Setting the Tone on Ethics
Intel Confidential
Agenda
1. Tone setting – Hold manager’s accountability on
Ethics
2. VNAT key focus areas – Call for actions
3. How to handle issues/escalation – PDM
introduction
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Ethical Leadership: Important yesterday,
critical today
Thank you for a GREAT 2013!
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“Ethical behavior and
integrity are the backbone of
our culture; risk-taking and
result orientation ring hollow
without it”.
Our commitment to integrity differentiates
us in the market and adds to our business
values
• Customers say Intel and its employees
demonstrate high integrity
• Employees tell us Code expectations are
clearly communicated and action is taken
for violations
Andy Bryant
Intel Chairman of the board
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2014: A critical juncture
• Intel’s confidential info
The magnitude and complexity of the changing environment
poses new challenges …
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VNAT Ethics culture survey result
• Intel’s confidential info
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Call for actions
Manager – EE
relationship
Fear of
retaliation
Raising issues
behavior
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•Treat each other fairly; foster profession and fairness
•Provide opportunities to every employee
•Offer a fair appeals process; being transparent and open for discussion
•Reinforce, communicate to EE about Non-retaliation policy.
•Build trust, commit on zero-retaliation
•Discuss with EE, share experience on how to be protected from retaliation.
•Regularly speaks about the importance of CoC principles
•Promote benefit of raising issue to the company;
•Ensure employees know all available raising issue channels;
•Reassure employees that concerns will be handled confidentially;
•Fostering an open and trusted environment
•Step up and lead on ethics issues and let your team know you are accountable for
the results
Shape a trusting, ethical and flexible culture as we transition
Confidential
and growIntelour
businesses
How to handle issues/escalation
--PDM (Principle-based
Decision Making)
Introduction
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PDM Overview
Our environment is dynamic. PDM is an
approach to decision making with a
supporting Toolkit that helps us both:
• make integrity an essential part of our
words, actions and decisions
AND
• achieve long-term financial success
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PDM Overview
Click picture to play the PDM Overview video!
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PDM Leadership
• Help others make sound ethical choices
• Prepare others to take control, reframe the
situation & act
• Promote a culture of candor
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Purpose of Today
• Focus on what matters
• Generate insight and
discussion
• Drive action
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Agenda
• Module 1: Introduction
– A critical juncture
– Principles, challenges and dilemmas
• Module 2: Decision Making
– PDM model
– Exercises and guidance
• Module 3: Recap
– Next steps
– Staying connected
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How You Will Learn
Collaborate
Ask questions
Judgment stops at the door
Transparency encouraged
Checkpoints
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Four Objectives
After completing this course you will be able to successfully address
the following situations:
When it’s not
clear
I’ll determine
what to do!
When it is clear
I will take
action!
As a leader,
I will know how
to handle
escalations!
I will build a culture of
integrity!
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Four Objectives
1. When it’s not clear what to do, I will determine the
right thing that works best for me and for Intel
2. When the right thing is clear, I will get it done
3. When difficult situations are escalated, I will know
how to handle them
4. I will build a culture of integrity where employees can
openly discuss and address difficult ethical situations
Which of these are the most challenging?
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Module 1: Introduction
E & C Challenges
Intel Confidential
Learning Objectives
•After completing this module you will be
able to:
» Articulate current environmental pressures
» Describe current Intel challenges and
dilemmas
» Understand how our principles can be used
to navigate difficult ethical situations
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2014: A critical juncture
•Increased need for velocity,
risk taking, & urgency
•New businesses
•Acquisitions
•Expanding in new markets
Transitioning leaders
Organizational transitions
Increased importance of an ethical reputation
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Employee questions/quotes
“Have the ethics guardrails changed?“
“What if asking questions or sharing information
jeopardizes the business or my job?”
“I had to put my badge on the table”
“You can’t follow up on warning signs and deliver
business results – something has to give”
“How can I ask questions about whether a
decision has integrity?
… I’m supposed to know”
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Renee’s Dilemma
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Manager receives a suspect PO
Sr. manager didn’t ignore, but “looked into it”
Checked PO details and facts
Reviewed with submitter
Inconsistencies revealedEscalates and seeks guidance
Investigation culminates in termination
Intel Confidential
Questions for Consideration
When it comes to values conflicts in the
workplace …
•I often feel as if I don’t have a choice.
•I have often voiced my values
effectively.
•I can think of times when I did not
voice my values effectively.
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Rationalizations
•It’s not a big deal
•This is the way
it’s done
•It’s not my
responsibility
•Loyalty
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The Challenge
We may not move forward
when we could
We may move forward
when we shouldn’t
Bad news can go underground
We may create a perception of a lack of integrity
We may not ‘sense’ or challenge early warning signs
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Our Dilemmas
• When an action, although legal, may conflict with our values
and culture
• When judging the optics
• When following policy risks a critical relationship
• When it’s not clear whether to take action
• When behavior of a 3rd party should lead to termination of
our relationship
• When omission of information can become equivalent of a
lie (failure to tell a customer, supplier or manager)
• When the issue is on the horizon
What ethical dilemmas are on the horizon?
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Situation #1
Jeff is positioned to take on a Sr. Engineering Manager role.
This is a ‘defining moment’ for him:
• His career is progressing well and he believes in the values
of the company and it’s ethical heritage
• Prior to the transition to the Sr. role, he starts feeling
pressure from leadership to pass a project through the
next milestone to present a more favorable picture
• He believes:
– the boundaries of honest reporting are being pushed
– questionable practices could create an
unethical environment moving forward
– he may be putting his future at risk
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Situation #1 Discussion
•What would you advise Jeff to do?
-------------------------------------•Was Jeff taking a risk?
•What was at stake?
•What do you think of the approach that
Jeff took? Why did it work?
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Relevant Principles
Navigational Markers:
Determine your position, set a safe course, identify
danger or obstructions
• Honesty
• Protect company assets &
reputation
• Open & direct / candor
• Seek diverse perspectives
• Reframe & innovate
• Courage
• Use good judgment & ask the right
questions
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Tales of Success
Recall a time in your work experience when your
values conflicted with what you were expected to do
in a particular, important management decision, and
you spoke up and acted to resolve the conflict.
----- My Story ----Alone or in pairs, consider the following 3 questions:
– What did you do, and what was the impact?
– What motivated you to speak up and act?
– What would have made it easier for you to
speak/act?
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Tales of Success- Discussion
What conclusions can we draw from these
stories?
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Learning Objectives
•After completing this module you will be
able to:
» Articulate current environmental pressures
» Describe current Intel challenges and
dilemmas
» Understand how our principles can be used
to navigate difficult ethical situations
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Module 1: Checkpoint
» Articulate current
environmental
pressures
» Describe current Intel
challenges and
dilemmas
» Understand how our
principles can be used
to navigate difficult
ethical situations
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Module 2: Decision
Making
Framework and Practice
Intel Confidential
Learning Objectives
•After completing this module you will be
able to:
» Leverage the PDM framework to effectively
identify and address ethical dilemmas
» Handle escalations and advise employees
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Our Principles
• Conduct business with honesty and integrity
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Follow the letter and spirit of the law
Treat each other fairly
Act in the best interest of Intel and avoid conflicts of interest
Protect the company’s assets and reputation
Act like an owner
Create impact
Be candid, open and direct
Have courage
Make others successful
Innovate
Use good judgment
Seek diverse perspectives
Intel Confidential
Collaborative Decision Making
SENSE – Is there a dilemma?
Are there changes that could
create a conflict between
commitments, responsibilities
and Intel’s principles?
Are there other ways that this
situation could be viewed?
What is the dilemma?
ACT – What will I do? How will I
get it done?
 Does the action align with
Intel’s best interests?
 Will the action embarrass me
or Intel?
 Are there challenges to
executing to plan?
 Who should I tell? How and
to whom might I voice a
concern?
INTERPRET – What can I do?
 What principles can guide the decision?
 Who do I need to engage with to make the
decision?
 What actions can I take and what are the
direct and indirect consequences?
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Ethics Case Studies
• What would you do
and how would you
get it done?
 As a group we will review an
online ethical challenge
 Discuss the best path to a
decision in alignment with
the goal and how to handle
escalations
Goal:
To come up with an approach that helps you role
model voicing your values and helping others to do
the same
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Ethics Case Studies
Challenge #9
When the omission of information can become the equivalent
of a lie
 Joe is on the sales team. Joe and his team have the new big customer
that they’ve been waiting for.
 However, they are unsure they can actually deliver the product needed,
e.g. have never delivered a product like this, they don’t have a proof-ofconcept.
 Joe’s manager has already committed to the customer and asks Joe to
meet with the customer.
 Joe knows that meeting with the customer at this point would be
inappropriate. He has worked on similar products and knows that living up
to a commitment on this would be nearly impossible.
 The project moved forward with success but then there are multiple issues.
Joe has a meeting with the customer to discuss marketing activities. Joe
needs to approve product readiness. Pushing this through will keep things
on track. Not approving readiness will set the project
back months
and will likely jeopardize this critical customer.
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Which Principles are in conflict?
• Conduct business with honesty and integrity
• Follow the letter and spirit of the law
• Treat each other fairly
• Act in the best interest of Intel and avoid conflicts
of interest
• Protect the company’s assets and reputation
• Act like an owner
• Create impact
• Be candid, open and direct
• Have courage
• Make others successful
• Innovate
• Use good judgment
• Seek diverse perspectives
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Collaborative Decision Making
Which questions should Joe ask himself?
SENSE – Is there a dilemma?
Are there changes that could creat
a conflict between commitments,
responsibilities and Intel’s
principles?
Are there other ways that this
situation could be viewed?
What is the dilemma?
ACT – What will I do? How will I
get it done?
 Does the action align with
Intel’s best interests?
 Will the action embarrass me
or Intel?
 Are there challenges to
executing to plan?
 Who should I tell? How and
to whom might I voice a
concern?
INTERPRET – What can I do?
 What principles can guide the decision?
 Who do I need to engage with to make the
decision?
 What actions can I take and what are the direct
and indirect consequences?
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What action should Joe take?
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1.
Yes, I am ready to ramp the team and will meet with the customer.
However, it’s important that we don’t over promise for something
that’s so new to us. I will work out a plan, share the information I
have from the past and bring in the right team members to make this
happen. Let’s focus on this customer and then ramp more broadly
once we’re comfortable.
2.
No, I don’t think this is the right time to move forward aggressively. I
will share the information I have from the past even though it will
mean we will need to push this out a year to better understand what
we are getting into before taking a next step. Let’s pull a team
together to discuss before we contact the customer.
3.
Yes, I am ready to ramp the team and will meet with the customer.
Clearly this is a top priority for Intel and we really need to move
quickly. We haven’t done this before but you know who to pull into the
project to make it successful. We will deliver this at all costs.
Intel Confidential
Ethics Case Studies
Challenge #9
When the omission of information can become the
equivalent of a lie
 The project moved forward with success but then there are multiple
issues.
 Joe has a meeting with the customer to discuss marketing
activities.
 Joe needs to approve product readiness. Pushing this through will
keep things on track. Not approving readiness will set the project
back months and will likely jeopardize this critical customer.
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Which Principles are in conflict?
• Conduct business with honesty and integrity
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Follow the letter and spirit of the law
Treat each other fairly
Act in the best interest of Intel and avoid conflicts of interest
Protect the company’s assets and reputation
Act like an owner
Create impact
Be candid, open and direct
Have courage
Make others successful
Innovate
Use good judgment
Seek diverse perspectives
Intel Confidential
Collaborative Decision Making
Which questions should Joe ask himself?
SENSE – Is there a dilemma?
Are there changes that could creat
a conflict between commitments,
responsibilities and Intel’s
principles?
Are there other ways that this
situation could be viewed?
What is the dilemma?
ACT – What will I do? How will I
get it done?
 Does the action align with
Intel’s best interests?
 Will the action embarrass me
or Intel?
 Are there challenges to
executing to plan?
 Who should I tell? How and
to whom might I voice a
concern?
INTERPRET – What can I do?
 What principles can guide the decision?
 Who do I need to engage with to make the decision?
 What actions can I take and what are the direct and
indirect consequences?
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What action should Joe take?
1. You meet with the team to review the situation. You decide
that this situation is too risky. You call the customer to let
them know that the project will be pushed out and that you'll
get back to them on the timing.
2. Clearly this is a top priority for Intel and you are at the point of
no return. You review the issues, decide to release it as is with
clear documentation on the issues that need to be addressed in
a later release.
3. You meet with the team to review the situation. Some of the
issues have a major impact on the product and may impact the
customer relationship as well as our brand. You decide to bring
the most critical issues to the customer and work out a plan for
a BETA release and a final release in a few weeks. There may
be a few issues at that point but you think through how to
mitigate and reset any perception issues in the market.
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Ethics Case Studies
Now it’s your turn
• Break into groups (1-4)
• Develop, review and discuss your assigned perspective for each
case (1-4)
• Develop viable responses
• Assess your team’s performance (positive, negative, neutral) to
both financial return & values
• Prepare response
• Present to class
Goal:
To come up with an approach that aligns with Intel
values and overall financial return
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Focusing on taking action
• ACT – What will I do? How will I get it done?
Does the action align with Intel’s best interests?
Will the action embarrass me or Intel?
Are there challenges to executing to plan?
 What are the main arguments that need to be countered?
What are the rationalizations that need to be addressed?
 What’s at risk for each person involved?
 What levers can be used to influence those who disagree?
Who should I tell? How and to whom might I voice
a concern?
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Case Study #1
Sue’s Dilemma
 Sue is a manager who is facing one of the most difficult challenges
of her career
 Employees were complaining about her manager, Alan, who had
just been promoted. Complaints included using company money to
fund personal items, asking employees to manage his personal
business and making comments about an employees age
 Alan was a long time Intel employee and good friends with the
Division Vice President
 Sue knew Alan well and had a good working relationship with him
 Alan appears to be involved with multiple activities that are in conflict
with Intel’s values
 What should Sue do? How can she get it done?
Sue’s learning: “The path forward for challenging situations is not black or
white, but grey. It’s about exploring different paths, testing out different
assumptions.”
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Case Study #2
Garin’s Recommendation
 Garin is a new purchasing director.
 A consultant recommended use of a supplier that will reduce
costs to where they need to be for the business, however, the
supplier also has potential human rights issues.
 Garin’s manager agrees with the consultant and informs Garin
and senior management of the new supplier. He reassures
Garin that he and his team will get credit for helping the product
line.
 Garin knows that moving ahead with the supplier is not the right
thing to do. Garin does not want to go above his manager’s
head or undermine his own credibility.
 How will Garin take action? How might he voice his concern?
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Leaders Responsibility
• Role model candor
• Put Intel first
• Own our culture of integrity
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Module 2: Checkpoint
» Leverage the PDM
framework to effectively
identify and address
ethical dilemmas
» Handle escalations and
advise employees to do
the same
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Module 3:
Recap
Checkpoint and Additional Resources
Intel Confidential
Recap Discussion
• Closing conversation
– What dilemmas did you find challenging and why?
– What team strategies did you employ for:
– compromising, reaching consensus, or choosing another
system to make your final decisions
– Speaking up / seeking advice
– Resolving issues
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Four Objectives
After completing this course you will be able to successfully address
the following situations:
When it’s not
clear
I’ll determine
what to do!
When it is clear
I will take
action!
I will build a culture of
integrity!
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As a leader,
I will know how
to handle
escalations!
Call To Action
Shape a trusting, ethical and flexible culture
as we transition and grow our businesses
– Get to know and understand PDM (website)
– Hold a staff discussion on PDM using the Inside PDM
presentation
– Encourage your employees to take the PDM Challenge
(manager training sessions are also available)
– Identify challenges early on – don’t wait
until a problem arises
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PDM Resources
• How Your Biz Champ will Support You
• PDM website
• Ethics Challenge
• PDM Support
• What's Next ?
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Staying Involved
• Survey
• Join the Ethics Leadership Network
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Thank You!
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Back-up
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Treat each other fairly – Case for
discussion
never realized that EEs would see my friendship with a staff
I
as
favoritism. I’ve worked with him for several years, and I just felt being
comfortable and trustworthy, and seem like together we would always
deliver the great result. He’s a smart, helpful, considerate, and hardworking guy, and totally deserved what he earned.
Over time we have become friends. We went out after work socially.
We have even taken vacations together and posted pictures on
Facebook. I never knew that other staffs felt unfair and unhappy
because of that. The team spirit went down, and I even blamed others
for not working hard enough. One day, one of my EEs raised the issue
with HR.
Even though my relationship did not interfere with my ability to make
sound Intel business decisions, I was coach by HR and my manager to
be more sensitive about how my actions could create perception of
favoritism even when an actual favoritism did not exist.
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