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Ethics Training Manual
2019
INTERNATIONAL ECONOMIC DEVELOPMENT COUNCIL
734 15th Street NW Suite 900
Washington DC 20005
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
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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.
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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
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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.
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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:
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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.
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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.
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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
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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
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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.
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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:
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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.
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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
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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.
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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.
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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).
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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?
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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
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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
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International Economic Development Council | 19
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
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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.
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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
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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?
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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.
Questions to consider:
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
Questions to consider:
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
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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
Questions to consider:
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
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Questions to consider:
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?
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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.
Sources: http://icma.org/en/icma/ethics/issues
Questions to Consider:
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
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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.
Questions to consider:
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.
Questions to consider:
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?
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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!”
Questions to consider:
1. Is this an ethical dilemma?
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
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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.
Questions to consider:
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.
Questions to Consider:
1. Is this an ethical dilemma?
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.
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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.
Questions to Consider:
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.
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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.
Sources: http://icma.org/en/icma/ethics/issues
Questions to Consider:
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.
Questions to Consider:
1. How do you respond to this request?
2. What is your responsibility to the impacted community and impacted businesses?
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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.
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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;
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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
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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
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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.