Ethics and Me BSNS 5600

Ethics Defined The explicit, philosophical reflection on moral beliefs and practices. The difference between ethics and morality is similar to the difference between musicology and music. Ethics is a conscious stepping back and reflecting on morality, just as musicology is a conscious reflection on music. Lawrence M Hinman

Sources of Ethical Thinking Culture Religious teaching Laws and customs Values inherited from parents Learning – formal and informal Personal experiences – perceptions

Principles of Ethical Decision Making Role Morality Relativism Idealism Machiavellianism Conventional Morality

Deontology The ethical philosophy based on duty (from the Greek deon - duty). Subscribers include: Christians, especially traditionalists, fundamentalists Kantian philosophers (Categorical Imperative) Muslims Buddhists Fosters absolute and idealist approaches to ethics

Teleology The ethical philosophy based on the examination of the consequences of the action. Its best known branch is Utilitarianism, which was popularised by John Stuart Mill. Teleological thinking promotes relativism - the examination of the action within a context, or in terms of the value(s) of the consequences and their effects.

Business and Ethics “The practice of good business ethics amounts to no more than enlightened self interest” Mr. Pocock, CEO of Shell Oil, 1960’s Ultimately, our actions as business people will be evaluated against the values of the societies in which we operate - their continued tolerance of us depends on their perception of our worthiness.

Managers and Ethics Managers can have a strong influence on the ethical climate of their team. Selection of People Training, particularly Ethics Training Enforcement of a Code of Ethics Personal example and commitment © Unitec New Zealand

Personal Moral Philosophy The personal mix within the sales manager of : Deontology Teleology Ethical skepticism © Unitec New Zealand

Relativism v Idealism Relativism is the extent to which an individual rejects the existence of universal moral laws. Utilitarianism is a form of relativism, in that it takes each case on its merits. Idealism measures the extent to which an individual is concerned for the welfare of others and lends itself towards Kantian thinking, in that it implies universal obligations. © Unitec New Zealand

Forsyth’s Taxonomy High Relativism Low Relativism Situationists Absolutists Rejects moral codes Personal analysis of actions in each situation Relativistic Idealistic skeptic Accepts moral codes Ethical decisions must not harm others Deontologist High Idealism Subjectivists Exceptionists Rejects moral codes Personal values determine judgements, not universal codes Ethical egoist Accepts moral codes, but open to exceptions Optimal outcomes not possible for all Teleoligist utilitarian Low Idealism © Unitec New Zealand

Examples of Pressures Facing Managers Incentives to provide favorable earnings reports High rewards for short –term profits at expense of long-term growth Pressure to achieve results Greed Reputation Fear Other?

Ethical Checklist Recognize the Dilemma Get the Facts List the Options Make Your Decision

Common Ethics Issues Hiring and Firing Bullying Using Company Accounts Expense Accounts Gifts for Buyers Bribes Entertainment Sexual Harassment

Is it a Gift or a Bribe? * Have you or your colleagues ever offered potential clients personal gifts valued at more than $100 in exchange for their business?

Is it a Gift or a Bribe? In your opinion, would a personal gift valued at $100 - $500 given to a potential client by a salesperson constitutes a bribe?

Whistleblowing A last resort action Rarely rewarded Set-up systems for reporting ethics problems

Government Self-regulation Too much regulation and red tape slows business and raises costs

Building an ethics program Code of ethics Written Top management participation Ethics Training Regular discussions Examination of Cases

Table 10-1 Eight Ways to Keep Your Staff Honest Get support from top management showing that they expect you to follow the spirit and letter of the law. Develop and distribute an ethics policy. Establish the proper moral climate. If the bosses follow the rules, then the troops are apt to do likewise. Assign realistic goals. People who try to meet an unfair quota are more likely to rationalise their way to a dishonest behaviour. Set up controls when needed. Watch people who live above their income. Suggest that people call for help when they face unethical demands. Get together with your competition if payoffs are an industry problem. Blow the whistle if necessary.

Perceptions of Managers Higher levels of Relativism Lower levels of Idealism Become more idealistic with age Women are more idealistic than men

The Study Tested six hypotheses by survey of members of the AMA who belonged to the Sales Management Special Interest Group Sales managers are non-idealistic and relativist Older sales managers will be more idealistic, less relativist Women sales managers will be more idealistic than men More educated sales managers will be more relativistic Absolutist managers will be more harsh in their ethical judgements Absolutist managers will be less likely to engage in unethical practices

Findings Sales managers did not differ significantly in their ethical stance to other marketing managers Establishing an ethical culture, ethics training and codes of ethics should improve ethical behaviour in sales Older sales managers are less relativistic, younger managers need to be encouraged to be so Women are more idealistic than men Idealism seems a more reliable predictor of behaviour than relativism People make judgements and form attitudes first, then form behavioural intentions based on them.

Discussion Points Are ethics important to business people? What stance should they adopt? What actions might they take to ensure compliance with community values? Who comes first, the Shareholder. Other Stakeholders or the Customer? Why?