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Beacon Magazine: Ethics and Nonprofits, Q2 2022

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TERESA HunterFamily Housing Advisory ServicesEthics and Nonprofits Ethics & CultureKathleen DayThe Enron Collapse Nonprofit Ethics ExchangeHonoring Mike McCarthy-Hall of Fame-

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Ethics and LawCan Values be Legislated? Internal Culture of EnronKathleen Day: Johns Hopkins UniversityBusiness Ethics Alliance Cadre MemberExecutive Director's Message: Michael Robinson, Business Ethics AllianceExecutive Director/CEO Ethics and Nonprofits Teresa HunterFamily Housing Advisory Services Calendar of EventsTrustee Chair Message:Lance Fritz, Union Pacific RailroadChairman, President & CEO

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Governing Board Executive CommitteeDavid Mayer, ChairDvorak Law Group Mark Pohl, Vice ChairOPPD Steve Koesters, TreasurerFusion Medical Staffing Madeline Moyer, SecretarySecurity National Bank Founding PartnersBob Bates, Emeritus Jefferson Pilot Insurance David BrownGreater Omaha Chamber of Commerce(Retired) James HegartyBetter Business Bureau Anthony Hendrickson, PhD.Creighton UniversityLuke ChristiansenBuildertrend Joel FalkUMB Bank Allen FredricksonSignature Performance Dale GubbelsFirstar Fiber Keith StationCity of Omaha Mayor's Office Joe Woster Blue Cross & BlueShield Nebraska Chad MaresGreater OmahaChamber of Commerce Christine NeuharthUnion Pacific Daniel PadillaLending Link Chad RichterJackson Lewis Lance FritzTrustee ChairUnion Pacific Railroad Patricia KearnsTrustee Vice-ChairQLI The Alliance Team Michael Robinson, M.S.Executive Director/ CEO Casey Putney, M.A.VP, Leadership Development Shannon Underwood Administrative Manager

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Our work on ethics provides a space for engagement andalternative points of view, allowing employees to challengeassumptions, building deeper understanding and alignment. Our hope is that Alliance programs, products and serviceshave supported your efforts to become a better leader.Equally important, we hope the relationships establishedthrough your association with the Alliance have beenbeneficial both personally and professionally.The Alliance has had the privilege of partnering with hundredsof organizations and individuals to bring ethical Omaha to theforefront. Thank you in advance for supporting the BusinessEthics Alliance with your time, gifts and resources in creatinga more ethical Omaha.Lance FritzPresident, Chairman and CEOUnion Pacific RailroadL A N C E F R I T ZDear Friends: During the most recent quarter, the Business Ethics Alliancecontinued the important work of advancing the ethicalfoundation of the Omaha business community. One notableaction as a result of a recent review of our ethicalframework, the Alliance has refreshed its strategy, with anew focus on organizational culture. We believe a healthy, vibrant community can only besustained through investment in people and ethics. TheAlliance’s mission is to focus on the ethical foundation ofbusinesses. Over 14 years, it has become a trusted source ofsubstance and education for the Omaha businesscommunity, which underwrites and sponsors many of itsfunctions. What is very clear from people who attend Alliance functionsis that employees recognize that an emphasis on ethics isthe right thing to do and part of what makes their companyspecial. They are proud when their CEO stands up andspeaks out for ethics. As leaders, a critical priority is to demonstrate and supportgood decision making, because every decision shapes theworld around us. PAGE 4

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Business Ethics Alliance Trusteesshall be Ambassadors, Advocatesand Supporters.TRUSTEE CREEDOAs Trustees, we are nominated for our demonstratedexcellence in business ethics leadership. A Trustee’sprimary responsibility is to serve as a beacon forgood business ethics and, through our commitment,we send the message that ethics matter.PAGE 5

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On May 26th the Business Ethics Alliance hosted the SummerMind Candy Dialogue, Ethics, and Law: Can Values beLegislated? The event was held at the Venue and panelistswere comprised of Scott P. Moore, Baird Holm; AndyGustafson, Heider College of Business, and Agent EugeneKowel, FBI. Event sponsors were Lamp Rynearson, UMB Bank,and MECA. The connection between ethics and law is found around theworld. Each one serves to guide behavior and decision-making. This conversation took the audience on a discoveryof how laws are often generated based on society’s values.Focus was given to the challenges that arise when laws arepoliticized, and communities find themselves in dissentregarding values and ethics. Thanks to Our SponsorsPAGE 6Can Values Be Legislated? (scan for photos)Integrity Sponsor: Lamp Rynearson's President and CEO, Nancy Pridal addresses the audience. Panelists (l to r): Eugene Kowel, Andy Gustafson and Scott P. Moore.

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On June 9th the Business Ethics Alliance hosted a facilitateddiscussion around diversity, equity, and inclusion (DEI) effortswithin the Omaha business community. Conversations highlightedsuccesses within the DEI space, as well as defined work that muststill be done.The event was held at Charles Schwab Field and panelists wereArmando Salgado, Lingo Docs Marketing and Eric Stueckrath,Outlook Nebraska & Outlook Collaborative. Event sponsors wereCox Communications, MECA and Play it Again Sports. Thanks to Our SponsorsPAGE 8A Conversation About Our Tomorrow (scan for photos)Integrity Sponsor: Cox Communications Rob Trebilcock, Senior Manager Public AffairsPanelists (l to r): Armando Salgado and Eric StrueckrathFacilitator: Stuart Chittenden addresses the audience at Charles Schwab Field.

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JHAn interview with Kathleen Day The collapse of Enron rocked the business community and sent shockwaves alongwith financial frenzy and fear to investors across the country. In her book BrokenBargain: Bankers, Bailouts, and the Struggle to Tame Wall Street, Kathleen Day,business reporter, Johns Hopkins professor and member of the Business EthicsAlliance’s Ethics Cadre highlights the connection found in Enron’s story betweenfinancial irresponsibility, and the creation of an unethical culture.In this series of questions, we speak with Kathleen about the internal culture that theleaders of Enron created, allowing ethics and values to be ignored and paving the wayto crisis and collapse. E T H I C S C A D R EJohns Hopkins UniversityYou outline the rank-and-yank system of employee management that existedwithin Enron. Could you speak to the ethical implications of such a system whenconsidering psychological safety inside of the organization?Most people care very much about their job and want to do it well. It’s a key source ofidentity. Most people respond better to evaluations that include what they do rightand not just how they can improve. Including both demonstrates fairness on anemployer’s part. When staff believe their organization evaluates them fairly, includingdoing so using clear, objective criteria, that creates an environment that encouragespeople to do well and to want to help, not hurt, their employer. A rank-and-yanksystem isn’t fair. It creates a cutthroat atmosphere that sets employees against eachother rather than one that rewards teamwork and engenders loyalty.PAGE 9

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When people know someone will be voted off the island regardless of their trackrecord, it creates a system where colleagues turn on each other, often unfairly. This isunproductive and a waste of the most valuable of shareholder assets: People. Ofcourse, there are times when some people must or should be fired, either becausethey aren’t doing their job or because an organization needs to downsize. Doing thatfairly doesn’t discourage hard work. Doing it unfairly does. An atmosphere whereemployers arbitrarily ax workers leaves remaining staff fearful and resentful, whichwastes time and lessens the chance they will look out for an organization, not justthemselves. The remaining pool of workers in such a system increasinglywill be made up of people who don’t work well in teams and are more likely to cutcorners for their own gain or of people who are too afraid to stand up againstwrongdoing for fear they will be voted out. Rank-and-yank is an example ofunproductive competition, one that is a classic race to the bottom..In your book, you speak of how Enron executives used intimidation to push theirnarrative and continue deceiving investors and the general public. Could youexplain a bit for our readers, how they used ‘The Smartest Guys in the Room’persona to silence questions about their business practices?A red flag is raised any time an executive responds to legitimate questions withcontempt or hostility. In my experience, executives who belittle those who askquestions about a company’s performance either want to hide that they don’t knowthe answer or they know it but want to hide it because it will reveal wrongdoing orincompetence. Either way, shareholders should worry.You tell of a story in which Enron CEO Jeff Skilling was asked by an investor for abalance sheet to accompany the income statement, he replied by calling theinvestor an a**h&#e. Enron employees, listening in on the call applauded andrefashioned the companies motto, “Ask why,” to “Ask why, a**h*le.” Is it fair tothink that there existed inside of Enron a mentality of us against the world, or one ofsuperiority?This is a classic evasion tactic: attack a person personally rather than answer aquestion. It deflects attention and should make people wonder what if anything theexecutive doing this is hiding.PAGE 10

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It’s a perversion of the mindset that a good offense is the best defense. Enronillustrates this. The investor’s request got to the heart of the issue: Why did Enron resistproviding basic information? What was it hiding? Fortune reporter Bethany McLeanand short-seller Jim Chanos wondered and persistently asked essentially the samequestion: How does Enron make money? Enron executives tried to brow-beat them bysaying that was a stupid question. In fact, it was THE question and one that was on themind of many investors and analysts who were too afraid to ask it for fear of seemingstupid. Never be afraid of appearing stupid for asking a sincere question. If you don’tunderstand, chances are many around you don’t either. If there’s a good answer, anexecutive will provide it completely, politely and most of all clearly. Once McLeanasked this question publicly in Fortune, the dam broke and everyone was emboldenedto ask it. At the time Enron was the 7th biggest U.S. company by market capitalization—stock price multiplied by the number of share outstanding. Within months of thequestion being asked publicly, the company filed for bankruptcy and was unmaskedas a massive accounting fraud. Follow the money and don’t be afraid to ask questionsabout it. Any answer that isn’t stated in clear, plain English is suspect.It doesn't seem that the President of Enron Ken Lay or any of the other companyexecutives actually took responsibility for the scandal and collapse. It’s even beenreported that perhaps Lay wasn’t totally aware of the extent of the fraud. Whatlesson does that offer to senior executives leading companies large and smalltoday?The legislation passed in response to the Enron scandal—the Sarbanes-Oxley Act,known as SOX—merely codifies into law what is common sense: The buck stops withtop executives. Their job is to know. If they don’t, then why don’t they? Are theyincompetent? But in Enron’s case I believe Lay and the rest did know or else they wouldnot have had two sets of books and or kept key information from investors by omittingit or saying it in hard-to-decipher language. People who can convince people ofthings that are obviously false are called "con men",’ which is short for “confidencemen.” These are people who have what amounts to what I call “evil charisma,” amagnetism and confidence by which they bamboozle people, manipulate them. Cultleaders share this characteristic. Sometimes con men are so forceful and convincingin their spiel that one must wonder on occasion if they themselves believe it, or do soat least in the way a good actor believes fully, at the moment, in the character theyare portraying.PAGE 11

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N O N P R O F I T E T H I C S E X C H A N G E Ethics, integrity, and trust are the foundations of great organizations. In today'sfast-paced world, we need to be intentional about supporting ethical behaviors atwork, including ethical communication practices. While many for-profits havebeen providing ethics education to their employees for decades, not-for-profitsoften do not have the funds to do the same. This puts not-for-profits at adisadvantage. The Non-Profit Ethics Exchange provides the necessaryresources for local not-for-profits to keep ethics front of mind and learn tocommunicate ethically and foster a speak-up culture in their respectiveorganizations.The Alliance believes in the power of business ethics to make more meaningfuldecisions and drive profits, job creation, and economic development. Throughvarious programs, the Alliance has become the organization of choice for small,medium, and large employers, providing a platform to address ethical issues andimplications for individual firms and the broader community. Sign up for our remaining sessions by visiting: www.businessethicsalliance.orgor scan the QR code. Session I : Covid Conversations: What does myorganization need? Session II : How to Hire with DEI in Mind. PAGE 12 made possible by theCasey Putney, VP of Leadership Development

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The Business Ethics Alliance would like tocongratulate Mike McCarthy, Bridges Trustfor being inducted into the NebraskaBusiness Hall of Fame. Mike served as one ofthe first Alliance Trustee Chairs (2012-2013)while Chair of McCarthy Capital Group.Mike McCarthyPAGE 14

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Our values are essential, and to make sure those arecarefully selected. We must always tweak our valuesystem and make sure they are reinforced over andover again. Good leaders are energizers, people whohave sincerity and are realistic.You can be assured that the work of the Alliance willgo on. That’s because our community is made up ofpeople like you. I know that you are committed toethics education no matter what. In good times andbad, I know you’re with us. That’s what makes theAlliance and our partners special. Executive Director/CEO Dear Friends of the Alliance: Ethics education provides a moral foundation thatallows you, as a leader, and your organization to goback to when the going gets tough. The best way toequip people to be ethical when the pressure is on isto keep ethics front of mind. Through various programs and services, the BusinessEthics Alliance has become the common ground fornonprofit, small businesses and corporations inGreater Omaha, giving them a platform to addressethical issues and their impact on individualorganizations as well as the whole businesscommunity. Ethics, leadership and values are part of the samethought process. The success of the Alliance hasrepresented outstanding teamwork and team resultsdriven by individual and organizational performances.We would not be where we are today if not for thesupport of so many business partners. PAGE 15

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Executive Director/CEO Teresa Hunter, MPA, JD, joinedFamily Housing Advisory Services (FHAS) in 1994. FHASimproves quality of life and eliminates poverty through abroad menu of services that help people achieve housingstability and financial success. Teresa proudly leads ateam focused on educating people to eliminate barriersto success at all levels. To further assist communitymembers in reaching their professional developmentgoals, FHAS founded the Speak Now Toastmasters Clubthat is open to the community.Teresa holds a bachelor’s degree in businessmanagement, a law degree, and a master’s in publicadministration. Teresa has served on the boards ofdirectors of the Omaha Municipal Land Bank,Empowerment Network, Nonprofit Association of theMidlands, Catholic Charities Omaha, Avenue ScholarsFoundation Community Advisory Board, Mayor’s FairHousing Advisory Group, Douglas County Emergency Foodand Shelter Board, Alliance Building Communities,Children’s Square USA, and United Methodist CommunityCenters Wesley House. About Family Housing Advisory ServicesEstablished in 1968, Family Housing Advisory Services’(FHAS) mission is to improve housing opportunities andeliminate poverty. FHAS is committed to, andcompassionate about, finding solutions to addresspoverty-related problems through housing and financialeducation and advocacy. Family Housing AdvisoryServices, Inc., (continued)... T E R E S A H U N T E R , J D , M P APAGE 17

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(FHAS) provides top-notch impact-oriented housing services to about 9,000 low-to-moderate incomeindividuals annually, changing lives, revitalizing communities, and developing lifelong skills. Programs andservices include Homeownership, Tenant Services, Financial Education, Tax Services, Fair Housing,Opportunity Passport and Omaha 100, Inc. What does the idea of Business Ethics represent to you? Behaving with the same integrity in business that you exhibit and would expect from anyone in a personalrelationship. It means being candid and direct. Honest and forthright. Sometimes people think that errorsof commission (telling a lie) are dishonest but not necessarily errors of omission (not telling the entiretruth). I don’t think that is Business Ethics. Business should hold itself to a higher standard than what issimply legal. It is about doing what is right. What kind of things do you think about when trying to be an ethical leader? Leaders provide vision and direction to those they lead. Good leaders lead by example and model thebehavior they expect in others. Dictating acceptable behaviors to others, while failing to exhibit thosesame behaviors is not leadership. We learn this from an early age. It should never be “do as I say, not as Ido.” Business is about relationships and I think you need to exhibit the same behavior in businessrelationships as you do and expect in personal relationships. Your personal and business integrity are oneand the same. We all make mistakes. So when you make one, own it. Offer an apology and make restitutionappropriately. You don’t have to be perfect, but you do have to hold yourself accountable. PAGE 18

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Keynote Speaker: Sherron WatkinsENRON-WhistleblowerSAVE THE DATE: OCTOBER 13, 2022CHI Health Center For more information visit:

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July 7 | Ethical Investing Scott Conference Center11:30a-1:00p July 14 | Nonprofit Ethics ExchangeHeider College of BusinessHow does our board talk about ethics? 9:00a-10:30aAugust 4 | Nonprofit Ethics ExchangeHeider College of BusinessWhat does diversity training look like? 9:00a-10:30aAugust 18 | Trustee Social Dvorak Law Group5:00p-6:30pAugust 25 | Spring Executive BreakfastThe Venue Ethics and Data Collection7:30a-9:00aCalendar of Events PAGE 23

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Jack & StephanieKoraleskiJon & AdrianMinksThanks to our 2022 Mission Drivers Moglia Family Foundation