Guiding Light: How Codes of Ethics Mitigate Risk and Elevate the Industry Matt Wetzel November 16, 2018
Discussion Topics Codes of Ethics vs. Codes of Conduct Examples of Industry Codes of Ethics How do Codes of Ethics Benefit Industry? Code Drafting Considerations
Discussion Topics Codes of Ethics vs. Codes of Conduct Examples of Industry Codes of Ethics How do Codes of Ethics Benefit Industry? Code Drafting Considerations
Codes of Ethics vs. Conduct (cont’d) CODE OF ETHICS Values-based ethical standards CODE OF CONDUCT Principles to guide decision-making Rules-based proscriptions Typically more wide-ranging and less CODE OF PROFESSIONAL ETHICS Outlines specific behavior that is specific; require employee judgment OR required or prohibited RESPONSIBILITY Example: COE might state that Standards that require little judgment • Adopted by a profession or employees are expected to obey the – comply or be penalized organization that regulates a law profession (ex: ABA, AMA) Example: COC might include several specific laws applicable to various • Considered focused on business operations or to the industry “professional responsibility” – how should a responsible, ethical practitioner address tough questions and decisions? • Disregard or non-compliance could mean expulsion
Codes of Ethics vs. Conduct (cont’d) Does your industry or company need a Code of CODE OF CODE OF Ethics? A Code of Conduct? Both? Does it matter? ETHICS PRACTICE Rules- or values-based guidance document containing agreed upon principles to advance or achieve organizational goals Company – conduct? Industry – ethics? Depends on nature of organization and business SOME- goals, scope & impact of legal risks, and evolving CODE OF THING CONDUCT industry practices ELSE?
Codes of Ethics vs. Conduct (cont’d) • Codes adopted by organizations to promote understanding the “right” and “wrong” ways to undertaking decisions • Viewed as necessary for all organizations in today’s society • Violation of code can also be a violation of law
Codes of Ethics vs. Conduct Code of Hammurabi • One of the earliest written legal codes • Babylonian King Hammurabi (1792 to 1750 BCE) • Hammurabi expanded Babylon along the Euphrates River and united all of southern Mesopotamia • 282 rules for subjects’ interactions, incl. fines & penalties • Hammurabi’s Code was carved onto a massive, finger-shaped black stone stele (pillar) What does this tell us…? Law #22: If any one is committing a robbery and is caught, then he shall be • Time of growth & expansion need for Code put to death. • Description of bad behavior & specific corrective action • Well-publicized (massive pillar) Law #196: If a man destroy the eye of • But in trying to address all details (282 rules), the Code another man, they shall destroy his eye. If man breaks the bone of another man, neglects similar acts that fall outside Code ( i.e. what if a they shall break his bone. man only injures the eye of another man? )
Discussion Topics Codes of Ethics vs. Codes of Conduct Examples of Industry Codes of Ethics How do Codes of Ethics Benefit Industry? Code Drafting Considerations
Examples of Codes
Examples of Codes (cont’d) – AdvaMed Code of Ethics • Code Compliance & Certification • Company-Conducted Training & Education (parameters) • Supporting Third-Party Educational Conferences • Sales, Promotional & Other Business Meetings • Consulting Arrangements with Health Care Professionals • Prohibition on Entertainment & Recreation • Modest Meals • Educational Items/Prohibition on Gifts • Provision of Coverage, Reimbursement & Health Economics Information • Research and Educational Grants and Charitable Donations • Evaluation & Demonstration Products • FAQs
Comparing the Codes – Entertainment/Recreation MTAA Code AdvaMed Code Includes definition of “Entertainment” ( Entertainment Section VII – Company interactions with Health includes sporting events, musical and other Entertainment) Care Professionals should be professional in nature and should facilitate the exchange of medical or Section 9.2 - Company-sponsored Training and Education, scientific information that will benefit patient care. and Medical Technology Demonstrations To ensure the appropriate focus on an educational a) The program must be conducted in a clinical, educational, and/or informational exchange and to avoid the conference, or other setting that is conducive to the appearance of impropriety, a Company should not effective transmission of knowledge and is not selected because of its Entertainment, provide or pay for any entertainment or leisure or recreational facilities. The choice of venue must be consistent with creational event or activity for any non-employee professional and public standards of ethics and good taste. Health Care Professional. Such activities include, for example, theater, sporting events, golf, skiing, Holding Company training at a well known tourist destination may well attract negative hunting, sporting equipment, and leisure or public perception and complaints, regardless of the specific venue chosen for company training…. Companies should consider both the venue and surrounding town/region vacation trips. Such entertainment or recreational when deciding whether the Training and Education will meet the Code’s requirement events, activities, or items should not be provided, of being held in a setting that is conducive to the effective transmission of knowledge regardless of: (1) their value; (2) whether the and has not been selected because of its Entertainment, leisure or recreational Company engages the Health facilities. Care Professional as a speaker or consultant; or (3) whether Section 9.5 – Hospitality A Company’s business interactions with a Healthcare the entertainment or Professional may involve the presentation of scientific, educational, or commercial recreation is secondary to an information. A Company may conduct such exchanges in conjunction with Hospitality as an occasional courtesy provided the Hospitality: a) is incidental to the bona fide educational purpose. presentation of scientific, educational, or commercial information and provided in a manner that is conducive to the presentation of such information; b) does not include Entertainment.
Comparing the Codes – Charitable Donations MTAA Code AdvaMed Code Section XI – A Company may make Section 9.9 – Charitable donations monetary or Medical Technology donations A Company may make monetary or Medical for charitable purposes, such as supporting Technology donations for charitable purposes, indigent care, patient education, public such as supporting indigent care, patient education, or the sponsorship of events education, public education, or the where the proceeds are intended for sponsorship of events where the proceeds are charitable purposes. Donations should be intended for charitable purposes. Donations should motivated by bona fide charitable purposes only be made to organisations or, in rare instances, to and should be made only to bona fide individuals engaged in genuine charitable activities for the charitable organizations or, in rare support of a bona fide charitable mission. instances, to individuals engaged in genuine charitable activities for the A Company must not make any charitable donation or support of a bona fide charitable mission. philanthropic gift for the purpose of inducing a Healthcare Companies should exercise diligence to Professional to purchase, lease, recommend, use or ensure the bona fide nature of arrange for the purchase, lease or use of the Company’s the charitable organization or Medical Technology. charitable mission. The Company must fully document every donation made by the Company.
Comparing the Codes – Advertising & Promotional MTAA Code AdvaMed Code Four detailed pages of guidelines, focused on: Not addressed • Appropriate language to use in advertisements directed at HCPs • Parameters around claims and endorsements in advertising and promotional materials • Guidelines for comparative advertising • Information on company-commissioned articles and use of social media
What Do You Notice? • Code of Conduct vs. Code of Ethics vs. Code of Practice vs. Code of Interactions… • Similar goal – develop ethical business practices and principles for the industry • But differing approaches to… – Level of detail in proscriptions/rules – Adjudicating disputes – Providing guidance and template documents – Voluntary vs. mandatory certifications – Some issues addressed; others are not
Discussion Topics Codes of Ethics vs. Codes of Conduct Examples of Industry Codes of Ethics How do Codes of Ethics Benefit Industry? Code Drafting Considerations
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