THE ETHICS CENTRE Annual Report 2014–15
Contents 01 14 16 18 36 46 54 56 58 60 62
Introduction Chairman’s Letter Executive Director’s Letter Navigating Complexity Creating a Safe Space Sparking Social Change Looking Ahead Governance Our Board Our Supporters Financial Overview
From the toughest choices around conception and birth to those arising at end of life, unpredictable and life-changing ethical challenges abound.
BIRTH Should I terminate a pregnancy that’s putting my health at serious risk, even though abortion is considered unacceptable in my community? 02
END OF LIFE Should my father who is suffering greatly at the end of his life be able to end it? 03
INDIVIDUALS Is it okay to tell a painful truth to my friend who has a history of mental illness? 04
FAMILIES Should my children have a relationship with my ex-partner even though our relationship was an abusive one? 05
ORGANISATIONS How do I satisfy my shareholders’ desire to relocate our business overseas without firing loyal local staff? 06
INDUSTRIES If my medical research will save lives but could also be used to create bioweapons, should I destroy it? 07
COMMUNITIES How should we balance law with moral responsibility when refugees cross borders to seek safety? 08
CULTURES How do I keep faith and pride in my beliefs in the face of extremism and persecution? 09
OUR WORLD How do I obey the ethics and laws of war when my enemies do not? 10
OUR FUTURE If artificial intelligence has no capacity for empathy, will it be a danger to our humanity? 11
Not every ethical question has one right answer. Not every ethical challenge has one right path. Within this tension life becomes complex, and distress and anxiety can arise.
The Ethics Centre
The Ethics Centre (formerly known as St James Ethics Centre) is an independent not-for-profit organisation that has been working for over 25 years to improve lives and support communities built on strong ethical foundations. Our primary role is to relieve distress faced by those struggling with complex ethical challenges, and to alleviate personal and community suffering caused by ethical failure. By creating a safe space for people to work through their most difficult ethical issues, we help them gain the insight and tools to navigate complexity and move beyond uncertainty, to make sound ethical decisions. The Ethics Centre remains the only organisation in the world providing practical guidance on complex ethical issues across all levels of society. Within communities and across continents, we work with individuals and families, organisations and industries, militaries and governments, to help people embed ethics at the centre of their decisions and actions.
The widespread need for our services directly informs how we work. We design unique modes of engagement appropriate to the diversity, complexity and scale of those needs. These range from our free phone counselling service and mediation work through to ethics consulting, education programs, events, publications and advocacy campaigns. Across all our work, the same goal drives what we do: to bring people together, create a safe space for open and honest dialogue, and provide the guidance, wisdom and support to equip people to live ethically. The world is shaped by the choices people make. By learning to navigate and recover from the most distressing ethical challenges, individuals and organisations acquire the insights and tools to make ethical decisions throughout their daily lives. In this way, our work relieves the symptoms of ethical failure – while also helping to prevent its causes, empowering people to shape our world for the better. 13
Celebrating 25 Years Chairman’s Letter Highlights & Achievements
This year The Ethics Centre issues its 25th Annual Report – quite an extraordinary milestone for an organisation that has endured with little financial capital throughout. The organisation came to life in the late 1980s in response to the widespread ethical failure of that era, culminating in the stock market crash of 1987. It was apparent to many at that time that the world needed those who would champion higher standards and values in all sectors of society. From its first day, the Centre's core purpose was to help those suffering the distress of unethical behaviour; to provide a framework for better leaders, better decision-making, and better personal and corporate behaviour, in order to lead positive change in a challenging world. We are proud of our founding story as St James Ethics Centre and indeed of all its founders. Having changed our name this year to The Ethics Centre, the narrative is now being embraced by ever-widening circles of collaboration and inclusion. Over the past 25 years The Ethics Centre has helped countless individuals and organisations. We’ve provided advice and assistance to the widest possible cross-section of Australian society. Over time, as the world has become more complex, the need for the Centre’s work has increased dramatically. We have responded by creating new methods of communicating and helping those who need us most. The very existence of The Ethics Centre is a catalyst for ongoing change and a resource for those who are sufficiently courageous to challenge unthinking custom and practice.
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2014–15 has been a year of remarkable growth and change. We welcomed new team members who have brought a fresh momentum and sense of possibility. We have provided ethics consulting to some of Australia’s leading organisations and achieved ground-breaking changes for corporate culture. We helped many individuals to make critical life decisions, and started thousands of important conversations through our articles and events. In the year to come we hope to extend our reach even further, seeking to provide positive thought leadership on values and ethics, help people from all walks of life to make better decisions, and provide relief to those harmed by unethical acts. I’d like to thank everyone who works at The Ethics Centre, including our wonderful volunteers, facilitators and consultants. We have great leadership from Dr Simon Longstaff and Ed St John. Their complementary skills are a source of dynamism, encouragement and inspiration. I’d like to also thank all of our clients, including the many people who asked for our help via Ethi-call. And finally, I’d like to thank our members, Catalyst donors, committed volunteer directors and supporters. We couldn’t do any of this without your unstinting assistance. We may be short of financial capital but we are rich in social capital. Today The Ethics Centre is an exciting, agile and innovative organisation. We look forward to playing our part in an increasingly dynamic, confident and creative nation. Peter Joseph AM Chairman, The Ethics Centre
2014–15 Highlights 1,000
430,000
3,371
Over 1,000 volunteer hours delivered on the Ethi-call service.
430,000+ staff across 17 organisations provided with direct access to our Ethi-call service.
3,371 people participated in tailored professional ethics workshops.
350
215
$1.25M
5,342
$1.25M received to fund critical ethics-based programs building trust and integrity in the financial sector.
Record crowds attended the Festival of Dangerous Ideas with 5,342 people reached in 2 days.
350 Australian military personnel received ethics training ahead of duty in Iraq and Afghanistan.
215 political candidates signed our Politician's Pledge calling for better standards in politics.
118%
4,800
118% increase in our Facebook community.
4,800 Ethics Quarterly magazines distributed covering issues from the death penalty to extremism.
73% 73% increase in subscribers to our monthly ethics-based E-News content.
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1,000
69 organisations benefited from ethics consulting services impacting the working lives of tens of thousands of employees.
1 1 refined name reinforcing the all-inclusive nature of our work.
15,200 15,200 people attended 32 public forums on issues from anxiety to gender identity.
09 9 services created to provide distinct ethics counselling, consulting and education programs to answer the need across all levels of society.
25 25 years of ethics counselling and support to society – and many more ahead! 15
Reflection on 2014-15 Executive Director’s Letter A Year of Extremes
As I write this, a bunch of totalitarian thugs have attacked the innocents of Paris in a vain attempt to impose medieval theocracy on the inheritors of the European Enlightenment. A month before, the mighty Volkswagen company proved, yet again, how to destroy trust and value by divorcing technical mastery from ethical restraint. At home, we have seen further evidence of corruption in politics and the union movement, of the abuse of children in institutions that were supposed to care for them, and of unconscionable conduct by some within the financial services industry. In each instance, these disturbing events tear at the very fabric of society, eroding our trust in others and our faith in the institutions that were established to protect us. Each is a case of loss. Each raises ethical questions that are not merely of intellectual interest – they affect the lives and vital interests of people who need and deserve care, compassion and solutions. 16
I would like to say such events are stark exceptions, but I can’t. We live in extreme times – extremes that come before, and go beyond, the period of this report. Australia has been playing its part in Iraq, Syria and Afghanistan, sending Australian Defence Force (ADF) personnel to fight, train and support. We have seen what Daesh is capable of and know that every outrage is a calculated attempt to provoke an indiscriminate or disproportional response from our side. We know that our one point of real vulnerability is our need to retain moral authority. The ADF has a fine record of maintaining its ethical core in the face of extreme provocation. To do so is not easy and is part of the burden borne by those who are deployed. The Ethics Centre provides practical support to many of them – reinforcing the ethical foundations they rely on in the most testing of environments.
Our Purpose
Our Role
A catalyst and enabler for society to think, debate and act in good conscience, particularly in the face of uncertainty or ambiguity.
To help people who have been harmed by ethical failure, and equip them to solve complex and confronting problems.
Our Mission
Our Vision
To encourage and assist individuals and organisations to include the ethical dimension in their daily lives.
A better world where people have the capacity to do the right thing.
Questions of life and death are not just part of the soldier’s world. They touch us all – no more closely than when we are called upon to help decide the fate of those who are near death and cannot speak for themselves. At such times, critical distinctions come to the fore: “Are we prolonging life or are we merely causing a loved one to die slowly? Are we acting for their sake or for our own?” The Ethics Centre assists people facing questions of this kind.
The harm that people experience is rarely captured in headlines. For example, we have been working within the financial advice industry where people have lost their homes and life savings because of unethical corporate practices, and advisers lost their jobs or found their life’s work discredited. The Ethics Centre convened the people and resources needed to cater for the deep needs of all who have been affected.
People come to us from across the nation, seeking a safe place to address issues that cut to the heart of their lives – as individuals, as families, as communities. Many come to The Ethics Centre by way of our free counselling service, Ethi-call. Others seek help through our consulting service – especially when the symptoms of distress can only be relieved by treating the cause of harm or concern.
So what are we to do? There will be no end to the extremes. There will be no end to the need for help. We can but draw on what resources we can gather for the task – and stand ready. Simon Longstaff AO Executive Director, The Ethics Centre 17
NAVIGATING COMPLEXITY
Our Focus
"WHAT SHOULD I DO?" Ethics is at the core of everyday life and at the centre of being human. It’s not just an exercise for philosophers or intellectuals – we ask ethical questions whenever we think about how we should act. Often there are times when those questions become challenges that we can’t resolve alone. Complex ethical problems do not discriminate between everyday Australians and our leaders or public figures, and may affect one person or many. They can be individual and private or widespread and systemic, involving groups, organisations or whole communities. The distress these challenges cause is real and pervasive, leaving people stuck and struggling, anxious or broken.
To help people navigate the complexity and uncertainty of difficult ethical issues, we deliver innovative programs and services, designed to bring ethics to the centre of professional and personal life, and align actions with values. From counselling clients through our Ethi-call helpline and delivering tailored ethics guidance to military personnel deployed overseas, to advising leaders in some of the world’s largest companies, our work guides people through highly sensitive and difficult decisions. Our ethics-based counselling, consulting and education programs offer a framework to critically examine complex situations, understand multiple viewpoints and explore possible solutions. By equipping people with insight into values and principles and challenging unthinking bias, we support them to be consistent and ethical in their decisions and actions.
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ING
Ethics Counselling, Consulting & Education
Ethical Leadership
IC ETH
UN S CO
Ethics Counsel
S E D U C AT I O N
Everest Program
Ethical Literacy
ETHIC
Ethi-call
SELLING & CONS
U LT
Ethical Framework Design
Ethics Coaching
Ethics at Work Ethics Mediation
Organisations do not exist as isolated entities. They are ecosystems of meaning, made up of people who work within them and those they directly and indirectly affect – including clients, suppliers and shareholders. They are also the context within which people encounter some of the toughest ethical challenges of their lives. In some cases, the suffering of one person can only be relieved by removing its cause – often embedded in the wider culture. When ethical failure occurs, organisational systems can fracture and break down, causing far-reaching effects on psychological, professional, financial and social wellbeing. In 2014–15, we further developed our ethics counselling, consulting and education programs and consolidated our offering into nine distinct products. We designed and delivered a range of services, providing progressive advice and practical support to develop ethical capabilities at the individual, organisation and industry levels. 20
This support includes: + p roviding counselling, education and mediation to guide people through difficult and distressing ethical problems + empowering organisations with the information and tools to embed ethics within their cultures and systems + convening industry groups and diverse stakeholders to resolve industry-wide problems and build higher standards of ethical integrity.
AT A GLANCE
69 Delivered ethics services to 69 organisations across the corporate, government and not-for-profit sectors.
44% 44% of our work is with the private sector.
34 Delivered 34 workshops to 3,371 participants.
43% 43% of our work is with not-for-profits.
84 Delivered 84 presentations to industry and community forums nationwide.
13% 13% of our work is with the public sector.
70% Worked with 7 of the ASX Top 10.
55% Worked with 11 of the ASX Top 20.
Ethi-call Moving Beyond Uncertainty
When people face difficult ethical decisions in their work, family or social lives, it can be hard to know which way to turn. Friends and colleagues may offer conflicting advice. Other doors may be closed. At these times, it helps to have access to an objective, experienced voice that can provide guidance through the complexity, help relieve distress and assist in moving beyond uncertainty. Ethi-call is our free, national helpline available to everyone, delivered by highly trained volunteers. It provides a confidential and safe space for people to explore ethical challenges and seek support to make sound, ethical decisions. As a truly independent service, we are able to offer impartial, objective guidance within callers’ own values, principles and consciences, taking account of their unique situations. Ethi-call is the only service of its kind in the world. Callers come from diverse backgrounds, occupations and locations. The problems they face may be related to work, community, family or friends. We have delivered this vital service since 1991, and it directly complements the support we provide through our ethics consulting and education programs. Ethi-call also allows people to continue the conversations and reflections sparked during our public events or through our publications.
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This year a boost in national coverage across print and online media and on radio resulted in a direct increase in the number of calls we received. People called with a wide range of complex problems and concerns that were causing significant stress, anxiety and sometimes anguish. These problems included: suspected fraud and theft, negligence in aged care, breaches of privacy, drug addiction, suspected child sex abuse, personal relationship breakdown, health interventions that contradict religious codes, prostitution, family violence and children of asylum seekers in detention. Throughout the year we conducted a three-stage review to ensure Ethi-call remains a valuable, practical and accessible service. Our research found that Ethi-call is unique and highly valued in the marketplace and our model of intervention is robust and in line with current research. We have identified a number of areas for extension and improvement which we will implement over the next year, including using new technology to improve user experience and accessibility.
1,000 Over 1,000 volunteer hours delivered on the Ethi-call service.
57% 57% of callers to Ethi-call are female.
56% 56% of callers are aged 35–50 years.
22% 22% of callers are under 35 and 22% are over 50.
60%
29%
5%
6%
60% of callers faced an ethical dilemma in their workplace or professional life.
29% of callers were struggling with a personal problem.
5% of callers were facing a communityrelated challenge.
6% of callers were struggling with a combination of these problems.
COMFORT
HOPE
CLARITY
INSIGHT
Sara and her partner Karim had been planning a baby through IVF for some time, when Karim was killed in an accident. Sara desperately wants to have the child they’d planned together using Karim’s frozen sperm, and believes Karim would have wanted this. Karim’s parents are strongly opposed. How can she decide what to do?
Tom heads a community group that delivers weekly food boxes to needy families. The service is working really well. Recently, Tom was told in confidence that one of his best volunteers served a prison sentence for a violent crime. Should he disclose this, and to whom?
INTEGRITY
SUPPORT
OBJECTIVITY
FAIRNESS
Noah has worked alongside Eva for many years. Eva was recently charged with manslaughter after someone she injured while drink driving later died of related complications. Eva is very afraid and wants Noah to be a character witness at her trial. Noah knows Eva is essentially a good person, but he also knows she’s had a long-term drinking problem that she’s made no effort to fix. Noah is worried that if he’s asked about Eva’s drinking habits in court, it might make things worse for her. He also empathises with the victim’s family. What should he do?
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Ethics Counsel Empowering People to Make Ethical Choices
1
26
2
3
4
REFLECTION
RELATING
DECISION-MAKING
LEADING
A process of reflection on the situation and circumstances of the unethical behaviour.
Understanding the connections and relationships between ourselves and others.
Recognising the challenges and the ethical implications of everyday decisions.
Forging a new path by taking responsibility and ownership and moving forward with purpose.
Sometimes good people make bad decisions and the fallout can be devastating. Victims of unethical behaviour can suffer financial loss, health problems or acute emotional distress. Professionals who behaved unethically may face an enquiry, fines and restricted or suspended practice. These consequences can derail careers and livelihoods, with potentially serious mental health and family impacts.
This year a number of individuals undertook the program and reported that the process offered them self-insight and growth. By the end of the program they had moved from a very limited understanding of their breach to a much deeper understanding of themselves and their behaviour and a more confident engagement with professional and personal responsibilities.
Throughout the year, we continued to run our nine-week Ethics Counsel program designed for those required to undertake ethics remediation due to a professional, organisational or public enquiry into their behaviour. The program provides a space for reflection, understanding and education about the transgressing behaviour, with the aim of fostering greater self-awareness, and improving ethical alertness and decision-making.
Ethics Counsel is continually updated to reflect current research and adapted to the personal circumstances of individual applicants.
Finding a Positive Way Forward
Our experienced counsellors, educators and mediators draw on ethical decision-making frameworks, conflict resolution and communication skills to enable people in conflict to see others' perspectives, find common ground and discover different ways to achieve mutual goals and outcomes.
“ No matter how good a job we did, or how hard we tried, we were always at fault. I felt trapped as I was single, 58 and still paying off my mortgage. The “whipping boy” culture led me to a very dark place. The harassment was continual and took many forms. I couldn’t get the matter taken seriously. I reached breaking point after several years and couldn’t tolerate any more. I didn’t feel I could just resign as it would leave my team members open to even more abuse. I submitted a formal complaint expecting to be dismissed. I also expected that I would need to sell my home as a result of being unemployed. It was at this point that The Ethics Centre became involved. The Centre was tasked with surveying the company to do a cultural assessment. By this time I was coming apart and could not function. It was the support and involvement of The Ethics Centre that helped me stay to see the outcome.” Alex*, an employee working within a company that sought our assistance with organisational culture.
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Everest Program Strengthening Organisations
INTE GR I
W Y SA
T PEC ES
Jud gem ent Wis dom
p Perce
i ng
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S
Fea r
Heroism
I LI E NCE H RES
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SO N LU TIO TIO NS T OVA H ROUG H I N N
rit
INSIGHT
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RO W
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Bra very
RAG E
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I TH
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Daring
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MEA NW HA T
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ess
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ACH I EVE M E NT W
Achievement
Advancement
" I S IT POSSIBLE TO HAVE SHARED VALUES ACROSS THE WHOLE ORGANISATION THAT CAN BE LIVED BY INDIVIDUALS?"
R
ITH
tue Vir iple inc Pr ty nes Ho
Co urt es y
ity gn Di
Re sp ec Si t nc er ity Tru st
Ri
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Open ness Authe ntici ty Transp aren cy
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Intelli
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Innovation
A robust culture based on a well-understood ethical framework unifies employees around a common purpose, encourages ethical, values-aligned behaviour and helps ensure compliance with industry regulations. When there is a gap between an organisation’s espoused principles and its actions – a gap between what it says and what it does – significant damage can occur. This has the potential to impact the organisation’s ecosystem of employees, customers and other stakeholders, causing a ripple effect across entire communities.
Through our Everest Program, we help organisations build and maintain robust ethical cultures. Our work identifies where formal systems, culture and behaviour are misaligned with values and principles, and provides practical advice and guidance to help recalibrate them. The diagnostic process itself relieves ethical distress. We act as an interpreter and a guide for both those who want change but are disempowered, and those who can effect change but are unaware of unethical behaviour. This makes real change possible. In 2014–15, we developed a significant innovation in our research and analysis process, which helped guide a ground-breaking project we conducted for the Commonwealth Bank.
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One Organisation Far-reaching Impact over
10,000,000
52,000
employees
customers throughout Australia and overseas
800,000
personal shareholders
“ …above all our business is about trust. In a business of our scale, if 99.9% of people behave with impeccable values, that still leaves 50 people who don’t. And their efforts can undermine the actions of their 50,000 passionate, dedicated colleagues. We keep working on integrity, accountability, collaboration, service and excellence. For over a year, we have been working with The Ethics Centre on identifying specific actions we can take as a leadership team and through the business to continue to strengthen the culture.” I an Narev CEO, Commonwealth Bank of Australia CBA Annual General Meeting, 17 November 2015
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Ethical Literacy Reinforcing a Shaken Industry
WHICH WAY WILL YOU GO?
The financial planning industry has been in a state of crisis following recent cases of poor financial advice, unethical practices and bad decision-making. The public has lost trust in the industry and many financial planning clients have suffered greatly, both financially and emotionally. There are of course many ethical practitioners, but they have suffered too, facing reputational damage and a backlash against their profession. We have encountered, first-hand, the costs endured by both groups. In response to this, The Ethics Centre developed Ethical Literacy, an education and training program for employees affected by these unethical practices. This cutting-edge program draws on contemporary research in philosophy, moral psychology, behavioural ethics and neuroscience, and was created to help relieve and prevent the related distress felt by people working in the financial advice industry and their clients. People who are ethically literate are better able to see the bigger picture, and to contribute authentically and meaningfully to a culture that supports an organisation’s purpose and principles. 30
WAYM AK E R
EXPLORE FURTHER
MAK E B ET T ER D ECI S I O N S
TAKE A CHALLENGE
>
Designed and developed in consultation with key industry leaders including AMP, ANZ, BT Financial Group, Commonwealth Bank and Macquarie Bank, the pilot program is already producing great results. Ethical Literacy gives participants the insight and tools to: + better understand other people’s perspectives + build stronger relationships with customers and colleagues + better handle challenges, pressures and conflicts of interest + feel more confident in their decision-making ability + make responsible and ethically sound decisions.
Innovation in Ethics: Waymaker App To supplement our Ethical Literacy program we have developed an online learning platform and an innovative smartphone app. These tools allow us to deliver deeper engagement in the program through a mix of digital and face-to-face learning. Our mobile app, Waymaker, invites the user to solve a range of challenging ethical dilemmas to uncover their own personal ethical decision-making style.
TH
E VIRTUOSO
TH
E C U O DIAN ST
THE
A CTIVIS
T
TH
E CHA MPION
Your ethical style guides how you navigate and resolve tough decisions. Understanding your strengths and weaknesses bolsters your capacity for sound ethical decision-making. The app and online learning platform allow us to deliver high-quality, personalised training and support to individuals, while being able to easily scale to reach greater numbers of people, enabling us to benefit entire industries.
TH
E D I P L O M AT
TH
E O RIE NTEER
TH
E C A TA K E R RE
THE
REFEREE
“ When culture is rotten, it often is ordinary Australians who lose their money. Markets might recover, but often people do not.� Greg Medcraft Chairman, Australian Securities and Investments Commission Sydney Morning Herald, 29 May 2015
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30%
6%
30% of our work was with the financial & professional services sector.
13% of our work was with the public sector.
6% of our work was with the sport industry.
Financial & Professional Services
Public Sector
Sport
When there is ethical failure in financial services – as has been well documented in recent years – the first victims are clearly the customers, who in many cases have lost their homes, their security and life savings. For some, this distress results in mental health issues, drug and alcohol abuse and even suicide. The cost to society, including compensation payouts, is enormous.
Public sector employees work hard to serve the needs of a diverse community. Through policy settings and the delivery of essential services, they hold the lives and wellbeing of countless individuals in their hands. But the public service faces significant ethical challenges.
In Australia, sport is constantly in the spotlight, often for the wrong reasons. Scandals within the profession and in the personal lives of players highlight an ethical minefield that encompasses drugs, violence, cheating, abuse, competitive pressure and toxic team cultures. We hold young athletes to high standards but give them few tools to cope. The Drugs In Sport inquiry demonstrated the extraordinary pressure these factors place on players, staff and even fans.
Such scandals also impact the professionals who work in the sector who feel tarnished by the actions of a minority. They speak of deep levels of shame and mental anguish, of damage to their reputation. Some have been horrified by the hypocrisy and double-standards of their employers. Others who have taken a stand against unethical behaviour have found themselves ostracised. 32
13%
Recent media reports show that governments can have significant bullying and harassment issues within their departments. Last year the taxpayer spend on public sector bullying and harassment claims reached over $80 million. These cases erode trust in and respect for the public sector, adding further stress and anxiety to a difficult job. They impact the very people the sector is there to help.
Helping sportspeople to find their moral compass – to make better decisions – saves good people from catastrophic situations. If sporting heroes display ethical behaviour, it can have a positive effect on thousands of fans.
A Widespread Need + Health Services
$
+
Media
Financial Services
Emergency Services Sport Education
Our Clients Actuaries Institute AFL Players' Association Aftercare Australia AMP Services ANZ Audrey Page & Associates Australian Defence College Australian Dental Council Australian Nuclear Science and Technology Organisation Australian Rugby Union Australian Rural Leadership Foundation BHP Billiton BT Financial Group BVN Architecture Centric Wealth
Charles Sturt University Commonwealth Bank of Australia Curtin University Department of Defence Griffith University Health Consumers NSW Infant Nutrition Council ING Bank Australia Institute of Internal Auditors Australia Insurance Australia Group Insurance Council of Australia Kennards Group
Leichhardt Municipal Council Macquarie Equities Macquarie Group Services Australia Media Group Ukraine National Australia Bank Nestle Australia NSW Police Force NSW Rural Fire Service Origin Energy Our Community Prinz Reconciliation Australia Relationships Australia Reserve Bank of Australia Responsible Gambling Fund
Royal Australian and New Zealand College of Radiologists Santos Senate Procedure Office Scentre Group St Catherine's School Strata Community Australia Study Group Australia Sunshine Coast Sports Federation Sydney Community Foundation Tasmanian Leaders Inc Telstra The Benevolent Society The Climate Institute The Greens NSW
Transparency International Australia Triathalon Australia Tyro Payments UniSuper Management University College University of Sydney Urban Growth NSW UTS VicRoads VicSuper Victorian Funds Management Corporation Web Profits Westpac Banking Corporation Zurich Financial Services Australia
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Coming together to talk openly and explore the issues that matter equips us with the insight and skills to address difficult situations, answer urgent questions and make informed decisions about how we live.
In the early days of The Ethics Centre, philosopher and Executive Director Dr Simon Longstaff set up a humble circle of chairs in the centre of Sydney’s bustling CBD and invited people to join a conversation. Everyone was welcome. It was a safe place to talk about the things that matter – issues of concern, large and small, that cut to the heart and centre of being human. The Ethics Centre was founded to be a centre for applied ethics and remains unique in the world for its practical support that is accessible to all, and its ability to offer a truly independent, non-judgmental space for reflection. The essence represented by that circle of chairs remains the same today, and underpins all that we do. Encouragingly, our forms of engagement have diversified, and in line with our original aims, the circle has grown exponentially to encompass widespread and diverse audiences.
To complement our ethics counselling, consulting and education programs, we have developed a series of events and forums created to bring people together to work through some of the toughest ethical issues of our time. To offer support to as many people as possible, we have also launched an engaging online environment to disseminate ethics-based content, and created various forms of interactive digital media that allow us to extend our reach and scale the delivery of our programs. At its core, The Ethics Centre remains committed to injecting a pause into the centre of public life and allowing people to stop, connect with others and explore the complex ethical challenges we face. From those early days to now, one thing shows itself time and time again: when we offer people the space to talk about the things that matter and reflect on their place in the world, we equip them with tools to navigate complexity, and be better citizens in a better world. 35
CREATING A SAFE SPACE
Growing Our Reach
"WHERE DO I TURN?"
Our world is changing at a rapid rate, constantly throwing us new ethical questions. And while we have more ways to connect than ever before, our work consistently shows us that people often feel emotionally disconnected, isolated and left grappling with problems alone.
Our ethics-based events, publications and online platforms are open forums designed to support meaningful dialogue and spark debate, challenge preconceived notions and empower, inform or comfort in the face of difficult ethical challenges.
Connecting with other people and having honest conversations about the difficult issues we face can give us the tools and insight to work through current and future ethical challenges in our personal and professional lives. Having the space for reflection can help illuminate the path forward in times of uncertainty.
Often complex ethical issues that cause anguish or concern are glossed over. Our public forums and articles delve into topics from poverty, addiction and racism, to international security and healthcare – helping people to make sense of them. As well as raising awareness and understanding of the Centre’s services, these activities provide a gateway to help when it is needed. Rather than waiting for people to find us, we reach out to those seeking support with difficult situations, through our face-to-face events, publications, articles and online communities. 37
Events & Forums Our most popular event topics in 2014–15: Happiness & the Brain The Ethics of Anxiety
The Ethics of Online Dating
The Ethics Centre runs an innovative program of events that allow people to explore the most challenging ethical issues we face today. Created to be an inclusive and accessible forum for diverse voices, our events help people find their way through the complexities and stresses of modern life. Events are critical to our public engagement, education and advocacy work. They also help us raise awareness of our counselling and consulting services. We aim to produce events that are unlike any others – original talks, workshops, discussions and experiences that encourage rich dialogue about complex ethical issues that are on the collective mind.
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Love & the Brain
Society Would Flourish Under Female Rule
We are Becoming Enslaved by Our Technology
Our events, designed as intimate, interactive open forums held in our event space at The Ethics Centre, focus closely on issues at the centre of being human. While the program will be fully rolled out in 2016, this year we ran 15 in-house events engaging an audience of over 1,100. These events delved into far-ranging subjects – from politics and genetics to belonging. Our new Thought Experiment series examined happiness, love, enhancement and the brain. The success of these new events demonstrates that people need and want to talk over these complex human issues, and that The Ethics Centre has a vital role to play in bringing people together to facilitate this important dialogue.
AT A GLANCE
The Ethics of Anxiety was our most popular event and was held twice due to overwhelming demand. Anxiety is considered a natural part of life. There are some who experience brief moments of inner turmoil and those who suffer from a constant, painful hum that makes daily life a struggle. Speakers included a psychotherapist, a professor from Sydney University’s Brain & Mind Research Institute, a philosophy teacher and a self-professed anxiety sufferer. The significant interest in this topic showed that people relate ethical dilemmas with anxiety and are looking for ways to reduce the distress they bring.
ANXIETY 23
15,200
23 distinct ethics events and forums delivered in 2014–15
15,200 attendees at our in-house events, our IQ2 debates and the Festival of Dangerous Ideas
1M+ Millions of viewers and listeners through TV and radio broadcasts
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IQ2 Intelligence Squared Debates
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The Ethics Centre’s IQ2 Intelligence Squared events provide a large, public forum for live debate that raises the level of discussion on some of the more confronting issues we face today. The primary aim of these events is to explore different viewpoints, challenge individual and collective bias and allow people to examine their values, principles and beliefs, with the goal of forging greater insight, empathy and understanding.
During the year we held five IQ2 debates, attracting more than 4,000 attendees and a viewing audience in the millions thanks to the broadcast support of ABC and BBC World.
Our most popular debate for the year, with an audience of over 1,200, was the fiery ‘Society Would Flourish Under Female Rule’ on 28 October 2014. The debate explored changes in gender roles and identity and the turmoil that can be felt as a result. Speakers included social commentator Jane Caro, sociologist Eva Cox and broadcaster Helen Razer.
28/10/14: Society Would Flourish Under Female Rule
IQ2 debates in 2014–15: 12/08/14: We are Becoming Enslaved by our Technology 31/03/15: Only the Wicked Need Fear Government Spying 12/05/15: Good Riddance to the Media Dinosaurs
Festival of Dangerous Ideas
Dangerous ideas are unsettling, inspiring and disruptive; they have the potential to shake up every aspect of our lives. Proudly co-curated with the Sydney Opera House, the annual Festival of Dangerous Ideas brings together leading thinkers and culture creators from around the world. They take the stage to challenge the status quo, start important conversations and push boundaries. The Festival of Dangerous Ideas aligns with our mission to provide a safe space in which people can encounter ideas that challenge their deepest held beliefs. Internationally renowned and attracting thousands of attendees each year, the Festival also provides a fantastic opportunity for us to reach new and diverse audiences and raise awareness of our services.
Held on 30 and 31 August 2014, this was the sixth annual Festival of Dangerous Ideas, and once again it was a huge success. It prompted us to question our view of ourselves and our place in the world with speakers including Salman Rushdie, Steven Pinker, Nadezhda (Nadya) Tolokonnikova and Maria (Masha) Alekhina from Pussy Riot, Lydia Cacho and John Pilger. Topics ranged from surrogacy and free speech to artificial intelligence and divestment. During the weekend, we established a space within the Sydney Opera House for people to continue discussing and challenging new ideas. Across the two days, FODI-goers filled our Ethics Lounge and over 800 attendees signed up to our Ethics E-News to learn more about the Centre. We asked these new subscribers which ethical issues they wanted to explore. The top five issues were gender equality, politics, technology, environment and education. The results informed much of our work this year. 41
Online Engagement
115,000 115,000 visits to our website in 2014–15.
53,600 53,600 Twitter impressions in May 2015 – up from 7,000 impressions in July 2014.
Online content and communities give a broad spectrum of people open access and unique opportunities to engage with each other on complex and controversial topics, and access to the wisdom and experience of a broad range of experts. The Ethics Centre has a growing online community looking to explore life’s tough decisions. To provide support and insight to help make sense of these situations, we produce thought-provoking, accessible online content featuring a range of topics – from extremism and bullying, to racism and freedom of speech.
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2,356 2,356 Facebook followers – an increase of 118%.
6,247 73% increase in subscribers to Ethics E-News – from 3,601 to 6,247.
In line with our intent to be a truly inclusive and accessible centre, throughout the year we worked to engage with new audiences by improving our website, social media and email communications. In May 2015, we employed a full-time Marketing & Communications Curator, with digital engagement a key part of that role. Expanding our online engagement has allowed us to reach younger people from culturally diverse backgrounds in Australia and around the world. As a result of our efforts, we engaged with more people online than ever before.
Publications & Media
59 59 thought leadership articles on pressing ethical issues.
20,268 20,268 unique reads of our article on the ethics of birth.
Ethics is at the centre of many of the day’s news stories. Opinion pieces provide a variety of options for what people should think, but there is less material teaching people how to think about contentious issues. The Centre fills this gap by producing high-quality content that helps readers explore ethical paths and in-depth thinking. As an independent organisation, we can provide fair and balanced commentary, without fear or favour. In 2014–15, we published 59 thought leadership articles attracting 8,211 unique visitors to our website. An article on women’s rights to choose how they give birth attracted a year record of 20,268 unique reads and a charge of online comments and discussion. Four issues of our Ethics Quarterly magazine were published throughout the year and distributed to approximately 4,800 readers. Articles ranged from animal experimentation to the executions of Andrew Chan and Myuran Sukumaran. In May 2015 we decided to suspend production of Ethics Quarterly and redirect our limited resources into growing our flourishing online platform, which allows us to reach a much larger and more diverse audience. The majority of our members strongly supported this decision and continue to engage with our articles online.
268% 268% increase in the number of print and online clips that reference The Ethics Centre.
100+ Over 100 media articles and interviews covering the Centre’s work.
The Ethics Centre actively engages in all forms of media, providing comment for news stories and writing articles and opinion pieces. Media coverage has had a positive knock-on effect in helping us reach people in distress. For example, media mentions of Ethi-call, our free ethics helpline, consistently result in a spike in the number of calls received. In March 2015, we engaged Professional Public Relations to help us manage media requests and increase media outreach. Our key objectives were to drive more calls to Ethi-call, increase the number of organisations we assist through our ethics consulting and education services, and be the first point of contact for journalists when decision-making is called into question. From March to August 2015 we saw a 268% increase in the number of print and online clips that referenced The Ethics Centre, compared to the previous six months. Our media efforts resulted in more Ethi-call calls, higher attendance at our events and a greater awareness of the work we do.
In the 2015–16 financial year we expect a sharp increase in the quantity and reach of our articles, thanks to the creation of a new Content Producer role. 43
In our increasingly complex world, one thing shows itself time and time again: when we have the impetus, insight and tools to make sound ethical decisions, good will grow.
1989
The Ethics Centre is established.
2009
1991
Ethi-call, the only free ethics counselling helpline in the world, is launched.
The Festival of Dangerous Ideas is founded by The Ethics Centre in partnership with the Sydney Opera House.
2009
1991
The first edition of our quarterly ethics magazine is published.
The Ethics Centre brings the United Nations Global Compact to Australia, the world's largest initiative for principles in human rights, labour, environment and anti-corruption.
1994
The Vincent Fairfax Fellowship program, designed to foster ethical leadership in the Australian community, is created.
2010
Primary Ethics is established to provide ethics education in urban, regional and rural primary schools in NSW.
1998
Formal training of volunteer ethics counsellors begins.
2010
2007
$2 million received from Treasury to implement the National Responsible Business Practice project, including the Global Reporting Initiative to help organisations understand their impact on climate change, human rights and corruption.
The Banking and Finance Oath is established as the first major initiative of The Banking and Finance Ethics Panel.
2012
BBC begins broadcasting the IQ2 debate series in Australia to an audience of 70 million across the globe.
2013
The Ethics Centre settles into its first permanent home, at the historic Legion House on Castlereagh Street, Sydney.
2014
The Ethics Centre celebrates 25 years.
2008
The global IQ2 Intelligence Squared debate series is brought to Australia.
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SPARKING SOCIAL CHANGE
Raising Awareness
"WHY BE ETHICAL?" All forms of culture are built on an ethical foundation that ultimately explains the choices that are made on a daily basis. From education systems to the way countries are governed, sometimes the only way to transform lives and relieve people’s suffering in the wake of large-scale unethical behaviour is to effect ethical change at a systemic level. As a self-funded not-for-profit organisation, our independence affords us valuable convening power – an ability to bring diverse or contesting parties together in a safe space to discuss common issues, resolve shared challenges or commit to higher standards of integrity. This unique convening power has led to the establishment of major social impact initiatives that continue to thrive today.
These include Primary Ethics, which delivers vital ethics education to schools across New South Wales, and The Banking and Finance Oath, which works with key industry leaders to build trust and integrity in that sector. Our work seeks to place ethics at the centre of public life – as a shared impulse to live in line with values and principles. In collaboration with passionate individuals and organisations around the world, we create and contribute to projects and campaigns designed to spark positive social change, advance the position of ethics in the community and guide people at all levels of society to act ethically. These unique initiatives also serve to raise awareness of the support on offer through our ethics consulting, education and counselling services.
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Primary Ethics
29,000 29,000 students attended Primary Ethics classes.
383
1,800
Classes were run in 383 schools.
1,800 trained volunteers taught ethics classes to children from K-6.
Our fundamental values, principles and ethical standards are shaped by the lessons we learn as children. To equip children with critical-thinking and decision-making skills, and help build strong, ethical communities, The Ethics Centre founded Primary Ethics in December 2010. This charity organisation designs and delivers ethics lessons to children in NSW Government primary schools as an alternative to religious instruction or quiet supervision. Trained and dedicated volunteers teach children to reflect on their own values, principles and behaviour, and develop skills such as ethical decision-making, considering the interests of others, understanding consequences and judging what is right and wrong.
3,000 parents were reached through the Primary Ethics newsletter.
This year, 29,000 students in 383 schools attended Primary Ethics classes – up 52% on 2014. Classes were taught by 1,800 volunteers – up 41% from the previous year. In 2014–15 Primary Ethics developed a curriculum for Kindergarten students, upgraded e-learning infrastructure and worked towards finalising the full Kindergarten to Year 6 curriculum. The program expanded into a number of new schools in Greater Western Sydney and large regional towns. To build direct relationships with parents, the primaryethics@home newsletter was launched and sent regularly to around 3,000 parents. The newsletter includes updates on classroom discussion and exercises and activities to reinforce learning at home.
Primary Ethics began life as an initiative of The Ethics Centre. It is now a separate and independent entity consolidated with The Ethics Centre for annual reporting purposes.
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3,000
Politician’s Pledge
#TAKETHEPLEDGE In the lead-up to the NSW state election in March 2015, it was clear that many people had lost their faith in democracy. The level of trust in politicians was at an all-time low, and voters felt cynical, disillusioned and helpless. We saw an urgent need to give voters the opportunity to demand better standards across Australian politics, so in early March we launched our Politician’s Pledge initiative in partnership with the Sydney Morning Herald. This state-wide campaign gave voters a platform to ask their representatives to pledge to lead with integrity, keep their promises and advance public interests before personal interest. We ran a high-profile media campaign which was extended to metro and regional media outlets. Campaign results: + 215 candidates (23% of all those standing) signed the pledge in just over two weeks + S ignatories included 111 candidates from the Labor Party, three Liberals, 33 Greens, 15 Independents and 53 from eight minor parties
The Pledge As originally conceived, the practice of politics is intended to be a noble calling. Yet, without voluntary, ethical restraint, the pursuit and exercise of power risks becoming personal, brutal and self-serving; coarsening the polity, bringing public institutions into disrepute and damaging the common good. So, consistent with the highest ideals of our profession, I promise that: In the pursuit of power, I will: + Act in good conscience; + Enable informed decision-making by my fellow citizens; + Respect the intrinsic dignity of all; + Refrain from exploiting my rivals’ private failings for political gain; and + Act so as to merit the trust and respect of the community. In the exercise of power, I will:
+ strong support from voters
+ G ive effect to the ideals of democratic government and represent the interests of my electorate as a whole;
+ extensive coverage on Twitter and Facebook
+ Abide by the letter and spirit of the Constitution and uphold the rule of law;
+ media impressions in excess of 850,000.
+ Advance the public interest before any personal, sectional or partisan interest; + Hold myself accountable for conduct for which I am responsible; and + E xercise the privileges and discharge the duties of public office with dignity, care and honour. 49
The Banking & Finance Oath
“ Finance depends on trust. In fact, in the end, it can depend on little else. Where trust has been damaged, repair has to be made.” Glenn Stevens Governor, Reserve Bank of Australia AFR Banking and Wealth Summit, 8 May 2015
In the aftermath of the Global Financial Crisis and subsequent financial services scandals, the banking and finance industry has struggled to regain public trust. Many people suffered financial and emotional distress at the hands of the industry, and those working within the sector must now repair the damage done to the reputation of their profession. Launched in 2012, The Banking and Finance Oath (BFO) is an industry-led initiative developed to reassert the ethical foundation of the sector. This unique initiative asks people to take an oath to be accountable for their behaviour. The Ethics Centre played a pivotal role in bringing competing organisations across the finance industry together under the shared values and principles of the oath. The BFO plays an important role in promoting integrity, ethics and trust in the banking and finance industry, both within the industry itself and the wider community. By creating a network of signatories, The BFO strengthens workplace cultures and facilitates positive change that looks beyond regulation. It also supports and develops future industry leaders who are equipped to make ethical decisions. This year The BFO played a vital governance role in helping to shape The Ethics Centre’s new Ethical Literacy program, which has received strong support from the industry.
Highlights from 2014-15: + 220 industry members took the Oath. + 100% of people who attended BFO events signed the Oath. + The BFO raised its profile in the public eye and became a thought leader in media. + The BFO developed a number of new programs, including: – t he Elders program, which helps current and future members of the industry connect with industry leaders – the Young Ambassadors and Industry Young Ambassador programs, which aim to create a closer alliance with universities, students and future leaders – 100% Committed program, which recognises companies that encourage all staff to sign The BFO – the Like-Minded Lunch Series, which aims to establish a network of like-minded individuals, and recognise not-for-profit groups that have a shared focus on building the ethics, integrity and trust of the sector.
The Banking and Finance Oath began life as an initiative of The Ethics Centre. It is now a separate and independent entity consolidated with The Ethics Centre for annual reporting purposes.
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“ This Centre occupies a unique position in Australia’s social and intellectual landscape – leading and framing national conversations, not only about who we are, but about who we want to be, where in our finest moments we want to go.” Dame Quentin Bryce AD CVO Former Governor-General of the Commonwealth of Australia
00
25 years, one focus: to improve lives by supporting individuals and communities to make sound ethical decisions. Our world is in a constant state of flux, and the need for resilient ethical cultures has never been greater. At the centre of this need is where we aim to be.
An Exciting New Chapter Begins
In June 2015 we officially changed our name from St James Ethics Centre to The Ethics Centre. Our name change followed a significant review of our communications, which we undertook as we celebrated our 25-year anniversary in November 2014. As an organisation that has been operating for a quarter of a century, we wanted to know how people perceived us so we could continue to evolve and grow. The review was carried out by research and communications strategists Glider. In-depth interviews were conducted with representatives across our complete stakeholder ecosystem from our core team and executive leadership, our board, strategic council, funders, members, current and growth audiences as well as a survey sample of the general public – over 800 people in total.
Consistently, many people identified our name – particularly the ‘St James’ element – as a real issue of concern, believing it suggested an affiliation with religion or implied the role of a ‘moral policeman’ – neither of which is true. The review found that a new name that proactively includes people from different backgrounds and cultures, would expand our ability to build new or diverse audiences and opportunities to extend services, providing support to more people. Although our name has changed, our mission remains the same. We are committed to developing ways to reposition ethics at the centre of everyday life, and relieving the anguish and anxiety that can result when ethics are not upheld.
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LOOKING AHEAD
Strategic Priorities Our primary goal is to help those who need us most: people who are struggling with major ethical dilemmas, or who are suffering the devastating effects that arise from unethical behaviour. We will achieve this goal by focusing on four key priority areas.
NEW AUDIENCES NEW BENEFICIARIES To increase our impact we must extend our reach to an ever-growing community of beneficiaries, clients, supporters, followers, subscribers, readers and audience members.
TELLING OUR STORY
01
A particular focus in 2015–16 is to reach younger audiences, and to work harder to extend our reach and impact beyond Sydney. Over time, by mobilising the power of social media, media advocacy and digital content, we’ll reach a culturally diverse community of all ages from all over Australia.
An important project in 2015–16 will be the upgrade of our Ethi-call service to optimise the user experience and improve accessibility. We will also undertake an extensive audit of all our technology needs – IT, audiovisual, broadcast, CRM system – in order to futureproof the Centre and take bold next steps towards building our online service delivery and advocacy capabilities.
In 2016 we will continue to progress this year’s notable gains in communicating our work, using new and traditional channels to give a louder, clearer voice to ethics in the national conversation. Raising our profile will also help us attract increased philanthropic support so that we can extend our critical social impact.
OUR VISION
A better world where people have the capacity to do the right thing.
UPSCALING THROUGH INNOVATION We will continue to invest in technology and skilled staff. This will enable us to leverage our offline services and resources, allowing us to better utilise the assets we have, and to realise new opportunities for growth.
02
03
Much of our work is subject to client confidentiality, which makes it difficult for some to understand what we do or to appreciate its full impact. It’s vital that we find ways to demonstrate the life-changing power of ethics guidance and counselling through thought-leadership, public advocacy and improved digital content.
BUILDING OUR RESOURCE BASE
04
Our success – or social impact – depends to a large degree on disciplined management, strong culture and consistent revenue streams. This relies on the capabilities and collaborative effort of a team of committed people, our human capital. We have already invested heavily in hiring high-calibre talent across multiple disciplines and our future depends on our ability to leverage the team to create an agile, responsive and genuinely innovative organisation. 2015–16 will see a renewed focus on fundraising as we design and execute a sophisticated new strategy that will deliver needed increases in revenue over the coming years. 55
Governance
“ The Ethics Centre was founded 25 years ago by a small group of passionate individuals who were ambitious enough to dream of a more ethical world. Our circle has grown immeasurably in that time, but what remains the same is the commitment and passion.” Peter Joseph Chairman, The Ethics Centre
The Ethics Centre is a not-for-profit association and was incorporated in February 1990 under the NSW Associations Incorporation Act, 1984. The Centre is governed by a voluntary Board of Directors. The Ethics Centre's Constitution requires 10 directors to be appointed, – in June 2015 there were 10. Directors are elected by the Centre’s members at the Annual General Meeting. One third of the directors must retire each year, being those longest in office since they were last elected. Directors delegate the day-to-day management of the business to the Executive Director and Executive General Manager. Director’s Meetings The number of Board meetings and meetings of its committees held during 2014–15, plus the number of meetings attended by each director, are listed in our Annual Financial Report.
Role of the Board The Board is the trustee of the founding spirit and vision of the Centre, and responsible for its good governance. It oversees the management of the organisation and meets six times a year to: + approve the strategic direction and policies + approve and monitor budgets + define appropriate financial and risk management strategies + ensure compliance with relevant standards, regulations and reporting requirements + provide accountability to members and stakeholders + appoint, support and monitor the performance of the Executive Director and Executive General Manager. The Ethics Centre’s editorial views are formed independently of any influence. The Board plays no role in editorial policy.
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Members The Centre is a membership-based organisation. Reflecting the democratic spirit of The Ethics Centre’s purpose and founders, we aim to have a diverse membership. Our members form the core of The Ethics Centre’s community. The Board of Directors is accountable to the members.
Board of Directors Our constitution specifies that the Board should have 10 directors, each of whom is elected by the Centre’s members at an Annual General Meeting. The Board appoints the Chair, Secretary and Treasurer.
Committees
Management and Staff
The Board has established four committees, which report directly to it. These are the:
The Centre’s executive management is led by Dr Simon Longstaff AO, Executive Director and Ed St John, Executive General Manager.
+ Public Benevolent Institution Compliance Committee
In June 2015, the Centre had 16 staff and a pool of seven specialist counsellors and educators. During the year a resource pool of 67 people volunteered their time and skills to the delivery of our Ethi-call service, Festival of Dangerous Ideas and other events.
+ Finance, Audit and Risk Management Committee + Strategy Committee + Nominations Committee.
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Our Board Peter Joseph AM
Christine McLoughlin
BCom, MBA, FAICD Chairman 18 April 1997 – present
BA LLB, FAICD 2 December 2010 – 9 December 2014
Peter joined The Ethics Centre Board in 1994 and became its Chairman in 1997. His career spans over 40 years in business and investment banking. Peter is the current Chair of The Black Dog Institute and The Health Science Alliance, UNSW Campus; and a Director of Tonic Health Media. He is also the former Chair of St Vincent's Hospital Ltd, Mater Health Sydney and Riverview College Council.
Christine is a company director and business adviser with extensive experience across a range of sectors, including financial services, mining, science and technology, telecommunications, insurance and health. She is a regular presenter on corporate governance and stakeholder management. She currently serves on the boards of Suncorp Group Ltd, Whitehaven Coal Ltd, NIB Holdings Ltd, Spark Infrastructure Group and The Smith Family, and chairs the Australian Payments Council.
Michael Pain
Stephen Loosley AM
MBA – INSEAD, AICD 30 November 2009 – present
BA LLB, FAICD 2 December 2010 – present
Michael is a Managing Director with Accenture Australia, heading up Accenture Analytics across Australia and New Zealand. He’s particularly focused on analytics use in the public sector, mining and financial services. He is also a Director of Child Fund Australia.
Prior to being elected to the Australian Senate in 1990, Stephen was the Australian Labor Party’s NSW General Secretary. During his term, he served as Chairman of the Joint Standing Committee on Foreign Affairs. Currently, he serves as the Chair of the Australian Strategic Policy Institute, Deputy Chair of the Asia Society, a Director of Minter Ellison Lawyers’ Strategic Council, on the advisory boards of Thales Australia and the Woomera Prohibited Area, and the boards of CoverMore and the Salvation Army Territorial Advisory Council.
Andrew J. Molan AO DSC Ret Major General 30 November 2009 – present Jim is a former commander of operational forces in the ADF, Diplomat in the Australian Embassy Jakarta and Special Envoy to the Prime Minster for border control. He has been an infantryman, a helicopter pilot, and a commander of army units from a 30-man platoon to a division of 15,000 soldiers. Jim is currently a commentator on defence and security issues, and is a Director of the Sir Richard Williams Foundation and Patron of several NFP organisations.
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Maria Atkinson AM BSc, GAICD 26 November 2012 – present Maria is an internationally recognised leader in sustainability, green building, corporate responsibility and impact investment. She was the co-founder and CEO of the Green Building Council of Australia. She serves as a Director of the Royal Botanic Gardens and Domain Trust, the US Studies Centre, Lafarge Holcim Foundation for Sustainable Construction, Yelloday Pty Ltd and Agreed Pty Ltd.
Our Board Stuart Marshall
Michelle Tredenick
BEcon, CA, MBA - AGSM Treasurer 9 April 2014 – present
BSc, FAICD, FINSIA 28 October 2013 – present
Stuart is a Global Lead Audit Partner at KPMG, where he coordinates global audits of ASX 50 companies in the real estate and construction industry. His experience ranges from acquisition, due diligence, capital raisings, accounting advice, internal audit, risk management and advisory engagements. He is an Associate of the Institute of Chartered Accountants in Australia and New Zealand.
Michelle is a company director with extensive experience in banking, insurance, wealth management, education, health insurance, superannuation and technology. She has twice been awarded Banking and Finance CIO of the Year, and is a Fellow of the Institute of Company Directors. She currently serves as Chair of the IAG/ NRMA Corporate Superannuation Fund, is a Director of the Bank of Queensland, Vocation Ltd, Canstar and a member of the University Queensland's Senate.
Rob Wannan BA(Hons) LLB, FAICD 9 April 2014 – present Rob is a lawyer and company director with over 35 years’ experience in corporate commercial and property transactions. He is a former Chairman of Kemp Strang Lawyers, and currently a consultant at this firm. His particular expertise is in agribusiness, rural enterprises, water rights and irrigation. Rob is a Trustee of the Sydney Opera House Trust, and past Chairman of the Knox Grammar School Council and Rock Eisteddfod Challenge Foundation.
Narelle Hooper Masters Mgt - MGSM 26 May 2015 – present As former editor of the Financial Review’s award-winning BOSS Magazine, and with more than two decades in business journalism behind her, Narelle is highly skilled at corporate leadership. She is the founding co-chair of the Australian Financial Review-Westpac Group Women of Influence Awards, and a Director of the Tasmanian Development Board and Documentary Australia Foundation.
Geoffrey Cousins AM 6 August 2013 – 18 August 2015 Geoff was CEO of Optus and served on several company boards ranging from PBL to Telstra. With a successful career as an advertising executive and corporate businessman, Geoff is a community leader. He is the founding chair of the Starlight Foundation and Sydney's Museum of Contemporary Art. He is currently a Director of NM Rothschild & Sons Ltd and Rothschild Australia Asset Management Ltd.
John Dedes Secretary 10 December 2014 – present
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Our Supporters Much of our income is from people who care enough about the work we do to put their hand into their pocket and donate. Individuals, businesses, trusts and foundations direct their resources to support more people struggling with ethical dilemmas. This generous public and corporate support has allowed us to expand our services to help more people in more places than ever before, and guards our independence as an advocate for social change. Without our donors, and the commitment and spirit of our volunteers and pro bono supporters, it would be impossible to do the essential work we do.
Catalysts John Atkin Maria Atkinson AM Matt Bachle Eleanor Bachle Anthony Berg AM Ronald Beslich OAM John Bevins Andrew Buchanan Simon Buckingham Annie Crawford Sam Bungey Cassie Bungey Darleen Bungey Alan Cameron AO David Clarke Richard Cogswell SC Anne Collier David Cousins Petrina Coventry Christopher Cuffe Mark Dempsey Michael Dobrijevich Nicholas Fairfax John B Fairfax AO Bill Ferris AC Lea Ferris Sarah Fielke 60
Donors Virginia Ford Zink Caroline Furniss Gary Gerstle Penny Gerstle Bonney Ghosh David Gonski AC Kathryn Greiner AO Judy Haddrick David Hardy David Heard Carolyn Hewson Peter Hunt AM Belinda Hutchinson Justine Jarvinen Robert Joannides Peter Joseph AM Ian Lear Karen Loblay William Marynissen Roger Hutchinson Wendy McCarthy AO Robert McDougall Christine McLoughlin Sam Meers Jackie Milijash Jim Molan AO DSC
Sam Mostyn Cynthia Nadai Ian Narev Henric Nicholas Fiona Nuttall Kevin Nuttall Michael Pain Julia Pincus Stephen Roberts Lenore Robertson Paul Robertson Les Schirato Margie Seale Adam Simpson Andy Small Dick Smith AC Doug Snedden Jost Stollmann Rob Topfer Michelle Tredenick Sally Treeby Rob Wannan Deanne Weir Amanda Wilson William Windeyer ARFD ED Karen Wood John Wylie
Marcus Adamson Paul Ahearne Emily Albert Robert Albert AO Isabelle Baker William Bartlett Michele Belfanti David Blackwell David Bond Anna Booth Kevin Boyce Jill Brennan Susan Brennan Jane Brockington Kevin Burges John Butler Brendan Byrne John Cameron Stephen Chivers Philip Clark Gillian Corban David Corby Michele Cotton Robyn Croft Alison Crook Susan Cunningham Barry Dale Jill Dalton Alan Dawson
Erna de Vries Ian Dunlop Bronwyn Evans Tim Fairfax Jenny Ferguson Donata Fiori Belinda Gibson Meyrick Gilchrist Jonathan Gordon Peter Graves Colin Gunn Lorraine Hall Maurita Harney Doris Hart Nigel Hearn Alyson Hewett Terry Hewett Justine Hickey David Hirsch Elizabeth Hollingworth William Houghton Tess Howard Michael Hudson David Hurwood Victoria Keen Katherine Kelly Steve Kerbel
Yarra Korczynskyj Andrew Lamond Anthony Lane Richard Maguire Marton Marosszeky Chris Maxwell Kathleen McCredie Rod McGeoch Paul Millar Hamish Milne Cynthia Mitchell Henric Nicholas Carole O’Brien Peter O’Neill Alice Oppen Keith Palmer Andrew Parker Garry Pearson Ken Powell Robin Powell Julie Royle Jane Sanders Anna Scott Terry Sheahan David Simkin Ian Simmonds Adrian Slater Richard Spencer Nigel Stoke
Phiona Stone Norman Taralrud-Bay Duncan Tchakalian Chris Tennant Michael Thompson Shane Tiernan Krystyna Topor Beverley Trevenen Patricia Wentworth Phil Wheeler Sally White Annie Wicks Genevieve Williams Emma Wise Ted Woodley
Our Supporters
Corporate Members
Pro Bono Supporters
Volunteers
Airservices Australia ARITA Ashurst Australia Australian Institute of Company Directors Australian Institute of Superannuation Trustees Bluestone Edge Boardroom Partners Centric Wealth City of Sydney CPA Australia Curtis Associates Fuji Xerox Australia Gilbert + Tobin Insearch Limited Institute of Internal Auditors Australia Leighton Holdings Lend Lease Corporation Marinya Capital National Employment Services Association NSW Rural Fire Service Our Community Pitch Perfect Advisors Public Service Association of NSW Quality Occupational Health Regnan Governance Research & Engagement Settlement Services International The NSW Bar Association TrinityP3
Australian Broadcasting Corporation Banjo Beppi’s Restaurant Boyd Properties Clayton Utz Commonwealth Bank of Australia CTPartners Ernst & Young First Degree PR Gilbert + Tobin Instant Media John Balazs Lazanas & Welch LLP Jones Day KPMG New Philosopher Origin Energy Professional Public Relations Quay Consulting Tacklesport Australia
Mark Baxter Giacomo Bianchino Raffaella Bianchino Raymond Brazil Paige Burton Chris Cargill Sarah Clarke Michelle Cooper June Crowley Desmond Daritan Alexandra Fransen Kay Freedman Julie Giannesini Kathleen Gilbert Scott Gillespie Linny Gompes Diane Green Rachel Gunn Kay Hathway Jessica Heath Madeleine Hinchy Michael Jacobs Madeleine James Stephen James Emma Jukic Simon Kennedy Jennifer Lee Gillian Levett Julia Lipski Hermione Loofs
Corporate Donors Australian Broadcasting Corporation BHP Billiton Sustainable Communities City of Sydney Children’s Medical Research Institute Commonwealth Bank of Australia Ernst & Young Foundation Northern Beaches Secondary College – Manly Campus Rita Hogan Foundation Screen Producers Australia The Greatorex Foundation Turkey Sandwich Industries Tyro Payments Westpac
Patron His Excellency General The Honourable Sir Peter Cosgrove AK MC (Retd) Governor-General of the Commonwealth of Australia
Susan McKerihan Catherine McQueen Cawsey Forrest Moebes Ray Moebes Carlos Monteverde Bec Mouy Trent Moy Richard Muhs Cynthia Nadai Felicity Nelson Denise North Riley Owen Jane Potter Kalpana Ravichandran Ben Redan Tess Robb Siobhan Rooney Laura Scalafiotti Elisabeth Shaw Renard Siew Sheenal Singh Andy Small Anne So Michelle Tredenick Bevan Tremain Lucy Tremain Julian Vanderzee Nicole Vincent Stephanie Voight David Warrell Philip Wright 61
Financial Overview 2014–15 For the year ended 30 June 2015
The funding sources and how the funding was applied represented in the charts below is in relation to program activities undertaken by the Parent entity, The Ethics Centre only.
Program revenues
85%
Donations
6%
Sponsorship
6%
Membership
1%
Investment income
1%
Government grants 0.5% Other
0.5%
Counselling & consulting 64% Ethics advocacy
7%
Community & education 7% 19%
Fundraising Expenses
3%
Funding Sources:
Program Costs:
Program revenues: $4,851,525 Income received from consulting services, retainers held in relation to consulting, ethics education learning programs, event-ticket sales and counselling services.
Counselling & consulting: $3,583,496 Includes third party consultants and staff costs in relation to delivery of integrity diagnostic – consulting programs to organisations, costs in managing and the ongoing development of the Ethi-call service.
Donations: $320,447 Income received from fundraising appeals.
Ethics advocacy: $397,718 Includes staff and third party costs in relation to developing and promoting content, articles and curating public debates.
Sponsorship: $318,966 Income received from corporate sponsors in support of the programs being undertaken. Membership: $64,487 Income received from members of The Ethics Centre, as part of the annual membership subscription. Investment income: $72,190 Income received from bank interest and copyright fees. Government grants: $29,160 Income received from local government, City of Sydney in relation to IQ2 debates. Other: $28,814 Income received from room, venue hire.
Total 62
Administration
$5,685,589
Community & education: $366,382 Includes staff and third party trainers in delivering education programs to organisations and public forums and staff costs associated with research in relation to development towards ethical literacy programs. Administration: $1,072,063 Operating expenses associated with administration and other costs inherent in running an organisation, including staff, finance, IT, HR, professional services, telecommunications and general marketing costs. Fundraising expenses: $143,012 The costs associated with attracting more support through donations, developing funding partnerships and the administration of fundraising activities.
Total
$5,562,671
Statement of Profit or Loss & Other Comprehensive Income For the year ended 30 June 2015 Parent Entity The Ethics Centre
Consolidated The Group
2015
2014
2015
2014
$
$
$
$
Revenue from continuing operations Fundraising activities Program activities Cost of sales Investment income Other incidental income Management fee from controlled entities Total operating revenues Operating expenditure Surplus / (deficit) from continuing operations before income tax Income tax expense Surplus / (deficit) for the year from continuing operations after income tax
(restated) 733,060
627,773
2,611,933
1,819,771
4,851,525
1,007,286
4,852,965
1,007,286
(3,212,460)
(333,241)
(3,212,460)
(333,241)
72,190
53,504
472,844
87,036
3,814
218
4,989
218
25,000
-
-
-
2,473,129
1,355,540
4,730,271
2,581,070
(2,350,211)
(1,975,568)
(3,052,961)
(1,934,745)
122,918
(620,028)
1,677,310
646,325
-
-
(6,200)
-
122,918
(620,028)
1,671,110
646,325
-
-
-
-
122,918
(620,028)
1,671,110
646,325
Other comprehensive income Other comprehensive income for the period, net of income tax Total comprehensive income / (loss) for the year
In 2015 The Ethics Centre prepared consolidated financial statements. Amendments to the Australian Accounting Standard AASB10 Consolidated Financial Statements were revised and became effective for annual periods beginning 1 January 2014, impacting not-for-profit entities. Upon evaluation it was established that The Ethics Centre was required to consolidate the entities Primary Ethics Limited (‘PEL’) and The Banking And Finance Oath Limited (‘BFO’). The parent entity of the Group is The Ethics Centre; the parent entity wholly owns the two subsidiaries being PEL and BFO, collectively ‘The Group’. The 2014 financial accounts have been restated on a consolidated basis for comparative purposes.
63
Statement of Financial Position For the year ended 30 June 2015
Parent Entity The Ethics Centre
Consolidated The Group
2015
2014
2015
2014
$
$
$
$
Assets Total current assets
(restated) 2,737,073
1,032,372
4,283,088
2,288,570
299,472
184,760
3,311,450
1,770,055
3,036,545
1,217,132
7,594,538
4,058,625
2,168,750
483,822
2,400,665
567,429
121,423
109,856
371,423
339,856
2,290,173
593,678
2,772,088
907,285
Net assets
746,372
623,454
4,822,450
3,151,340
Equity
746,372
623,454
4,822,450
3,151,340
Total non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities
In 2015 The Ethics Centre prepared consolidated financial statements. The parent entity of the Group is The Ethics Centre; the parent entity wholly owns the two subsidiaries being PEL and BFO, collectively ‘The Group’. The 2014 financial accounts have been restated on a consolidated basis for comparative purposes.
64
Statement of Changes in Equity For the year ended 30 June 2015
Parent Entity The Ethics Centre
Consolidated The Group
Accumulated Funds
Accumulated Funds
$
$
Balance at 1 July 2013
1,243,482
2,505,015
Surplus / (deficit) for the year
(620,028)
646,325
Balance at 30 June 2014
623,454
3,151,340
Balance at 1 July 2014
623,454
3,151,340
Surplus / (deficit) for the year
122,918
1,671,110
Balance at 30 June 2015
746,372
4,822,450
Statement of changes in equity
In 2015 The Ethics Centre prepared consolidated financial statements. The parent entity of the Group is The Ethics Centre; the parent entity wholly owns the two subsidiaries being PEL and BFO, collectively ‘The Group’. The 2014 financial accounts have been restated on a consolidated basis for comparative purposes.
65
Auditor’s Report
66
Auditor’s Report
67
How You Can Support The Ethics Centre
MAKE A DONATION To make a valuable contribution to our work, visit us online at ethics.org.au, contact our Head of Development, Hilary Blackman on 02 8267 5700 or hilary.blackman@ethics.org.au or send a cheque made out to The Ethics Centre.
COME TO AN EVENT Attend one of our events and bring your friends. Book tickets on our website.
SPONSOR OUR WORK Ask your organisation to sponsor one of The Ethics Centre’s initiatives or events.
ENGAGE OUR SERVICES
LEAVE A LEGACY Consider us in your will. Your gift will enable us to grow our work and help more people.
Employ one of our programs to create and embed ethical culture in your organisation.
The Ethics Centre is an independent, not-for-profit organisation. This vital independence ensures our work and the guidance we provide are free from bias or compromise. It allows us to be flexible and responsive to the ever-changing challenges facing our society and to bring together diverse or contesting groups around a common purpose for a common good. While essential to our effectiveness, our independence comes, quite literally, at a price. We rely on the generosity of our donors and supporters, along with our consulting and education programs, to fund our services. 68
Much of our work – including our vital ethics helpline, Ethi-call, our pro-bono counselling, and our ethics advocacy – operates at a loss or generates no revenue at all. These activities, so central to our mission, could not happen without this external support. Growing our earned revenue and philanthropic donations is therefore critical to our existence. Our not-for-profit status assures that growth is only ever applied to building our social impact.
THANKS TO YOU IT IS POSSIBLE The Ethics Centre Level 2, Legion House, 161 Castlereagh St, Sydney NSW 2000 T 02 8267 5700 E contactus@ethics.org.au
ABN 83 637 740 533
ARBN 094 609 015
ETHICS.ORG.AU