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The Basic Course - Jenny Mizutowicz

The Basic Course - Jenny Mizutowicz

Mark Lautman

August 21, 2020
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  1. ETHICS IN ECONOMIC
    DEVELOPMENT
    Presented by Jenny Mizutowicz, CEcD
    for the New Mexico Basic Economic Development Course
    August 21, 2020

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  2. ABOUT ME
    • Manager of Economic Development
    Initiatives at University of Texas at Dallas
    • Previously held positions:
    • Public Sector – Economic Development
    Manager for City of Carrollton, TX
    • Private/Chamber – Director of
    Marketing for Richardson Economic
    Development Partnership (Chamber of
    Commerce)
    • Certified Economic Developer (CEcD)
    • Leadership positions with International
    Economic Development Council (IEDC),
    current Vice Chair of Education and
    Certification Advisory Committee

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  3. COURSE CONTENT
    • Ethical behavior in economic development
    • Promoting an ethical culture in your organization
    • IEDC Code of Ethics
    • Case study
    Slides marked with this logo contain content developed by the
    International Economic Development Council (IEDC)

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  4. ETHICAL BEHAVIOR
    • “Ethics is knowing the
    difference between what
    you have a right to do and
    what is right to do.”
    – Potter Stewart, former United States
    Supreme Court Justice

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  5. ETHICAL BEHAVIOR
    • Ethics is about choices that people make about ordinary (and sometimes
    extraordinary) decisions in day-to-day life
    • There may be a difference between ethical behavior and LEGAL or ILLEGAL
    actions
    • Ethical behavior is about upholding higher standards or conduct rather than
    simply adhering to the rules or the law

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  6. ETHICAL BEHAVIOR
    You’ll find there are often “grey areas” when it comes to ethical behavior in
    economic development.
    There are no right or wrong answers in this course, but there is often a
    right thing to do…

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  7. MAKING ETHICAL DECISIONS
    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?

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  8. MAKING ETHICAL DECISIONS
    CONT.
    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?
    9. Would I do it to my family and friends (or myself)?
    10. Would the most ethical person I know do this?
    Source: International City Managers Association (ICMA) 2010

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  9. EXAMPLES OF ETHICAL DILEMMAS –
    INTRAREGIONAL RELOCATIONS
    • Be wary of “sharking” your neighboring
    communities’ companies
    • Different standards based on the degree
    of regional cooperation in your area
    • Can jeopardize professional relationships
    • Difference between a company
    approaching your organization first and
    you soliciting a competitor’s company

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  10. EXAMPLES OF ETHICAL DILEMMAS –
    SOCIAL IMPACT
    • Do you incentivize companies who want
    to come to your community that pay
    below a living wage?
    • What about companies that have a
    history of treating employees poorly?
    • What about environmental polluters?
    • What if your community really needs the
    jobs?

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  11. EXAMPLES OF ETHICAL DILEMMAS –
    MANAGING CONFLICTS OF INTEREST
    • Avoid bad headlines and angry mobs
    • 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
    • Disclose 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

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  12. EXAMPLES OF ETHICAL DILEMMAS –
    BARGAINING/COMPETING FOR INCENTIVES
    • If you suspect a company in your
    community is “incentive shopping”, is it
    your duty to inform the other
    community?
    • This dilemma will be explored later in
    our Case Study

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  13. EXAMPLES OF ETHICAL DILEMMAS –
    RECRUITING BUSINESSES FROM DISASTER-
    IMPACTED REGIONS
    • IEDC’s Code of Ethics states that
    economic developers must not exploit
    the misfortune of federally declared
    disaster-impacted regions
    • This includes actively recruiting
    businesses from an affected community

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  14. PROMOTING AN ETHICAL CULTURE
    • Ethical behavior needs to be promoted from the top and supported with
    policies and adequate resources
    • Three tools that can help support an ethical culture:
    • Code of Conduct
    • Legal approach
    • Values/ Customs-based approach
    • Ethics education and training
    • Performance assessments

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  15. THE IEDC CODE OF ETHICS
    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.

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  16. THE IEDC CODE OF ETHICS
    2. Professional economic developers shall
    practice with integrity, honesty, and
    adherence to the trust placed in them
    both in fact and in appearance. Authority
    Who is
    accountable for
    what?
    Purpose
    What is my
    intent?
    INTEGRITY
    Principles
    What I stand
    for?

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  17. THE IEDC CODE OF ETHICS
    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.
    Conducting
    Official Duties
    with
    Bipartisanship
    Conflict
    of
    Interest

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  18. THE IEDC CODE OF ETHICS
    4. Professional economic developers are
    mindful that they are representatives of the
    community and shall represent the
    overall community interest.
    Community
    Interest
    Public
    Private Non-Profit
    Social

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  19. THE IEDC CODE OF ETHICS
    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.

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  20. THE IEDC CODE OF ETHICS
    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.
    Try to Find the Most
    Effective Balance
    Reporting
    Requirements
    Confidentiality
    Privacy
    Concerns
    Data Sharing

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  21. THE IEDC CODE OF ETHICS
    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.

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  22. THE IEDC CODE OF ETHICS
    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.
    Sharing
    Knowledge
    and
    Information
    Efficiency
    Goes Up
    Productivity
    Rises
    Respect and
    Confidence
    in the
    Profession
    Grows

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  23. THE IEDC CODE OF ETHICS
    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 or marital status.

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  24. THE IEDC CODE OF ETHICS
    10. Professional economic developers shall
    abide by the principles established in
    this code and comply with the rules of
    professional conduct as promulgated by
    IEDC.
    Professional
    Conduct
    Act Ethically
    Behave
    Respectfully
    Teach
    Effectively
    Asses Fairly
    Act
    Professionally
    Solicit
    Feedback
    Support Peers
    Ensure Quality
    Provide
    Opportunities
    Learn
    Willingly
    Think Broadly

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  25. CASE STUDY
    (8-10 MINUTES TO DISCUSS IN GROUPS)
    Drew is the Chief Financial Officer of a company which has resided in State ABC for the past five
    years. The company’s board recently began pushing for cost-cutting measures. Not wanting to lay
    off any employees, Drew is exploring what the state can offer through additional tax relief.
    However, upon meeting with the state, Drew discovers that State ABC is unwilling to grant him
    further tax breaks until the company reaches new growth targets.
    Not giving up, Drew is pursuing other avenues. During the company’s site selection process, there
    was a fierce incentive battle between State ABC and neighboring State XYZ. State XYZ also has
    lucrative incentives for relocation. Although Drew knows that the company’s potential relocation
    costs would far outweigh incentive benefits, he calls Mary, who works at the State XYZ Economic
    Development Office.
    He requests Mary to write a letter detailing what incentives they would be willing to offer. Mary
    talks further with Drew and suspects that he is not really serious about relocating and only wants
    the letter to bargain with State ABC on incentives. She refuses to write the letter and calls the
    State ABC Economic Development Office to alert them of what the company is doing.

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  26. CASE STUDY
    Questions to consider:
    1. Is this an ethical dilemma?
    2. Who is unethical, Mary or Drew?
    3. What would you do in Mary’s situation?

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  27. BEFORE YOU MAKE ANY DECISION…
    Imagine yourself on the homepage of your
    local news publication’s website.
    “How would I feel if my colleagues and
    peers found out about this?”

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  28. QUESTIONS?
    Thank you!
    [email protected]
    972-883-4309

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