TABLE OF CONTENTS

• I.   INTRODUCTION
  
• II.  INSTRUCTIONS FOR USING THESE CASES
  
• III. AGENDA ITEMS FOR DISCUSSION
  
• IV. SCRIPT FOR CASES FOR ETHICS TRAINING II
  INTRODUCTION

  Cases for Ethics Training II, like its predecessor, Cases for Ethics Training © 1994, is a video program designed to stimulate discussion and debate of ethics and compliance issues relevant to defense contractors. The video program was prepared under the auspices of the Defense Industry Initiative on Business Ethics and Conduct ("DII"), in conjunction with its 1996 Best Practices Forum.

  In this program, the audience sits in on a meeting of the Business Conduct Committee of a fictional company, National Security Industries, or NSI. NSI is a typical signatory -- a major defense supplier with a variety of product lines and locations. Grant Richmond is an Executive Vice President of NSI and serves as Chairman of the Business Conduct Committee. The Committee has a full agenda of items for discussion. Under the direction of Alan R. Yuspeh, DII Coordinator, the Committee will be addressing a number of issues pertaining to the general responsibilities of the Committee, such as ethics training for management and the use of ethics surveys. The Committee will also be addressing several incidents that have occurred at NSI and arguably involve wrongdoing. The Committee will be discussing each of the agenda items and deciding what, if any, action should be taken.

  For teaching purposes, the agenda items stimulate intentionally provocative comments and situations and raise issues on properly dealing with such situations. The program was designed to facilitate an open discussion of the issues raised. To that end, this Facilitator's Manual contains suggested questions for discussion, as well as comments and suggestions for the facilitator, for each of the agenda items.

  The DII was created in 1986 as an outgrowth of the recommendations of the President's Blue Ribbon Commission on Defense Management (the "Packard Commission"). Signatories to the DII Principles have pledged to promote ethical business conduct through implementation of policies, procedures, and programs in the following six areas:

  • Codes of ethics;
  • Ethics training;
    
  • Internal reporting of alleged misconduct;
    
  • Self-governance through the implementation of systems to monitor compliance with relevant laws and the adoption of procedures for voluntary disclosure of violations to the appropriate authorities;
    
  • Responsibility to the industry through attendance at Best Practices Forums; and
    
  • Accountability to the public.

  As of 1996, there were 49 signatories to the DII, including virtually all of the largest defense contractors.

  In furtherance of the DII Principles, the signatories have committed to adopting and implementing a set of principles of business ethics and conduct that acknowledge and address their corporate responsibilities under relevant laws and to the public. They have also accepted the responsibility to create an environment in which compliance with laws and free, open, and timely reporting of violations become the felt responsibility of every employee in the defense industry.

  The ethics and compliance programs of the DII signatories are continuously being improved. DII signatories hold extensive training programs on government contract compliance and business ethics. Signatories view such training as a means of raising employee awareness of, knowledge of, and commitment to legal requirements and ethical principles. The signatories use a variety of techniques to convey ethics information and provide guidance for dealing with perceived wrongdoing and ethically challenging workplace situations. Perhaps the most commonly utilized technique is the case study, which is used to illustrate the application of ethics principles in everyday situations. The case studies typically deal with such subjects as proper time charging, product quality, use of company assets, substance abuse, environmental issues, product substitution, pricing and proposal preparation, and confidential information. Cases for Ethics Training II follows the case-study model. It is designed so that employees may view each of the agenda item issues, and after each, discuss the issues using a typical problem-solving format.

  Information about this and other DII corporate ethics program materials is available from Richard Bednar, DII Coordinator, Crowell & Moring LLP, 1001 Pennsylvania Avenue, N.W., Suite 1000, Washington, D.C. 20004, Telephone (202) 624-2619.
  

  Next: INSTRUCTIONS FOR USING THESE CASES
  

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  © 1994 DEFENSE INDUSTRY INITIATIVE. Cases for Ethics Training was written, directed, and produced for the Defense Industry Initiative by Alan R. Yuspeh. Mr. Yuspeh is a partner at the law firm of Howrey & Simon. The Facilitator's Guide for Discussion was written by Alan R. Yuspeh and Karen L. Manos. Ms. Manos is an associate at Howrey & Simon. All rights reserved. Use or duplication of this manual or the accompanying video program without prior permission of the DII is strictly prohibited.

  Return to the DII Home Page.

  ©1999, Defense Industry Initiative