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        Student Center for Public Trust

        Alfonzo Alexander presenting at the inaugurationThe most notable benefits of membership include:

        • Obtaining unique skills, setting yourself apart as an ethical leader and differentiating yourself from other potential job candidates
        • Having the opportunity to participate in training sessions, community service projects, conferences and a unique ethical leadership certification
        • Interacting and networking with faculty, local leaders and various executives

        The Auburn SCPT (sponsored by the Center for Ethical Organizational Cultures) meets twice a semester and emphasizes realistic learning with prominent guest speakers filling the bulk of each meeting. The inaugural meeting (on October 23rd, 2017) showcased Alfonzo Alexander, Chief Relationship Officer of the National Association of State Boards of Accountancy and the President and CEO of the Student Center for Public Trust.

        “The SCPT will become the focal point for providing student information and resources to advance ethical leadership in their careers. Mr. Alexander’s talk was as engaging as it was informative. Often asking participants to give their thoughts on certain ethical dilemmas and encouraging discussion—it was an opportunity to put a more dynamic face on a subject that is so often met with nonchalance. This event was a fantastic first impression for an organization that aims to make a big splash on campus,” said Auburn SCPT chapter advisor O.C. Ferrell, the James T. Pursell, Sr., Eminent Scholar in Ethics and Director of the Center for Ethical Organizational Cultures.

        SCPT Officers

        • Jordan Burkes, President
        • Bethany Salgado, Vice President
        • Max Chandler, Treasurer
        • Josh Smalley, Secretary

        Contact Information and How to Join

        The Auburn SCPT is actively planning its events for the Fall and Spring and looking for any student interested in ethical leadership. To become a member, contact the Center for Ethical Organizational Cultures, at ceoc@auburn.edu, or search Auburn SCPT on AUInvolve.


        Speakers

        • Bob Chandler Presents on Ethical Misconduct Crisis Recovery

          On Monday November 9th, 2020, Dr. Robert Chandler spoke with the Student Center for Public Trust on the topic of Crisis Management.

          Dr. Robert Chandler is a Professor at Lipscomb University where he is the director of graduate and professional programs. He is internationally recognized as an expert on human behavior, crisis management, leadership, decision-making, communication, and human interaction. He also is an author and consultant.Bob Chandler

          Crises arise from numerous instances including natural disasters, employee misconduct, crime, terrorism, and many other categories. McKinsey & Company estimates that companies in the United States spend roughly $60 billion per year resulting from crisis within their companies. Globally, this number is estimated to be around $100 billion.

          Dr. Chandler is credited with creating and establishing the Chandler’s Six Stages of a Crisis. The Chandler’s Six Stages model provides a compass for understanding the underlying information requirements to drive effective communication. In this model, he stresses the importance of Warning, Risk Assessment, Response, Management, Resolution, and Recovery. He defines Crises Management as “the processes and decisions by which an organization deals with a disruptive, non-routine, and often unexpected event or situation that threatens to harm the organization, its personnel, its operations, and/or its stakeholders”

          During his presentation, Dr. Chandler made this profound statement: “Crisis management is really a loop, you need to see it as a continuous process. That means that crisis management begins before the crisis happens. These are the things that you do before, during and after the crisis.”

          He emphasized that we do not consider crisis prevention to be the goal, but rather crisis mitigation. He noted that we can never 100% prevent a crisis from happening, but explained that through crisis mitigation it can make the result a crisis less dangerous, less severe, less painful, and less costly.

          Towards the end of his presentation, Dr. Chandler took the time to go over some real case studies that are great examples of crisis management. The first BP’s Deepwater Horizon oil spill and how they set an example of how not to address crisis management. Specifically he addressed the importance of not being tone deaf and dismissing the effects the crisis has. Dr. Chandler also talked about the Pepsi Product Contamination crisis of the early 1990s where people were reporting syringes and odd objects in their Pepsi cokes. Pepsi handled the crisis by keeping the public updated and informed on how the bottling process worked. They worked closely with the FDA and did all they could until it was officially determined to be a hoax after a women was filmed tampering with her bottle.

          Dr. Chandler wrapped up his presentation by stressing the importance of crisis management and opening the floor to questions.

        • Barney Rosenberg Speaks on Implementing Ethics and Compliance Programs in Fortune 500 Firms

          Barney Rosenberg spoke to the Student Center for Public Trust on October 19th on Implementing Ethics and Compliance Programs in Fortune 500 Firms.

          Mr. Rosenberg is the President of Ethics Line, LLC and the former Vice President of Ethics and Business Conduct for Meggit Group. He is a fortune 500 General Counsel and senior business development executive.

          To start his presentation, Mr. Rosenberg discussed his experience in managing a global aerospace and technology company as Vice President of Ethics and Business Conduct. He explained that approximately 80% of ethics-related cases that need investigating come from human resource areas. Any form of transaction, especially financial, is a major area of risk.

          A little known fact that Mr. Rosenberg shared is that The International Forum of Business Ethical Conduct was created by the Aerospace Industries Association to help with the exchange of information regarding best practices on ethical conduct and global trends. The principles set by this group, create standards that all members agree to follow and exemplify.

          Mr. Rosenberg eventually moved onto the main topic for the event by stressing just how important anti-corruption policies and codes of ethics are for companies.

          “If there are issues in the home town, there will be many more in the next state.”

          The importance of having support from those above when deciding to implement a code of ethics is vital to the survival and effectiveness of the code. If people in higher positions of power and influence don’t support the implementation then others might not feel the need for it either.

          Mr. Rosenberg’s presentation was filled with real examples and stories from his time in the corporate world. His experience and knowledge on the topic were palpable, even though Zoom. He ended his presentation with an antidote on what Victoria’s Secret really is, that had the audience laughing.

        • Dr. Len Berry Presents on Healthcare Services Research

          January 10, 2020

          Len BerryDr. Len Berry, a distinguished professor of Marketing at Texas A&M and senior fellow at the institute for Healthcare Improvement, recently shared insight on “The Power of Proximity in Healthcare Services Research” before the Harbert College of Business Physicians Executive MBA students.

          Dr. Berry spent his two hours talking about his two Sabbatical Leaves to both first and second year PMBA students as well as facility and staff, with about 60 attendees in total.  He used his first hour talking about his study of healthcare services at the Mayo Clinic and the second hour discussing his study of the service improvement in Cancer Care at the Institute for Healthcare Improvement.

          He talked about how Healthcare is a different kind of service.  Customers of healthcare are sick, reluctant, relinquish privacy, are at risk and their Clinicians are stressed.  Healthcare is a need, and patients’ wants and needs often conflict.  He talked about the difference between aspirational core values and implantation core values, using the Mayo Clinics as an example.

          Len Berry presenting to PEMBA studentsDuring his time at the Mayo Clinic he used a survey to answer the question: How do patients define a “Good Doctor?” From this survey he collected seven ideal physician behaviors including confident, empathetic, humane, personal, forthright, respectful, and thorough.

          Dr. Berry also talked about the 5 C’s of Cancer: clues, coordinating, connection, continuity, and community.  However, the topic he stressed the most during his time talking about his studying cancer care, was the “never phrases.”  He asked doctors what phrases they would never say to cancer patient.  He compiled a long list, but only disclosed a few.  This sparked a debate among the physicians in attendance who were trying to come up with replacement phrases.

          After the presentation, many of the physicians interacted with Dr. Berry to gain his perspective on numerous medical service quality issues.  In addition, many of the physicians wanted to maintain personal contact with him to gain more insights on his expertise in healthcare.

        • Master of Accountancy Students Debate Rules V.S. Principles

          Students debate to crowd

          December 2, 2019

          The Harbert Student Center for the Public Trust, sponsored by the Center for Ethical Organizational Cultures, conducted a debate related to rules vs.  principles in accounting decisions on December 2 with 115 students attending.

          To begin the debate, rules and principles were explained in their most basic form by the debating teams. Principles are represented by intrinsic properties that begin internally within a person or a group. They result in a non-exhaustive set of considerations for policy making, leaving open the possibility that other considerations might be relevant.  Rules are created by external bodies to provide guidance and direction to individuals. They are externally enforced and prohibit the possibility of adaptation or exception by judgement. 

          The first team, composed of Master of Accountancy Students, Tri Nix and Callie Kyzar, started their side of the debate by introducing rules-based accounting. The United States Generally Accepted Accounting Principles (GAAP) are the best example of rules-based decision making. Rules-based accounting provides an easier comparison of financial statements between two different companies so that investors can make informed decisions. It also decreases the likelihood of a lawsuit, taking accountants out of the line of fire. Rules create a stable and steady path that accountants can look back to and correct if needed, removing the need for professional judgement.  It is an attempt to apply a rule to a decision so decisions are consistent.

          Students debate to crowdThe second team, composed of Master of Accountancy Students Caleb Yarbrough and Zach Youngstrom, introduced principles- based accounting. International Financial Reporting Standards (IFRAs) provides a good example of principles-based accounting standards. The fundamental IFRS principles are transparency, accountability, and efficiency, and each standard must be vetted through these principles to be passed. Principles-based accounting is used in some capacity by 144 different countries, and 156 countries (including the US) have committed to IFRS as the single set of global standards. Principles-based accounting standards provide greater flexibility than rules-based standards because principles are intrinsic in nature and can be applied in many different situations, like how to handle recognizing cryptocurrency. Principles-based standards also allow room for the accountant to make a professional judgement, requiring the accountant to have a deeper understanding of the transaction. Principles-based standards are also less complex than rules-based standards because they adhere to the spirit of a rule instead of the words of the rule itself.

          The debate finally ended with the conclusion that both rules and principles-based accounting standards are needed to make good decisions. The ideal system would consist of using principles as an overarching guideline with rules that point accountants in the right direction in situations that can apply specific rules.  Students attending the debate were engaged and had many questions.  The debate format provided for a solid learning experience about accounting decision making.

        • Robert Jones, CEO United Bank Speaks on Ethical Leadership

          October 14, 2019

          Bob Jones presenting to crowdRobert Jones, the CEO of United Bank, talked with our students on Monday October 14th on the topic “Ethical Leadership: The Multi Bottom Line” for the first meeting of the NASBA Student Center for Public Trust.

          United Bank was founded in 1904 and now has 17 branches across four counties in the Southwest Alabama and Northwest Florida. United Bank is centered around helping the rural areas and is rooted in consumer, agricultural and small business lending. They are focused on helping create economic development in low-to-moderate income communities.

          The company was ranked 16th in the country in American Banker magazine’s annual list of top 200 public banks with assets of less than $2 billion. It was also recently recognized as one of the best companies to work for in the state of Alabama by Business Alabama.

          Bob JonesAs a community bank they align with organizations that make communities succeed in economic development. United Bank contributes to a network of service-minded industry lenders by providing the resources they need to be successful. United Bank is a Community Development Financial Institution (CDFI). A CDFI is a private sector financial institution that focuses on personal lending and business development efforts in local communities.

          United Bank was the first bank is the state of Alabama to receive a Capital Magnet Fund Award and New Markets Tax Credit allocations. It’s also one of the few banks in the country to participate in the USDA Community Facilities Lending Program that provides direct loans and grants to essential community facilities in rural areas.

          Mr. Jones emphasized the importance of ethics and integrity in all business relationships. He discussed that to develop trust, the customer, employee and bank must maintain high ethical standards. A high level of trust takes community engagement to a new level.

          Bob JonesThe banking industry is in the process of transitioning from corporations that are exclusively bottom-line driven to corporations that are playing a more intricate role in people’s lives. This multi bottom line means that United Bank is developing new concepts and expanding their capabilities within the organization as well as the communities they serve. If the communities are successful, the bank will be successful.

          “There is increasing awareness that corporations drive more than financial returns, and this is a good thing,” said Jones. “We are embracing the fact that financial performance is important, but, we can still through deliberate strategies do things that improve the lives of our customers and our communities.”

        • Artificial Intelligence Panel and Being a Difference Awards

          April 18, 2019

          NASBA “Being a Difference Award” Recognizes Faculty Member and Student in Harbert College of Business 

          Beth Davis-Sramek holding up the Being a Difference Award.The National Association of State Board of Accountancy (NASBA) Center for the Public Trust (CPT) recently awarded the Campus Being A Difference Award to Beth Davis-Sramek, the Gayle Parks Forehand Associate Professor in Supply

           

          Chain Management in the Harbert College of Business at Auburn University. The student Campus Being a Difference award was also given to Catherine Miller, a student in Marketing at the University.

          Dr. Davis-Sramek provides students with an interactive environment where ethical business behaviors are addressed. She also creates opportunities for students to network with the business community to develop their professional leadership skills.  Her outreach work includes a leadership role in the Elevate Portland Elementary Initiative, which creates productive learning environments for students and provides experiences that encourages a path to higher education and a successful future while embracing the importance of ethics and integrity.

          O.C. Ferrell honors Catherine Miller with her award.Catherine Miller is from Lake Zurich, IL. In addition to her studies in Marketing,Catherine is pursuing a second major in French. Her leadership roles include membership in the Mortar Board National Honor Society and the Women’s Leadership Institute. She is also active in various on-campus activities, including War Eagle Girls, Plainsmen and the Auburn University Housing Department. These awards were presented at a panel event put on by the Auburn chapter of the Student Center for the Public Trust, which outlined the impact of artificial intelligence on marketing, services and ethics. Dr. Dora Bock, Dr. Jeremy Wolter, Dr. Linda Ferrell and Dr. O.C. Ferrell spoke. “The Student CPT chapter at Auburn is a professional organization that provides students with an opportunity to develop ethical leadership skills that will lead to responsible business conduct. Without this leadership, in today’s competitive business environment and with its emphasis on short-term results, there can be ethical challenges,” notes O.C. Ferrell, the James T. Pursell, Ethics and Director for The Center of Ethical Organizational Cultures in the Harbert College of Business.

        • Tim Self, Southern Company: It’s Good Business—Sponsored by the Harbert College, Center for Organizational Ethical Cultures

          “Employees should be trained for high integrity success—not caught in failure.”

          Auburn, Alabama—February 28, 2019

          Tim Self, Director for Compliance and Ethics for the Southern Company, served as our Distinguished Speaker. In 2018, Southern Company was named by Forbes magazine as one of the world’s best companies and ranked it in their top 20 of “America’s Best Employers.” It is one of the largest producers of electricity in the United States and the largest wholesale provider of electricity in the Southeast.

          Tim Self presentingToday, the company employs more than 32,000 people. Its electric providers include Alabama Power, Georgia Power, Mississippi Power, Southern Power and Southern Nuclear. In addition, its natural gas companies include Southern Company Gas, Chattanooga Gas, Nicor Gas, and Virginia Natural Gas. Other subsidiaries provide customized energy solutions, fiber optics, and wireless communications services; they include PowerSecure, Southern Telecom, Southern Linc, and Sequent Energy Management.

          Core values are key to the company and serve as guidance for their decision-making and organizational culture. Employees and vendors are expected to act honestly, with integrity, respect and fairness. “Employees should be trained for high integrity success not caught in failure,” says Self. Southern Company is concerned about the security of customers personal information and privacy. For example, the company does not keep customer credit card information having it destroyed after each bill pay transaction. There are many federal and state regulations that must be addressed with strict compliance.

          Recently, Southern streamlined its Code of Ethics which outline the risk areas for the company and include several confidential “Concerns” reporting systems via a hotline, an on-line link, email, in person, and by mail. All employees are required to read the Code of Ethics each year and sign an acknowledgment they did so. Before signing, they must answer a set questions about the Code ensuring that each employee has been given a direct opportunity to disclose a potential compliance issue. “Our company strives to consistently and fairly reward good behavior,  appropriately address bad behavior and hold third parties accountable” stresses Self. This Code is reviewed and updated periodically.  Contractors are also allowed and encouraged to use the “Concerns,” reporting system.

           

          From Left to Right: Mark Zekoff (Program Coordinator), Tim Self, O.C. Ferrell (Center Director) and Linda Ferrell (Marketing Department Chair)Due to the nature of Southern Company’s business operations, the firm must interact with a variety of constituents, ranging from leaders in government, community, business, and industry. The company has a strict policy when it comes to conflicts of interest. Background checks are required for all employees of Southern Company, and in most cases for contractors as well based on job responsibilities. He believes the key to bringing all employees on board with the Company’s ethical standards is communication and training. Southern demands that all written communications utilize understandable language and be widely distributed. Their ethics education utilizes all forms of media from formal sit-down and on-line training to printed brochures. The company website and phone apps are vehicles used to reach all employees.  Southern Company’s ethical philosophy is “Core values guide our behavior and builds trust.”

        • Carol Tomé

          On Thursday September 27, Carol Tomé spoke to the Auburn SCPT (and to the Auburn Family) in a speech entitled "Culture Eats Strategy for Breakfast."

          • Carol ToméCarol Tomé is the chief financial officer and the vice president of corporate services for The Home Depot
          • Carol has experience throughout a variety of topics including financial reporting and operations, financial planning and analysis, and internal audit amongst many others
          • The Wall Street Journal listing her as No. 2 best chief financial officer in corporate America in 2012 and she was listed on Fortune’s Top 50 Most Powerful Women in Business the next year (for the second consecutive year)
          • Carol is highly involved in the community, serving as a board member for the Federal Reserve Bank of Atlanta, The Metropolitan Atlanta Chamber of Commerce, Grady Hospital and numerous more

          Check out Carol Tomé's full biography here.

          Read below to find out more about Carol's insightful speech! Written by Joseph McAdory.

          Dean Annette RanftThe Home Depot takes care of its associates who take care of their customers. This strategy—or culture—is a big reason why the home improvement giant recorded its highest sales earnings (nearly $101 billion) in company history in 2017.

          Carol Tomé, Chief Financial Officer at The Home Depot since 2001, shared this philosophy, “How Culture Eats Strategy for Breakfast” via video conference with roughly 150 Harbert College students Thursday morning.

           

          “We are defined by our culture—and our culture starts with our unique management construct, which is the inverted pyramid,” said Tomé, who has been ranked by the Wall Street Journal and Fortune Magazine as one of the top women in business. “Our CEO is at the bottom of the pyramid—and at the top of our pyramid are our associates (employees) who serve our customers. We (executives) bear the weight for the actions that we take and the decisions that we make. We at the bottom of the pyramid should bear that weight so that we can free up our associates to take care of our customers.”

          The Home Depot wasn’t always the world’s largest home improvement retailer, however. In fact, when the housing market crashed from 2006 to 2009, the company lost $13 billion, or 25 percent of its sales. Tomé said the company simply relied on its core values. “We had to make some very hard decisions,” she said. “As we were making those decisions, we went back to what our co-founder Bernie Marcus said. He said, ‘If you take care of your associates, they will take care of the customers, and everything else will take care of itself.’

          Carol Tomé speaking to students“During that time when many companies were freezing raises, freezing contributions into 401K plans and stopping bonus plans, we said, ‘Nope. We’re not going to do that. Not for the front line. Not for the associates who are taking care of our customers.’ For all of our store associates, we continued to pay merit increases, we continued to make 401K contributions, and we continued to pay success sharing, which is a bonus plan for our hourly associates. We stayed true to that.

          “Our associates matter. They are a name and a face. We invest in them—not just in pay, but through education and learning opportunities for career development.”

          Tomé noted that executives at the bottom of the pyramid did not enjoy the same luxuries, but instead enjoyed watching the company grow out of the recession.

          “We believed that when the economy turned around, then so would we,” she added—and she was right.

          Before Tomé worked for The Home Depot, she served as Vice President and Treasurer at Riverwood International Corporation in Atlanta. But the new Georgia resident fell in love with a certain home Atlanta-based improvement retailer and even became a company shareholder.

          Then she received a phone call to work there.

          “I wasn’t sure if it was right for me,” she explained. “I went to one of my friends and I asked them what they thought.”

          Their advice—take the job!

          “Had they not told me that, and had I not listened, I wouldn’t have gone back and who knows where I would be today,” she said.

          “Don’t be too planful or you will miss out on opportunities that you can’t even dream exist. Be sure to take risks along the way. Make sure to build really big networks—people that you can leverage when you are faced with these turns that happen as you go down your life’s journey. The road is going to make twists and turns and you are going to have to make decisions—do I go left or right—and if you have a strong network, you can leverage that network to help you make decisions.”

          Thursday’s presentation was sponsored by Auburn University’s Center for Ethical Organizational Cultures through its Student Center for Public Trust.

          “Mrs. Tomé provided important insights as to how high integrity organized cultures can drive success,” said O.C. Ferrell, James T. Pursell Senior Eminent Scholar in Ethics and the Student Center for Public Trust Director. “She is a role model for students as they develop their career paths.”

        • Alfonzo Alexander

          Alfonzo AlexanderAlfonzo Alexander is Chief Relationship Officer of the National Association of State Boards of Accountancy (NASBA) and the President and CEO of the Student Center for Public Trust. Alexander was the inaugural speaker for the Auburn SCPT chapter and addressed more than 115 students during his talk on “Ethical Leadership: The True Sustainable Leadership.” He shared personal and professional experiences about how ethics has played a role in his success and consequently, plays a role in many business professionals’ demise.

          For more information on Alfonzo, take a look at the SCPT website bio and NASBA website bio. Or check out this story from the Harbert College of Business on Alfonzo’s inaugural speech.

        • Wilson Nash

          Wilson NashAuburn's chapter of the Student Center for Public Trust held its spring meeting on Monday, March 19, featuring guest speaker Wilson Nash. Nash earned his Juris Doctorate from the University of Alabama School of Law where he graduated Magna Cum Laude. He now functions as the Associate General Counsel for Brasfield and Gorrie, LLC, one of the largest privately held construction companies in the U.S. Here he reviews and negotiates contracts and purchase orders on a daily basis along with providing project-specific counsel. Mr. Nash also serves as the ethics and compliance officer and therefore is responsible for the oversight of ethics and the firm’s code of conduct.

          Nash and O.C. Ferrell speak with a guest.In his captivating speech on balancing ethics and compliance with two separate workforces, Mr. Nash provided examples of the success of Brasfield and Gorrie and its commitment to stakeholders. The firm has an unwavering commitment to quality and integrity. For example, safety is their highest priority which is reflected in their SEE IT, OWN IT, SHARE IT initiative. The company’s values also include performance, integrity, respect, innovation and teamwork. Brasfield and Gorrie was the first construction firm to become a member of the Society of Corporate Compliance and Ethics. The firm also has an ethics and compliance hotline which is monitored by a third party.