The Importance of The Importance of Ethics and Integrity in Ethics and Integrity in

LeadershipLeadership

Dr. Richard Dr. Richard TavernaroTavernaroMagnet CounselorMagnet Counselor

Goals of Today’s LessonGoals of Today’s Lesson

Understand the meaning of “Ethics”Understand the meaning of “Ethics”

Analyze Ethical DilemmasAnalyze Ethical Dilemmas

Learn the Steps for making Ethical Learn the Steps for making Ethical DecisionsDecisions

Apply the Ethical Decision Making Apply the Ethical Decision Making ProcessProcess

Ethics – A good starting point.Ethics – A good starting point.

“The reputation of a thousand years is determined by the conduct of one hour.”

– Japanese proverb

Ethics – A good starting point.Ethics – A good starting point.

“The reputation of a thousand years is determined by the conduct of one hour.”

Ethics VocabularyEthics Vocabulary

Morals

Virtue

Integrity

Responsibility

Obligation

Honesty

Courage

Self-Respect

Accountability

Professionalism

Character

Ideals

Merriam Webster - Merriam Webster -

What is Ethics?What is Ethics?

The embodiment of those values that the person or organization feels are important, and spell out proper conduct and appropriate action.

Ethics……Ethics……

A system that provides a guide for daily livingA system that provides a guide for daily living Relates to Relates to right and wrongright and wrong in daily living in daily living Establishes Establishes principles for conductprinciples for conduct

Simple honestySimple honesty Without it, life becomes a constant struggle of Without it, life becomes a constant struggle of

intrigue, second-guessing, and maneuveringintrigue, second-guessing, and maneuvering

Ethical confrontations can be Ethical confrontations can be some of the most stressful some of the most stressful events we experienceevents we experience

Choosing the ethical way is Choosing the ethical way is not always easynot always easy

Ethical Choices

The toughest ethical choices are not between good and evil, but rather between two goods:

Truth versus Loyalty

Individual versus Community

Short-term versus Long-term

Justice versus Mercy

Ethical PrinciplesEthical Principles ObjectivityObjectivity SelflessnessSelflessness StewardshipStewardship TransparencTransparenc

yy IntegrityIntegrity

What about …..?What about …..? ValuesValues

MoralsMorals

IntegrityIntegrity

CharacteCharacter r

LawsLaws

ValuesValues

Acts, customs or institutions that a Acts, customs or institutions that a group group of peopleof people regard in a favorable way regard in a favorable way

Usually words of approvalUsually words of approval Intrinsically valuable or Intrinsically valuable or desirable desirable

principlesprinciples or qualities or qualities EqualityEquality FreedomFreedom Hard WorkHard Work

Personal and societal beliefsPersonal and societal beliefs What really matters to us mostWhat really matters to us most

MoralsMorals

A set of rule or modes of conduct upon A set of rule or modes of conduct upon which society is basedwhich society is based

Very similar to ethicsVery similar to ethics Four Points to Remember (R.C. Solomon)Four Points to Remember (R.C. Solomon)

Moral rules are importantMoral rules are important Morality consists of Morality consists of universal rulesuniversal rules Morals are objectiveMorals are objective Morality affects other peopleMorality affects other people

Conforms to accepted rules of right or Conforms to accepted rules of right or wrongwrong

Established by societyEstablished by society

IntegrityIntegrity

Adhering to a moral code in daily Adhering to a moral code in daily decision makingdecision making

Being honest and sincereBeing honest and sincere

Assurance that “It will happen Assurance that “It will happen because I say it will.”because I say it will.”

CharacterCharacter Pattern of behavior or Pattern of behavior or personality traitpersonality trait of an of an

individual or group individual or group that denotes moral that denotes moral strengthstrength

Drives what we do Drives what we do when no one is lookingwhen no one is looking Involves a choice to Involves a choice to act morallyact morally at all times at all times We build character by how we live, thinking We build character by how we live, thinking

good thoughts, performing good actsgood thoughts, performing good acts Similarly bad thoughts and bad behavior Similarly bad thoughts and bad behavior

destroy characterdestroy character Character pertains to organizations too.Character pertains to organizations too.

LawsLaws A set of A set of rules and regulationsrules and regulations designed to designed to

express the needs of and to control a societyexpress the needs of and to control a society

Protect people from the most blatant and Protect people from the most blatant and despicable affronts to morality (such as despicable affronts to morality (such as murder and theft)murder and theft)

Needed to maintain the functioning of a Needed to maintain the functioning of a societysociety

Change to reflect a society’s changing Change to reflect a society’s changing standardsstandards

Summary of TermsSummary of Terms EthicsEthics:: a system or code of morals that provides guidance a system or code of morals that provides guidance

for living in societyfor living in society

ValuesValues:: Intrinsically valuable or desirable principles or Intrinsically valuable or desirable principles or qualitiesqualities

MoralsMorals:: A set of rules or modes of conduct on which society A set of rules or modes of conduct on which society is basedis based

IntegrityIntegrity:: Adherence to a moral code in daily decision Adherence to a moral code in daily decision making, emphasis on honesty and reliabilitymaking, emphasis on honesty and reliability

CharacterCharacter:: A personality trait of pattern of behavior that A personality trait of pattern of behavior that denotes moral strengthdenotes moral strength

LawsLaws:: A set of rules and regulations designed to express A set of rules and regulations designed to express the needs of societythe needs of society

Unethical

Ethics, Morals, and the LawEthics, Morals, and the Law

MoralsMorals Principles of right Principles of right

and wrongand wrong EthicsEthics

A set of moral A set of moral principles guiding principles guiding behavior and behavior and actionaction

LawsLaws BindingBinding codes of codes of

conduct; formally conduct; formally recognized and recognized and enforcedenforced

EthicalEthical

IllegalLegal

Unethical but Legal

Ethical but Illegal

Classification of Actions:

Business TodayBusiness Today Business recognizes the impact of unethical Business recognizes the impact of unethical

behavior: “Business Ethics” movementbehavior: “Business Ethics” movement Poor public imagePoor public image Increased government scrutinyIncreased government scrutiny Public reluctance to use a product or servicePublic reluctance to use a product or service

Ethics is good businessEthics is good business

Most major corporations have their own Most major corporations have their own code of ethics and provide trainingcode of ethics and provide training

It is not new or trendy, it will impact you It is not new or trendy, it will impact you personally and professionallypersonally and professionally

Ethical Dilemmas or LandminesEthical Dilemmas or Landmines Like unexploded bombs, must be defused Like unexploded bombs, must be defused

before they blow up in our facesbefore they blow up in our faces Company expectations for employee commitmentCompany expectations for employee commitment Pressure from managers and co-workersPressure from managers and co-workers Opportunities for unethical behaviorOpportunities for unethical behavior Internal pressure in the form of personal ambitionsInternal pressure in the form of personal ambitions External forces such as family needsExternal forces such as family needs

Personal reputations, legal standing, Personal reputations, legal standing, company’s public name are at riskcompany’s public name are at risk

Much is at stake for companies and Much is at stake for companies and individuals in facing ethical dilemmasindividuals in facing ethical dilemmas

Historical PerspectiveHistorical Perspective

Ethics can be traced to ancient timesEthics can be traced to ancient times

Greek philosophers (Socrates, Plato, Greek philosophers (Socrates, Plato, Aristotle; biblical figures)Aristotle; biblical figures)

Moralists (Immanuel Kant, John Stewart Moralists (Immanuel Kant, John Stewart Mill, and Jean-Paul Sartre)Mill, and Jean-Paul Sartre)

Moral Codes and ReligionMoral Codes and Religion Religion and morality are closely interwoven Religion and morality are closely interwoven

but are not the same thingbut are not the same thing People can be moral without being religious and vice People can be moral without being religious and vice

versaversa

People can do good because of:People can do good because of: altruism or fear of punishmentaltruism or fear of punishment out of habit or because of upbringingout of habit or because of upbringing

Code of Hammurabi: Code of Hammurabi: 1762 B.C. general set of moral rules so strong1762 B.C. general set of moral rules so strong did not oppress weak, economic and family laws, did not oppress weak, economic and family laws, criminal laws, civil laws. Not based on religioncriminal laws, civil laws. Not based on religion

Ethical TheoriesEthical Theories

Many different ethical theoriesMany different ethical theories

Focus will be based on two theoriesFocus will be based on two theories

Duty-Based ethical theory (Immanuel Kant)Duty-Based ethical theory (Immanuel Kant)

Utilitarian theory (John Stuart Mill)Utilitarian theory (John Stuart Mill)

Duty-Based Ethical TheoryDuty-Based Ethical Theory

Everyone has the duty or Everyone has the duty or obligation to do the right thing, obligation to do the right thing, regardless of outcomeregardless of outcome

An act is moral if it could become An act is moral if it could become a universal rule for societya universal rule for society

To consider the morality of an To consider the morality of an act, one must consider the act, one must consider the perspective of both doer and perspective of both doer and recipientrecipient

Immanuel KantImmanuel Kant

Utilitarian TheoryUtilitarian Theory

Moral behavior is tied to the Moral behavior is tied to the common goodcommon good

ResultsResults are the measure of are the measure of moral behavior, not the moral behavior, not the intentintent

An act is good if it results in An act is good if it results in the greatest benefit for the the greatest benefit for the most peoplemost people

John Stuart John Stuart MillMill

Ethical Decision Making ModelEthical Decision Making Model

Ethical Issue Intensity

Individual Factors

Organizational Factors

Ethical Decision

Determining an ethical action: Determining an ethical action: Six Practical StepsSix Practical Steps

1)1) Is the action legal?Is the action legal?

2)2) How will it make me feel about myself?How will it make me feel about myself?

3)3) Is it fair to all concerned?Is it fair to all concerned?

4)4) Is it the truth?Is it the truth?

5)5) Will it cause anyone personal loss or pain, or Will it cause anyone personal loss or pain, or violate confidentiality, or harm somebody in any violate confidentiality, or harm somebody in any other way?other way?

6)6) Is there a conflict of interest?Is there a conflict of interest?

Ford Pinto: Cost -vs- BenefitFord Pinto: Cost -vs- Benefit

Ford Pinto: Cost -vs- BenefitFord Pinto: Cost -vs- Benefit(Cost/Benefit Analysis)(Cost/Benefit Analysis)

Cost of Changes:

Sales: 11 million cars; 1.5 million light trucks

Unit Costs: $11/car and $11/truck

Total Cost: 12.5 million vehicles x $11/vehicle = $137.5 million

Benefits to Society:

Savings: 180 burn deaths; 180 burn injuries

Unit Costs: $200,000 per death, $67,000 per injury; $700 per car

Total Benefit: (180x $200,000+180 x $67,000+700 x 12.5 million) = $49.5 million

Unethical

Ethical DilemmaEthical Dilemma1)1) Is the action legal?Is the action legal?

2)2) How will it make me feel How will it make me feel about myself?about myself?

3)3) Is it fair to all concerned?Is it fair to all concerned?

4)4) Is it the truth?Is it the truth?

5)5) Will it cause anyone Will it cause anyone personal loss or pain, or personal loss or pain, or violate confidentiality, or violate confidentiality, or harm somebody in any harm somebody in any other way?other way?

6)6) Is there a conflict of Is there a conflict of interest?interest?

Ethical

IllegalLegal

Classification of Actions:

FORD CHOSE NOT TO FIX THE MECHANICAL PROBLEMSFORD CHOSE NOT TO FIX THE MECHANICAL PROBLEMS

Cost of Fixing Problem = $137,500,000

Cost of Not Fixing Problem = $49, 500,000

In February of 1978, a California jury created a nationwide sensation when it awarded the record-breaking sum of

$128 million in a lawsuit stemming from a Pinto accident. This one lawsuit was three times what Ford executives

and engineers had estimated their final cost would be.

Quote

“If you can’t be a good example, then you’ll just have to be a horrible warning.”

- Catherine Aird