New world: print, post, and pray just won't make it anymore regarding ethics codes. An ethics architecture is needed. Here are some guidelines

T+D, August, 2003 by Tim Hatcher

A trainer doesn't have to start increasing ethics skills and knowledge from scratch; plenty of resources are available. The Ethics Resource Center offers guidelines, consulting, and training; professional associations such as ASTD offer guidance on developing and using ethics codes and training. It's time for the training profession to revisit its established competencies to ensure that ethics-related knowledge and skills are required for training professionals.

Revamp and create new ethics codes and policies. Several organizational ethics standards that training professionals can use include two international standards for corporate ethics: SA 8000, developed by Social Accountability International cepaa.org, and AA 1000, developed by the Institute for Social and Ethical Accountability accountability.org.uk. The International Organization for Standardization's ISO 14000 Environmental Management Standards iso.ch/iso/eu/ISO9000-14000/index.html is a good set of standards. Additionally, the Open Compliance and Ethics Group Project, a coalition of recognized business and thought leaders, is developing standardized guidelines and best practices for corporate-wide ethics.

Emphasizing the strategic capabilities of training may finally become a reality. Training professionals can add real value by helping establish an ethical climate and culture in their organizations, But as we've learned, ethics training isn't enough. A strategic ethics architecture is required so that ethics becomes a core value and institutionalized.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act of 2002 establishes new governance and ethical business practices for publicly traded firms and CPA firms and auditors, as well as attorneys, brokers, dealers, Investment bankers, and financial analysts who work for publicly traded companies. It may also apply to contractors of publicly traded firms

The act requires companies to create an accounting oversight board made up of independent financial experts to oversee all accounting functions, with a myriad of requirements for registered public accounting firms, such as annual inspections. It also mandates significant changes for insider trading policies; audit committees: SEC reporting; and financial document control, retention, and destruction, insider stock trades are prohibited during pension-fund blackout periods, while penalties for Employment Retirement Income Security Act reporting and disclosure violations are greatly increased. It prohibits loans to executives and directors and places limits on extraordinary payments.

Whistle-blowers are protected from dismissal, demotion, suspension, threats, discrimination, and harassment. Companies should have procedures such as hotlines for confidential and anonymous communications with whistle-blowers.

Better communications, higher standards for performance, and an ethical corporate culture are needed to support accounting, finance, and other professionals in their efforts to comply with SOX, CEOs and CFOs must formally certify the accuracy of financial reports, and companies will need to ensure that all employees assess and manage risks as appropriate to their positions. For example, job descriptions and performance appraisals may need to be reviewed for related tasks, limits of authority, and accountability. In addition, because CFOs can be subject to huge fines and prison terms for any misrepresentations, their skills, knowledge, and qualifications should be thoroughly examined, validated, and documented.