving to Congressional hearings on corporate jets. Sometimes, you may not realize you’ve been in an ethical dilemma until all the drama begins. What about the friend who has tried to rationalize an unscrupulous act by claiming it served some greater good? Defining business ethics As communicators, we are obliged to embrace a code of ethics that provides for: Free Flow of information Fair and Open Competition Disclosure of Information (Honesty and Trust) Safeguarding of Confidences Revealing Conflicts of Interest Enhancing the public relations profession by leading by example Unfortunately, it is not enough to have good intentions. To fully embrace an ethical philosophy, one must ask him/herself some tough questions when faced with moral or ethical challenges and realize the consequences of an action or inaction. The good news is… for the public relations profession, this is a case of preparation meeting opportunity…. 1 The Public Relations Society of America’s code of ethics was first established in the 1950s. Our code is clear. Could we have done a better job of communicating the code to our members and the profession at large? You bet. The ethical issues our profession has faced in the media over the last several years provides us with a unique opportunity to participate in this public debate and advocate for one of the fundamental tenets of our existence as a profession, but most importantly, in the world. As communicators we are challenged to be experts in the area of ethics and corporate governance and to have the moral courage to insist that our employers, employees, vendors and clients just simply, “Do the Right Thing.” Easier said than done! With so much uncertainty, where do we begin? We can help the world better understand and appreciate the significant contributions ethical businesses, government and nonprofits make to our world. The new normal for ethics will include even more transparency and a greater role taken by government in business affairs. We will see more regulation to protect the public. Some are not going to like that. Our role as communicators will be needed more than ever. But, to be effective, we must also embrace diversity. How can we be effective leaders if we are insensitive to the differences of others and fail to embrace diversity? As the moral compass for our organizations and the public, we must create environments where diversity is celebrated. As leaders, we must be of the world, not disinterested bystanders only awakened when a crisis comes along or demands are presented for diversity in our company, department or on our account team. We must not be trapped by confirmation bias—only reading material, only attending events, only joining organizations, only hiring employees that speak to our own backgrounds, experiences and beliefs. It’s when we screen out information we might not agree with. I speak often about the unintended consequence of confirmation bias on our society. The result can only be more stereotypes and even less understanding of our differences. Thanks to the internet and satellite radio, one can have their biases validated daily by self-selection. With the proliferation of the media and information sources, how do we influence behavior when we are victims of this bias trap ourselves? If we don’t become aware of our own biases and make the necessary changes, we will find ourselves without the relationships; resources and understanding needed to help our organizations and the public navigate in this global marketplace. We will be serving our nations as well as ourselves if we succeed in avoiding confirmation bias. will create a world where diversity thrives. We How will you lead in this new environment of regulation? Will senior management and your clients listen to your counsel? Of course they will, if you have credibility. 2 Building Credibility To have credibility, we want to become experts in our specialty and/or industry. provides a unique resource for keeping on top of trends and advances. The internet Whenever possible, work across the organization. Consider expanding your knowledge and expertise beyond your core area (Human Resources, IT, Operations, Finance, Customer Service, etc.). Be proactive about suggesting cost cutting strategies. Understand governance and its impact. Understand how to help run the business or organization, not just provide PR counsel. In Africa, regulation has become a major issue for the public relations professional. For the astute public relations professional, regulation can be viewed as a reward, not a punishment. It actually makes our jobs easier when there are clearly defined rules and a culture of ethical behavior. The difficult task is to help those who haven’t fully embraced the new regulations to understand the longterm impact if they don’t adapt. To be able to speak the language of those we counsel, the public relations professional must invest the time to thoroughly understand what constitutes good governance and why. Here are a few examples of good governance for a country: Strong government agencies, especially those responsible for economic policy, planning, financial management. Strong trade agreements and a plan to promote trade and investment opportunities Equitable taxation system that allows government to fund public services without creating barriers to private sector development Strong banking and financial markets Established appropriate regulatory frameworks Effective delivery of basic services (education, health, water and sanitation) Become a student of regulation, offer best practices from other countries. Be the go-to person for research and other resources. In closing, the public relations professional and ethical leader advocates for transparent, two-way communication. They insist that all decisions are made through open channels and consider all points of view. They walk the talk and are committed to behaviors and values that align with the greater good. In essence, regulation, while not perfect, signals to the world that this industry has a significant impact on the public trust and has a reputation to protect. And for this public relations professional, I would accept the reward graciously, for now… 3