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Ethical Decision Making
Ethical Decisions
Ethical Decisions
• Protect the company’s reputation
Ethical Decisions
• Protect the company’s reputation
• Build customer confidence and trust
Ethical Decisions
• Protect the company’s reputation
• Build customer confidence and trust
• Grow and retain customers
Ethical Decisions
• Protect the company’s reputation
• Build customer confidence and trust
• Grow and retain customers
• Attract and retain top talent
Ethical Decisions
Most unethical business practices are made by basically honest people who face great pressures to perform.
Challenges to Ethical Behavior
• External Pressures
• Self-Imposed Pressures
• Ignorance
External Pressures
Pressure that often comes from management or demanding customers.
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.”
External Pressures
It’s your duty to help unreasonable customers understand what can and can’t be done.
External Pressures
Help set customer expectations at realistic levels.
External Pressures
Some promises initially reduce conflict, but they eventually lead to less customer satisfaction and trust.
Self-Imposed Pressures
Pressure on people to do more with less and adjust quickly to change.
Self-Imposed Pressures
Cause people to cut corners and engage in selfish behavior.
Self-Imposed Pressures
People tell managers what they want to hear, instead of the truth.
Self-Imposed Pressures
Winning at any cost can cause damage to you and your company’s reputation.
Ignorance
Ignorance of law is not an acceptable excuse in a court of law.
Ignorance
Ignorance of company’s business conduct is not an acceptable excuse for unethical business practices.
Ignorance
It’s your responsibility to know and to follow your company’s business conduct, practices and applicable federal laws.
Ignorance
As a manager, it’s your responsibility to demonstrate proper conduct that fosters the same behavior from employees.
Ethical Decisions
Be prepared to deal with external pressures, self-imposed pressures and ignorance on a day-to-day basis.
Ethical Decision Model
Ethical Decision Model
• Is it legal?
Ethical Decision Model
• Is it legal?
• Does your decision follow
company policies?
Ethical Decision Model
• Is it legal?
• Does your decision follow
• Does your decision follow company management practices?
company policies?
Ethical Decision Model
• Does your decision violate any ethical values?
Ethical Decision Model
• Does your decision violate
• Does your decision violate any ethical values?
your personal values?
Is It Legal?
Is It Legal?
• Determine the relevant law
Is It Legal?
• Determine the relevant law
• Reveal the court interpretation of it
Is It Legal?
• Determine the relevant law
• Reveal the court interpretation of it
• Determine how the law deals with it
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
Is It Legal?
U.S. laws have been passed to ensure:
• Uninhibited competition
• A free marketplace
• Protection of workers
• Consumers’ rights
Is It Legal?
Specific laws deal with:
• Foreign corrupt practices of U.S. multinationals
Is It Legal?
Specific laws deal with:
• Foreign corrupt practices of U.S. multinationals
• Contract dealings with the
U.S. government
Is It Legal?
Specific laws deal with:
• U.S. antitrust and unfair competitive practices laws
Is It Legal?
• Local government laws
Specific laws deal with:
• U.S. antitrust and unfair competitive practices laws
and regulations
Is It Legal?
It’s your responsibility to know laws and regulations that relate to your company and job.
#1 - Obey the law.
Guidelines
Guidelines
#2 - If you’re not sure it’s legal, don’t
do it!
Guidelines
#3 - When in doubt, seek advice fromyour legal department.
Company Policy
Company Policy
Your decisions must comply with your company’s code of ethical conduct.
Company Policy
• What is the published policy?
Company Policy
• What is the published policy?
• What is the intent of this policy?
Company Policy
• What is the published policy?
• What is the intent of this policy?
• Is the alternative in conflict with these policies?
Company Policy
Companies have polices to ensure employees know what treatment to expect and what the company expects from them.
Company Policy
You need to be familiar with your company’s code of ethical conduct.
Management Practices
Management Practices
• How have issues been handled in
the past?
Management Practices
• How have issues been handled in
the past?
• What actions took place?
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?
Management Practices
• Is the decision in accord with the company’s strategic principles?
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?
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?
Management Practices
Management practices characterize a company’s style and culture.
Management Practices
Company policies can’t spell out the appropriate response for every situation.
Management Practices
Unethical acts usually can’t stand the test of disclosure or possible scrutiny.
Ethical Values
Ethical Values
• Who benefits and who is harmed?
Ethical Values
• Who benefits and who is harmed?
• How are the benefits and negative burdens distributed?
Ethical Values
• Who benefits and who is harmed?
• How are the benefits and negative burdens distributed?
• Are anyone’s rights negatively affected?
Ethical Values
• Does this alternative coerce, deceive or exploit people to advance your interests?
Ethical Values
• How would this be described in the media?
• Does this alternative coerce, deceive or exploit people to advance your interests?
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?
Stakeholders
• Employees
• Stockholders
• Customers
• Vendors
• General Public
Ethical Values
Consider the consequences of your decisions.
Ethical Values
Would you find your action acceptable if it were done to you, rather than by you?
Personal Values
Personal Values
• Does this decision conflict with what you think is right and wrong?
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?
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?
Personal Values
Look at the value system you have constructed for yourself as a guide for your decisions.
Personal Values
Ethics is about personal choice.
Personal Values
• How you choose to deal with others
Personal Values
• How you choose to deal with others
• How you choose to be regarded
Personal Values
• How you choose to deal with others
• How you choose to be regarded
• How you choose to live your life
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
Ethical Decision Making