Jim Thompson

Email Jim at jim.thompson@ipulpmedia.com

We started out this month admonishing procurement professionals to be honest in their dealings and we will end on the same note.

The three departments most likely to become involved in corruption in a mill are procurement, engineering and maintenance. In these modern days, the IT department has become a new, susceptible entity as well.

If you have read any of the Old Testament, you will find that the High Priest were held to a higher standard than everyone else. I think we need to adopt the same standards for the departments just previously mentioned.

These departments have the ability to set the standards for the mill when it comes to honest dealings, not only with outside suppliers but with intercompany departments and especially with customers, the mill's lifeblood. Having high standards in our dealings with each other and outsiders is likely at 10 - 15% bump in profitability.

Having high standards can save you when accidental losses happen.

One time when I was running a number of departments, including the technical department, the following occurred. The technical department was fully in charge of the coating kitchen. The gentleman that ran the coating kitchen was excellent at his job but had an odd quirk. He would come to my office with body language that was almost like that of an abused dog. It didn't show up in his voice, but in his mannerisms. I assumed at some time some boss had treated him very poorly. He must not have had the nerve to quit and go to another mill, or maybe his family didn't want to move. I had many people reporting to me and lots of people problems bigger than his, so I must confess that I did not take the time to learn more about his situation. I just knew he was a meticulous scientist and everyone trusted his work.

The most expensive additive, anywhere in the mill at that time was Titanium Dioxide, TiO₂. It was on allocation. We bought it by the railcar and used a couple of railcars per week. One day, the gentleman I just described above had to come to me with some terrible news. We had lost a railcar of TiO₂. We discussed the matter and concluded that a valve had been left open, and it had gone down the drain. This was a very old mill where we had no safeguards to prevent such an accident.

He was terrified. I calmed him down as best as I could, and we walked down the hall to the site executive's office. We explained what had happened. Rest assured, I did not push him in front of me to explain the situation, I was there to accept responsibility as well. Needless to say, no one lost their job, but no one was happy, either. This was a lot of money. We put in some limited safeguards and check sheets to keep this from happening again.

The important lesson here though is this. This employee was of the highest reputation. Neither through incompetence nor theft was suspicion ever cast on him for this error.

Be like this in all your dealings. Don't leave a trail that can cast any doubt on your actions, no matter what comes up in the future.

I think we have time for one more story. I was in the eighth grade in a four-room rural school. At recess one day, the principal had gone to the restroom and discovered some vandalism. After recess, we all had a study time. I didn't notice, but our teacher and the principal started calling the boys out in the hallway for an individual discussion. Later, I thought they called them out in order of the suspicions they had on who might have done the damage. I was the last one called.

"Jim, do you have a pocketknife?"

"Why yes, I have four of them." Which I proceeded to pull out of my pockets. They wouldn't fit in one jeans' pocket, I had them in the right and the left.

They looked at each other, then looked at me.

Then, they dismissed me from the discussion.

If only a pocketknife had been the criteria for guilt, I would probably still be in detention. But my reputation preceded me.

And, if you are curious, I was innocent. I don't know if they ever figured out who caused the damage.

Be safe and we will talk next week.

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Study Guide: Ethics and Integrity in Organizational Settings

Quiz

Answer the following questions in 2-3 sentences each.

1. According to the text, which three traditional departments, and one more recent department, are most susceptible to corruption in a mill?
2. Why does the author believe that these specific departments should be held to a higher standard of ethical conduct?
3. What potential financial benefit does the author associate with having high ethical standards within a company, both internally and externally?
4. Describe the unusual behavior of the coating kitchen manager and the author's initial reaction to it.
5. Summarize the incident involving the loss of Titanium Dioxide (TiO2) and the immediate response of the author and the site executive.
6. What crucial lesson did the author draw from the TiO2 incident regarding the reputation of the employee involved?
7. In the anecdote about the vandalism in the school restroom, why was the author initially a suspect?
8. Despite having multiple pocketknives, why was the author ultimately dismissed as a suspect in the vandalism incident?
9. What is the overarching message or theme that the author emphasizes at both the beginning and the end of the excerpt?
10. How can an individual's reputation serve as a protective factor in situations where mistakes or accusations might arise?

Quiz Answer Key

1. The three traditional departments most likely to become involved in corruption in a mill are procurement, engineering, and maintenance. More recently, the IT department has also become a susceptible entity.
2. These departments have the ability to set the standards for honest dealings within the mill, not only with outside suppliers but also with intercompany departments and customers, who are considered the mill's lifeblood. Their ethical conduct significantly impacts the overall integrity of the organization.
3. The author suggests that having high standards in dealings with both internal and external stakeholders is likely to result in a 10-15% increase in profitability for the company. This highlights the tangible financial benefits of ethical behavior.
4. The coating kitchen manager displayed body language resembling that of an abused dog, which the author noticed but did not investigate deeply due to other pressing issues. The author knew the manager was a meticulous and trusted scientist despite this unusual demeanor.
5. A railcar of Titanium Dioxide was lost due to an open valve in an old mill with limited safeguards. The author and the coating kitchen manager informed the site executive together, with the author taking responsibility for the incident alongside the employee.
6. The important lesson was that despite the significant loss, suspicion never fell upon the coating kitchen manager due to his established reputation for integrity and competence. This demonstrated the power of a strong ethical track record.
7. In the school vandalism anecdote, the author was initially a suspect because the principal was looking for the tool used for the vandalism, and the author readily admitted to owning multiple pocketknives. The possession of such an item aligned with the potential means of damage.
8. Despite having multiple pocketknives, the author was dismissed as a suspect because his established reputation for good behavior preceded him. The teachers and principal likely believed that his character was inconsistent with committing such an act.
9. The overarching message the author emphasizes is the importance of honesty and integrity in all dealings, particularly for professionals in susceptible departments like procurement, engineering, maintenance, and IT. This principle is highlighted at both the beginning and the end of the excerpt.
10. An individual's reputation, built on consistent ethical behavior, can provide a shield of trust and credibility, making others less likely to suspect them of wrongdoing, even when errors or unfavorable circumstances arise.

Essay Format Questions

1. Discuss the author's argument for holding specific departments within a mill to a higher ethical standard. What are the implications of this perspective for organizational culture and accountability?
2. Analyze the two anecdotes presented in the excerpt (the lost TiO2 and the school vandalism). What key lessons about ethics, reputation, and leadership does the author intend to convey through these stories?
3. The author suggests a direct link between high ethical standards and profitability. Elaborate on the potential mechanisms through which ethical conduct in procurement, engineering, maintenance, and IT could contribute to a 10-15% increase in a company's profitability.
4. Consider the role of leadership in fostering a culture of honesty and integrity within an organization. How did the author's actions in the TiO2 incident demonstrate leadership, and what impact might such leadership have on employee behavior and trust?
5. Reflect on the significance of an individual's reputation in a professional setting, as illustrated by both anecdotes. How is a positive reputation built and maintained, and what are the potential consequences of a damaged reputation in the context of the departments discussed?

Glossary of Key Terms

Procurement: The process of acquiring goods, services, or works from an outside external source, often through a tendering or competitive bidding process.

Corruption: Dishonest or fraudulent conduct by those in power, typically involving bribery or illicit dealings.

Engineering: The branch of science and technology concerned with the design, building, and use of engines, machines, and structures.

Maintenance: The process of preserving something in its original condition by regular checking, repair, and upkeep.

Susceptible: Likely to be harmed or affected by something. In this context, prone to involvement in unethical or corrupt activities.

High Priest (Old Testament context): A religious leader held to the highest moral and ethical standards within their community. The author uses this as an analogy for certain professional roles.

Intercompany Departments: Different functional units or divisions within the same organization.

Lifeblood: Something essential to the existence or success of something else. In this context, customers are vital to the mill's survival.

Profitability: The state of yielding a financial profit or gain.

Titanium Dioxide (TiO2): A white pigment used in various industrial applications, including coatings in a mill setting. It is described as an expensive and critical additive.

Allocation: The process of distributing resources or quantities that are limited or in short supply.

Safeguards: Measures taken to prevent accidents, errors, or undesirable outcomes.

Check Sheets: Structured forms used to collect and analyze data in a systematic way, often for quality control or process improvement.

Reputation: The beliefs or opinions that are generally held about someone or something.

Vandalism: Deliberate destruction of or damage to public or private property.

Detention: The punishment of being kept in school after hours or placed in a supervised room as a consequence for misbehavior.

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