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BUSINESS ETHICS MARVIN MILLER, PLS, PPS, CP, SP, RPP MAPPS 2016 Summer Conference Traverse City, MI
BUSINESS ETHICS MARVIN MILLER, PLS, PPS, CP, SP, RPP
MAPPS 2016 Summer Conference
Traverse City, MI
AMAZING IMAGE TITLE SLIDE
ETHICS –
the branch of knowledge that deals with moral principles
moral principles that govern a person’s or groups behavior
COMMON SENSE – DEFINED? IS IT REALLY COMMON? IS IT A SENSE?
Merriam-Webster as, “sound and prudent judgement based on a simple perception of the situation or facts”
Sound practical judgement derived from experience rather than study.
BUSINESS ETHICS
COMMON SENSE QUOTES
We need to stop calling it common sense. This assumes that it is common and everyone has it. We need to start calling it un-common sense because so few people seem to have it.
Mark Twain
Common sense is uncommon.
Horace Greely
You can’t legislate intelligence and common sense into people.
Will Rogers
COMMON SENSE??? NEITHER COMMON NOR SENSE
Buy stuff they can’t afford
Wouldn’t smoke
Wouldn’t eat fast food
Wouldn’t gamble
Wouldn’t drink and drive
Wouldn’t text while driving
Wouldn’t post sexual explicit pictures of themselves on social media sites
Wouldn’t leave animals or children alone in a car in 90 degree temperatures
BUSINESS ETHICS
COMMON SENSE???
Do older people have more common sense than those who are younger?
Do people with more education have more common sense than those with less education?
Do smart people have more common sense?
Do people with years of experience have more common sense than those with less experience?
BUSINESS ETHICS
AMAZING IMAGE TITLE SLIDE
COMMON SENSE WISDOM & BUSINESS ETHICS
Everyone’s beliefs and attitudes area derived from their
unique and varied sources of mental conditioning and
upbringing.
BENEFITS OF OPERATING AN ETHICAL BUSINESS
Consumer Support
•85% of consumers say that in part their decision to purchase a company’s product or services is based on its reputation as an ethical organization.
Retain & Attract Key Staff
•Ethical companies retain & attract employees and save money in turnover.
Comply w/Legal Requirements
•Companies that operate with ethics as their foundation, are less likely to be fined or sued.
Increased Teamwork
•A fair and ethical working environment facilitates teamwork and improved productivity.
BUSINESS ETHICS
MISCONDUCT DECLINES AS ETHICS CULTURE IMPROVES
SOURCE: 2013 NATIONAL BUSINESS ETHICS SURVEY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Weak Weak
Leaning
Strong
Leaning
Strong
88%
59%
32%
20%
Em
plo
yee
s O
bse
rve
d M
isco
nd
uct
Strength of Ethics Culture
COMMON UNETHICAL BEHAVIORS
Misuse of Company Time
Employee Theft
Conflicts of Interest
Safety Violations
Employer Intimidation
Employer / Co-worker Retaliation
Lying to Hide Mistakes
Violating Company Internet Polices
Social Networking Violations
BUSINESS ETHICS
REASONS THAT DRIVE EMPLOYEES TO MAKE UNETHICAL DECISIONS
Misguided Loyalty
BUSINESS ETHICS
REASONS THAT DRIVE EMPLOYEES TO MAKE UNETHICAL DECISIONS
Misguided Loyalty
Not sure about what is really the right thing to do
BUSINESS ETHICS
REASONS THAT DRIVE EMPLOYEES TO MAKE UNETHICAL DECISIONS
Misguided Loyalty
Not sure about what is really the right thing to do
Pressure to succeed
to get ahead
to meet deadlines & expectations
from co-workers, bosses, clients
BUSINESS ETHICS
REASONS THAT DRIVE EMPLOYEES TO MAKE UNETHICAL DECISIONS
Misguided Loyalty
Not sure about what is really the right thing to do
Pressure to succeed
to get ahead
to meet deadlines & expectations
from co-workers, bosses, clients
Uncalibrated Ethical Compass
BUSINESS ETHICS
REASONS THAT DRIVE EMPLOYEES TO MAKE UNETHICAL DECISIONS
Misguided Loyalty
Not sure about what is really the right thing to do
Pressure to succeed
to get ahead
to meet deadlines & expectations
from co-workers, bosses, clients
Uncalibrated Ethical Compass
Self interest, personal gain, ambition & greed
BUSINESS ETHICS
HIGHER STOCK PRICES ACCOMPANIED BY HIGHER RATES OF MISCONDUCT
SOURCE: 2013 NATIONAL BUSINESS ETHICS SURVEY
51%
45%
52% 55%
49% 45%
41%
0
1000
2000
0%
30%
60%
2000 2003 2005 2007 2009 2011 2013
Average Monthly S&P 500 Index Observed Misconduct
STATE OF ETHICS IN THE WORKPLACE
GOOD NEWS
41
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9
NBES 2013 SURVEY – GOOD NEWS
41% of survey participates said they observed misconduct on the job
down from 45% in 2011
significantly down from record high of 55% in 2007
9% of survey participants reported being pressured to compromise standards
down from 13% in 2011
Pressure is considered to be the leading indicator of future misconduct
STATE OF BUSINESS ETHICS
Over the last two years, observed misconduct fell in every one of the 26 specific categories that were asked about
NBES 2013 SURVEY AREAS OF CONCERN
While misconduct is down overall, 60% of observed misconduct involved someone with managerial authority (supervisor – middle management)
Perhaps equally troubling, employees said that 26% of the reported misconduct is ongoing within their organization
STATE OF BUSINESS ETHICS
24% of observed misconduct involved senior management
MOST MISCONDUCT COMMITTED by MANAGERS
BUSINESS ETHICS
24%
19%
17%
36%
4%
Senior Leader(s)
Middle Manager(s)
First-line Supervisor(s)
Non-Management
Other
NBES 2013 SURVEY AREAS OF CONCERN
Retaliation against employees who report unethical behavior continues to be a widespread problem
More than 1 in 5 employees who reported misconduct said they experienced retaliation in return (~6.2M Americans)
Virtually no change in this percentage from previous surveys
STATE OF BUSINESS ETHICS
BUSINESS ETHICS
SOCIAL MEDIA ETHICAL CHALLENGES
CIO’s Identify integrity risk as the main ethical challenge with regard to social media.
“When an employee uses social media in an irresponsible way either on behalf of the company or through their personal social media account, it can under mine the company’s commitment to ethical practices and expose it to integrity risk.”
BUSINESS ETHICS
BUSINESS ETHICS CULTURE
Managers
Communicate ethics as a priority
Set good examples of ethical conduct
Keep commitments
Provide information on what is going on
Support following organizational standards
BUSINESS ETHICS
Coworkers
Consider ethics in making decisions
Talk about ethics in the work they do
Set good examples of ethical conduct
Support following organizational standards
ETHICS & COMPLIANCE INITIATIVES
BUSINESS ETHICS
76% 77%
84% 78%
83%
68%
62% 62% 60%
67%
48%
64% 74% 74%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2003 2005 2007 2011 2013
Discipline
Evaluation
Training
ETHICAL DECISIONS
We should always strive to make ethical decisions. It is possible, however, for two ethical people to make different decisions in a situation, especially in the business world.
BUSINESS ETHICS
IN THE END, SUCCESS OR
FAILURE WILL COME DOWN TO AN
ETHICAL DECISION….
MAKING ETHICAL DECISIONS
Determine the ethics of the situation
Gather information
Evaluate possible outcomes
Test the decision
Implement the decision
Evaluate results
BUSINESS ETHICS
DID I MAKE AN ETHICAL DECISION?
BUSINESS ETHICS
BREEDS SUCCESS
MARVIN MILLER, PLS, PPS, CP, SP, RPP
“Being good is good business.”
Anita Roddick – author of “Business as Usual”
