Mistrust plagues Rockwell ethics program: poll reveals problem, but use of ombudsman is rising.

Mistrust plagues Rockwell ethics program

A crack has appeared in the defense industry's much-touted ethics program instituted in 1986 to prevent corruption.

In its first such survey, Rockwell International Corp. discovered that only 12 percent of its employees are confident their identity would be protected under the company's ethics program. The program encourages workers to reveal illegal or questionable business activities to the company's ombudsman.

More than 35 percent of Rockwell employees that responded to the survey said they had no confidence in the program protecting their anonymity. Another 44 percent of the respondents said they were only "somewhat confident" that they would not suffer any repercussions if they played the role of whistleblower.

The survey is believed to be one of only two conducted by Los Angeles aerospace companies on employee attitudes towards ethics programs, which were instituted after the Aerospace Industries Association established a code of conduct for its members in 1986.

A spokesman for Hughes Aircraft Co. in Los Angeles said the company had conducted a poll on its ethics program a few they would take some kind of action if required.

"Most (of the respondents) said they would turn to their supervisor if faced with an ethical dilemma, which is a course of action emphasized in the training," the article stated.

Rockwell officials did not return phone calls for further comment, but in the newsletter article, company ombudsman Paul Schubert said the responses indicate that changes in the ethics program may be required.

"We are pleased to see such strong employee support, but these survey responses concern us because they clearly reveal some mistrust of the process," said Schubert. "In some cases, the circumstances may make the source obvious even though it is not revealed by the ombudsman's office, or may not even be known to us."

The company also reported that the number of calls to the ombudsman has increased every year since El Segundo-based Rockwell established the ethics program. In 1989 the ombudsman handled about 1,200 calls from employees.

The Business Journal contacted several other Los Angeles County defense and aerospace firms and only Hughes had conducted an employee poll of their ethics program.

The companies did say that their programs remain effective because more workers continue to contact the contractors' ethics officers or use telephone hotlines.

"I'm frankly surprised at the numbers in the Rockwell survey," said Alan Yuspeh, a Washington, D.C. attorney who is coordinator of the Defense Industry Initiative on Business Ethics and Conduct. "I know the people who are the architects of the Rockwell program I know they are committed to the program. I know one of the things these hotlines guarantee is confidentiality and I know of no reason why employees should not trust the programs. I don't think it is a well-founded concern. It's been my experience that the companies have honored the confidentiality."

The code of ethics, which requires creation of an employee hotline or some other way of reporting illegal or questionable business activities, was established by the Aerospace Industries Association to curb the sorts of industry corruption - that made national headlines in the 1980s.