CEBC IN THE NEWS

University of St. Thomas 

Business Ethics Award Presented 
to MedSource and Carlson Companies

Published Friday, April 25, 2003 in the University of St. Thomas Bulletin.

A rapidly growing 4-year-old medical device company that is being vitalized ethically and a 65-year-old marketing, travel and hospitality company that is being re-vitalized are recipients of the 2003 Minnesota Business Ethics Award (MBEA), presented on Thursday evening.

The young company is MedSource Technologies Inc. of Minneapolis; the long-established company is Minnetonka-based Carlson Companies Inc.

In choosing MedSource Technologies, the MBEA judges noted that many companies in startup mode focus on only one thing — survival. Yet the startup phase is when the cultural foundation of a company is laid, when the values are established that will guide the company through its subsequent stages of growth.

The MBEA judges commended MedSource Technologies for working, even at this early stage of its development, on getting all of the right things in place to build a sustainable, ethical corporate culture: mission, values, clear and accessible policies and processes, corporate citizenship and philanthropy. MedSource attends to all of its stakeholders, the judges said, not just its shareholders and investors. “This young company has done a lot, especially given how fast they are growing.”

In the Carlson Companies, the judges saw a mature company in a mature industry that is being revitalized by a number of initiatives designed to transform its culture from one of command and control to one of consensus-building and teamwork. The judges commended Carlson for its clear statement of values and for its robust and well-developed ethics and compliance program.

Beyond those basics, the judges recognized the company’s deliberate efforts -- and successes -- in empowering women, engaging a more diverse work force, consistently being a great place to work, involvement in the community and corporate citizenship, working to be “a family of families” and for setting goals with dates for changes not yet accomplished.

Finally, the judges noted that this private company, though not required to, has voluntarily chosen to adopt many of the provisions of the Sarbanes-Oxley Act because of its core commitment to business ethics, honesty and integrity.

The Minnesota Business Ethics Award was established in 1999 by the Minnesota Chapters of the Society of Financial Service Professionals (SFSP–MN) and the Center for Ethical Business Cultures (CEBC) to raise the standards for business ethics in Minnesota and to honor those companies that exhibit the highest standards.

SFSP–MN has approximately 600 members committed to education and ethics among professionals in the financial services industry.

CEBC is a nonprofit organization that operates in a unique partnership with its business members and the University of St. Thomas College of Business and the University of Minnesota Carlson School of Management. The center assists business leaders in creating ethical and profitable business cultures at the enterprise, community and global levels.

The MBEA recognizes Minnesota businesses that exemplify and promote ethical conduct for the benefit of the workplace, the marketplace, the environment and the community.

A customer, client, employee, vendor or private citizen who is impressed with a company’s demonstration of ethical business conduct may nominate a business for the award. More than 140 nominations were received for this year’s awards.

Companies, whether public or privately held, are judged in one of three categories based on number of employees: small, under 100 employees; medium, 100 to 500 employees; and large, more than 500 employees.

The foundational standards for the MBEA are found in The Minnesota Principles, published by CEBC in 1992. The principles describe the ethical relationships that businesses are expected to maintain with all of its stakeholders: its customers, employees, owners and investors, suppliers, communities and competitors.

In light of those stakeholder relationships, the MBEA looks at: what a company says it stands for; how it does what it says it stands for; and how well it does what it says it stands for.

Local finalists may advance to a national competition that culminates in three national American Business Ethics Award (ABEA) recipients. The ABEA was inaugurated in 1994 by the Society of Financial Service Professionals.

In addition to the recognition which MBEA winners will receive, completion of the MBEA entry form provides businesses with a process for examining their ethics management goals and processes in the light of best practices.

© Copyright 2003 University of St. Thomas Bulletin. All rights reserved.

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