1. Developing Next Generation Leaders through Applied Know-How
Creativity and Innovation
The Dark Side of Creativity and Innovation Teaching Assistant , darija aleksić, PhD, FELU
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

2. Definition of unethical behavior
Unethical behavior is behavior that is either illegal or morally unacceptable to the larger community (Jones, 1991).
Moral - principles or rules of right conduct or the distinction between right and wrong
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

3. Exercise: individual
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

4. High-profile cases of unethical behavior
Back in the sixties, the Ford Motor Company set a clear goal to their engineers: produce a car for less than 2,000 dollars in a record time of 25 months (compared to the industry average of 43 months).
The engineers produced the Ford Pinto.
Engineers had discovered the potential danger of ruptured fuel tanks in preproduction crash tests, but the assembly line was ready to go.
In the memo Ford estimated the cost of fuel system modifications to reduce fire risks in roll over events to be $11 per car across 12.5 million cars and light trucks (all manufacturers), for a total of 137 million dollars.
The design changes were estimated to save 180 burn deaths and 180 serious injuries per year, a cost to society of 49.5 million dollars.
the company’s leaders decided to proceed.
53 individuals were killed (Kaptein, 2012).
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

5. High-profile cases of unethical behavior
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas.
Before its bankruptcy on December 2, 2001, Enron employed approxi. 20,000 staff and was one of the world's major electricity, natural gas, communications and pulp and paper companies, with claimed revenues of nearly 101 billion dollars during 2000.
Fortune named Enron "America's Most Innovative Company" for six consecutive years.
At the end of 2001, it was revealed that its reported financial condition was sustained by institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal.
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

6. High-profile cases of unethical behavior
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

7. High-profile cases of unethical behavior
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

8. Ethics and values Ethical behavior Company policies Legislation
Important and lasting beliefs or ideals shared by the members of a culture about what is good or bad and desirable or undesirable. Values have major influence on a person's behavior and attitude and serve as broad guidelines in all situations. Some common business values are fairness, innovation and community involvement.
Ethical behavior
Company policies
Legislation

9. Research findings
Creativity mediates a person’s ability to justify cheating and therefore increases the extent that people would lie (Gino & Ariely (2011).
Although creativity is desirable behaviour, it may also encourage employees to think in different ways, which, in turn, can result in the violation of social norms and expectations (Beaussart, Andrews, & Kaufman, 2013).
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

10. Ethical dilemma
A dilemma is a situation that requires a choice between options that are or seem equally unfavorable or mutually exclusive. The ethical dilemma is a complex problem, situation or opportunity that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

11. Innovation create changes, and sometimes these changes create negative effects.
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

12. Ethical blindness
Ethical blindness is defined as “the decision maker’s temporary inability to see the ethical dimension of a decision at stake” (Palazzo et al., 2012, p. 324).
Ethical blindness is an unconscious, context-bound, and, thus, temporary state in which individuals are “not aware of the fact that they deviate from their own values and principles and/or that they cannot and do not access those values when making a decision” (Palazzo et al., 2012, p. 325).
Individuals who fail to perceive that they behave unethically may be convinced that they are doing the right thing and are thus unlikely to seek ways to improve their behavior (Eldred, 2012).
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA

13. We perceive the world through a filter
Developing Next Generation Leaders through Applied Know-How project number: MK01-KA