Heritage Classical Academy

Headlines  WorldCom  Tyco  Enron  Are these isolated or symptomatic?  The junction of business and morality

Educational Models  Organizational-centered approach to business ethics Make decisions based on what is best for the company Good decisions=benefit healthy companies Bad decisions=hurt weak companies Society benefits from the growth of good companies

Educational Models  Human-centered approach to business ethics Change focus from internal organization to external society Direct instead of indirect benefit to society

Root Issue  Why should a manager care about anything other than utilizing the power of his or her position to further his or her own pursuit of wealth?  Is the law an effective deterrent? It may work in some instances What if the action is not yet illegal?

Root Issue  Ethical behavior, business or otherwise, is based on the idea of a “should”-an appeal to a moral standard.  Does the standard need to be fixed?  What types of worldviews allows for a fixed standard?

What Works Best  Our current economic system  Based on two foundational principles Right to own property Freedom to make individual choices  Capitalism flourished in a Judeo- Christian environment  The “building” of the free market stands on the “foundation” of a Biblical worldview

Why Is This Important?  A standard that is not only based on the legality but on the morality of an action is a more effective motivation to conduct business in an ethical manner  This provides a form of self-governance that is more effective than threat of law  The less government interference in an economic system, the better

How to Implement An Ethically- Focused Culture  Make sure executive leadership is committed to the goal of establishing and maintaining the organizational morality  Formalize company policies and goals regarding ethical behavior  Prevention

Executive Leadership  “People don’t at first follow worthy causes. They follow worthy leaders who promote worthwhile causes. People buy into the leader first, then the leader’s vision.” – John C. Maxwell  Leadership provides vision and goals.  Leadership is influence

Formalize Company Policies  Ethical processes must be “institutionalized” from the mission to the strategic plan  All new initiatives should address the potential ethical ramifications Whom does this product harm? Who benefits from this product?

Prevention  Ethical considerations should be part of the hiring process for new employees  Allow methods for employees to address ethical concerns without fear of reprisal Independent panel Toll-free number Ombudsman

Additional Resources  The Victory of Reason- Rodney Stark  Visioneering- Andy Stanley  The Ethics of Management- LaRue Tone Hosmer  The 21 Irrefutable Laws of Leadership- John C. Maxwell

Questions ?