business ethics presentation draft c 3.02.09
TRANSCRIPT
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
1/45
A Presentation to FBLA Area V Leadership ConferenceSeven Lakes High School - March 7, 2009
Bill M Wooten, Ph.D.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
2/45
Why talk about ethics?Opinion polls nowplace business
people in lower esteem thatpoliticians
A WSJ/NBCpoll found that 57% of the
generalpublic believed that standards and
values of the corporate leaders &executives had dropped in the last 20
years
AnABC News/Washington Post survey
indicated 63% of the public felt that
regulation of corporations is necessary to
protect the public
Seventy-fivepercent of those surveyed
byABC expressed limited confidence in
large corporations
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
3/45
Lie, cheat and steal: high school ethics surveyed(Associated Press, Sun., Nov. 30, 2008)
` The Josephson Institute, a Los Angeles-based ethics institute, surveyed
29,760 students at 100 randomly selected high schools nationwide, bothpublic and private. All students in the selected schools were given thesurvey in class; their anonymity was assured. The survey found that 35 percent of boys and 26 percent of girls 30 percent overall acknowledged
stealing from a store within the past year. One-fifth said they stole something from a friend; 23 percent saidthey stole something from a parent or other relative.
Cheating in school is rampant and getting worse. Sixty-four percent of students cheated on a test in the pastyear and 38 percent did so two or more times, up from 60 percent and 35 percent in a 2006 survey.
Thirty-six percent said they used the Internet to plagiarize an assignment, up from 33 percent in 2004.
Forty-two percent said they sometimes lie to save money 49 percent of the boys and 36 percent of thegirls.
Despite such responses, 93 percent of the students said they were satisfied with their personal ethics andcharacter, and 77 percent affirmed that "when it comes to doing what is right, I am better than most people Iknow.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
4/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
5/45
` Compar it pr ious r ssions, t last t o ownturns anpinnedmoreon reed.
` Gallup oll finds t atonl 1 per ent to per entof t e publi
t ought thebusinessethi sofexecuti es tobe er highorhigh
` Tounderstandpublicsentiment towardsbusinessethics, askthree questions Hasbusinessethics reall deteriorated? Are themedia reportingethicalproblemsmore frequentl and
igorousl ?
Arepractices thatonceweresociall acceptableno longersociall acceptable?
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
6/45
` Ethics is the study of how people shouldact
` Ethics also refers to the values and beliefs relatedto the nature of human conduct
Based on ethical standards or moral orientation
` Business ethics: business conduct that seeks to
balance the values of society with the goal ofprofitable operation
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
7/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
8/45
The reputation of a thousand years may bedetermined by the conduct of one hour.
Japanese proverb
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
9/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
10/45
So What are Ethical Standards?So What are Ethical Standards?
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
11/45
` Positivist view Asserts that moral standards are codified, or stated, in
positive law
Thus, if an act is legal, the act must be ethical
` Natural law theory Asserts that moral standards are universal and cannot be
changed or modified by law
Thus, these standards should be followed even if the
standards are greater than the law requires
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
12/45
` Divine Command: Do what your religious beliefs tellyou
` Ethics of Conscience: Follow your conscience
` EthicalEgoism: First do whats best for yourself
Ayn Rand The Ethics of Selfishness
` DutyEthics: Do the right thing
Immanuel Kants categorical imperative
` Ethics of Respect: Show respect (dont dis me)
` Ethics of Rights: Everyone has inalienable rights
` Utilitarianism: Do what is best for the most
` Ethics of Justice: Do what is fair
` Virtue Ethics: Be a good person
Other Standards of Ethics
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
13/45
The one and only social responsibility ofbusiness is to increase its profits.
Milton Friedman (b. 1912),Nobel Laureate in Economics
The business of business is serving
society, not just making money.Dayton Hudson (Target)Corporate Constitution
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
14/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
15/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
16/45
` Utilitarianism
(Bentham & Mill) holds that all decisions should be evaluated to the
utility they create the good of the many over the good of the one or
the few; a cost/benefitanalysis (Obama)
` Duty-basedEthics
(Kants categorical imperative) holds that one should not act unless
you would be willing for all others to act similarly
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
17/45
` Situational ethics or moral relativism examines the circumstances of an act to determine whether the
act was, or was not, ethical
` The business stakeholder standard of behavior determines whether an act is, or is not, ethical by examining the
interests of various stakeholders with regard to a particularbusiness action
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
18/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
19/45
` Blanchard & Peale Three-PartTest: Is it legal? Positive law approach
Is it balanced? Stakeholder standard How does it make me feel? Moral relativism
` Front Page of the NewpaperTest:
If considering a business action, would you like to see iton the front page of the newspaper?
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
20/45
` Discrimination` Stealing food
` Stealing a car` Disposing of hazardous waste` Writing a new employee policy` Expanding or closing your business` Dealing with an aggressive competitor` Firing an employee
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
21/45
` Apply various models for ethicaldecision-making to a companysemployment decisions
Safety requirements (JohnsonControls excluded womenfrom manufacturing line atbattery plant)
Executive compensationcompared to hourlycompensation
Plant closings
Outsourcing Whistleblowers
Whistleblowers
Cooper, Rowley,
and Watkins
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
22/45
` Apply various models for ethical
decision-making to a companysproduct design decisions Product safety & acceptable risk
Excess packaging becomes waste
Using harmful raw materials
Outsourcing
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
23/45
` Apply various models for ethical decision-making to acompanys international operations Union Carbide and the Bhopal disaster that Dow Chemical
(successor corporation) continues
Texacos environmental disaster in Ecuador
Apparel manufacturers and child labor issues
Texacos oil
impactsEcuadoran child;
Aguinda vTexaco
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
24/45
1. Didnt believe corrective action would be taken
2. Feared retribution or retaliation from supervisor or
management3. Feared they wouldnt remain anonymous
4. Thought someone else would report the misconduct
5. Didnt know who to contact
Source: 2005 Ethics Resource Center- National Business Ethics Survey Report, p. 29.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
25/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
26/45
` Conflict of interest
` Fairness and honesty
` Communications
` Business relationships
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
27/45
` Occurs when a person
must choose whether toadvance their own
personal interest or those
of others
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
28/45
` The heart of business
ethics General values of
decision makers
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
29/45
` False and misleading
advertising and deceptive
personal-selling tacticsanger customers and may
cause a business to fail.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
30/45
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
31/45
` Are there any potential legal restrictions orviolations that could result from the action?
Question: IfIdo this will it break any laws?
` Does your company have a specific code ofethics or a policy on the action?
Question: IfIdo this willIgo against theemployee handbook?
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
32/45
` Is this activity customary in your industry?
` Are there any industry trade groups that provideguidelines or codes of conduct that address this
issue?
Question: IfIdo this willIviolate any trade
practices?
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
33/45
` Would this activity be accepted by your
coworkers?
` Will your decision or action withstand open
discussion with coworkers and managers and
survive untarnished?
Question: Will my action cause peer acceptance or
rejection, or anypeerpressure?
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
34/45
` How does this activity fit with your own beliefs and
values? Question: Will my action violate any of my personal
ethics, religious beliefs, or social values?
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
35/45
IndividualStandards
and
Values
Managersand
Coworkers
Influence
Opportunity:Codes and
Compliance
Requirements
Ethical/UnethicalChoices
in Business
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
36/45
` For li r l nd
t ndards t at descri e at
acompanyexpectsof itsemployees
Did You Know?
Written ethics standards are more often found in
larger companies than smaller ones.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
37/45
` The act of an employee
exposing the employers
wrongdoing to outsiders The media
Government regulatory
agencies
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
38/45
` Of employees surveyed:
86% reported that their organizations have written
standards of conduct 69% reported that their organizations offer mandatory
ethics training
65% reported that their organizations have a place where
they can seek ethics adviceSource: 2005Ethics Resource Center- National Business Ethics Survey: HowEmployees
Perceive Ethics at Work.p.12-14.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
39/45
If students lack ethics in high school and college, then
there should be little surprise that they lack ethics in
their careers. Greed and over-reaching ambition often
end in disastrous personal consequences.
Convicted inside trader, Dennis Levine, in a Fortune
magazine article wrote:
I have painful memories of Sarah learning to walk in a
prison visiting room, and of Adam pleading with a guard
who wouldnt let him bring in a Mickey Mouse coloringbook.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
40/45
1. Which of the following has the greatest effect on ethical behaviorin organizations?a. authority of an employees superiorsb. an employees perception of the ethics of coworkers and managersc. an employees personal beliefs about what is right or wrongd. investors perceptions of ethics
2. Copying someone elses work and presenting it as your own is:a. ethicsb. bribec. plagiarism
d. greenmail
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
41/45
1. Which of the following has the greatest effect on ethical behaviorin organizations?a. authority of an employees superiorsb. an employees perception of the ethics of coworkers and managersc. an employees personal beliefs about what is right or wrongd. investors perceptions of ethics
2. Copying someone elses work and presenting it as your own is:a. ethicsb. bribec. plagiarism
d. greenmail
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
42/45
3. A code of ethics is:a. a set of formalized rules and standards describing what the
company expects of its employees.
b. a government legislation enforced by government agencies.c. a set of principles that describe what a person believes is
the right way to behave.d. the impact of a businesss activities on society.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
43/45
3. A code of ethics is:a. a set of formalized rules and standards describing what the
company expects of its employees.
b. a government legislation enforced by government agencies.c. a set of principles that describe what a person believes
is the right way to behave.d. the impact of a businesss activities on society.
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
44/45
To see what is rightand not to do it is want
of courage.
(Confucius)
-
8/8/2019 Business Ethics Presentation Draft C 3.02.09
45/45
Thank you!
Bill M Wooten, Ph.D.