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The "Metrics For Ethics" and The "Ethics Of Metrics"
11.05.2022
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The "Metrics For Ethics" and The "Ethics Of Metrics"
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   video - The "Metrics For Ethics" and The "Ethics Of Metrics" Bülent Şenver Speech

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   audio - The "Metrics For Ethics" and The "Ethics Of Metrics"

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Speech of Mr. Bülent Şenver

"Metrics for Ethics" and "Ethics of Metrics"
 
Welcome to the webinar of Ethical Governance Committee.
 
"Metrics for Ethics" and "Ethics of Metrics"
 
The first term "Metrics for Ethics" deals with how to measure the ethical governance quality of an institution.
 
The second term "Ethics of Metrics" deals with how to use the ethical governance quality evaluation of an institution in an ethical manner.
 
Should we measure the ethical governance quality of a company?
 
How ethical is it to do this?
 
If we measure it, how shall we use this information?
 
We should discuss both the "Metrics for Ethics" and the "Ethics of Metrics" during this webinar.
 
We live in a time in which measures and metrics have unprecedented importance in business life.
 
In business life, we do four things frequently:
 
We try to measure everything!


The distance between the sun and the earth is 150 million kilometers.
 
Light travels with a speed of 300.000 kilometers per second.
 
Therefore, light travels form the sun to the earth in 500 seconds.
 
500 seconds is 8 minutes and 20 seconds.
 
We try to measure almost everything.
 
We like to compare one thing with another!

Return on equity of company "A" is better than the return on equity of company "B".
 
Earnings per share of company "X" is better than the earnings per share of company "Y".
 
We like to compare one thing with another.
 
We want to judge whatever appears on our radar screen!


Do you know? Company "A's" reputation is damaged.
 
Have you heard? Personnel quality of company "X" is very poor.
 
What company "XYZ" did last week was not ethical.
 
We want to judge when we find this opportunity.
 
We like to reward and punish!


If you perform above the budget, you will receive an additional bonus.
 
If a manager does not comply with the money laundering policy of the company, he or she will be fired.
 
Before giving an investment decision, investors want to use all these four tools for "Ethics Performance".
 
1.Measure Ethics

2.Compare Ethics

3.Judge Ethics and

4.Punish Unethical Behavior

Adherence to high ethical standards by startups is meaningful and important for investors.
 
Is Ethics Quality Measurable?
 

Is Ethics Quality Measurable? This is an important question.

Ethics quality is, of course, a loaded term.
 
There is no gold standard for ethical behavior, despite the vigorous argument on the topic that has been going on for centuries.
 
In the absence of gold standards for ethical behavior, how can we possibly determine whether one organization has better ethics quality than another?
 
First, certain baseline ethical standards and norms should be set for startup companies.
 
Compliance with these baseline ethical standards and norms may be measured using professional tools.

Ethical Governance, Standards of Excellence and Quality Leadership Committee has started a new project to develop a sample "Metrics for Ethics".
 
We hope this "Metrics for Ethics" document may serve as a guideline for startup companies to develop a solid "Ethical Governance" framework for their institution.
 
When I mention our study to some businesspeople, they ask me this question.
 
"With your new metrics, can we judge whether a company is ethical or not?"
 
Is this company ethical?


Is this company ethical?

This is a tricky question to answer.
 
The aim of our "Metrics for Ethics" study is not to judge whether a company is ethical or not.
 
Our document will not answer the question "Is this company ethical or not".
 
It will serve as an "Ethical Checklist", as an "Ethics Monitor", as an "Ethics Check Up" for startups and small to medium size companies.
 
It will assist companies to find out the weak points of their company's ethical culture.
 
It will help them to improve the ethics environment in their company.

How can we measure "Ethical Culture"?
 

How to Measure "Ethical Culture"?

An investor should not only investigate the potential profitability and growth potential of a company before giving his investment decision.
 
Investors should investigate the "Ethical Culture" of the potential target company.
 
If the target company cannot pass the "Ethical Culture Test", investors remove the name of this company from their short list.
 
Therefore, companies are trying to improve their ethical corporate culture to reduce ethical failures, increase company performance, and attract more investors.

Measuring "Ethical Culture" of a company is not an easy task.
 
We should not lose sight of the limitations of measurement and the possibility that there are areas of ethical life left unmeasured.
 
An organization's business culture is expressed through its shared values, beliefs, and norms.

"Business Culture" is manifested in both formal channels, such as a "Code of Conduct" document, and a set of informal unwritten rules that guide business practices.

We know that "The Metrics of Ethics" and "Ethics of Metrics" is a delicate issue.
 
One should know what to measure, how to evaluate the findings, and how to use the "Metrics for Ethics" properly.
 
We should not forget that when a measure becomes a target, it ceases to be a measure.

Organizations tend to blur measures and targets all the time.

A performance measure is used to improve performance.

A Corporate Social Responsibility disclosure is used to create a ranking.

A credit score is used to determine future trustworthiness.

How will "The Metrics for Ethics" be used?
 
If "The Metrics for Ethics" is not used properly and in a professional manner, it may create more harm than benefit.
 
I believe that the "Metrics for Ethics" study of WBAF will be a useful tool for startups and other companies.
 
WBAF Senator Italy, Enrico Fiori is the lead for our "Metrics for Ethics" Project.
 
Now, Enrico will share with us his valuable experience on this topic.
 
Thank you.

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Outline of the webinar

*WBAF Ethical Governance Committee webinar*

The Metrics of Ethics*

provided by webinar leads Yazmin and Enrico.

1. Intro (Maria Marenco, Sec-General Ethical governance committee)

-5 mins-

2. Opening remarks (Bülent Şenver, Senior Associate WBAF Turkey & committee President)

-10 mins-

3. Discussion about the metrics of Ethics (Enrico Fiore, WBAF Senator Italy, and CEO of Truyoins and Alberto Pacagnella, Founder of Sirius Platform)

-30 mins-

4. Questions from the audience

-10 mins-

5. Closing remarks (Bülent Şenver)

-10 mins-

Time: 1 hour 
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Bülent Şenver President of WBAF Ethical Governance Committee
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Maria Marenco WBAF Secretary General of Ethical Governance Committee
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The "Metrics For Ethics" and The "Ethics Of Metrics"


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