Workplace Ethics Supervision The Supervision Series Level I

Workplace Ethics & Supervision 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 Office of Ethics and Compliance

Agenda • Ethics Essentials – Role of Ethics & Compliance at Penn State – Penn State Values and Ethics Policies • Current Penn State Ethical Culture – Current University Initiatives • Characteristics of Ethical Supervisors • Addressing Misconduct – Misconduct Reporting and Process – Responding to Allegations of Misconduct • • Preventing & Mitigating Retaliation Characteristics of Ethical Supervisors Ethical Decision Making Closing Thoughts Office of Ethics and Compliance

Office of Ethics and Compliance • Establishes guidelines, standards and requirements for conduct designed to support and enhance an institutional culture of ethics & compliance • Prevent, deter, and detect violations of law • Uphold accreditation standards • Provide support, training, educational and enforcement resources in compliance with all applicable legal requirements and University policies • Coordinate ethics & compliance efforts across the organizational structure of the University Office of Ethics and Compliance

Office of Ethics and Compliance • • Established in 2013 Led by Chief Ethics and Compliance Officer (CECO) Reports directly to Board of Trustees Compliance areas: – – – – NCAA Division I Commonwealth Campus Athletics Export Privacy Youth Programs Investigative Services (including Hotline) Communications & Training • Ethics Office of Ethics and Compliance

http: //www. universityethics. psu. edu/ (814) 867 -5088 psoec@psu. edu

Office of Ethics and Compliance

and Privacy (proposed addition) Proposed Addition Office of Ethics and Compliance

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COI Policies Office of Ethics and Compliance

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• Faculty should also consult HR 80: Private Consulting Practice Office of Ethics and Compliance

Office of Ethics and Compliance

Office of Ethics and Compliance

Accurate Records and Privacy As required by University policies and federal, state, and local law: • Create, transmit and enter information into Penn State’s records accurately, completely, and with appropriate supporting documentation. • Limit the collection, use, disclosure or storage of personally identifiable information (PII), protected health information (PHI), student educational records and data to required academic, research, or administrative functions, or other legally required purposes. Office of Ethics and Compliance

Office of Ethics and Compliance

Office of Ethics and Compliance

Office of Ethics and Compliance

Power of Organizational Culture • If a rule, policy, or a code conflict with an organization’s culture, the culture prevails most of the time. • Need to pay as much attention to culture as to policies, training, auditing, etc. • One culture with many expressions • Complex organizations have micro cultures • “Manage the culture or it manages you. ” – Edgar Schein, Professor Emeritus, MIT Sloan School of Management Office of Ethics and Compliance

E&C Risk Decreases in Strong Ethics Cultures ECI (2016). Men, Women and Ethical Leadership. Arlington, VA: ECI. © 2016 ERI. Used with permission.

Penn State Values & Culture Survey • Developed and conducted by Ethics Resource Center (ERC) of the Ethics and Compliance Initiative (ECI) [www. ethics. org] – Conducts National Business Ethics Survey (est. 1994) • First comprehensive survey of this type and scope among higher education institutions • Unable to benchmark other universities; benchmarks from for-profit sector entities Office of Ethics and Compliance

Survey: Quick Facts • All PSU students, faculty, staff invited (110, 747) • Conducted October 29 – November 22, 2013 • Data tables for all questions and all reports are available to the public (www. universityethics. psu. edu) • Anticipate similar survey in Fall 2017 Office of Ethics and Compliance

Survey Participation GROUP TOTAL POPULATION FACULTY 7411 2, 299 31. 0% +/- 1. 7% STAFF (including administrators & technical service) 13, 171 5, 233 39. 7% +/- 1. 1% UNDERGRADUATES 77, 452 5, 689 7. 3% +/- 1. 3% GRADUATE STUDENTS 12, 715 1, 434 11. 3% +/- 2. 4% TOTAL 110, 747 14, 655 13. 2% +/- 0. 8% RESPONSES MARGIN OF ERROR • All PSU employees and students were invited to participate • Analyses indicate data are representative sample. • Non-responder bias estimated to be present does not appear to be enough to be a sufficient cause for practical concern.

Poll How many staff observe misconduct at Penn State in a given year? A. B. C. D. E. < 10% 25 -30% 35 -40% 45 -50% 55 -60% Office of Ethics and Compliance

Poll Which misconduct was witnessed most by staff? A. B. C. D. E. Hostile work environment Discrimination Financial misconduct Stealing Student substance abuse Office of Ethics and Compliance

Poll How often do staff report misconduct? A. > 75% B. 60 -70% C. 45 -55% D. 30 -40% E. < 25% Office of Ethics and Compliance

Poll Who receives the most reports of misconduct made by staff? A. Unit HR B. Immediate supervisor C. Office of Human Resources D. University Hotline E. Campus/Local Police Office of Ethics and Compliance

Poll What reason do staff give most often for not reporting misconduct? A. I didn’t know whom to contact. B. I resolved the issue myself. C. It wasn’t significant enough to report. D. I didn’t think I could be report anonymously. E. I didn’t believe corrective action would be taken. Office of Ethics and Compliance

Penn State Values & Culture Survey: Ethics-Related Actions (ERAs) • 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

PSU Survey: Impact of Supervisor's ERA's Strong ERAs Weak ERAs 92% 79% 51% 40% 27% 25% 11% 3% Felt Pressure to Violate Standards Observed Misconduct Observed Abusive Behavior Experienced Retaliation Office of Ethics and Compliance

Elements to Ethical Culture The following must align: 1. Clear standards and expectations 2. Education and training 3. Accountability Ø Leadership is the linchpin Office of Ethics and Compliance

Required Training • Onboarding – Ethical Awareness – Reporting Child Abuse – Clery Act – Sexual Assault and Harassment • Annual E&C refresher course • Position-specific E&C training • Supervisor Training Office of Ethics and Compliance

YOU@PSU: E&C Statements • I have read the Penn State Values and have read and understand my obligations under AD 88: Code of Responsible Conduct. – Articulate how Values are integrated into work • I understand my compliance obligations and have completed the associated required compliance training(s) for my position. – List of obligations and evidence of training Office of Ethics and Compliance

YOU@PSU: Competencies • Effective Knowledge – Demonstrates knowledge of University ethics and compliance • • policies and procedures relevant to one’s position. Accountability & Self-Management – Acts with integrity by doing the right thing, even if difficult. Teamwork & Leadership – Takes responsibility for one’s actions by keeping commitments, supporting others, and admitting and correcting mistakes. Communication – Interacts openly and honestly with others in a way that generates trust, maintains confidential information, and avoids favoritism. Innovation & Problem Solving – Demonstrates commitment to exploring ethical considerations when problem solving and making decisions. Office of Ethics and Compliance

Penn State University encourages reporting misconduct. If you see something, say something. Penn State offers numerous resources to report misconduct: Immediate Threat or Emergency Suspected Child Abuse Sexual Assault or Sexual Harassment General Harassment Student Misconduct Research Misconduct Behavioral Threat Other Misconduct Clery Reportable When in doubt of where to report, call the Office of Ethics and Compliance (814 -8675088) or your Office of Human Resources representative for advice.

Penn State University encourages reporting misconduct. If you see something, say something. Penn State offers numerous resources to report misconduct: 911 or University/Campus Police Affirmative Action Office: 814 -863 -0471 Behavioral Threat Management Team: 1 -855 -863 -BTMT (2868) or 814 -863 -BTMT (2868) or reportbtmt@psu. edu or http: //btmt. psu. edu/report/ Childline: 1 -800 -932 -0313 or https: //www. compass. state. pa. us/cwis/public/home AND E-mail AD 72@psu. edu Office of Student Conduct: (814) 863 -0342 or http: //studentaffairs. psu. e du/conduct/ Supervisor, Office of Human Resources Strategic Partner, or Penn State Hotline (1 -800 -560 -1637 or http: //hotline. psu. edu) Office of Sexual Misconduct Prevention and Response: http: //title-ix. psu. edu/ Office of Research Protections: 814 -865 -1775 or ORProtections@psu. edu Clery Office: 814 -863 -1273 or cleryform@psu. edu or https: //www. absecom. psu. edu/CAMPUS_SECURI TY/security-incident-form. cfm

Apart from an immediate threat, emergency, or suspected child abuse, you can also report anonymously via the Penn State Hotline (1 -800 -560 -1637 or http: //hotline. psu. edu) http: //universityethics. psu. edu/resources-reporting-wrongdoing http: //universityethics. psu. edu http: //reporting. psu. edu – under development

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 – Enters University case management system • Office of Ethics & Compliance determines if: – Investigation needs to be conducted by E&C – Investigation should be conducted by PSU office – More information is required (request will be posted to system for person to provide additional information) – Referral/Recommendation should be made/given – No investigation is required Office of Ethics and Compliance

How Do I Learn What Happened? • Goal: Resolution within 14 days • Contact hotline after 14 days with code • Resolution posted – Action Taken: An investigation was conducted and appropriate action was taken. Due to personnel confidentiality, specific details cannot be provided. – Unfounded: Investigation revealed insufficient evidence or evidence to the contrary – Not enough information provided: Investigation cannot be conducted without more information, which is requested. – Referral to another office, with contact provided Office of Ethics and Compliance

Subject Things to avoid as a supervisor: • Do not ask anyone about the investigation – Exception: Office of Ethics & Compliance or the office conducting the investigation • Do not try to discover who made an allegation • Do not comment about the investigation Office of Ethics and Compliance

Receiving an Allegation as Critical Moment • Unique position to influence staff & faculty 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

Receiving an Allegation Show a willingness to listen, sensitivity Take accurate notes but do not record 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

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

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 (define 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

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

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

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

Poll From whom do staff fear retaliation the most? A. Senior administrators B. Head of the unit/department C. Immediate supervisor D. Co-workers/peers E. People/Groups outside of the University Office of Ethics and Compliance

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

Mitigating Fear • Most supervisors and leaders 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

Managers’ Ethical Pitfalls • We often fail to recognize ethical dimensions of decisions • Don’t recognize the ethical and organizational culture challenges affecting those we supervise • We overestimate the abilities of our brains: perception, memory, judgment • We underestimate the influence that: – others have over us – situations have over us – we have on others and situations Office of Ethics and Compliance

Those Who Violate University Policies are Rewarded (Promotions & Raises) Staff Faculty 45% 38% 35% 27% 21% Agree Neutral Disagree

ERC (2014). Ethical Leadership: NBES 2013 Research Report. Arlington, VA: ERC. © 2014 ERC. Used with permission.

SUPERVISORS ERC (2014). Ethical Leadership: NBES 2013 Research Report. Arlington, VA: ERC. © 2014 ERC. Used with permission.

ERC (2014). Ethical Leadership: NBES 2013 Research Report. Arlington, VA: ERC. © 2014 ERC. Used with permission. MANAGEMENT

ERC (2014). 2013 National Business Ethics Survey of the U. S. Workforce. Arlington, VA: ERC. © 2014 ERC. Used with permission.

Ethical Leadership Things to Do: • Listen to employees • Showing concern for the best interests of employees • Treat all employees with respect and dignity • Support employees in upholding University policies and ethical standards • Provide employees with sufficient information about situations and decisions that affect them • Give/Share credit to/with employees • Hold others accountable for violating University’s policies and ethical standards Ø Define success by how it is achieved, not just results Office of Ethics and Compliance

Ethical Leadership Things NOT to Do: • Feel helpless as a supervisor: report up or ask for advice. • Ignore or not check for fear and lack of trust. • Ignore employee reactions – gently, persistently, but not defensively, address them • Ignore uncomfortable situations. They don’t go away. Instead, they get worse and multiply. • Provoke others or engage in provoking behaviors • Don’t examine or acting on own negative assumptions about employees • Don’t anticipate or understand what workplace changes may cause employee assumptions/fears to surface Office of Ethics and Compliance

Ethical Leadership Personal Integrity • Set a good example of ethical conduct • Keep promises and commitments • Accept blame when things go wrong • Do the right thing, even if means making tough decisions or sacrificing financial gain • Putting the good of the University ahead of college, department, or personal interests • Conduct one’s personal life in an ethical manner • Hold yourself accountable for violating University’s policies and ethical standards Office of Ethics and Compliance

Ethical Leadership 1. 2. 3. 4. Modeling Communication Ethical decision-making Supporting University standards 5. Rewarding ethical behavior Office of Ethics and Compliance

Common Ethical Pitfalls We are good at keeping our self identification as an ethical person intact, even when actions are inconsistent: • Overconfidence / Over-optimism • Anchoring and framing effects • Favoritism/Bias • Loss aversion • Attribution error Office of Ethics and Compliance

Common Ethical Pitfalls • Most erroneously believe they are more ethical than the majority of their peers (Tenbrunsel, 1998) • Overestimate our future socially desirable behaviors (Epley & Dunning, 2000) • Misremember past experiences as more positive than they actually were (Mitchell, Thompson, Peterson, & Cronc, 1997) • Favor our self-serving perceptions, resulting in behaviors that contradict our intended ethical standards (Banaji, Bazerman & Chugh, 2003) Office of Ethics and Compliance

Ethical Pitfall: Rationalization • “It’s only a little. ” • “I deserve it. ” • “It will be good for my career. ” • “It’s not a very important rule. ” • “He’s just a complainer. ” • “It’s not really against the rules. ” • “It was legally defensible. ” • “The competition is doing it. ” • “This is the way business is done in _____. ” Office of Ethics and Compliance

More Ethical Pitfalls • Don’t recognize the ethical and organizational culture challenges affecting us • We overestimate the abilities of our brains: perception, memory, judgment • We underestimate the influence that: – others have over us – situations have over us – we have on others and situations Office of Ethics and Compliance

Ethical Fading • Tenbrunsel & Messick, 2004 • Process that leads a person not to realize that the decision he/she is making has ethical implications • Thus ethical criteria do not enter into decision • Faulty misperception that we are more ethical than our actions demonstrate – Conflict between “want”, “should”, “possible” • Rationalization – Prediction, behavior, and recollection Ø Difficult to self-correct Office of Ethics and Compliance

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Closing Thoughts • Communicate and model the Penn State Values and ethical expectations of the University • 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 • Model ethical leadership and hold yourself and others accountable • Use PSU ethical-decision making model as guide • Utilize University resources to help you Office of Ethics and Compliance