Business Ethics Presentation Draft C 3.02.09

8/8/2019 Business Ethics Presentation Draft C 3.02.09

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A Presentation to FBLA Area V Leadership ConferenceSeven Lakes High School - March 7, 2009

Bill M Wooten, Ph.D.


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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


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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.


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` 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?


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` 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


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The reputation of a thousand years may bedetermined by the conduct of one hour.

Japanese proverb


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So What are Ethical Standards?So What are Ethical Standards?


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` 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


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` 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


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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


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` 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


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` 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


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` 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?


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` 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


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` 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


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` 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


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` 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


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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.


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` Conflict of interest

` Fairness and honesty

` Communications

` Business relationships


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` Occurs when a person

must choose whether toadvance their own

personal interest or those

of others


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` The heart of business

ethics General values of

decision makers


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` False and misleading

advertising and deceptive

personal-selling tacticsanger customers and may

cause a business to fail.


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` 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?


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` 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?


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` 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?


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` 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?


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IndividualStandards

and

Values

Managersand

Coworkers

Influence

Opportunity:Codes and

Compliance

Requirements

Ethical/UnethicalChoices

in Business


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` 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.


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` The act of an employee

exposing the employers

wrongdoing to outsiders The media

Government regulatory

agencies


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` 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.


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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.


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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


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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


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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.


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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.


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To see what is rightand not to do it is want

of courage.

(Confucius)


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Thank you!

Bill M Wooten, Ph.D.

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Business Ethics Presentation Draft C 3.02.09

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