Insurer USAA Likes Its Ethics Straight, Ethikos Reports

MAMARONECK, N.Y., March 17 /PRNewswire/ -- A convergence of ethics and compliance has occurred over the last decade in corporate America. The two functions are increasingly managed from the same corporate office; they often have the same director or vice president in charge. Four years ago the Ethics Officer Association changed its name to the Ethics and Compliance Officer Association (ECOA). In this it was simply reflecting "the reality of our current world," ECOA Executive Director Keith Darcy said at the time.

Yet "it is not a convergence without controversy," says Earnie Broughton.  

Broughton is executive director and ethics program coordinator at United Services Automobile Association (USAA), a San Antonio-based mutual insurance company that serves current and retired members of the military and their families.

USAA is a bit old school. Many of its CEOs have been retired army generals. It doesn't sell insurance policies to people without a military connection, which is where the company began in the 1920s.

And the company still separates ethics and compliance.

USAA's compliance officer reports to the company's general counsel. Ethics director Broughton reports to the company's CEO.  

Says Broughton: "We don't want anything to dilute the importance that senior leadership places on ethics."

USAA has attained iconic status among those who know it. The company is the subject of a profile in the March/April issue of an Ethikos. (See story at http://EthikosPublication.com/html/usaa.html.)

Referring to the recent economic crisis, Broughton notes that "This is not the first bubble that we've seen," and it's not likely to be the last. It's been accompanied by all the "usual suspects," including fecklessness, over-confidence, and greed. The larger question is, "How do you break out of these cycles?"

Compliance and increased regulation, while key components, can't get you there. They don't "tap into the passion that people have to have to lead an ethical life."

On the other hand, empathy and fostering a sense of 'belongedness' can, he tells Ethikos. "That is the future,"

Now in its 23rd year, Ethikos (www.EthikosPublication.com) takes a unique case-study approach to corporate ethics. Recent issues have included profiles of General Electric, Coca Cola, Fluor Corp., Cisco, McDonald's, AOL, British Telecom, GM, and Novartis, among others. Go to http://ethikospublication.com/html/selectedarticles.htm to see selected recent articles.

SOURCE Ethikos