Logic Reason Intuition Presentation by Steven Douglas, BFA, MIS

How Unethical Are You? Top 10 Dilemmas 1. Your boss asked you to cover for him on his expense report by saying you were at a meal when you weren’t. Should you do it? 2. Is it ever OK to sneak a peak at your child’s ? 3. If someone tells an offensive joke, is it your responsibility to speak up about it? 4. Are you obligated to lend money to friends and family? 5. Is it OK to fantasize about someone else when you’re with your partner? 6. Your boss gave you credit for a project on which a colleague did most of the work. Should you accept the praise? 7. Is it unfair to move to better (open) seats at a sporting event or a concert? 8. If a charity sends you free address labels and you don’t make a contribution, is it OK to use them? 9. Is it considered stealing to take pens from a bank? What about extra napkins from a fast-food restaurant? 10. If something at a yard sale is far more valuable than the posted price, do you have to let the seller know?

 Logic (from the Greek logikē)1 refers to both the study of modes of reasoning (which are valid and which are fallacious ) and the use of valid reasoning. It examines general forms that arguments may take. ( Wikipedia)  Reason, is the human capacity for making sense of things, for establishing and verifying facts, and changing or justifying practices, institutions, and beliefs based on new or existing information. The concept of reason is sometimes referred to as rationality. ( Wikipedia)  Intuition is the ability to acquire knowledge without inference and/or the use of reason. "The word 'intuition' comes from the Latin word 'intueri' which is usually translated as 'to look inside ' or 'to contemplate '."2 Intuition provides us with beliefs that we cannot justify in every case. ( Wikipedia)

 Ethics – A concept where “how you behave” is based on human logic (right vs wrong), human reason ( rationality ) and human intuition (trusting your gut reaction).  Ethics is NOT the use of logic, reason or intuition when imposed on you by a 3 rd party. (i.e. religion or political ideologies)

 Business ethics – A concept of using logic, reason and intuition when dealing with problems that occur during a business situation.  In this case, your company’s logic, reason and intuition are intertwined with your own.  International Business Ethics – A concept of using logic, reason and intuition when dealing with problems that occur during a business situation in a foreign country or between two companies from different countries.

What are Ethics at Chemical?  “ Dow's policy is to be lawful, highly-principled and socially responsible in all of its business practices. Dow expects employees to learn and comply with all company policies and laws applicable to their job responsibilities and to adhere to the guiding principles outlined in this Code.”  Dow's Code of Business Conduct summarizes many of the ethical principles and policies created to deal with issues such as bribery, political contributions, equal employment opportunity, and environment, health and safety  Ethical behavior is everyone's responsibility. Our goal is to create an atmosphere where our people feel comfortable that they have the knowledge and support to protect our company's values." David Wilkins, Director of Ethics and Compliance for Dow

So, what are Ethics? Using your human logic, reason and intuition to make decisions? Being lawful, principled and socially responsible? or, Following the practices, policies, laws and values of your employer?

Main Obstacle in International Business Ethics Every culture and nation has its own values, history, customs and traditions, they have developed their own ethical values and understanding of ethical principles; There is no international ethical code of conduct accepted and followed by all the countries; Efforts to create an ethical cooperation framework to enhance ethical behavior in international business have taken place without resolve; It is hard to outline those ethical values which would be understandable, acceptable and important for representatives of all the continents simultaneously within different types of international cooperation projects. - Sourced from The World Trade Organization

CODE OF ETHICS (Who’s are these?)  Give first consideration to the objectives and policies of my institution.  Strive to obtain the maximum value for each dollar of expenditure.  Decline personal gifts or gratuities.  Grant all competitive suppliers equal consideration insofar as state or federal statute and institutional policy permit.  Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.  Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the product.  Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes.  Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier; and/or be willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of my institution permit.  Accord a prompt and courteous reception insofar as conditions permit to all who call on legitimate business missions.  Cooperate with trade, industrial and professional associations, and with governmental and private agencies for the purposes of promoting and developing sound business methods.  Foster fair, ethical and legal trade practices.

 Part II: UN- ETHICS

 Q: Did the government buy 79 percent of all vehicles sold by General Motors in June?  A: No, that viral rumor is false. All fleet customers combined — including rental car companies and state and local governments — accounted for less than one-third of GM’s June sales.  Q: Has President Barack Obama signed 900 executive orders, some of which create martial law?  A: No. Obama’s executive orders do not create martial law. And so far he has signed 139 executive orders — not 900.  Q: Would a “list of Republican budget cuts” by the “new Republican House” slash $2.5 trillion from federal spending over 10 years?  A: The list is real. But so far, there has been no action on the bill, which was sponsored by 33 conservative GOP House members.  Q: Is the Democratic National Convention hosting a Muslim “Jumah” prayer service after rejecting a Catholic cardinal’s offer to lead a prayer?  A: No. A Muslim group scheduled an event that was independent of the convention at a city park. The cardinal is leading the convention’s closing prayer.

Where else can you find Ethics (Code of Conduct) in International Business?  Organized Criminal Organizations have Ethics, but are they “ethical”?  Terrorist Organizations have their own Ethics, but are they “ethical”?.  The Russian Mob even has a Court System based on Russia’s Judicial Code of Ethics ( Is Enforceable Justice ethical?)

So, what are Ethics? Using your human logic, reason and intuition to make decisions? Being lawful, principled and socially responsible? or, Following the practices, policies, laws and values of your employer?

 Resorting to dishonesty, trickery or deception  Distortion of facts to mislead or confuse  Manipulating people emotionally by exploiting their vulnerabilities  Greed to amass excessive profit  Creation of false documents to show increased profits  Invasion of privacy used as leverage, for obtaining personal or professional gain  Sexual discrimination  Human Trafficking and Slavery

 Subway-Minutka Joint Venture  (St. Petersburg, Russia)

Know your partners!!!

How to be Corrupt “People are as corrupt as the system allows them to be.”  Corruption is the abuse of entrusted power for private gain.. Bribes; Kickbacks, Embezzlement  Industries most prone to Corruption: Construction, real estate, oil and gas sectors  Companies based in emerging economic giants, such as China, India and Russia, are perceived to routinely engage in bribery when doing business abroad

How to Bribe 1. Offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal or a breach of trust. 2. Soliciting, arranging or accepting bribes intended for the employee’s benefit or that of the employee’s family, friends, associates or acquaintances. 3. Indirect contributions to political parties, organizations or individuals engaged in politics, as a way of obtaining advantage in business transactions. 4. Gifts, hospitality or expenses whenever they could affect or be perceived to affect the outcome of business transactions and are not reasonable and bona fide.

Topics if there is time…  Traveled to Saigon, Phnom Pehn, Vientiane and Tehran (1973)  Worked in the Professional Theatre ( )  Organized Industrial Tradeshows and Conferences in China, Japan, Mexico and Russia ( )  Was interrogated by the KGB (1993)  Operating a business in Russia with the protection of the Russian Mob ( )  Went bear hunting in Siberia and then took a Tupelo jet to Pyong Yang, North Korea (1995)  Almost jammed with President Clinton at a Jazz Club in Russia (1998)  Provided personal mobile communications to Ahmed Chalabi (Iraqi Exiles) and the Secretary of Defense/Coaltition Provisional Authority and others. ( )  Additional Lectures for Outsourcing; Tradeshows; Global Roaming