ETHICAL VS UNETHICAL YOU DECIDE!!!

ELIOT L. SPITZER Former NY State Attorney General Former NY State Attorney General Governor of New York Governor of New York Client of a Prostitution Ring Client of a Prostitution Ring

Bernard Madoff New York Investor New York Investor Well Respected by Wealthy Clients Well Respected by Wealthy Clients $50 Billion Ponzi Scheme $50 Billion Ponzi Scheme

John Thain CEO of Merrill Lynch CEO of Merrill Lynch Authorize $3.6 Billion in Bonuses to Top 200 Employees ($18 million) just before Bank of America signed the deal Authorize $3.6 Billion in Bonuses to Top 200 Employees ($18 million) just before Bank of America signed the deal

Allen Stanford Owner of Stanford Group Owner of Stanford Group Knighted in Antigua as Sir Allen Knighted in Antigua as Sir Allen International Playboy International Playboy Center of a $8 Billion Fraud Investigation Center of a $8 Billion Fraud Investigation

What is Ethics? the principles of conduct governing an individual or a group the principles of conduct governing an individual or a group specifically the standards you use to decide what your conduct should be specifically the standards you use to decide what your conduct should be Involve normative judgments either good or bad, right or wrong, better or worse Involve normative judgments either good or bad, right or wrong, better or worse

Personal Ethics Depends on personal beliefs and loyalties Depends on personal beliefs and loyalties Results in behavior in a persons life in their relationships, family and friends Results in behavior in a persons life in their relationships, family and friends Gives us pride and confidence Gives us pride and confidence Often deep within us, not written Often deep within us, not written Can change with major events in our lives Can change with major events in our lives

Professional Ethics Depends on the requirements of the profession looking out for the interest of the organization as well as the customers Depends on the requirements of the profession looking out for the interest of the organization as well as the customers Legally held by our professional ethics, such as confidentiality and due diligence Legally held by our professional ethics, such as confidentiality and due diligence Usually written and signed Usually written and signed

Ethical decisions involve morality Society’s accepted ways of behavior Society’s accepted ways of behavior Address matter of serious consequences such as murder, lying, slander, fraud Address matter of serious consequences such as murder, lying, slander, fraud Moral judgments trigger strong emotions Moral judgments trigger strong emotions

Ethics and the Law Some actions may be legal but not right Some actions may be legal but not right i.e. firing a person before they have earned the right to their pension may be unethical but not illegal i.e. firing a person before they have earned the right to their pension may be unethical but not illegal Some retailers survey their customer’s buying habits using electronic and infrared surveillance equipment. Not illegal at the moment, but many believe it is an encroachment on their privacy. Some retailers survey their customer’s buying habits using electronic and infrared surveillance equipment. Not illegal at the moment, but many believe it is an encroachment on their privacy.

Individual Standards People bring to their jobs what is morally right and wrong People bring to their jobs what is morally right and wrong They also shoulder most of the credit or blame for the decisions that he or she makes. They also shoulder most of the credit or blame for the decisions that he or she makes. A study was conducted to measure the degree to which age, gender, martial status, education and the number of years employed. It was determined that older workers had stricter interpretation of ethical standards than younger employees A study was conducted to measure the degree to which age, gender, martial status, education and the number of years employed. It was determined that older workers had stricter interpretation of ethical standards than younger employees

Organizations Shapes Ethical Practices Ethical crises are sometimes caused by unscrupulous employees, but most often that is not the case. One employee’s character rarely causes corporate misconduct. Ethical crises are sometimes caused by unscrupulous employees, but most often that is not the case. One employee’s character rarely causes corporate misconduct. Unethical business practice involves the cooperation of others and reflects the values, attitudes, beliefs and behavioral pattern of others in the organization. Ethics is as much an organizational as a personal issue. Unethical business practice involves the cooperation of others and reflects the values, attitudes, beliefs and behavioral pattern of others in the organization. Ethics is as much an organizational as a personal issue.

Influence of Top Management Behavior of superiors is an important factor influencing ethical decisions Behavior of superiors is an important factor influencing ethical decisions Many managers seem to feel that unethical actions are acceptable if their superiors know about them and say nothing Many managers seem to feel that unethical actions are acceptable if their superiors know about them and say nothing

Ethic Policies and Codes The leader’s actions may be the single most important factor in fostering school division behavior of a high ethical standard The leader’s actions may be the single most important factor in fostering school division behavior of a high ethical standard Many schools have ethic codes Many schools have ethic codes –Top Manager’s role---top manager must make it clear about code enforcement not only to the employees, but the suppliers and customers –Approval of Code---executives must endorse the code –Communication of Code---to influence employee behavior, the ethics code must be communicated

How to Foster Ethics in the Workplace Emphasize top managements commitment Emphasize top managements commitment Publish a code Publish a code Establish compliance mechanisms Establish compliance mechanisms Involve personnel at ALL levels Involve personnel at ALL levels Measure Results Measure Results

Creating the Right Culture You know from your own experience that it’s not just what you say that’s important; it’s what you do as well. You know from your own experience that it’s not just what you say that’s important; it’s what you do as well.