Ethics Training Manual - ohioeda.com

Ethics Training Manual

2019

INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL

734 15th Street NW Suite 900

Washington DC 20005

www.iedconline.org

http://www.iedconline.org/

|Ethics Training Manual

International Economic Development Council | i

Table of Contents

I. Introduction ................................................................................................................... 1

Brief History of the Development of IEDC Code of Ethics .................................................................... 1

II. Ethical Behavior .............................................................................................................. 2

Making Ethical Decisions ...................................................................................................................... 2

Focusing on Values ............................................................................................................................... 3

III. Promoting an Ethical Culture .......................................................................................... 4

Reasons for Unethical Behavior ............................................................................................................ 4

Promoting Ethical Behavior .................................................................................................................. 4

Code of Conduct.................................................................................................................................... 5

Ethics Education .................................................................................................................................... 6

Performance Assessment ..................................................................................................................... 7

IV. Implicit Bias .................................................................................................................... 9

How Implicit Bias Functions .................................................................................................................. 9

Bias in the Workplace ......................................................................................................................... 10

Bias in Economic Development .......................................................................................................... 11

Bias Triggers and Mitigation Techniques in the Workplace ............................................................... 10

Bias Training ........................................................................................................................................ 11

Additional Resources .......................................................................................................................... 12

V. Ethics in Marketing and Communications ...................................................................... 14

VI. The IEDC Code of Ethics ................................................................................................ 16

VII. Case studies .................................................................................................................. 22

VIII. Working with Ethics Violations ..................................................................................... 32

IX. Appendix: Additional Case Study Information ............................................................... 33

X. Policies and Procedures for IEDC Code of Ethics Enforcement ........................................ 39


International Economic Development Council | 1

I. Introduction

The economic development profession is evolving and as it matures, establishing codes of conduct

become paramount to the long term viability of the profession. The Board of Directors of the

International Economic Development Council (IEDC), the premier organization representing those in

economic development and allied fields, realized such a need for establishing a professional standard to

guide economic developers. IEDC adopted the Code of Ethics in October 2008 as the gold standard for

professional conduct in the economic development industry. This training manual provides guidance on

the importance of personal and professional integrity in decision making, tools for making ethical

decisions, as well as brief discussion on the twelve tenets of the IEDC Code of Ethics.

Brief History of the Development of IEDC Code of Ethics

The process started in early 2008 when the IEDC Board of Directors charged its Performance, Oversight

and Monitoring (POM) Committee to develop a code of ethics for the economic development

profession. A task force was established within the POM Committee to spearhead this initiative.

Following lengthy discussions and deliberations with the IEDC legal counsel and members of the task

force, the code of ethics was first presented to the board as an aspirational statement. This meant that

the code spelled out the standards of professional conduct in the economic development profession.

However, in case of a violation, IEDC did not have a mechanism to formally process that complaint and

determine sanctions on the violator(s). The task force strongly felt that the IEDC membership needs to

be first better educated about the code itself and its purpose before enforcement. The aspirational code

of ethics was adopted by the Board of Directors in October, 2008.

The next step was research. It was primarily focused on two parts:

What are the policies and procedures in place for organizations similar to IEDC that enforce their

codes of ethics? The International City/County Manager’s Association (ICMA) and the American

Planning Association (APA) were studied in detail.

What are the financial repercussions for IEDC in enforcing the code of ethics? Taking disciplinary

action against a member could make IEDC more vulnerable to lawsuits or other kinds of liability.

Adequate insurance coverage would be needed before the ethics code was fully enforced.

This research was conducted by the Ethics Task Force in FY2009. The detailed research regarding ICMA

and APA ethics policies helped inform the development of the IEDC Policies and Procedures Manual for

Ethics Enforcement. The manual is attached in this document. The task force corroborated the

recommendations from the previous year that education needs to be the most important part of the

ethics enforcement process. The staff was charged with developing an ethics curriculum and start

offering training sessions at IEDC courses and conferences in 2010. This manual and accompanying

training materials are a culmination of the research under the guidance of the Ethics Task Force.



II. Ethical Behavior

Ethical behavior is conduct that is beyond reproach and is in accordance

to the laid down standards of a society, institution or organization. The

standards of conduct may not always be written and adopted formally by

the institution or organization. They also change as organizations and

institutions evolve, underscoring the need for regular education about

acceptable conduct in the profession and the organization.

Fundamentally, ethics is about choices that people make about ordinary

(as well as extraordinary) decisions in day-to-day life. The choice to act

one way vs. another has an impact on the outcomes and the method adopted to get to those outcomes.

Choices are often impacted by personal and professional values. Many leaders use their personal lives as

a moral compass for their professional conduct. Values that we learn when young often guide us in our

adult, professional lives. While values are non-negotiable, practices may need to be adapted to the

situation at hand, or from time to time. Aligning actions with values will ensure that they are being

incorporated into the operations of the organization from the highest to the lowest level, ensuring

overall success.

It is important to note that there may be a difference between ethical behavior and legal or illegal

actions. Ethical conduct is not about upholding the law. It is about upholding higher standards of

conduct than simply adhering to the rules or the law. It may not always be easy to adhere to these

higher standards, especially in difficult situations. It takes courage, moral integrity, and a keen sense of

commitment to ethical standards to make the right decisions.

Making Ethical Decisions

When faced with ethical dilemmas, individuals and organizations need to carefully consider all options

regarding actions, methodologies and outcomes. The International City Managers Association (ICMA)

has identified a list of ten questions that should be asked during the decision making process:1

1. Is it legal?

2. Does it violate the spirit of the law?

3. Does it comply with our rules and regulations?

4. Is it consistent with our organizational values?

5. Does it match our stated commitments?

6. Am I the only or primary beneficiary?

7. Will I feel okay and guilt free if I do this?

8. Is bias or emotion clouding my judgment?

1 Perego, M. (2010). Ethics at Work! ICMA University Workshop, March 29, 2010

“Ethics is knowing

the difference

between what you

have a right to do

and what is right to

do.”- Potter Stewart

http://www.brainyquote.com/quotes/quotes/p/potterstew390058.html



9. Would I do it to my family and friends (or myself)?

10. Would the most ethical person I know do this?

Answers to these questions can be a quick guide to ethical decision making in most situations.

Focusing on Values

The fundamentals of a strong ethical behavior lie in strong values. Organizations need to:

1. Clearly establish organizational values. This can be achieved through a mission or vision

statement that spells the values cherished by the organization.

2. Integrate them into operations and provide support systems for upholding the values.

3. Promote them through effective communication with the members, outside stakeholders,

media, general public, etc.

4. Connect them with policies and decision making processes.



III. Promoting an Ethical Culture

Ethical behavior needs to be promoted from the top and supported with policies and adequate

resources that enable employees and peers to make ethical decisions. Organizational leadership needs

to be a model of ethical decision making in order to reinforce the importance of ethical behavior

throughout the organization. They need to lead by example. An established code of ethics, education

and training, and a defined process for reviewing violations are all tools that help support an ethical

culture in an organization.

For those economic development organizations that may not be able to devote the resources for the

preparation of a more customized ethics code, they may use the IEDC Code of Ethics as a model.

Reasons for Unethical Behavior

The process of promoting an ethical culture needs to start with understanding what causes unethical

behavior. Better policies and procedures can then be designed to prevent unethical decisions and

mitigate their adverse impacts on the organization and/or the community.

Unethical behavior can result from the following, singularly or in combination:

Pressure to perform (unrealistic business/organization goals, deadlines, etc.)

Pressure from peers

Lack of understanding of consequences for one’s actions

Uncharted territory

Personal loyalties

Lack of long term perspective or failure to see it at the time

Personal costs for doing the right thing may be too high

Poor judgment

Lack of clear understanding of expected organizational/professional code of conduct

Improper and/or inadequate training

While many of the above reasons may be beyond the span of control of leadership, every effort should

be made by leaders and top executives to address the last two – they need to clearly establish guidelines

for professional conduct in an organization (whether formally laid out or otherwise understood) and

provide adequate training.

Promoting Ethical Behavior

An ethical culture should start from the top and cascade down. Organizations should provide ethics

education programs for all employees. These programs should:



explain the underlying ethical principles

clarify proper ethical behavior

difference between ethical behavior and legal/illegal actions

present practical ways of carrying out procedural guidelines

This can be broken down into three components:

1. Code of conduct

2. Ethics education

3. Performance assessment

Code of Conduct

Written Code of Conduct - Develop a written code of conduct. The code needs to reflect the

values that are important to the organization and may be reflected as part of the

organizational mission or vision. Clearly define what ethics in the organization and/or

profession means, and distribute a copy to all members of the organization.

Written Policies and Procedures for Investigation – An important component of an effective

code of conduct is clearly defining consequences for serious and repeated violations. A

detailed process for review and sanctions needs to be developed in conjunction with the

ethics code. It is paramount that people understand the level of importance accorded to

ethical behavior in an organization.



Ethics Education

Involve the Staff - Involve the employees, whenever you have a review of the codes. This will

serve as training in itself.

Be a Role Model - Practice what you preach! Senior managers and the CEO should

themselves be morally upright, and present oneself, in such a way as is exemplary of ethical

behavior.

Incentives for Ethical Behavior - Formulate such policies that reward ethical behavior on the

part of the employees. Put in place some consequences for unethical behavior too. In

performance appraisals, use ethical performance as criteria for judging the employee's work

and decide pay hikes and incentives accordingly.

Developing a Code of Ethics

"Laws are sand, customs are rock. Laws can be evaded and punishment escaped but an openly

transgressed custom brings sure punishment.” – Mark Twain

A code of ethics should be developed and regularly updated to address and reflect the parameters of

ethical behavior in any organization. Typically there are two approaches to developing a code of

conduct:

1) Legal Approach: establishes a strict set of guidelines associated with the legal code.

2) Values / Customs-based Approach: establishes a set of guiding principles that are agreed upon

by participating stakeholders.

The legal approach generates a set of legal procedures and subsequent consequences to handle

ethical misconduct in a given situation. Many organizations have found that individuals can push their

actions to the legal limits without regard for their peers. Moreover, when the goal of developing a

code of ethics is to address the parameters of ethical behavior in an organization, the legal approach

may restrict the code to legal language debates, rather than addressing a core set of shared

values/customs.

The values/customs-based approach has been acknowledged by a number of organizations as a better

behavioral “encouragement” mechanism. This approach establishes a set of guiding principles that are

agreed upon by participating stakeholders. Even though organizations may be subject to local, state

and federal laws, the values/customs-based approach also exercises the use of public censure as a

powerful enforcement tool. Further, all engaged stakeholders acknowledge a shared set of behavioral

values/customs, which reinforces individual and group behavior.



Performance Assessment

Discussions and Debates - Have regular discussions or seminars on the subject of business

ethics and business etiquette. The main idea behind these debates and discussions is to

make the employees think about their conduct in the office and take corrective measures if

needed.

Role Plays - Conducting role plays by using real life situations make the ethics training

program interesting and encourage active participation. Give real life situations to your

employees and ask them to show their course of action in those scenarios. After role plays,

present before them the consequences of these actions. Thus, conducting such sessions will

make the employees think twice, before committing such errors in the future.

Case Study: Developing and Promoting a Code of Ethics

Many regional economic development organizations (EDOs) are building non-compete and anti-

poaching agreements into a values/customs-based code of ethics. Metro-Denver, which includes 70

cities, counties, and EDOs in the seven-county metro Denver and northern Colorado regions,

developed its code of ethics in 1987. Metro Denver’s economic development leadership wrote the

code to address the parameters of ethical behavior in economic development. Here are a few

statements taken directly from the Metro Denver code of ethics:

“When representing the Metro Denver EDC, we shall endeavor to sell "Metro Denver First"

and our individual communities and projects second.”

“At no time shall any member of the Metro Denver EDC solicit a fellow member's prospects.”

“We are committed to sharing among our membership as much information as is necessary

and prudent on any activity undertaken by or in the name of the Metro Denver EDC. Our

guiding principle shall be that ‘more information is better than less’.”

Interestingly, while forming the code there was one EDO that refused to sign the Metro Denver code

of ethics, but did so years later. Also, since 1987, Metro Denver has censured two individuals on

ethics violations. Metro Denver’s senior leadership never lets a chance go by to explain the

transformational success that the code has had on the region – and even mention the fact that site

selectors find it very useful in their line of work.

Source: http://www.metrodenver.org/about-metro-denver-edc/code-of-ethics.html

http://www.metrodenver.org/about-metro-denver-edc/code-of-ethics.html



The following process should help organizations develop a code of ethics. These steps should be

revisited as needed and should only serve as a process outline.

1. Find a champion 2. Engage legal counsel 3. Form an ethics task force / committee 4. Draft a policy 5. Present draft policy to board/city council 6. Repeat previous steps as necessary 7. Publish, train staff and implement 8. Revisit the code and revise as necessary

What can then follow is this useful seven-step checklist that organizations should use to help their

employees in dealing with an ethical dilemma2:

1. Recognize and clarify the predicament.

2. Gather all essential facts.

3. List all of your options.

4. Analyze each option by asking yourself: "Is it legal? Is it right? Is it beneficial?"

5. Draw your conclusions, and make your decision. 6. Double check your decision by asking yourself: "How would I feel if my peers and superiors

found out about this? How would I feel if my decision was made public by the media?"

7. Take action.

2 Adapted from 2003 EAC Workshop handout by Michael Davis, Center for Study of Ethics in the Professions, Illinois Institute of

Technology, Chicago. Copyright 2003



IV. Implicit Bias

Our brains are constantly taking shortcuts to guide us through everyday activities quickly and easily.

Small connections between ideas, memories, and actions help us to navigate decisions and make fast

judgments to go about our lives more efficiently. This can be helpful, say, when we are hungry at the

grocery store and hurrying to buy dinner—we know what foods we like, what brands we trust, and what

aisle we need to walk toward without actively thinking about any of these things. These neural

mechanisms help us get our dinner quickly, a successful outcome. But these processes can also lead us

to make quick, unconscious decisions with much more serious consequences than an unsatisfying meal,

especially in regard to how we think of and interact with other people. They can influence how we treat

others based on a myriad of characteristics, like skin color, size, age, ethnicity, and more. Every person,

based on a wide range of influences such as culture, geography, and personal experience, holds

associations and implicit biases that will affect how their brain processes information, and we must

recognize these biases in order to mitigate their potentially negative effects on the people around us.

Dr. Jennifer Eberhardt, a social psychologist at Stanford University and one of the nation’s foremost

experts on bias, refers to implicit bias as the “distorting lens that’s a product of both the architecture of

our brain and the disparities in our society”. 3 It is a function of the brain to categorize and judge that is

amplified by the social inputs we receive throughout our lives (e.g. race, gender, etc.), regardless of our

own personal experiences. In a society with a history of discrimination rooted in our culture and

institutions, it is especially important to reflect on how these inputs can affect our perceptions and

behavior, and to work to change our responses to them in our daily lives.

How Implicit Bias Functions

Bias works through several psychological mechanisms, including categorization, stereotyping, and

confirmation bias.

Categorization refers to our tendency to group like things together, providing our brains with

shortcuts to organize overwhelming stimuli. This process allows us to sort through information

by relying on predictable patterns. When we categorize people into different social groups, we

refer to our beliefs about them as stereotypes, and to our ensuing attitudes as prejudices.

Stereotyping is a process that involves sorting people into groups and attaching characteristics

to them based on that group, rather than their individual behavior. Stereotypes depend on the

culture they are formed within, and differ based on institutional norms, values, and practices.

Confirmation bias refers to our inclination to seek out information that upholds our existing

beliefs. Once we sort a person into a social group, we are then more likely to pay attention to

information that supports our beliefs about that group and filter out information that

3 Eberhardt, Jennifer L. (2019). Biased: Uncovering the Hidden Prejudice That Shapes What We See, Think, and Do. Viking.



contradicts them. This mechanism allows these beliefs to grow and persist, both among

individuals and society at large.

Together, these mechanisms contribute to implicit biases. They influence how people treat one another

daily, and in turn strengthen the dynamics that reinforce stereotypes at a societal level.

Bias in the Workplace

Implicit bias can have many effects in the workplace, and can negatively impact the career potential of

employees belonging to minority and other marginalized groups. These effects can be seen as early as

reviewing resumes. Research has shown that having a name associated with a certain race, or a female-

sounding name, can significantly lower the chances of an applicant making it through to an interview,

even when their experiences and qualifications are identical to those of a white or male applicant.

The interview process can be similarly influenced by the implicit biases of the interviewer. For example,

in a Swedish study, researchers discovered that interviewers altered their questions based on the

ethnicity of the prospect. White applicants were asked more questions about their “job fit” and

nonwhite applicants were asked about their “cultural fit”, leading to an imbalance in the information

gained about each applicant and requiring more reliance on the interviewer’s perception of the

applicants rather than objective data. Bias thrives in discretionary situations, especially when there is

pressure to move quickly to reach a desired outcome. These are often the conditions in which resume

reviews and interviews are performed.

Bias can also affect what opportunities are available to different people throughout their careers. Bias

can influence how we perceive leadership qualities, competence, likability, and commitment, with

different traits holding contrasting meanings between groups. For instance, qualities that are considered

positive for men, such as confidence and assertiveness, are often considered negative for women,

earning bossy or disruptive labels. The internal biases that contribute to these differing perceptions

impact each person’s potential for success in the workplace.

Bias Triggers and Mitigation Techniques in the Workplace

Implicit bias is prevalent and difficult to trace, but we can work to mitigate its effects by understanding

the situations in which bias has more influence over our actions. As Dr. Eberhardt puts it, “when we are

forced to make quick decisions using subjective criteria, the potential for bias is great”. In order to

prevent bias in our daily lives and in the workplace, there are techniques we can employ to reduce these

conditional bias triggers. Essentially, reducing situations in which a quick decision must be made based

on incomplete information.

Objective standards

Implementing objective standards in the workplace can reduce the influence of subjective

judgments and stereotypes. Common techniques include:



o Standardized hiring questions

o Structured interviews

o Concrete or data-based performance metrics

o Removing gender-biased language in job descriptions

o Using video interviews to analyze soft skills, rather than in-person judgments

o Curtain interviews

Accountability

Without monitoring or accountability, it is easier for bias to guide our decisions. This is because

there is less pressure from social norms or other expectations encouraging us to make objective

decisions. Introducing measures to increase accountability, such as multi-person checks during

the hiring process, increased transparency regarding expectations and responsibilities for

employees, and clear channels of communication between employees and their supervisors may

help mitigate these effects.

Incentives

Even in closely monitored situations, bias can still influence decisions if the right counter-

incentives are not in place. Reviewing performance metrics and measurement systems can be

helpful for identifying what behaviors are being incentivized, and determining how those

behaviors could be influenced by implicit bias.

Personal connections

Relationships involving mutual dependence and shared goals can prevail over bias, giving

individuals personal sources to base their associations on rather than socially produced

stereotypes.

Bias training

Education about bias mechanisms and triggers may help reduce the effects of implicit bias,

giving people the tools to recognize situations in which bias could influence their actions or

thoughts.

Diversity

Increasing diversity in the workplace is an important goal and can help mitigate bias, but it is not

a total solution. Additional work must be done to address underlying cultures that feed bias, and

meaningful communication within organizations on topics such as race and gender is necessary

in order to appropriately address these effects when they are felt.

Bias in Economic Development

Economic development organizations and professionals are entrusted with making decisions that are in

the best interest of the community. They often operate at the confluence of the private, public and non-

profit sectors in a community and, therefore, exercise powerful influence over community decisions.

Implicit bias against specific segments of the community can hamper their potential to realize their full

potential, and limit their contribution to the economic activity and vitality of the community. A study

released by McKinsey & Company in September 2019 found that “it will end up costing the U.S.



economy as much as $1 trillion between now and 2028 for the nation to maintain its longstanding black-

white racial wealth gap”. It further states: “[d]espite the progress black families have made in the civic

and economic life since the passage of the Civil Rights Act of 1964, they face systemic and cumulative

barriers on the road to wealth building due to discrimination, poverty, and a shortage of social

connections”. Implicit and explicit biases have a role to play in this, and communities of all sizes and

types throughout the country are affected by it. Economic development organizations can play a huge

role in affecting change, as they become more aware of, and willing to address, biases.

Bias Training

One approach to potentially reduce the impacts of implicit bias - and educate an organization on its

function and influence - is to implement bias training. These trainings can range from online videos to

weeklong seminars, and aim to help organizations recognize and mitigate their biases. Completing these

trainings can help coworkers become more cognizant of their interactions with one another, as well as

help them understand the role bias can play in their perceptions of the world and subsequent decision-

making.

It is important to recognize that training is only one component of the many efforts that must be

undertaken to mitigate bias. Educating individuals on bias’s existence and increasing their situational

awareness constitutes the basis for ongoing work to reduce implicit bias and its impacts. Leaving it at

training, however, can lead to potential downsides, such as moral credentialing. Moral credentialing

refers to a phenomenon where people become more likely to express prejudiced or socially

unacceptable attitudes when their demonstrated past behavior has established them as non-prejudiced.

Essentially, if a person believes they have built enough credit, they can behave badly without damaging

their reputation. The same phenomenon can occur in organizations that have completed bias training—

requiring the training gives them “credit”, and they do not feel incentivized to meaningfully follow up

with other actions to mitigate bias.

Keeping an open dialogue and continuing to check up on ways bias may be influencing your decisions, or

your organization’s operations, can help ensure that bias mitigation is an evolving and growing process.

Additional Resources

Biased: Uncovering the Hidden Prejudice That Shapes What We See, Think, and Do, Jennifer L. Eberhardt,

PhD

State of the Science: Implicit Bias Review 2017, Kirwan Institute, University of Ohio

Implicit Bias, University of Texas

Unconscious Bias, University of California, San Francisco

The Science of Equality, Vol. 1: Addressing Implicit Bias, Racial Anxiety, and Stereotype Threat in

Education and Health Care, Perception Institute

http://kirwaninstitute.osu.edu/wp-content/uploads/2017/11/2017-SOTS-final-draft-02.pdf

https://ethicsunwrapped.utexas.edu/video/implicit-bias

https://diversity.ucsf.edu/resources/unconscious-bias

http://equity.ucla.edu/wp-content/uploads/2016/11/Science-of-Equality-Vol.-1-Perception-Institute-2014.pdf

http://equity.ucla.edu/wp-content/uploads/2016/11/Science-of-Equality-Vol.-1-Perception-Institute-2014.pdf



The Science of Equality, Vol. 2: The Effects of Gender Roles, Implicit Bias, and Stereotype Threat on the

Lives of Women and Girls, Perception Institute

Implicit Bias In K-12 Education Case Study And Scenario Workbook, Kirwan Institute, University of Ohio

What Happens Before? A Field Experiment Exploring How Pay and Representation Differentially Shape

Bias on the Pathway into Organizations, Milkman, K. et al

Orchestrating Impartiality: The Impact of “Blind” Auditions on Female Musicians, Goldin, C. & Rouse, C.

http://equity.ucla.edu/wp-content/uploads/2016/11/Science-of-Equality-Volume-2.pdf

http://equity.ucla.edu/wp-content/uploads/2016/11/Science-of-Equality-Volume-2.pdf

http://kirwaninstitute.osu.edu/implicit-bias-training/resources/K12-scenario-workbook.pdf

http://www.apa.org/search.aspx?query=%22What%20happens%20before%22

http://www.apa.org/search.aspx?query=%22What%20happens%20before%22

http://ucelinks.cdlib.org:8888/sfx_local?sid=CentralSearch:null&genre=article&atitle=Orchestrating+Impartiality%3A+The+Impact+of+%22Blind%22+Auditions+on+Female+Musicians&volume=90&issue=4&title=The+American+Economic+Review&issn=0002-8282&date=2000-09-01&spage=715&aulast=Goldin&aufirst=Claudia



V. Ethics in Marketing and Communications

Pre-1960’s, caveat emptor (consumer beware) was the accepted ethical standard in the business world.

But, that standard is no longer acceptable. In fact, it was forever changed when in 1962 President

Kennedy introduced the Consumer Bill of Rights establishing six guidelines to protect consumers from

unethical business practices. The right to be informed is particularly relevant for all advertising and

promotion practices. This right states business should always provide consumers with sufficient

information to make informed choices, and that the information provided should always be complete

and truthful.

Marketing and communication are central to economic development strategies. Their importance in a

shrinking, globalizing world cannot be understated. It is therefore necessary for economic development

professionals to abide by ethical standards in marketing and communication practices in relation to both

their own community as well as any other community.

Adapted from the ICC International Code of Advertising and Marketing Practice, the following is best

practice guidance on implementing ethical principles to economic development marketing and

communication. The overriding principle is that all marketing communication should be legal, decent,

honest and truthful. Maintaining a sense of professional responsibility and conforming to the principles

of fair competition is paramount. At the same time, it is also important to maintain customer confidence

where necessary.

Create marketing communication with statements or visuals that do not offend standards of

decency.

Communicate information likely to affect a customer’s decisions effectively.

Develop marketing communications that do not play on fear, exploit misfortune (see text box

example) or condone unlawful behavior.

Be honest in marketing communications. Customers can be misled by implications, omissions,

ambiguities and exaggerations.

Use research results or quotations of individuals accurately.

Have evidence to support any marketing claims made about a location/program/policy.

Make advertisements recognizable when they appear in a medium containing news or editorial

matter. Where appropriate, include contact information of the advertiser.

Keep comparisons fair with facts that can be substantiated and competitors fairly selected.



Avoid communications that attack or criticize any person, group of persons, organization or

community.

Use testimonial or endorsements that are genuine, verifiable and relevant.

Be creative! Steer clear of marketing communications that imitate those of another marketer in

any way likely to mislead or confuse the customer.

Have a written privacy policy that is readily available to customers when collecting data.

Include a full disclosure statement in any communication channel (including social media) when

putting an opinion forward that could lead to an action that will financially benefit the author

(or employer).



VI. The IEDC Code of Ethics

This section is devoted to understanding the twelve tenets of the IEDC Code of Ethics. Each one of

discussed briefly below.

1. Professional economic developers shall carry out their responsibilities in a manner to bring respect

to the profession, the economic developer, and the economic developer’s constituencies.

Economic developers work in challenging situations always trying to balance public and private goals

and objectives with achievable solutions and strategies. Personal integrity is paramount in delivering

ethical decisions, especially in difficult situations. It is the purpose of this code to encourage ethical

behavior among economic development professionals in a manner that not only enhances the profile of

the community but also the profession and the professional at the same time.

2. Professional economic developers shall practice with integrity, honesty, and adherence to the trust

placed in them both in fact and in appearance.

Economic developers may be placed in positions

of trust and confidence by clients, businesses,

community leaders and elected officials by virtue

of their position or personal integrity. In deciding

what is right and just, an economic developer

must place the interests of the community ahead

of any personal gain. Integrity, which demands

honesty and candor, should be used as a

benchmark for decision making. Within the

definition of integrity, allowance can be made for

innocent error and legitimate difference of

opinion; but integrity cannot coincide with deceit

or compromise of one's principles. At the same

time, it is important that professionals take

responsibility for errors and take corrective

action in order to minimize negative impacts on

the community.

Authority

•Who is accountable for what responsibilities?

Purpose

•What is my intent?

INTEGRITY

Principles

•What I stand for?



3. Professional economic developers will hold themselves free of any interest, influence, or

relationship in respect to any professional activity when dealing with clients which could impair

professional judgment or objectivity or which in the reasonable view of the observer, has that effect.

Economic development as a

profession requires impartiality,

intellectual honesty, and disclosure

of conflict(s) of interest(s). A conflict

may occur when a professional’s

personal or professional interest

interferes or appears to interfere, in

any way, with their ability to

perform their duties as an economic

developer. Conflict of interest,

whether actual or perceived, needs

to be addressed without delay.

Economic developers should ask about and adhere to their organizations’ requirements for identifying,

disclosing, and managing conflicts of interest.

4. Professional economic developers are mindful that they are representatives of the community and

shall represent the overall community interest.

The economic developer’s primary responsibility is to serve the community interest, which includes

public, private, non-for-profit, social and material interests at the same time. Engaging the community

through continuous

and open debate is a

way of ensuring

success down the

line. Representing

the overall

community interest

can build a stronger

relationship with

communities that

connect people,

information and

ideas for effective

action. This

Communit

y Interest

Public

PrivateNon-

Profit

Social

Conducting Official Duties with

Bipartisanship

Conflict of Interest



relationship will enable economic developers to work in new ways that increase impact and foster

success.

5. Professional economic developers shall keep the community, elected officials, boards and other

stakeholders informed about the progress and efforts of the area’s economic development program.

The work of economic developers frequently requires public approval, input from community leaders or

the community as a whole, endorsements from boards or directors, etc. Sharing pertinent information

with these engaged stakeholders is important to ensure the proper functioning of checks and balances

in promoting the economic growth of the community. Economic developers should encourage the

sharing of relevant information such that the integrity of process is maintained without divulging

confidential information that may derail the process of business development and overall economic

growth of the community.

6. Professional economic developers shall maintain in confidence the affairs of any client, colleague or

organization and shall not disclose confidential information obtained in the course of professional

activities.

As part of routine professional

responsibilities, economic developers

may become privy to confidential

information regarding business(es),

organization(s) or other clients. An

effective relationship between the

economic development and client can

only foster upon the understanding

that information shared with the

economic developer will be kept

confidential. In order to provide

services efficiently and to protect the

client's privacy, the assurance of

confidentiality is vital. The economic

developers may need to clarify on each

end of the deal what information can

be shared and what cannot be shared.

Trust should be maintained at each end

of the deal.

Try to Find the Most Effective Balance

Reporting Requirements



7. Professional economic developers shall openly share information with the governing body

according to protocols established by that body. Such protocols shall be disclosed to clients and the

public.

The profession as a whole should respect, support, and study government constitutions and laws that

define responsibilities of public agencies, employees, and all citizens. Economic developers should

provide clients with accurate disclosure information concerning their dealings and practices, in

accordance with guidelines developed by the established governing body. Sharing information with

appropriate parties allows the economic developer to promote lawful principles of equality, fairness,

responsiveness and due process. By approaching all governing body issues with an open mind, prepared

to make the best decision for their constituents both the economic developer and the profession will

flourish.

8. Professional economic developers shall cooperate with peers to the betterment of economic

development technique, ability, and practice, and to strive to perfect themselves in their professional

abilities through training and educational opportunities.

The profession as a whole will grow when its constituents’ abilities and knowledge grows. It is therefore

important that economic developers devote to their own professional development as well as the

development of their peers. Leaders in the economic development profession should cooperate in the

betterment of the profession through improved techniques, practices and policies. By partaking in

training and educational opportunities economic developers can meet their personal and professional

goals, while at the same time keeping up-to-date on emerging issues as they pertain to economic

development.

Sharing Knowledge

and Information

Efficiency Goes Up

ProductivityRises

Respect and Confidence

in the Profession

Grows



9. Professional economic developers shall assure that all economic development activities are

conducted with equality of opportunity for all segments of the community without regard to race,

religion, sex, sexual orientation, national origin, political affiliation, disability, age, socio-economic

status or marital status.

It is essential that economic developers uphold the values of equality, tolerance, respect for others, and

the principles of equal justice in their passion for the economic growth of the community. Assuring

equal opportunity involves recognizing, respecting, understanding, and accepting the differences of

others. Community resources should be used for the betterment of the community and not a particular

individual or organization, thus ensuring that no individual or organization is discriminated against.

10. Professional economic developers shall refrain from sexual harassment. Sexual harassment is

defined as any unwelcome conduct of a sexual nature.

Sexual harassment describes a wide range of behaviors that includes, but is not limited to, the following:

sexual solicitation, physical advances, suggestive comments, jokes of a sexual nature, or other verbal or

non-verbal conduct that is sexual in nature. The potential for sexual harassment is not limited to

incidents involving members of the organization, but extends to all members of the economic

development community – members, customers, IEDC staff, governing board, vendors, contractors, or

third parties. Actions, or comments, by members of the profession resulting in sexual harassment of any

member of the economic development community are deemed unethical and unprofessional. Such

behaviors undermine the atmosphere of trust and safety essential to the organization’s staff and

membership.

11. Professional economic developers do not exploit the misfortune of federally declared disaster-

impacted regions. This includes actively recruiting businesses from an affected community.

Exploiting misfortune is of special concern post-disasters. Natural and manmade disasters can cause

severe economic and physical impacts to a community that are primarily outside the community’s

control. Add the complex dynamics of disaster recovery and ethical uncertainty can easily arise. Exercise

caution when dealing with disaster-impacted communities and remember it is not fair play to take

businesses away from communities while they are struggling to recovery. When in doubt, follow the

Golden Rule: Treat others as you want to be treated.

12. Professional economic developers shall abide by the principles established in this code and comply

with the rules of professional conduct as promulgated by IEDC.



This Code of Ethics is a guide to the ethical conduct expected of members of the International Economic

Development Council. The Code also aims to inform the public of the principles to which professional

economic developers are committed, irrespective of their membership with IEDC. Discussion of the

application of these principles and rules, among economic developers and with the public, is vital in

order to bring the Code into daily use. By adhering to this established code economic developers

promote merit principles that protect against arbitrary and impulsive actions, ultimately endorsing

ethical behavior that holds individuals and organizations accountable for their actions.

Professional Conduct

Act Ethically

Behave Respectfully

Teach Effectively

Assess Fairly

Act Professionally

Solicit Feedback

Support Peers

Ensure Quality

Provide Opportunities

Learn Willingly

Think Broadly



VII. Case studies

NEW Case Study 1: International Expansion

You are a director of economic development at the ABC city government. A strategic plan commissioned

by the ABC government concludes that the best way for ABC to grow is to strengthen its international

engagement. The largest overseas demand for ABC’s output comes from Farawayland. Seeing the

potential for FDI and exports to create jobs for your community, you hire a Farawayland native named

Jane as a consultant to liaise overseas and promote ABC’s interests.

The strategy initially secures a number of high-value investment projects for ABC under Jane’s guidance.

The public is delighted with the results of the government’s outward focus. However, an anonymous

memo informs you that Jane’s conduct was not what you expected. One Farawayland investor paid Jane

several thousand dollars to secure rights to a project. She used her government expense account to pay

a number of bribes to attract developers to ABC over rival city DEF. The memo even accuses her of

extorting $50,000 from a Farawayland business mogul under the guise of providing immigration

assistance.

You confront Jane about her conduct, but she simply retorts that things work differently in Farawayland.

“The culture is different”, she said, “bribes are a cost of doing business there”. But you realize that your

organization’s overseas conduct is still beholden to United States law. With a limited paper trail, it could

be possible to sweep the allegations under the rug, but you feel the public has a right to know how their

money was spent. However, if the bribery and extortion were revealed, it would permanently damage

ABC-Farawayland business relations. Additionally, you wonder if you would be able to replicate the

same FDI success by insisting on behaving lawfully. The public is counting on you to deliver jobs and

investment – should Jane even be punished?

Source material:

http://www.indianaeconomicdigest.net/main.asp?SectionID=31&SubSectionID=180&ArticleID=67828

http://advanceindiana.blogspot.com/2012/12/the-monica-liang-affair.html

Questions to consider:

1. Should Jane be fired? Why or why not?

a. If she should not be fired, should any changes be made to the terms of her contract?

b. If so, what changes?

2. Should the episode be communicated to the public?

3. What is the best way forward for managing the relationship with Farawayland?

http://www.indianaeconomicdigest.net/main.asp?SectionID=31&SubSectionID=180&ArticleID=67828

http://advanceindiana.blogspot.com/2012/12/the-monica-liang-affair.html



NEW Case Study 2: Misleading Wage Quotation

A company with facilities both in your state XXX and neighboring YYY is planning to move all its

operations to YYY. They pay wages well below $10.50 an hour on most positions, which is the minimum

wage required to qualify for XXX state incentives. You have discussed with their C-suite the possibility of

raising wages in the past, but to no avail. Upon reviewing their application to state YYY, they report

relatively high wages for each of the jobs they are moving. You know from your personal dealings with

the company that the reason they prefer YYY is for the lower wages they can pay, so the high wages on

the application don’t make sense. You infer from their application that they’re requesting that

workforce training dollars not come with requirements for their positions to pay the averages stated on

their application.


1. Do you tell your counterpart in YYY to protect themselves from the company, or assume they

already know what’s happening?

2. You wonder if you can retain the company by threatening to disclose the truth to YYY.

NEW Case Study 3: Take the job or the money?

Following years of service as a director of an economic development organization in your small town,

you receive an offer to work in a similar role in a large coastal city. You accept the offer and submit your

letter of resignation. As you complete your final weeks in your current role, you begin to question

whether you made the right decision. The business and community leaders you worked with reach out

to express their gratitude. In your final week, the CEO of the organization thanks you for your service

and offers you a significant pay raise to stay. The big city suddenly seems a whole lot less appealing.

Should you back out of the new role, despite already signing the contract? The extra money would go a

long way in your small town, but you already committed to the new position. Pulling out would not only

damage your reputation, but also create skepticism about other potential hires from your organization.

Source material: https://icma.org/documents/challenging-career-decisions


1. What should you do?

2. What is the best way to communicate your decision?

NEW Case Study 4: Mentoring to mutiny

You are a top manager at your city’s economic development agency. One day, you receive a call from a

young lawyer at a city firm. The lawyer explains that they have grown tired of law and are fascinated by

the economic development profession. Noting your CEcD and years of experience, they were hoping to

https://icma.org/documents/challenging-career-decisions

https://icma.org/documents/challenging-career-decisions



set up an informational interview to “pick your brain” regarding a career move. You are always happy to

help bring new people into the field, after all, talent attraction is part of your job. After a productive

coffee meeting, you agree to step in as their career mentor.

After a few weeks in which you offer reading material and advice, they excitedly call you about an

interview they have been offered. You ask where the position is, and they say they will only tell you if

you promise to keep it secret. They inform you in confidence that it is for a management position at a

neighboring city development agency.

You call the agency out of curiosity and find that the management position is far from vacant. Upon

discussion, it becomes clear to you that the manager has no idea their position is being advertised. You

take your role as a mentor very seriously and don’t want to break confidentiality with your new mentee.

However, you feel it is unsavory that this manager has not been informed of their impending

termination.

Source material: https://icma.org/documents/professional-courtesy-0


1. Which obligation dominates – the obligation to keep confidentiality, or to inform your colleague

what is happening behind the scenes?

2. What is your obligation to your mentee?

NEW Case Study 5: Troublesome Blogging

You work in the human resources department at the X-Town Economic Development Council. You

receive an anonymous tip-off email that local blog commenter “TigerBoy76” is the CEO of the X-Town

EDC. You scroll through the comments linked in the email and are horrified by the views espoused.

While the CEO is known to the public as an amicable and apolitical man, his blog comments purport

vulgar and obscene views. None of the content is related in any way to X-Town’s economic development

activities, but you nonetheless feel it is inappropriate for a CEO to be behaving this way online. You can

barely believe it is him, but the username makes sense: the X-Town Tigers are the CEO’s favorite sports

team, and you know he was born in 1976.

If someone else was to put these pieces together, the EDC’s reputation would be permanently

tarnished. However, while abhorrent, none of the blog comments had any direct relevance to the CEO’s

professional responsibilities.

Source material: https://icma.org/documents/two-faces-social-media

https://icma.org/documents/professional-courtesy-0

https://icma.org/documents/two-faces-social-media




1. You feel uncomfortable ignoring the tip-off, but should you intervene?

2. In what way?

Case Study 6: Managing Conflicts of Interest

After going through an extensive design development phase, the proposal to rehabilitate a historic

section of a downtown area went to the planning commission for approval. The development phase was

quite lengthy, because city leadership was committed to engaging all stakeholders in an effort to reach

consensus on a long list of design issues.

Despite the city’s best efforts to appease all stakeholders, historic preservation groups and the business

community still disagreed over a number of issues. Despite the disagreements, the planning commission

approved the proposal. Soon after, a local newspaper disclosed that a highly respected member of the

planning commission who voted to approve the development plan had financial dealings with the lead

developer for the project.

The member’s employment as a senior vice president of a bank was public knowledge. However, the

fact that the bank recently approved a significant loan to that developer was not. The planning

commission member was offended that anyone would question his integrity, especially because he had

sought legal advice from the city attorney before partaking in the development process and voting on

the plan.

The city attorney had advised him that his participation in the planning commission’s deliberation did

not violate city or state law because he had no direct financial ownership of, investment in or benefit

from the development. The historic preservation groups were outraged and thought the whole process

was tainted with conspiracy. City leadership was embarrassed and troubled by the possibility that this

could happen again.

Two historical preservation groups filed suit against the city as well the planning commission member in

question. Historical preservation groups saw the matter as a grave injustice and wanted all guilty players

held accountable.

Sources: http://icma.org/en/icma/ethics/issues

Questions to Consider:

1. Is there a conflict of interest here?

2. Was the lawsuit filed by historic preservation groups appropriate or was it extreme?

3. The planning commission member sought legal counsel before partaking in the vote. What else

could he have done to further mitigate his risks and any conflict of interest?

http://icma.org/en/icma/ethics/issues



Case Study 7: Padding your Resume

Grim & Carson Developers were hiring a considerable number of new employees and interns, which had

put a real strain on the human resources department. Part of this department’s responsibilities was to

contact all references and verify resumes received from all applicants. After several weeks and a series

of final interviews, Jane Smith was hired as the new junior economic developer at the company. From

the beginning, Jane asked a large amount of questions about software that her resume indicated she

had proficiency in using. However, Jane learned quickly and didn't ask the same question twice. Jane

was very diligent, well-liked by her fellow employees and was performing her job well, but she still

continued to ask questions.

John, her supervisor, had a monthly performance evaluation with Jane and talked with her about all

these questions. During the evaluation, John challenged Jane, and Jane admitted that she had lied about

her experience and skills on her resume. There were several software programs that she had no

experience with but had indicated proficiency in her resume. However, Jane’s performance had proven

that she learned quickly and was a good employee.



1. Should Jane be fired for being dishonest?

2. Because she has proven to be a good employee, should the incident be overlooked and kept

between John and Jane?

3. Is a reprimand in order?

4. If yes, to what extent should Jane be reprimanded?

5. What should John do? What are his options?

Case Study 8: Bargaining for Incentives

Drew is the Chief Financial Officer (CFO) of a company, which has resided in State ABC for the past five

years. The company’s board recently began pushing for cost-cutting measures. Not wanting to lay off

any employees, Drew is exploring what the state can offer through additional tax relief. However, upon

meeting with the state, Drew discovers that State ABC is unwilling to grant him further tax breaks until

the company reaches new growth targets.

Not giving up, Drew is pursuing other avenues. During the company’s site selection process, there was a

fierce incentive battle between State ABC and neighboring State XYZ. State XYZ also has lucrative

incentives for relocation. Although Drew knows that the company’s potential relocation costs would far

outweigh incentive benefits, he calls Mary, who works at the State XYZ Economic Development Office.

He requests Mary to write a letter detailing what incentives they would be willing to offer. Mary talks

further with Drew and suspects that he is not really serious about relocating and only wants the letter to




bargain with State ABC on incentives. She refuses to write the letter and calls the State ABC Economic

Development Office to alert them of what their company is doing.


1. Is this an ethical dilemma?

2. Who is unethical, Mary or Drew?

Case Study 9: Re-grading an RFP

Susan Smith is a senior economic developer working for the state Department of Commerce. She is

responsible for interfacing with communities on Requests for Proposals (RFPs) received from companies

seeking to relocate or expand to the state. One day, her office is contacted by a firm looking for a new

headquarters to accommodate 2,000 employees. These are high-paying, quality jobs and Susan’s office

hasn’t landed a project of this size in five years. The firm asks Susan’s office to collect RFPs from

communities around the state and to review the top candidates to forward on to the company.

After reviewing the proposals, Susan finds that the highest-scoring candidate is Aspiratown. Susan and

her office are all too familiar with Aspiratown. This community is the classic case of overpromising and

under-delivering. They submitted a proposal to the Department of Commerce for a project last year and

were one of the final three communities considered. However, in the late stages of the selection

process, they raised some estimates in their original RFP because they had grossly under-quoted and

were unable to deliver. The site selector promptly removed Aspiratown from consideration, unwilling to

work with a community that could not provide basic information accurately.

This brings Susan to her current situation. There is no time to send the RFP back to Aspiratown for

review, much less independently confirm every aspect of the RFP. Wishing to avoid another scandal,

Susan’s boss asks her to manipulate a few figures so that Aspiratown is no longer a top candidate.


1. Is this an ethical dilemma for Susan?

2. Is there a conflict between Susan’s commitment to the community and her responsibility

towards the company?

3. What course of action should she take?

4. What measures could Aspiratown take to regain its credibility with the site selector and with

Susan’s office?



Case Study 10: Social (Media) Mores

Ann recently hired Brian for a business recruitment position. In his first few months of work, Brian was a

good employee and completed his tasks on time. Recently, Ann has noted that his time spent using

social media has been increasing. In fact, it seems as if every time she walks past his desk, Brian has

been perusing Facebook or Twitter. Although there has not been any perceptible decline in the quality

of Brian’s work and the city does not have a specific policy against using social media during work hours,

Ann is concerned that it will impact his productivity sooner or later.

Ann confronts Brian and politely asks him to cut back on his non-work related internet activity. Brian

agrees, and for a while there are no problems. Then one day, Ann receives a call from the local

newspaper asking her for details about a call center potentially locating to their town. Wondering how

they found out about her confidential project, Ann quickly discovers that Brian had talked about the

project via his Twitter page. He had tweeted, “Be on the lookout for a new call center soon. Let’s just

say, I ‘called’ it!”



2. Is there a certain “amount” of social media usage at work that is appropriate?

3. What types of work matters should and shouldn’t be discussed via social media?

4. What about personal opinions for or against certain city programs or elected officials? After all,

city employees are also citizens of the community and have the right to exercise free speech.

5. How should Ann deal with Brian, the media and the potential fallout from the call center client?

Case Study 11: Politics, Politics

Gary is the president of the chamber of commerce in Controvercity, a medium-size city with high

aspirations to grow. Controvercity has been debating how to best fund redevelopment of a large

brownfield plot that could be the city’s next major industrial park. However, the recession has cut the

city’s funds short, and in order to raise money for redevelopment, the city has proposed dipping into the

education budget. The proposal has the support of the majority of Gary’s board, who sees the

establishment of an industrial park as creating future opportunity for all of Controvercity’s citizens (not

to mention a possible new customer base.)

However, Gary has been confronted by one particular board member, Sue, who expresses strong

opposition to the proposal. Sue is the president of a local business that contracts with the Controvercity

school system. The school system, in fact, is her largest client. Sue is pressuring Gary to steer the

chamber against the proposal, which would pit Gary against his other board members.

At the same time, Gary’s vice president, Ann, is not pleased with the proposal and that it is likely to go

forward. Ann was a schoolteacher in the Controvercity school system before coming to the chamber,

and supporting public education is a very personal issue for her. Gary needs all his staff on board in



order to undertake a successful campaign, especially senior leadership. Ann has expressed to him her

personal loyalties and her wish to abstain from the campaign.


1. What is Gary’s role in trying to convince Sue?

2. Is Ann justified in expressing her wish to abstain from the campaign?

3. What should Gary expect from Ann?

Case Study 12: Who’s Your Boss?

After enjoying several years of success as the economic development director with the City of Anytown,

John Doe decided to start his own economic development consulting business. After discussing it with

fellow colleagues and upper management, he decided to remain in his full time position with the city

and run his consulting firm on the side. It would help him buy some time while his business got

established and keep costs under control during the crucial initial stages of the business.

At first, John worked on his business on the weekend and in his spare time, but soon the stress of

working full time and trying to run his own business started to affect him. Between trying to appease his

own clients and fulfill obligations for his employer, there just wasn’t enough time in the day.

John’s full time job frequently went through cycles, periods of rapid heavy workload followed by more

lax periods. When work at his full time job began to slow, he decided to use that extra time at work to

focus on his own business. When John travelled for business trips on behalf of his employer, he utilized

the opportunity to meet with existing and prospective clients of his own business in order to keep costs

down. It was his dream to start his own business, and he was determined to it see through to fruition.



2. What if he is using city property – computers and other office supplies?

3. John’s employer discovered that John has been meeting with his own clients while on travel for

the city. However, this was either in between meetings he had for the city, or earlier or later in

the day. Should his supervisor confront him?

4. Is corrective action necessary here? If so, what?

Case Study 13: My Boss Asked Me To

John Smith is a senior economic developer for the city. Part of his job responsibilities is to wine and dine

potential vendors and other clients during business meals. He has been with the same organization for

15 years and is undoubtedly the best at what he does. Jane is a newly hired administrative assistant; she

was ecstatic to get the job and greatly respects John, her boss.



One day after John returned from a scheduled business lunch, he asked Jane to fill out a reimbursement

form - something she had done on his behalf several times in the past. This time however, John asked

her to conceal an alcohol charge because John’s business associate ordered an alcoholic beverage and

John did not deem it appropriate to stop him. Jane knows that city policy prohibits the use of its funds

for the purchase of alcohol, but she also knows that the alcoholic beverage was not consumed by John

but rather his business associate who is in talks to sign a lucrative deal with the organization.

Questions to be considered:

1. What course of action should Jane take?

2. How could this ethical dilemma have been avoided?

Case Study 14: Bribe or Finder’s Fee?

An economic developer at a non-profit organization in a large city sent an email to local bloggers and

other editors who cover economic development and other pertinent issues. It reads as follows: "I would

like to make an offer to you that could be mutually beneficial in the event that this is of interest. Writers

like you may come in contact with emerging (and/or expanding) companies that are looking for

community information and consultation. My offer is this: if you recommend a prospective client to our

organization and they sign a contract with us, I would in turn provide you with a generous finder's fee.”

The economic developer carefully selected the bloggers and other media solicited in the email because

he saw them as much more receptive to such an arrangement - both because they're less restricted by

employer regulations and because many of them earn minimal income from their writing. The economic

developer viewed his correspondence with these selected individuals as an attractive offer for them and

a win-win situation for both parties, and has received only positive responses to the email.


1. Is this a bribe or just creative marketing?

2. What ethical principles should be adhered to in economic development marketing?

Case Study 15: Respecting Roles and Responsibilities

During the annual board meeting of the city-supported economic development foundation, the

discussion of efforts to promote the region soon turned into a critique of city council’s leadership. The

economic development director, who serves in the city’s slot on the board, was the only city

representative in attendance that day. A CEO from one of the largest corporations in the city took the

lead in expressing disappointment over the mayor’s leadership in garnering support from the state and

federal government for growth of local small businesses.



The dynamic of the meeting quickly changed from an organized meeting to a lynch mob. Additional

comments began to flow from other board members about the lack of leadership from council members

and even their fitness to hold office. At this point, the economic development director said that it was

inappropriate for him to be engaged in a discussion or evaluation of the council’s or mayor’s

performance. When the comments continued, he left the meeting.



1. Should the ED director have remained in order to hear the comments and take it back to his

council?

2. Should he offer his input?

Special Case Study: Disaster-impacted Business

An EF5 tornado touched down in the central business corridor of the City of Greatville. The tornado

killed 11 people, injured 30 others, and destroyed many of the commercial buildings along its path.

While Greatville’s residents and business owners banded together, business recovery assistance was

slow and many small business owners struggled to rebound and re-open their businesses.

A few weeks after the tornado struck, Holston Doe, the business attraction manager for a neighboring

EDO in New Haven, received a voicemail from one of Greatville’s business owners. On the recording, the

business owner shared his frustration with Greatville’s slow recovery process and expressed possible

interest in relocating to New Haven. The business owner explained that he saw one of the New Haven

ads in a local paper and thought relocating to New Haven would help him to keep close to his customer

base and get his business up and running again.

As Holston was nearing the end of an unsuccessful attraction campaign, the relocation would help his

numbers but the very idea of the relocation was unsettling. Holston sat at his desk and decided to think

things through before returning the business owner’s call.


1. How do you respond to this request?

2. What is your responsibility to the impacted community and impacted businesses?


http://en.wikipedia.org/wiki/Enhanced_Fujita_scale

http://en.wikipedia.org/wiki/Tornado



VIII. Working with Ethics Violations

Unfortunately, ethical violations can never be eliminated. Therefore, in addition to promoting ethical

cultures and ethics training, there is a need to have procedures in place that enables leadership and

peers to review alleged violations and determine sanctions, if proved.

IEDC has adopted a Policies and Procedures Manual that provides details on the process that will be

followed for violations of this code brought to the attention of IEDC. In consultation with their own legal

advisors, members and other economic development organizations can utilize the manual as the basis

for reviewing ethics violations brought to their attention or as a basis for building more customized

policies and procedures for their own community or organization.

Reviewing Ethical Violations

When reviewing alleged ethical violations, it is important to establish and follow a fair process that

allows parties on both ends to present information, cross-examine and be heard in an impartial

environment. The process also includes affording the person(s) against whom the violations are being

investigated to appeal the decision to a higher authority. Typically, the main components of reviewing

ethics violations include the following steps:

1. Initial review of the complaint to determine whether the alleged conduct will constitute a

violation of one or more tenets of an established code of conduct

2. If yes, an independent and detailed investigation of the case should be conducted. A Fact

Finding Committee or similar group of individuals can be established to gather information

including information from the person accused of a violation, and giving that person an

opportunity to review and comment.

3. If the allegations are found to be true and constitute an ethics violation, the organization may

decide to impose sanctions on the person(s) depending upon the level of violation.

It is important to engage the person(s) against whom the alleged violations are being investigated at all

stages of the review process. Written documentation should be maintained and every effort should be

made to keep the review process impartial and honest. Conflict(s) of interest, whether apparent or

perceived, should be addressed as soon as determined. As mentioned earlier, an appeals process should

also be established. Organizations considering disciplinary actions against violator(s) may need to seek

legal counsel before taking formal action.



IX. Appendix: Additional Case Study Information

Case 6: Managing Conflicts of Interest

There is a significant gap between what the law defines as a conflict of interest for a public official and

what a reasonable person may perceive to be a conflict of interest. Most state ethics laws are purely

financial disclosure regulations that require public officials to file annual reports detailing all sources of

income, debts, other business interests, and real estate investments.

Disclosure of such information helps to promote transparency allowing economic developers to build

strong relationships with the public. The public interest is best served by engaged economic developers

and officials who are knowledgeable about their community. When an economic developer’s private life

intersects with their public duties they should take steps to ensure that they act in the best interests of

the public that they serve and in a manner that promotes confidence in their abilities.

If economic developers find themselves in a similar situation, they should first discern whether there is

any connection between the official action they are about to take and their personal life. Seek counsel

from their peers and supervisors to have a clear understanding of their legal obligations. If their

participation meets the legal test, consider next whether it will meet the ethical test.

The IEDC Code of Ethics sets clear standards for disclosure of any personal relationship in any instance

where there could be even the appearance of a conflict of interest. If the conflict is significant enough

that a rational person would question whether you are acting in the public’s best interest, consider

disengaging from the process early on.

Orientations for new employees are a great opportunity to raise awareness about the complexity of

conflicts of interest and their potential to undermine constituents, colleagues, and the confidence they

have in economic developers’ abilities.

Case 7: Padding Your Resume

Job applicants sometimes exaggerate or lie on their job applications or resumes in order to get a

position. Such actions can lead to the withdrawal of a job offer or termination if the employer discovers

the lie after the employee has been hired. If a supervisor suspects an employee or potential employee of

padding a resume or lying on an application, the supervisor may go as far as calling references, checking

claimed degrees, credentials, writings and awards.

Consequences of Padding

The following are the possible consequences of padding your resume:

Cause damage to your reputation, may cause damage to your character and ability to succeed

on the job;



Humiliation when you are caught;

Assignment to projects that you do not have the necessary skills to complete;

Could set into motion a series of lies to cover up the initial lie; and

Termination from job.

Application Falsification Policy

Employers often times have a policy that disqualifies job applicants who falsify material information,

such as lying about work experience, on their resumes or applications. As long as such a policy is equally

applied to all potential employees, it is permissible. Applications should, and many times do, contain a

warning, usually near the signature line, advising the applicant of such a policy.

Statement of Accuracy

Prospective employers will often times have an applicant sign a statement of accuracy. The statement

may contain some of the following:

An application is not valid unless the applicant reads and endorses the Statement of Accuracy.

The applicant certifies that all information provided in the application as well as any documents

attached to the application, such as a resume, transcript, or list of references is complete and

accurate.

Fabrication of the application or giving incomplete information on the application as well as

falsification of other attached documents may result in the withdrawal of any employment offer

and immediate termination of employment at any time.

What can an employee who has been fired for lying do?

As long as the termination was not used as justification for firing an employee discriminatorily and didn't

breach any employment contract where oral or written assurances of job security were made,

employees who misrepresent themselves on applications and resumes generally can't retaliate by filing

a lawsuit for wrongful termination or discrimination.

Case 10: Social (Media) Mores

The rise of social media has changed relationships across the board—between employees and

employers, companies and their clients, and amongst peers, family and friends. Many economic

development organizations are embracing social media as an effective tool for marketing and

connecting with the community. They are also finding that these new tools can be misused as well.

Often it is better to educate employees about how to best use social media at work rather than banning

it outright. Judicious use of social media can help employees feel, protect the privacy of the organization

as well as of the employee. Below is an example of a guidebook developed by a company in regards to



its social media policy and educating its employees about social media use for work purposes. While this

is an example of a private company, these principles broadly apply across public and non-profit sectors

as well.

From Cisco’s Social Media Policy Guidebook4

1. Do not engage in inflammatory or inappropriate discussions about competitors. Always be

professional. Avoid speaking negatively about competitors. Instead, highlight Cisco’s strengths. Do not

cite or reference clients, partners or suppliers without their approval. When you do make a reference,

where possible link back to the source.

2. Be responsible. You are personally responsible for the content you provide and how you behave on

the social web. We do encourage you to participate in the online social media space, but urge you to do

so properly, exercising solid judgment.

3. Be aware of laws covering defamation, insider trading, financial disclosures, endorsements and

testimonials, antitrust, competition, privacy, and the protection of intellectual property.

4. Be authentic, factual and respectful at all times. Use your real identity. Provide informed, well-

supported opinions and cite sources, if applicable. Though social media sites are a more casual form of

communication, be sure to remain professional and use a positive tone of voice. Be respectful of your

colleagues, the Company and our competitors.

5. Avoid engaging in on-line disputes with your audience. Don't use slurs, personal insults or obscenity,

and always respect privacy concerns. Avoid language that may be considered objectionable or

inflammatory. Show that you have listened and be responsive. If you disagree, respond in professional

and respectful manner.

6. Be honest. Always tell the truth. Correct any mistakes you make as quickly as possible. Don’t alter

older posts without indicating that you have done so.

7. Add value. Express an interesting point of view and worthwhile information and perspective. When

speaking about Cisco, offer your subject matter expertise and contact your PR Representative if unsure

if a topic is appropriate.

8. Build relationships. Focus on engagement with the audience and building trust to develop

relationships rather than using your site solely as a marketing tool to sell Cisco products or to promote

yourself.

4 http://www.slideshare.net/CiscoSystems/cisco-social-media-guidelines-june-2010

http://www.slideshare.net/CiscoSystems/cisco-social-media-guidelines-june-2010



9. Be mindful of indefinite life of Internet postings. You should assume that all Internet postings,

including those posted in a private forum, can be made public and searchable for a long time. Private

discussions may inadvertently or intentionally get posted externally.

10. Know that it’s almost impossible to completely remove information from the social web even if you

“remove/delete” it from the original source. There is no way of knowing where it may have been

reposted. Also, if you edited your original posts, there is no way to ensure that the last post is what

people will see.

11. Review privacy settings of the social networking site you are using. Choose social sites and

appropriate settings depending on content you are posting. Understand that when your content is

posted on a public social network, all posts and comments may be traceable. Any information that you

post should be considered at risk for public disclosure, regardless of your privacy settings since your

postings can be reposted elsewhere and may be viewed by people other than your intended audience.

12. Be aware of global implications. Your posts can have global significance. The way that you answer an

online question might be appropriate in some parts of the world, but inaccurate, inappropriate (or even

illegal) in others. Keep that “world view” in mind when you are participating in online conversations. If

you have a question about global relevance, please contact the appropriate PR Representative for

guidance.

Case 12: Who’s Your Boss

If an employee is thinking about entrepreneurship, they've probably heard that that they should start

their business before they quit their day job. Its good advice, but as demonstrated in this case study it is

not always practical.

Depending on how many hours you must put in at work, you may have very little time left for your own

business. In order to be a successful full-time business owner, you have to build up your business so that

you'll still be able to pay your bills. It can be daunting to give up the security of a regular paycheck to

pursue your dream of being an entrepreneur.

Perhaps the employee might not want their boss to know that they have started their own business on

the side. They don't want to appear less dedicated or expendable, so they choose to keep their business

under wraps as much as possible.

In contrast, that also means that an employee shouldn't conduct their business at work, no matter how

tempted they may be to bring their side business into the workplace. With advanced technology such as

computer use monitoring becoming more pervasive, it will probably be discovered if the employee uses

company equipment for personal use.



Moving from employee to entrepreneur

If an employee wants to leave their job and run their own business, here are some steps to think about.

1. Pick a date, and be realistic when looking at the calendar for when you'd like to make the move into

running your business full time. The date should feel comfortable and be something that you truly think

you can attain.

2. Develop a plan for what you want to accomplish in your business. Whether you use a strategic

business plan or a mission statement, have a clear idea of what your business will entail and why you're

doing it. It's not enough to start your own business because you don't want to work for someone else.

Keeping your side business on the side

For some, having a side business is part of a long-term plan, not an interim step. Here are some

suggestions to balance the new side business with your full time job.

1. Set clear boundaries. Your clients may desire more of your time, but your priority is your day job. Be

clear about when your business hours are and don’t deter from them. If you end up working long nights,

you won't have the energy to accomplish what's required on your job.

2. Be cautious about how you use social media. It’s much more common these days for employers to

check up on what their employees are doing online. Depending on what type of business you have and

the services you provide, promoting your side business on your social media profile may raise red flags.

Case 15: Respecting Roles and Responsibilities

In the above situation, the economic developer was wise to voice his position and to exit when the

board failed to change the topic. Accountability for the local economic development performance rests

with the economic development director, who should always be forthcoming in publicly addressing

complaints, questions, concerns, and results, especially in case of publicly funded EDOs. But when the

dialogue shifts to the performance of elected officials, the ED director should stay out of the debate.

Participating in a public critique about an elected official’s performance would undermine the

democratic process used to elect leaders. From a practical standpoint, it’s hard to envision an effective

governing body under which it would be appropriate for the appointed executive to comment publicly

on the performance or qualifications of elected officials.

Although an economic developer does have a broader obligation to serve the best interests of the

community, the economic developer delivers on that obligation by working through the governing body

and by respecting the role and responsibilities of elected officials. The economic developer’s role is to

submit policy proposals to elected officials, provide them with facts and advice on matters of policy as a



basis for making good decisions and setting community goals, and uphold and implement local

government policies adopted by elected officials.

When the council and economic developer disagree about specific policies, the economic developer may

work hard to convince the council of the wisdom of his or her recommendation, but the economic

developer ultimately is obligated to follow the council’s direction. Only in the extreme instance of

unethical or illegal acts or acts of gross misconduct should an economic developer be expected to

disregard the council’s decision.

To the extent that the concern is with the performance of the governing body, the discussion is most

appropriately led by community leaders, residents, and elected officials. Responsibility for deciding

whether elected officials are making wise decisions and are competent to serve in their role rests solely

with the voters and community at large. There is no role for the economic developer to play in that

assessment or to use the position of economic developer to influence the outcome of the discussion.

|Code of Ethics Policies & Procedures Manual


X. Policies and Procedures for IEDC Code of Ethics

Enforcement

Introduction

IEDC adopted an aspirational Code of Ethics in 2008 as a means to demonstrate the commitment of the

economic development profession to the highest standards of professional conduct and integrity. It is

also a tool to help economic development professionals foster more ethical working environments

within their organizations and addressing economic development challenges in their communities.

This document provides the procedures and policies that govern the enforcement of the Code of Ethics

on all IEDC members including Board of Directors, Certified Economic Developers (CEcDs) and the

general membership.

These policies and procedures provide a fair and reasonable process for resolving complaints of ethical

violations and determining whether a member violated the Code. The policies and procedures help

ensure that a member who is subject of an investigation (the “respondent”) is provided full and fair

opportunity to be heard throughout the process.

The Committee on Professional Conduct (CPC) at the IEDC Board level is the main body for reviewing

and investigating alleged violations as well as determining sanctions, if proved. Appeals to the

decision(s) of the CPC can be made to the IEDC Governance Committee. Their decision will be

considered final.

Review of alleged violations and sanctions will primarily be a peer-review process. Staff support is

provided to the committee, as needed.



IEDC Code of Ethics

Adopted October 22, 2008

The following code of ethics was established by the professional economic developers in the

International Economic Development Council to ensure a high ethical standard for those involved in

economic development.

1. Professional economic developers shall carry out their responsibilities in a manner to bring respect to the profession, the economic developer and the economic developer’s constituencies.

2. Professional economic developers shall practice with integrity, honesty, and adherence to the trust placed in them both in fact and in appearance.

3. Professional economic developers shall hold themselves free of any interest, influence, or relationship in respect to any professional activity when dealing with clients which could impair professional judgment or objectivity or which in the reasonable view of the observer, has that effect.

4. Professional economic developers shall be mindful that they are representatives of the community and shall represent the overall community interest.

5. Professional economic developers shall keep the community, elected officials, boards and other stakeholders informed about the progress and efforts of the area’s economic development program.

6. Professional economic developers shall maintain in confidence the affairs of any client, colleague or organization and shall not disclose confidential information obtained in the course of professional activities.

7. Professional economic developers shall openly share information with the governing body according to protocols established by that body. Such protocols shall be disclosed to clients and the public.

8. Professional economic developers shall cooperate with peers to the betterment of economic development technique, ability, and practice, and to strive to perfect themselves in their professional abilities through training and educational opportunities.

9. Professional economic developers shall assure that all economic development activities are conducted with equality of opportunity for all segments of the community without regard to race, religion, sex, sexual orientation, national origin, political affiliation, disability, age, marital status, or socioeconomic status.

10. Professional economic developers shall refrain from sexual harassment. Sexual harassment is defined as any unwelcome conduct of a sexual manner.

11. Professional economic developers shall not exploit the misfortune of federally declared disaster-impacted regions. This includes actively recruiting businesses from an affected community.

12. Professional economic developers shall abide by the principles established in this code and comply with the rules of professional conduct as promulgated by IEDC.



Committee on Professional Conduct

The Committee on Professional Conduct (CPC) will be the main body reviewing and investigating

complaints and determining sanctions, if the allegations are proved. The CPC is comprised of IEDC Board

members, as follows

Current Vice Chair of the Board

Immediate Past Chair

Past Chair of the Board who is also a CEcD

Board member representing the public sector, to be appointed by the Current Board Chair

Board member representing the private sector, to be appointed by the Current Board Chair

At least two members of the CPC will be Certified Economic Developers (CEcD). The Nominating

Committee of the IEDC Board will nominate a Chair for the CPC and will be elected by the Board.

Goal

The CPC will be responsible for carefully reviewing complaints, investigating allegations and determining

sanctions if the allegations are proved in accordance with the policies and procedures outlined in this

manual. IEDC staff will provide support as needed.

Reporting

The CPC will report to the IEDC Governance Committee. The CPC Chair will provide updates during the

Governance Committee meetings. Decisions of the CPC, including sanctions and reasons, will be

provided in writing to the Governance Committee within 7 days of the decision. Every effort will be

made by the CPC to adhere to the policies and procedures outlined in this manual, taking into account

the benefits to those involved and the public interest from prompt resolution of complaints, the goal of

maintaining confidentiality to the extent feasible, and the circumstances of a given case.

Meetings

The committee will schedule monthly meetings to discuss new and existing cases. Additional meetings

may be scheduled for case reviews, hearings and other investigations, as necessary. However, if there

are no complaints brought to the attention of the CPC in any given month, the meeting will be canceled.

IEDC staff will send out materials at least one week in advance of the meetings.

Confidentiality Agreement

Members of the CPC agree to protect the identity and information regarding the alleged ethical

violation(s) pertaining to all person(s) and organization(s) involved to the extent constent with their

other duties as a member of the committee. Each member of the CPC will be required to sign a

confidentiality agreement.



Filing an Alleged Ethical Violation

Alleged violations can be brought to the attention of IEDC via a number of avenues – contacting a board

member, the board chair, CEO or the Committee on Professional Conduct (CPC). Complaints may also be

initiated by the CPC on its own initiative or at the request of the board chair or the CEO based on

information concerning a potential ethical violation that comes directly to their attention by other

means. The complaint should be submitted in writing with substantial written or electronic

documentation to support the allegation. Providing as much documented proof of the alleged violation

as possible is strongly encouraged. IEDC ensures the confidentiality of the review process as well as to

keep the identity of the person submitting the complaint (the “complainant”) confidential.

Anonymous complaints can be filed; anonymous testimony is not allowed if the case proceeds to

detailed review phase.

Review Process for Alleged Violation

Upon receiving a complaint, IEDC will engage in a multi-step process of reviewing the case and

determining sanctions, if proved that the allegation(s) occurred. The respondent(s) and complainant(s)

will be engaged in each step of the review process. The steps include:

Step I: Due Diligence

Step II: Initial Review of Complaint

Step III: Detailed Review of Complaint

The Chair of the CPC may grant an extension to any deadline established by these procedures on

request of any involved person, taking into account the goal of prompt resolution of complaints.

Step I: Due Diligence – Information Review

Upon receiving a complaint, IEDC senior staff at the direction of the CEO will ensure that sufficient

information has been provided for the Committee on Professional Conduct (CPC) to review and

investigate the case. The information review will be completed and materials provided to the CPC within

10 business days. If the committee determines the need for additional information or documentation in

order to proceed, IEDC may contact the complainant(s) to provide additional information, before or

during the review process by the CPC.

Step II: Initial Review of the Complaint

The CPC will conduct an initial review of the complaint and information in support of the allegations to

determine:

1. If sufficient information and details have been provided in order to merit a full review, and

2. Whether the alleged conduct may be a violation of the Code of Ethics.



Conditions Met

If the CPC determines that BOTH these conditions are met, the Chair of the CPC will inform the

respondent(s) within 10 business days that a complaint has been submitted against the individual(s),

provide a copy of the complaint, information on specific tenet(s) of the code that are determined by the

CPC to be implicated, and that the CPC has decided to undertake a detailed review of the case. The

respondent(s) will be allowed 10 business days to provide an initial response regarding the complaint

and an additional 10 business days to provide documentation to the committee to respond to the

complaint.

The detailed review will not be conducted if the respondent(s) admit(s) to the violation(s) in their initial

response or if the CPC confirms that the respondent(s) have been found guilty in a court of law for the

same conduct. The CPC will then determine sanction(s) based on all the information available.

If the respondent(s) do not admit to the violation(s) in their initial response, the Chair of the CPC will

appoint a Fact Finding Committee (FFC) comprised of two members of the CPC and supported by IEDC

senior staff. It will be established within 10 business days of receiving the initial response from the

respondent(s). Further details about the FFC are provided in the next section.

Conditions Not Met

If either of the above conditions is not met, the CPC will communicate with the complainant(s) to advise

them that based on the information provided, the CPC cannot determine that the Code of Ethics has

been violated and the case will not be further reviewed unless they submit additional relevant

information. The complainant(s) will have 10 business days to respond with additional information or

the case will be closed.

Step III: Detailed Review of the Complaint

The Fact Finding Committee (FFC) will undertake a detailed review of the complaint and information

provided by the complainant(s) and respondent(s). The review will be conducted in three parts, as

described below.

Respondent(s) have an obligation to cooperate during the investigation and encourage others that may

be involved with the case to do the same. The respondent(s) will have the opportunity to meet with the

FFC in person or confer by phone to present their information. Respondent(s) may be accompanied by a

personal representative to any meeting with the FFC during the detailed review process.

1. Fact Finding – the FFC will be responsible for investigating the complaint by reviewing

information presented by the complainant(s) and respondent(s), interviewing both parties and

additional witnesses at their discretion, as well as gathering information through other

independent means to establish whether an ethical violation happened. The FFC will maintain

detailed notes of the investigation and may require respondent(s) and complainant(s) to sign

statements prepared on the basis of those notes. The FFC will complete its investigation and



prepare a report with its findings of fact and recommendations within 45 days. Extensions may

be granted by the Chair of the CPC, if requested.

2. Review by CPC – the remaining three members of the CPC will promptly review the fact finding

report submitted by the FFC. If they determine that a violation has occurred based on the

information provided in the fact finding report, they will decide the sanction(s). The CPC will

inform the respondent(s) in writing of the violation(s) determined by the CPC and their intent to

impose those sanction(s), and will provide a copy of the findings of fact which support the

determination. The respondent(s) will also be advised that they have 10 business days to

provide additional information that may alter the decision or the sanction(s) and/or request a

hearing, or the decision of the CPC will be final.

If additional information is submitted, the CPC will review the submission and inform the

respondent(s) in writing whether it has determined to alter the decision or sanction(s). The

respondent(s) will also be advised that they have 10 business days to request a hearing, or the

decision of the CPC will be final. If a hearing is requested at either stage, the CPC will conduct

the hearing in accordance with the procedures set in this manual.

3. Hearings – Upon receiving a request for a hearing from the respondent(s), the CPC will schedule

a hearing date allowing at least 10 business days for both parties to assemble materials relevant

to the complaint. One or both of the members of the FFC will present the case against the

respondent(s), while the remainder of the CPC members who were not part of the FFC will hear

the case. The FFC members will not vote on the decision(s) by the CPC.

Respondent(s) have the following rights:

To appear personally and give evidence on their own behalf

To be accompanied by a personal representative or attorney

To review prior to the start of the hearing all documents and demonstrative evidence to

be presented against them during the hearing

To cross-examine any witness(es) who testify against them

To present witnesses who testify on their behalf, subject to cross examination by the

FFC or its representative

To submit documents or other demonstrative evidence

The fact finding report as well as signed statements(s) from the complainant(s) and

respondent(s) will be admissible evidence for the hearing. All witnesses who testify may be

questioned by the CPC. Testimony of witnesses may be taken in person or by telephone,

provided that a speaker phone or other communications device permits the respondent(s), the

CPC and all participants at the hearing to hear the testimony as it is given. Formal rules of



evidence will not apply and the CPC may receive all evidence offered, in its discretion, and

accord it such weight as the circumstances warrant.

Once the hearing is concluded, if the CPC determines that an ethical violation has occurred, it

will decide on the appropriate level of sanction(s) pursuant to the level of violation. The decision

of the CPC, including the reason(s) and the sanction(s) if a violation is found, will be

communicated in writing to the respondent(s) within 5 business days of completion of the

hearing. If a violation is found, the respondent(s) will also be advised that they have 10 business

days to appeal. (See Appeals Process for complete details).

The CPC will submit a brief Summary Report to the IEDC Governance Committee within 5 business days

of completion of the detailed review process explaining the review process, the findings and the

sanction(s) imposed on the violator(s). The fact finding report may also be attached to this summary

report.

Sanctions

No sanctions will go into effect until a decision of the CPC becomes final, including, if applicable, any

appeal.

In determining the sanction(s) to be imposed, the following factors may be considered: the nature of the

violation, prior violations by the respondent, the harm caused to individuals or the public interest,

whether the violation was knowing and intentional, the respondent’s professional or public

responsibility, mitigating circumstances, and any other factors which bear upon the seriousness of the

violation. The nature of sanctions will also consider whether the respondent(s) is/are certified

member(s) of the organization (CEcD) or serve on the IEDC Board of Directors. The following sanctions

may be imposed in any combination:

1. Private Censure – The CPC will issue a letter to the violator(s) stating that the individual(s) were

found to have violated the IEDC Code of Ethics, and that if the conduct or related misconduct is

repeated in the future, it may be cause for more serious sanctions. The CPC will inform the

complainant(s) that an ethical violation was determined and as appropriate and in its discretion

may inform that complainant(s) that appropriate action was taken.

2. Public Censure – The CPC will notify the violator(s) and their employer(s), and the

complainant(s) that the individual(s) were found to have violated the IEDC Code of Ethics, and

that if the conduct or related misconduct is repeated in the future, it may be cause for more

serious sanctions. The nature of sanction(s) imposed will also be included. Notice may also be

distributed to the membership through IEDC resources such as newsletters.

3. Suspension of Membership – Temporary suspension of the violator’s membership privileges

with IEDC. While the violator’s employer(s) will continue to be a member of IEDC, the



individual(s) will be barred from participation in any IEDC events. The duration of the period of

suspension and any other conditions will be set at the time it is imposed.

4. Termination of IEDC Membership / Cancelation of CEcD Certification / Removal from IEDC

Board of Directors – A prohibition against reinstatement of the violator’s membership and

participation in IEDC. While the employer(s) can continue to be a member of IEDC, the

individual(s) will be barred from participation in any IEDC events.

The CPC will regularly report on the number of cases filed with IEDC and types of sanctions in the IEDC

newsletter. Reasonable efforts will be made to keep the identity of the respondent(s) and

organization(s) involved in the case confidential, consistent with the policies and procedures set out

herein.

Exceptions:

Provided that the affected member promptly brings the circumstance to the attention of the CPC and

provides updates as required, no private or public censure will be carried out against a violator in the

event of a pending civil or administrative proceeding, or criminal investigation or prosecution against

the violator arising from the same circumstances. Publication of any such decision will be held in

abeyance pending the closure of the other pending proceeding or investigation.

Appeals Process

A respondent may appeal a decision of the CPC finding a violation by submitting a written appeal to the

IEDC Governance Committee within 10 business days of receiving the decision from the CPC. The

respondent should provide reasons why the respondent disagrees with the decision and may need to

provide additional information for further review.

The Governance Committee will review the appeal as well as the summary report submitted by the CPC.

The Chair of the CPC will be engaged in the review process by the Governance Committee but will not

participate in any vote taken. The Governance Committee may accept or modify the findings and/or

sanction imposed on the respondent. A decision by the Governance Committee will be delivered within

5 business days and their decision will be considered final.

Conflict of Interest

In case of an actual or apparent conflict of interest, member(s) of the CPC and Governance Committee

will recuse themselves from participation in the review of the alleged violation(s). If a complaint is

brought against a member of the CPC or Governance Committee, s/he will not be a part of the review

process. The IEDC Board Chair or the CPC Chair may appoint an additional IEDC board member to

participate in the review and investigation process, on their discretion.

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