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Ethical Decision Making
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Ethical Decisions
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Ethical Decisions
• Protect the company’s reputation
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Ethical Decisions
• Protect the company’s reputation
• Build customer confidence and trust
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Ethical Decisions
• Protect the company’s reputation
• Build customer confidence and trust
• Grow and retain customers
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Ethical Decisions
• Protect the company’s reputation
• Build customer confidence and trust
• Grow and retain customers
• Attract and retain top talent
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Ethical Decisions
Most unethical business practices are made by basically honest people who face great pressures to perform.
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Challenges to Ethical Behavior
• External Pressures
• Self-Imposed Pressures
• Ignorance
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External Pressures
Pressure that often comes from management or demanding customers.
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External Pressures
Examples:
• “Results are all that matter.”
• “No one really cares how you get it
done; just get it done.”
• “Be a team player.”
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External Pressures
It’s your duty to help unreasonable customers understand what can and can’t be done.
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External Pressures
Help set customer expectations at realistic levels.
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External Pressures
Some promises initially reduce conflict, but they eventually lead to less customer satisfaction and trust.
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Self-Imposed Pressures
Pressure on people to do more with less and adjust quickly to change.
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Self-Imposed Pressures
Cause people to cut corners and engage in selfish behavior.
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Self-Imposed Pressures
People tell managers what they want to hear, instead of the truth.
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Self-Imposed Pressures
Winning at any cost can cause damage to you and your company’s reputation.
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Ignorance
Ignorance of law is not an acceptable excuse in a court of law.
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Ignorance
Ignorance of company’s business conduct is not an acceptable excuse for unethical business practices.
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Ignorance
It’s your responsibility to know and to follow your company’s business conduct, practices and applicable federal laws.
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Ignorance
As a manager, it’s your responsibility to demonstrate proper conduct that fosters the same behavior from employees.
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Ethical Decisions
Be prepared to deal with external pressures, self-imposed pressures and ignorance on a day-to-day basis.
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Ethical Decision Model
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Ethical Decision Model
• Is it legal?
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Ethical Decision Model
• Is it legal?
• Does your decision follow
company policies?
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Ethical Decision Model
• Is it legal?
• Does your decision follow
• Does your decision follow company management practices?
company policies?
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Ethical Decision Model
• Does your decision violate any ethical values?
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Ethical Decision Model
• Does your decision violate
• Does your decision violate any ethical values?
your personal values?
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Is It Legal?
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Is It Legal?
• Determine the relevant law
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Is It Legal?
• Determine the relevant law
• Reveal the court interpretation of it
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Is It Legal?
• Determine the relevant law
• Reveal the court interpretation of it
• Determine how the law deals with it
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Is It Legal?
• Determine the relevant law
• Reveal the court interpretation of it
• Determine how the law deals with it
• Determine the chances of going to court
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Is It Legal?
U.S. laws have been passed to ensure:
• Uninhibited competition
• A free marketplace
• Protection of workers
• Consumers’ rights
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Is It Legal?
Specific laws deal with:
• Foreign corrupt practices of U.S. multinationals
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Is It Legal?
Specific laws deal with:
• Foreign corrupt practices of U.S. multinationals
• Contract dealings with the
U.S. government
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Is It Legal?
Specific laws deal with:
• U.S. antitrust and unfair competitive practices laws
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Is It Legal?
• Local government laws
Specific laws deal with:
• U.S. antitrust and unfair competitive practices laws
and regulations
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Is It Legal?
It’s your responsibility to know laws and regulations that relate to your company and job.
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#1 - Obey the law.
Guidelines
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Guidelines
#2 - If you’re not sure it’s legal, don’t
do it!
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Guidelines
#3 - When in doubt, seek advice fromyour legal department.
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Company Policy
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Company Policy
Your decisions must comply with your company’s code of ethical conduct.
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Company Policy
• What is the published policy?
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Company Policy
• What is the published policy?
• What is the intent of this policy?
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Company Policy
• What is the published policy?
• What is the intent of this policy?
• Is the alternative in conflict with these policies?
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Company Policy
Companies have polices to ensure employees know what treatment to expect and what the company expects from them.
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Company Policy
You need to be familiar with your company’s code of ethical conduct.
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Management Practices
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Management Practices
• How have issues been handled in
the past?
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Management Practices
• How have issues been handled in
the past?
• What actions took place?
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Management Practices
• How would you feel describing this
• What actions took place?
• How have issues been handled in
the past?
action to your peers or boss?
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Management Practices
• Is the decision in accord with the company’s strategic principles?
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Management Practices
• Would you have to falsify or omit the
• Is the decision in accord with the company’s strategic principles?
action on any internal reports?
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Management Practices
• How would you feel if it would be
• Would you have to falsify or omit the
• Is the decision in accord with the company’s strategic principles?
action on any internal reports?
published in the company newspaper?
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Management Practices
Management practices characterize a company’s style and culture.
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Management Practices
Company policies can’t spell out the appropriate response for every situation.
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Management Practices
Unethical acts usually can’t stand the test of disclosure or possible scrutiny.
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Ethical Values
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Ethical Values
• Who benefits and who is harmed?
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Ethical Values
• Who benefits and who is harmed?
• How are the benefits and negative burdens distributed?
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Ethical Values
• Who benefits and who is harmed?
• How are the benefits and negative burdens distributed?
• Are anyone’s rights negatively affected?
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Ethical Values
• Does this alternative coerce, deceive or exploit people to advance your interests?
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Ethical Values
• How would this be described in the media?
• Does this alternative coerce, deceive or exploit people to advance your interests?
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Ethical Values
• How would this be described in the media?
• Does it help or hinder the corporate image or goodwill?
• Does this alternative coerce, deceive or exploit people to advance your interests?
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Stakeholders
• Employees
• Stockholders
• Customers
• Vendors
• General Public
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Ethical Values
Consider the consequences of your decisions.
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Ethical Values
Would you find your action acceptable if it were done to you, rather than by you?
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Personal Values
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Personal Values
• Does this decision conflict with what you think is right and wrong?
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Personal Values
• Does this decision conflict with what you think is right and wrong?
• Are you betraying the interests of those you’re paid to represent?
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Personal Values
• Does this decision conflict with what you think is right and wrong?
• Are you betraying the interests of those you’re paid to represent?
• Would you feel comfortable telling your family this?
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Personal Values
Look at the value system you have constructed for yourself as a guide for your decisions.
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Personal Values
Ethics is about personal choice.
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Personal Values
• How you choose to deal with others
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Personal Values
• How you choose to deal with others
• How you choose to be regarded
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Personal Values
• How you choose to deal with others
• How you choose to be regarded
• How you choose to live your life
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Personal Values
• How you choose to deal with others
• How you choose to be regarded
• How you choose to live your life
• Who you choose to be
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Ethical Decision Making