Supervisor as Ethical Leader The Supervision Series Level

Supervisor as Ethical Leader The Supervision Series Level I - Survival Skills For Supervisors Tim Balliett, Ph. D. University Ethics Officer Office of Ethics & Compliance trb 133@psu. edu; 814 -867 -5264 February 3, 2015

Agenda • • Introduction to Ethics Penn State Values Penn State’s Current Ethical Culture Strengthening Our Ethical Culture Retaliation Responding to Allegations of Misconduct Ethical Decision Making Closing Thoughts Office of Ethics and Compliance The Pennsylvania State University

Introduction to Ethics • Why ethics? – The importance of a good reputation – Illegal conduct can be extremely costly – Good governance pays off financially – Relationship between social responsibility and performance – Enhances personnel functioning – Most importantly – Mission of PSU: “improves the well being and health of individuals and communities through integrated programs of teaching, research, and service” Office of Ethics and Compliance The Pennsylvania State University

Ethics - Basic Definition • Moral principles or rules that govern individual or group (e. g. , institution, unit) behavior – The moral qualities that distinguish us an individual or group (unit, institution) – Guide our everyday decision making and actions – Knowing the difference between what we may have the right or ability to do versus what is right to do • Typically viewed as different from “compliance” to rules, laws, government regulations (although may overlap) Office of Ethics and Compliance The Pennsylvania State University

Ethical Dilemma Office of Ethics and Compliance The Pennsylvania State University

How did you determine what was the right thing to do? 1. We thought of what our personal ideals were and then decided accordingly. 2. We figure out what produced the best result for the greatest number of people. 3. In every situation we have a duty to do the right thing, and the right thing never changes. 4. We figured out what was best for us, the unit, and/or the University. 5. We tried to negotiate a solution among the people involved, because we will disagree on what is the right thing to do. 6. We went with our gut feelings. Office of Ethics and Compliance The Pennsylvania State University

Basic Ethical Orientations 1. Virtues – develop habit of acting according to a desired, ideal, personal characteristic 2. Utilitarianism – best result for the greatest number of people 3. Deontology – ethical principles don’t change and we have a duty/obligation/responsibility to do the right thing in every situation 4. Egoism – focus on what benefits self/institution 5. Relativism – no ethical system is better than another 6. Subjectivism – ethics describe opinions that are based on emotions Office of Ethics and Compliance The Pennsylvania State University

Values-Based Ethics Another ethical orientation • Who are we and who do we want to be? • Similar to thinking of what my personal ideals are and then acting accordingly ØBut as a group or organization • Examples: – diversity, sustainability, honesty, transparency, teamwork, empathy, excellence, exploration, selfreliance Office of Ethics and Compliance The Pennsylvania State University

Values-Based Orientation • Allows for both ethical values and priorities – Ethical value – universally good across cultures • Ex: Respect, Responsibility – Priority – ethically neutral, but has the potential to be positive • Ex: Loyalty, Community, Excellence • Goal: Integrity – Consistent, honest application of our ethics and values Office of Ethics and Compliance The Pennsylvania State University

Values in an Organization • In an institution, we ask: – What do we convey formally that communicates that ethics and our values are important? – What do we do informally – in our day-to-day behavior – that conveys our ethics and values? – What role does leadership, supervisors, etc. , play in conveying our ethics and values? – Which ethical principles or values are most important, based on our words and actions? Office of Ethics and Compliance The Pennsylvania State University

Development of Penn State Values • Faculty Senate (2011 -2013) and Freeh Report (2012) • Benchmarking of CIC and peer institutions • Advised by ERC on best practices Method 1. Qualitative analysis of existing University, college, campus, unit documents (2012 -2013) 2. The Pennsylvania State University Values and Culture Survey (Fall 2013) 3. Drafting by Advisory Council for Continued Excellence (ACCE) (2014) 4. Refinement via town-hall meetings (Spring 2015) Office of Ethics and Compliance The Pennsylvania State University

Proposed Penn State Values INTEGRITY: We act with integrity in accordance with the highest academic, professional, and ethical standards. RESPECT: We respect and honor the dignity of each person, embrace civil discourse, and foster a diverse and inclusive community. RESPONSIBILITY: We act responsibly and hold ourselves accountable for our decisions, actions, and their consequences. DISCOVERY: We seek and create new knowledge and understanding, and foster creativity and innovation, for the benefit of our communities, society, and the environment. EXCELLENCE: We strive for excellence in all our endeavors as individuals, an institution, and a leader in higher education. COMMUNITY: We are Penn State, one University geographically dispersed, committed to our common values and mission, working together for the betterment of the University and the communities we serve and to which we belong. Office of Ethics and Compliance The Pennsylvania State University

Penn State Values & Culture Survey • Developed and conducted by Ethics Resource Center (ERC) – Nonprofit, nonpartisan research organization based in Alexandria, VA – Dedicated to advancing high ethical standards and practices in public and private institutions – Conducts National Business Ethics Survey (est. 2000) • All PSU students, faculty, staff invited (110, 747) • Conducted October 29 – November 22, 2013 Office of Ethics and Compliance The Pennsylvania State University

Survey: Quick Facts • First comprehensive survey of this type and scope among higher education institutions • Unable to benchmark other universities • Methodology similar those utilized in large, nonprofit and for-profit institutions • Data tables for all questions and all reports are available to the public (www. universityethics. psu. edu) • Anticipate similar survey in 2016 -2017 Office of Ethics and Compliance The Pennsylvania State University

Survey: Participation • Analyses indicate data constitutes a representative sample. • Non-responder bias that is estimated to be present is not of sufficient cause for practical concern. Office of Ethics and Compliance The Pennsylvania State University

Strong Community

Observed Misconduct Office of Ethics and Compliance The Pennsylvania State University

Observed & Reported Misconduct Office of Ethics and Compliance The Pennsylvania State University

Recipients of Staff Reports Office of Ethics and Compliance The Pennsylvania State University

Reasons Given For Not Reporting Staff Faculty Past experience(s) with reporting 30% Afraid of losing job/work study/funding 30% 18% Advantageous to not report 23% Issue already addressed by someone else 26% Had to report to person involved 41% Thought it was not significant enough 18% Resolved the issue myself 14% Thought someone else would report 57% Didn't believe could report anonymously Feared retaliation from outside stakeholders 27% Feared retaliation from my colleagues/coworkers 35% Feared retaliation from dept head/supervisor 38% Feared retaliation from dean/dept head 37% Feared retaliation from senior administrators Did not know whom to contact 75% Did not believe corrective action would be taken Did not believe it was my responsibility Other 0% 10% 20% 30% 40% 50% 60% 70% 80%

Types of Retaliation Experienced After Reporting Staff Faculty 76% Intentionally ignored Excluded from group/work-related activities 40% Given an unfavorable assignment 26% Verbally abused by senior administrators Verbally abused by faculty/employees Physical harm to person or property 43% Not given promotion or raises Online harassment 2% Harassed at home 20% Relocated or reassigned 9% Demoted 27% Almost lost my job Not given tenure 49% Other 0% 10% 20% 30% 40% 50% 60% 70% 80%

What Impact Do Supervisors Have? • Observed misconduct • Reported misconduct • Fear of retaliation Ø What concrete strategies can supervisors employ to address these? Office of Ethics and Compliance The Pennsylvania State University

PSU Cares About Employees Faculty Staff 80% 70% 60% 50% 40% 37% 30% 20% 10% 0% Agree Neutral Disagree

Employees Who Violate Policies to Do Their Job Are Rewarded (Raises & Promotions) Faculty Staff 80% 70% 60% 50% 45% 40% 30% 21% 20% 10% 0% Agree Neutral Disagree

Survey: Ethics-Related Actions of Leaders Ethics-Related Actions (ERAs) include: • Talking about the importance of ethics • Acting with integrity and responsibility • Holding oneself and others accountable if violations of University policy occur • Modeling ethical behavior • Supporting others in following University policy • Being transparent about critical issues that impact Penn State Office of Ethics and Compliance The Pennsylvania State University

Ethics-Related Actions of Leaders Office of Ethics and Compliance The Pennsylvania State University

Impact of Supervisor Ethics Staff Perceptions of Supervisors’ Commitment to Ethics and Related Behaviors Office of Ethics and Compliance The Pennsylvania State University

pt /U De No e On r 11% Ot he d ea ni t. H r 0% ke Re p 10% or ue /C ow ag io n Faculty Co lle 20% Un r to en 40% M r r iso rv pe Su to ra st in i r ge le ol to en m yc m m of Ad an De lty cu Fa Rely On Most To Learn How To Be Successful at PSU Staff 90% 80% 70% 60% 50% 32% 30% 18% 23% 8% 1%

Review of Current PSU Climate • We have relatively high rates of misconduct, only half of which are being reported • High observed rates of abusive/intimidating behavior and discrimination • Staff are very fearful of retaliation • Lack of trust in how misconduct is reported and handled Ethics-related actions (ERAs) of supervisors are critical toward building an ethical climate for staff Office of Ethics and Compliance The Pennsylvania State University

“The current situation as described by some [in the Values and Culture Survey] is unacceptable. It is paramount that as a member of this community, you have the opportunity to work and learn in an environment free of intimidation, and that you feel confident in your ability to report misconduct…I charged my leadership team with developing a comprehensive plan addressing these challenges. ” - President Eric Barron, email to the University community, September 19, 2014

Strengthening Our Ethical Culture Plan • Formulated in response to concerns raised in Values and Culture Survey and by others • Includes collaboration of over 14 University groups and offices • Implementation has already started • Focused on three main areas: 1. Education 2. Communication 3. Structural changes Office of Ethics and Compliance The Pennsylvania State University

Strengthening Our Ethical Culture Plan 2014 Education Components Q 1 Q 2 Q 3 2015 Q 4 Q 1 Q 2 Q 3 2016 Q 4 Develop management/leadership education for staff leadership Develop management/leadership education for faculty leadership Develop ethics workshops/seminars for BOT and senior administrators Develop ethics awareness program Develop ethical decision-making model education for employees Office of Ethics and Compliance The Pennsylvania State University Q 1 Q 2

Strengthening Our Ethical Culture Plan 2014 Communication Components Q 1 Q 2 Q 3 2015 Q 4 Q 1 Q 2 Q 3 2016 Q 4 Hire E&C Communications and Training Specialist Educate students on availability of Hotline Increase collaboration with Staff Advisory Council to identify issues/concerns Increase collaboration with Bystander Intervention and Sexual Violence and Harassment Task Forces Office of Ethics and Compliance The Pennsylvania State University Q 1 Q 2

Strengthening Our Ethical Culture Plan 2014 Communication Components Q 1 Q 2 Q 3 2015 Q 4 Q 1 Q 2 Q 3 2016 Q 4 Increase communication and emphasis on ethics by University leaders Develop stronger educational messaging on functioning of Hotline and misconduct reporting Increase communication regarding Office of E&C Increase communication of AD 67 and AD 88 Develop website providing aggregate results of University allegations/investigations Office of Ethics and Compliance The Pennsylvania State University Q 1 Q 2

Strengthening Our Ethical Culture Plan 2014 Structural Components Q 1 Q 2 Q 3 2015 Q 4 Q 1 Q 2 Q 3 2016 Q 4 Consolidate Bias, Behavioral Threat, and Affirmative Action reporting numbers into Hotline Hire E&C Investigator Establish alleged misconduct tracking and investigatory protocols Develop protocols for check-ins with selfdisclosed reporters Establish protocols for enforcement of AD 67 violations Office of Ethics and Compliance The Pennsylvania State University Q 1 Q 2

Strengthening Our Ethical Culture Plan 2014 Structural Components Q 1 Q 2 Q 3 2015 Q 4 Q 1 Q 2 Q 3 2016 Q 4 Revise/establish policies on faculty misconduct that protect reporters from retaliation Develop ethical decision-making model Draft and implement new AD 47 Develop and disseminate recommended standards for performance reviews reflecting revised AD 47 Office of Ethics and Compliance The Pennsylvania State University Q 1 Q 2

Policy Updates • AD 86: Acceptance of Gifts and Entertainment – Employees are to reject offered gifts and entertainment if all 4 conditions are met: 1. Offered by any individual or party who has current or prospective University business 2. The employee has authority or influence in the current or prospective University business 3. Value greater than $100 4. Offered either directly or indirectly – Note: Individual units may have more strict policies. • AD 88: Code of Responsible Conduct – Legal and policy compliance, accurate records, conflict of interest, reporting of misconduct, non-retaliation Office of Ethics and Compliance The Pennsylvania State University

Survey: Staff Fear Retaliation ■ 48% observed misconduct 50% of whom reported it ■ 35% viewed abusive or intimidating behavior 45% of whom reported it ■ 57% thought they could not report anonymously ■ 18% who reported misconduct stated they experienced retaliation Office of Ethics and Compliance The Pennsylvania State University

Survey: Staff Fear Retaliation Those who observed but did not report misconduct: ■ 59% - feared retaliation ■ 30% - previous experience of reporting led them not to report again ■ 30% - afraid of losing their job if they reported ■ 26% - would have had to report to the person involved in misconduct Office of Ethics and Compliance The Pennsylvania State University

Office of Ethics and Compliance The Pennsylvania State University

Retaliation • Direct – Public criticism – Sarcastic comments – Verbal assaults on competency or credibility – Lowering performance evaluations, demotion, termination • Is NOT giving fair, accurate performance review with suggestions for improvement, appropriate compensation, appropriate corrective actions Office of Ethics and Compliance The Pennsylvania State University

Retaliation • Indirect – Reassignment to less desirable duties – Exclusion from flow of information – Slowly, clandestinely damaging reputation – Exclusion from meetings, social events – Reassignment or work space or decrease resources to complete tasks – Not providing feedback to improve performance Office of Ethics and Compliance The Pennsylvania State University

Manager Blind Spot: Fear • Recent studies show 90% of managers don’t think fear or retaliation is a problem • Employees don’t speak up • Decline in initiative, productivity, morale, performance, meeting effectiveness, employee retention Office of Ethics and Compliance The Pennsylvania State University

Fears of Employees • Loss of employment • Loss of career or financial advancement • Damaging relationship with supervisor • Losing credibility or reputation Office of Ethics and Compliance The Pennsylvania State University

Fears of Employees • • • Interpersonal rejection Change in job or assignments Embarrassment Conflict, causing trouble Nothing will change Office of Ethics and Compliance The Pennsylvania State University

Impact of Fears • • • Nourishes competition Fosters short-term thinking Destroys trust Stifles innovation Destroys communication May motivate more effort, but not better results Office of Ethics and Compliance The Pennsylvania State University

Supervisors and Fear • Most supervisors are highly committed and dedicated • But, many times supervisors may do things unconsciously or without knowledge that actually increase fear – Poor communication – Lack of explanation – Misinterpretations – Taking credit from others – Inconsistency – Correcting an employee in front of others Office of Ethics and Compliance The Pennsylvania State University

Cycle of Fear in Workplace • Once a cycle of fear is created, it can wreck havoc in a unit • However, breaking the cycle is greatly under the influence of supervisors ØOften starts with supervisor assumptions and resulting strategies Office of Ethics and Compliance The Pennsylvania State University

Breaking the Cycle • Best way to start driving fear out of the University • Start with own negative assumptions – and the behavior that results from them • Developing trust leads to self-fulfilling prophecy • Continue to provide feedback on performance – but communicate and act appropriately Office of Ethics and Compliance The Pennsylvania State University

Golden Rule of Supervision: Respect Employees want to be: – Valued – Appreciated – Respected – Understood – Not taken advantage Office of Ethics and Compliance The Pennsylvania State University

Example: Unit Norms for Respect • If you have a problem with me, come see me. • If I have a problem with you, I’ll talk to you. • If someone has a problem with me and comes, to you, please send them to me. • Be careful how you interpret me; I’d rather do that. Office of Ethics and Compliance The Pennsylvania State University

Example: Unit Norms for Respect • I will be careful how I interpret you; please help me if I’m incorrect. • I do not manipulate; I will not be manipulated; don’t let others manipulate you; don’t let others manipulate me through you. • When in doubt, just ask. If I can answer it without breaking a confidence, I will. Office of Ethics and Compliance The Pennsylvania State University

Never Underestimate Modeling • Your actions and example speak far louder than whatever you may say • You are in a fishbowl – everything you do is watched • Your behavior has a tremendous opportunity to influence the University through a positive example! “Preach the gospel always. When necessary, use words. ” - Francis of Assisi (d. 1226) Office of Ethics and Compliance The Pennsylvania State University

Remember: Ethics-Related Actions • Talking about the importance of ethics • Acting with integrity and responsibility • Holding oneself and others accountable if violations of University policy occur • Modeling ethical behavior • Supporting others in following University policy • Being transparent about critical issues that impact your unit, department, and Penn State Office of Ethics and Compliance The Pennsylvania State University

The “Big Picture” Hold others and yourself accountable for misconduct. Do not blame others Do not feel helpless as a supervisor You have a responsibility to reduce fear and build trust Stay away from provoking behaviors Change own negative assumptions about employees Anticipate and understand what workplace changes may cause employee assumptions to surface • Never ignore employee reactions – gently, persistently, but not defensively, address them • • Office of Ethics and Compliance The Pennsylvania State University

Daily Actions • Be deliberate and sincere in thanking people • Give credit for work being done rather than blaming • Take responsibility; don’t make excuses • Share information appropriately and openly • Speak in terms of “us” and “we” • Focus on common purpose and goals • Value each employee’s background, competencies, experience, contribution Office of Ethics and Compliance The Pennsylvania State University

Daily Actions • Openly express concerns, criticisms, and conflicts – and allow employees to do the same. • Don’t ignore uncomfortable situations. They don’t go away. Instead, they get worse and multiply. • Set the tone and standards regarding respect and retaliation. • Speak positively about the work, University, future Office of Ethics and Compliance The Pennsylvania State University

Allegation as a Critical Moment • Unique position to influence employee behavior • Helps combat fear of retaliation • Establishes trust • Demonstrates commitment to integrity • Need to respond as quickly and transparently as possible Office of Ethics and Compliance The Pennsylvania State University

Receiving an Allegation Show a willingness to listen, sensitivity Take accurate notes Answer questions as best able/permissible Reassure employee issue will be handled quickly, sensitively, without retaliation • Establish a time for a follow-up with employee • Determine whether requires escalation to your supervisor, PSU office, outside agency • • Office of Ethics and Compliance The Pennsylvania State University

Appropriate Things to Say • I want to thank you for bringing this to my attention. I know it takes courage to come forward, and I admire that. • I assure you that we take these concerns very seriously and will look into this matter. • We will keep this confidential to the fullest extent possible. Office of Ethics and Compliance The Pennsylvania State University

Appropriate Things to Say • Remember, we have a strong “no retaliation” policy, so please let me or somebody else know if you feel you are experiencing retaliation. • If you have any concerns about how I or others are handling this, please feel free to contact the Office of Ethics and Compliance (provide contact info). Office of Ethics and Compliance The Pennsylvania State University

Follow-up Conversations • I want to update you on the concern/allegation you raised. I have informed (name person, office, agency), and they’re reviewing the case. (They/I) will give you an update regarding the case by (provide date). If you have any questions or doubts, please feel free to contact me anytime. Office of Ethics and Compliance The Pennsylvania State University

Follow-up Conversations • Thank you for your cooperation in addressing this issue. I can’t discuss the specifics of the investigation, but I can tell you that the University is investigating the matter and will take appropriate action, as necessary. Office of Ethics and Compliance The Pennsylvania State University

Follow-up Conversations • I want to commend you for bringing your concerns regarding (X) to my/our attention. I also wanted to let you know that (name, office, agency) has completed its investigation and corrective action has been taken. Although I can’t share specifics about the individual(s) involved, I can tell you that we have taken measures to decrease the likelihood of this happening again, such as (changes in policy, procedures, etc. ) Office of Ethics and Compliance The Pennsylvania State University

Reporting at PSU Emergency situation – 911 or campus/local police Child abuse – Childline: 1 -800 -983 -0313 Behavioral Threat – 855 -863 -BTMT (2868) Bias, Discrimination, Sexual Violence/Harassment – 814 -863 -0471 • Research – 814 -865 -1775 • All else or when in doubt – call Office of Ethics & Compliance or Hotline (800 -560 -1637) • • Office of Ethics and Compliance The Pennsylvania State University

What Happens With a Hotline Report? • Received by a third-party company – Person making report receives code to check status of complaint beginning 14 days later – Confidentiality is strictly kept • Office of Ethics & Compliance determines if investigation needs to be conducted • If not, assignment to appropriate office/unit with recommendation(s) • Weekly meetings to update status – Goal: Resolution within 14 -30 days Office of Ethics and Compliance The Pennsylvania State University

Ethical Decision Making • Most large corporations and non-profits have an ethical decision-making model – Framework, flowchart, decision tree, questions to help employees work through an ethical dilemma • Penn State is currently developing a model based on the Penn State Values for use by all employees, administrators, and students Office of Ethics and Compliance The Pennsylvania State University

Treviño & Nelson (2014) 1. 2. 3. 4. 5. 6. 7. 8. Gather the facts Define the ethical issues Identify the affected parties (stakeholders) Identify the consequences Identify the obligations Consider your character and integrity Think creatively about potential actions Check your gut Treviño, L. K. & Nelson, K. A. (2014). Managing business ethics: Straight talk about how to do it right (6 th Ed. ). Hoboken, NJ: John Wiley & Sons. Office of Ethics and Compliance The Pennsylvania State University

Closing Thoughts • Be mindful of the ethical framework your staff and supervisors use • Communicate and model the Penn State Values • Misconduct and fear of retaliation are major concerns • Ethics-related actions of supervisors are critical toward building an ethical climate for staff • How you respond to allegations of misconduct greatly impacts your unit • Use (PSU) ethical-decision making model as guide • Utilize University resources to help you Office of Ethics and Compliance The Pennsylvania State University

http: //www. universityethics. psu. edu - universityethics@psu. edu - 814 -867 -5088 – 333 Elliott Bldg. , University Park, PA 16802/