1. Welcome! MT-499 Unit 9 Seminar (Business Ethics)

2. Contents Role of Ethics in Business Benefits of Ethics in the Workplace Myths about Ethics in the Workplace Ethics Theories General Ethics Theories Business Ethics Theories Ethics in the Work Place Developing a Code of Conduct Sample Code of Conduct Unit 9 Assignment Requirements Part 1: Code of Conduct Part 2: Final Modified Business Plan 2

3. Role of Ethics in Business 3 Benefits of Ethics in the Workplace Attention to business ethics has improved society. Ethics programs help maintain a moral course in tough times. Ethics programs cultivate teamwork and productivity. Ethics programs support employee growth and meaning. Ethics programs help ensure that policies are legal. Ethics programs help avoid criminal acts “of omission” and can lower fines. Ethics programs help manage values associated with quality, strategic planning, and diversity management. Ethics programs promote a strong public image. Ethics programs can have a positive impact on the bottom line. Last, but not least, formal attention to ethics in the workplace is the right thing to do. Authenticity Consulting, LLC. (2010). Complete guide to ethics management: An ethics toolkit for managers. Retrieved from http://www.managementhelp.org/ ethics/ethxgde.htm 3

4. Role of Ethics in Business (continued) 4 Myths about Business Ethics Business ethics is more a matter of religion than management. Our employees are ethical so we don't need attention to business ethics. Business ethics is a discipline best led by philosophers, academics and theologians. Business ethics only asserts the obvious: "do good!“ Business ethics is just the good guys preaching to the bad guys. Business ethics in the new policeperson on the block. Ethics can’t be managed Business ethics and social responsibility are the same thing. Our organization is not in trouble with the law, so we're ethical. Managing ethics in the workplace has little practical relevance. Authenticity Consulting, LLC. (2010). Complete guide to ethics management: An ethics toolkit for managers. Retrieved from http://www.managementhelp.org/ ethics/ethxgde.htm 4

5. Role of Ethics in Business (continued) 5 Guidelines for Managing Ethics in the Workplace Recognize that managing ethics is a process. The bottom line of an ethics program is accomplishing preferred behaviors in the workplace. The best way to handle ethical dilemmas is to avoid their occurrence in the first place. Make ethics decisions in groups, and make decisions public – as appropriate. Integrate ethics management with other management practices. Use cross-functional teams when developing and implementing the ethics management program. Value forgiveness. Note that trying to operate ethically and making a few mistakes is better than not trying it at all. Authenticity Consulting, LLC. (2010). Complete guide to ethics management: An ethics toolkit for managers. Retrieved from http://www.managementhelp.org/ ethics/ethxgde.htm 5

6. Role of Ethics in Business (continued) 6 A Possible Description of a Highly Ethical Organization There exists a clear vision and picture of integrity throughout the organization. The vision is owned and embodied by top management, over time. The reward system is aligned with the vision of integrity. Policies and practices of the organization are aligned with the vision; no mixed messages. It is understood that every significant management decision has ethical value dimensions. Everyone is expected to work through conflicting-stakeholder value perspectives. Authenticity Consulting, LLC. (2010). Complete guide to ethics management: An ethics toolkit for managers. Retrieved from http://www.managementhelp.org/ ethics/ethxgde.htm 6

7. Ethics Theories 7 General Ethics Theories Consequentialism Maintains that the majority of an action depends on the non-moral consequences that the action brings about. Values Clarification (Philosophical Relativism) Teaches that the most important aspect is not what one believes, but being aware one’s own feelings, beliefs, and values systems. People thus consider alternative models of thinking and acting. By acting thusly and making one’s own choices, one develops one’s own values. Utilitarianism States that the moral standard should be promotion of the best long-term interests of everyone concerned. Many utilitarianists say that which is intrinsically good is pleasure and happiness (known as the hedonistic calculus). Others say there are other things which are intrinsically good such as beauty, power, knowledge, etc. The needs of the many outweigh the needs of the few – or the one. Northern Arizona University (2010). Nine theories of ethics that rule the world. Retrieved from http://jan.ucc.nau.edu/~dgs2/theories.pdf 7

8. Ethics Theories (continued) 8 General Ethics Theories (continued) Legalistic Moralism (Moral Absolutism) States that there are pluralities of absolutes (or norms) with each one covering an area of human experience. These absolutes never conflict with each other. An action that is evil under one absolute is evil under every other absolute and could never be seen as good under any absolute. Situation Ethics Shows that since legalistic Moralism is encumbered with a bundle of predetermined rules and regulations and while antinomianism says that there are no absolutes, then decision making must be based on a “middle ground”. That middle ground then says the guidelines for decision-making must be 1) absolute love (agape) 2) general guidelines of helpfulness (sophia) 3) particular moment (kairos). Ethical Realism (the lesser of two evils) States that when absolute norms come into conflict (as they will eventually do) one must decide which to follow. Each solution offers limited alternatives, so the solution which produces the less of two evils is the one to be chosen. Northern Arizona University (2010). Nine theories of ethics that rule the world. Retrieved from http://jan.ucc.nau.edu/~dgs2/theories.pdf 8

9. Ethics Theories (continued) 9 General Ethics Theories (continued) Ethical Hierarcicalism (Graded Absolutism) Is the view that there are many universal norms, but they are not all intrinsically equal. Thus when a conflict takes place, we must obey the “higher” norm…we choose the greater of the two goods. Principle Ethics States that principles are merely value states or guidelines to actions (as opposed to rules or laws). Thus when principles encounter each other in conflict it is not a conflict of norms, but rather an exercise in reasoning and logic. Cognitive Moral Development States that ethics education is possible. Just as people develop mentally, physically, and emotionally, they develop a moral cognizance. Using critical thinking tactics such as the Socratic method, people can solve their ethical dilemmas. Northern Arizona University (2010). Nine theories of ethics that rule the world. Retrieved from http://jan.ucc.nau.edu/~dgs2/theories.pdf 9

10. Ethics Theories (continued) 10 More General Ethics Theories Deontology (Kantism) States that people should adhere to their obligations and duties when analyzing an ethical dilemma. This means that a person will follow his or her obligations to another individual or society because upholding one's duty is what is considered ethically correct. Intuitionism States that the concept of “good” is indefinable and thus one should follow one’s basic moral intuitions. Virtue Ethics (Aristotle) There are many virtues and one should live life to develop one’s faculties to the fullest and display their virtues through the way they live. Dearinger, R. (2010). Business ethics theory taxonomy. Retrieved from http://works.bepress.com/cgi/viewcontent.cgi? article=1002&context=ronald_dearinger 10

11. Ethics Theories (continued) 11 More General Ethics Theories (continued) Confucianism Silver Rule: Do not do to others what you would not want them to do to you. Concept of Yin and Yang Humanism States that ethics are an inherent part of the human condition. Reason and intelligence structure how people set values and determine right from wrong. Normative (and Applied) Ethics Normative ethics tries to provide a theory of how we should live our lives. Applied ethics seeks to apply normative ethical theories to specific issues, telling what it is right and wrong for us to do. Dearinger, R. (2010). Business ethics theory taxonomy. Retrieved from http://works.bepress.com/cgi/viewcontent.cgi? article=1002&context=ronald_dearinger 11

12. Ethics Theories 12 Normative Business Ethics Theories Stockholder Theory Managers act as agents for stockholders Stakeholder Theory Regardless of whether stakeholder management leads to improved financial performance, managers should manage the business for the benefit of all stakeholders. Social Contract Theory All businesses are ethically obligated to enhance the welfare of society by satisfying consumer and employee interests without violating any of the general canons of justice. Hasnas, J. (1998). The normative theories of business ethics: A guide for the perplexed. Retrieved from http://web.sau.edu/RichardsRandyL/ business_ethics_filing_cabinet_normative_theories_of_business_e.htm 12

13. Code of Conduct 13 Developing a Code of Conduct First, develop a code of ethics. Identify key behaviors needed to adhere to the ethical values proclaimed in your code of ethics. Include wording that indicates all employees are expected to conform to the behaviors specified in the code of conduct. Obtain review from key members of the organization. Note that you cannot include preferred behaviors for every possible ethical dilemma that might arise. Authenticity Consulting, LLC. (2010). Complete guide to ethics management: An ethics toolkit for managers. Retrieved from http://www.managementhelp.org/ ethics/ethxgde.htm 13

14. Code of Conduct (continued) 14 Topics Often Covered in a Code of Conduct: Preferred style of dress Avoiding illegal drugs Following instructions of superiors Being reliable and prompt Maintaining confidentiality Not accepting personal gifts from stakeholders as a result of company role Avoiding racial or sexual discrimination Avoiding conflict of interest Complying with laws and regulations Not using organization's property for personal use Not discriminating against race or age or sexual orientation Reporting illegal or questionable activity Anything of particular interest to your specific organization Authenticity Consulting, LLC. (2010). Complete guide to ethics management: An ethics toolkit for managers. Retrieved from http://www.managementhelp.org/ ethics/ethxgde.htm 14

15. Unit 9 Assignment (Part 1) 15 Code of Conduct Create a code of conduct policy for your business. This assignment is not submitted (separately), and it must be included in the Final Modified Business Plan (see Part 2). Assignment Checklist: Prepare a framework, using concepts and values, for your Code of Conduct Incorporate any legal, social and ethical principles under which you would want your organization to operate Examine your Code to make sure that it will be operable and will empower stakeholders to make ethical decisions 15

16. Unit 9 Assignment (Part 2) 16 Final Modified Business Plan Download and print out the “Final Project PDF” document from the Unit 9 Assignment Page Please follow the instructions carefully from the PDF document Don’t forget to include your Code of Conduct from Part 1 of this assignment. Also, ensure you follow any instructions on the template (including the instructions on the Table of Contents page of the Template). For example, your Table of Contents should be updated and any instructions in the template document should be deleted. 16

17. 17 Discussion & Final Questions? Congratulations!!!! 17