Business Ethics and Integrity
Living by Our Values
As a professional services firm, we recognize that our reputation is vitally important to our success. Since the firm’s founding in 1983, we have worked persistently to establish our reputation and to build stakeholder relationships on the backbone of trust. Trust is not earned on delivering innovative solutions and quality work alone. Acting in an ethical, responsible, and transparent manner must be embedded in all the client work that we do and how we treat colleagues in the workplace. How we conduct our work and the values that we live by are as important as the results we deliver.
History of Trust built over the past 41 years of client service
Our Values guide our work and shape our success
We will be accountable to our clients and each other and operate in a manner that conveys a genuine focus on service founded on mutual respect and trust.
We will place the long-term good of our clients above our own interest and conduct our business ethically with humility, empathy, and fairness.
We will exceed our clients’ expectations, we will do what we say we will do, and we will do it extraordinarily well.
We will each be stewards of ScottMadden’s reputation, and we will preserve and enhance it.
We will maintain a challenging and inclusive work environment centered on client success while promoting collegiality, creativity, responsibility, and an overall esprit de corps.
Our Governance and Organizational Leadership
ScottMadden’s board of directors oversees critical governance matters, including the firm’s strategy and major initiatives, financial and corporate transactions, and executive compensation. As a midsize consulting firm, the day-to-day operations of our core consulting are aligned by practice and overseen by partner Practice Area Leads (PALs) who report directly to our CEO. The remaining partners report directly to one of the PALs. Several committees support specific firm-related activities, including our Corporate Responsibility Steering Committee which routinely meets to advise management on corporate sustainability leading practices and ensure material sustainability issues are considered and embedded in the firm’s strategic initiatives.
Anchored by Our Policies and Standards
Upon joining ScottMadden, every new hire is required to read and sign our Employee Handbook, which contains the firm’s General Standards of Conduct. In addition, all employees are required to review and acknowledge the General Standards of Conduct annually. Observance of these standards and expectations, as well as our Non-Harassment and Safety and Security policies, will help to ensure that our workplace remains a safe and desirable place to work.
ScottMadden Standards of Conduct
Specific topics covered include, but are not limited to, Workplace Conduct, Conflicts of Interest, and Business Ethics. The policies state that we work honestly, fairly, and respectfully with one another and others associated with the firm. Professional behavior is always expected of us, and we are encouraged to report any instances of inappropriate conduct. Our established guidelines for conduct create a safe place for all to work and allow us to do our jobs successfully.
A Safe Workplace
We value every voice at ScottMadden and have zero tolerance for discrimination or harassment of any kind. Our diversity and inclusion efforts are outlined in this report, and we emphasize respectful, nondiscriminatory behavior on a daily basis. We hold ourselves to the highest standards so that we may all excel.
A Fair Workplace for Everyone
ScottMadden is committed to ensuring equal opportunities for all employees across functional levels regardless of race, gender, ethnicity, age, religion, sexual orientation, or other non-job-related factors. For consultants, every employee is compensated according to the same plan based on their title (i.e., Associate, Senior Associate, Manager, Director, or Partner). These same principles are applied to our back-office personnel and support staff.
Client Partnerships
Our work is often confidential, and our advice and counsel frequently guide clients’ strategic decisions. Because protection of their situations and information is paramount, we proactively manage conflicts of interest and associated disclosures as circumstances warrant. And because we measure our success by that of our clients, we take a long-term view for them, doing what will be in their best interests for years to come.
Managing Enterprise Risk
We view risk management as an essential activity to responsibly conducting our business. We take a short- to long-term view of enterprise risk and evaluate it across a variety of categories. These risk categories include, but are not limited to, cybersecurity, legal, financial, market, and employee health. One of the firm’s most experienced partners is tasked with overseeing and advising on the firm’s risk management activities.
Our Ethics and Integrity Priorities and Highlights
Our Business Ethics and Integrity objectives are:
- Professionalism – Promoting inclusivity, respect, honesty, and professionalism as outlined in our General Standards of Conduct.
- Admired Workplace – Fostering a transparent, healthy, productive, and collegial environment for our people.
- Information Security – Protecting our client partnerships by safeguarding confidential information, managing conflicts of interest, and always doing what is in our clients’ best interests for the long term.
OF EMPLOYEES completed Non-Harassment Training
OF EMPLOYEES acknowledged Workplace Conduct, Conflicts of Interest, and Business Ethics polices
One of our mantras has always been to “treat adults like adults,” and we believe our efforts to provide employees with transparency into our strategy, initiatives, operating performance, and culture through these channels is reflective of that.
Business Transparency and Communication
As our firm continues to grow, so too have our efforts to provide frequent and consistent communications throughout the firm. Examples of the many communication outlets include:
First Fridays
A monthly meeting (followed by lunch!) where we gather in each office to share critical firm information with employees.
Communities of Practice
Learning and career development gatherings for our employees which are geared to help us focus on the strategy for the various functions where ScottMadden operates.
Annual Town Hall
Annual “state of the firm” meetings at each of our offices presented by our CEO.
theScoop
Our bi-monthly firm newsletter keeps employees up-to-date with key announcements all in one place.
Employee Resource Groups (ERGs)
Regularly scheduled opportunities for fellowship, mentoring, and development, as well as a space for employees to build and sustain inclusion.
Annual All-Hands Meeting
Our annual firm retreat with activities and presentations that reinforce and celebrate our culture.
Data Privacy and Cybersecurity
Guarding Our Data, Securing Our Future
Our top cybersecurity priority is securing our client data and protecting their privacy.
We protect our company data by promoting awareness and actively identifying and mitigating cyber threats. Regardless of where we work, our risk-driven information security and business continuity program enables us to safeguard our data assets.
Information Security Program and Security Awareness Training
Our robust Information Security Program (ISP) and comprehensive Security Awareness Training empower our team to proactively identify, mitigate, and respond to evolving cybersecurity threats while upholding the highest standards of data privacy and protection.
The ISP formalizes the policies and standards required to protect our information resources. Our entire staff is held to the ISP’s standards of individual responsibility for information and response measures to potential incidents, and we actively monitor for compliance. The ISP details our information security controls, procedure standards, and Acceptable Use Policy. It also identifies our data privacy obligations and requirements for meeting clients’ needs. For 2024, we’ve introduced new controls as part of our SOC2 (System and Organization Controls 2) efforts to address emerging risks and improve existing controls.
All active employees are required to complete our annual Security Awareness Training. For 2024, 100% of ScottMadden’s users completed this curriculum, which is updated annually to reflect our most significant risks.
Employees and contractors are periodically presented with test “threats” via email, and we are seeing significant improvement in results. We continually upgrade tools and technologies to protect our systems from cyber threats and are constantly working to stay ahead of emerging threats.
Our Cybersecurity Center of Excellence (CoE) continues to deepen our expertise and offerings in managing cyber risk. This CoE supports our work in delivering cybersecurity services to clients. We commit to continually developing our capabilities, technical knowledge, and resources to ensure expertise in these areas. Our recent focus has been on cyber risk management and the use of analytics to improve it.
OF EMPLOYEES completed Security Awareness Training
Our Commitment to Corporate Responsibility and Sustainability
ScottMadden remains committed to corporate responsibility. Each day we live out our values by creating a business that is ethical, secure, and that operates with integrity. We uplift the communities around us and are good stewards of our environment. We build inclusion among our employees by prioritizing their well-being and development and by growing support networks.
We remain focused on our people, our clients, and our community. Everything we are doing is built on our core values, and we will always strive to move forward with respect, trust, service, and accountability.
We are proud of and celebrate our accomplishments but always strive for improvement! We regularly review our progress to evaluate our direction. Each year brings different challenges, and we expect to steadily improve.
Our annual Corporate Responsibility Report again reaffirms our firm’s culture of cultivating employee-led initiatives. We are very grateful to the many people at ScottMadden who contributed to creating this report.
Kim Davenport
Partner and Director of Corporate Responsibility
