1. MANAGING BUSINESS ETHICS
Introduction Part 1
Referencing
Chapters 1 Trevino & Nelson, Managing Business Ethics. NY: Wiley, 1999.

2. Learning Objectives What is “business ethics?”
Why do so many people think “business ethics” is an oxymoron? (Why are people cynical and what can we do about it?)
Is business ethics a fad or an ‘afterthought’?
Can business ethics be taught?

3. What is Ethics ?
Ethics can be understood as sets of formal and informal standards of conduct that people use to guide their behavior.
These standards are based in part on principles derived from core values such as honesty, respect and trust.
Ethics Resource Center

4. So. . .What is Business Ethics ?
The principles, norms and standards of conduct governing an individual or a group.
Trevino & Nelson, Managing Business Ethics. NY: Wiley, P.4

5. Ethics Examples: The "Six Pillars of Character" by The Josephson Institute of Ethics
Trustworthiness: honesty, integrity, promise-keeping, loyalty
Respect: autonomy, privacy, dignity, courtesy, tolerance, acceptance
Responsibility: accountability, pursuit of excellence
Caring: compassion, consideration, giving, sharing, kindness, loving
Justice and fairness: procedural fairness, impartiality, consistency, equity, equality, due process
Civic virtue and citizenship: law abiding, community service, protection of environment

6. “Ethical Dilemmas” . . . . . . . . . . . . . . . . . . . . . . a textbook definition
Situations concerning right and wrong where values are in conflict.
Trevino & Nelson, Managing Business Ethics. NY: Wiley, P.4

7. An Ethical Dilemma
. . .arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences. Right or wrong cannot be clearly identified. (Daft & Marcic, p.137)

8. Are we cynical about ethics?
But Sir, you said to install video monitors
where ever we suspected unethical activity.

9. A Workplace Perspective on Cynicism
“What values should we live by? What are we here to do?
Modern workplaces offer little help in finding answers to these perplexing queries. As a result, too many of us drift along with little sense of direction and without a moral compass to guide us through the ethically slippery world of work.
This deepens our discouragement about work and, ultimately, about life. You probably know people who are situationally smart but spiritually bankrupt.
Lee G. Bolman & Terence E. Deal, Escape from Cluelessness: A Guide for the Organizationally Challenged. American Management Association, 2000.

10. The Management Challenge Jeffrey M
The Management Challenge Jeffrey M. Kaplan, The Conference Board Program Director.
"Many companies proclaim the creation or expansion of business ethics and compliance programs with great fanfare and the best of intentions. But often businesses are unable to maintain the credibility of their programs over the long run, with devastating consequences for employees, shareholders, and others.”

11. Why are managers cynical about Business Ethics?
General Corporate Values & Goals
Business preoccupation with gain
Perception that only results are important
Competition rather than collaboration
Corporate Response to Ethical Issues
Generally accepted unethical practices in certain industries.
Acceptance of unethical behavior
Ineffective enforcement of ethics codes
Failure to reinforce ethical behavior

12. How common is misconduct at work.
About one in every three employees observe misconduct at work.

13. 5 types of misconduct observed most frequently include:
Lying;
Withholding needed information;
Abusive or intimidating behavior toward employees;
Mis-reporting actual time or hours worked; and
Discrimination.

14. The Good News: Survey of Workplace Ethics
found that employee perceptions and key ethics outcomes are more positive when:
Organizations have ethics programs in place,
Employees see ethical values like honesty, respect and trust applied frequently at work, and
Organizational leaders and supervisors are seen as modeling ethical behavior.
2000 National Business Ethics Survey

15. Substantially improved society
Is Business Ethics a Fad or an Afterthought’? Results from Attention to business ethics !
Substantially improved society
Helps maintain a moral course in turbulent times
Cultivates strong teamwork & productivity
Support employee growth and meaning
Helps ensure that policies are legal.
Helps avoid criminal acts “of omission” & can lower fines
Helps manage values associated with quality management, strategic planning and diversity management
Promotes a strong public image
Cumulative Benefits – the “bottom line”
Complete Guide to Ethics Management: Ethics Toolkit for Managers

16. Can Business Ethics Be Taught in College Programs?
Felix Rohatyn - “No, not past the age of 10”
Lester Thurow - “Not unless students have already learned ethics from families, clergy, previous school or employers”

17. Should Employees Know the Difference between Right & Wrong?
“Bad Apples”
Individuals of good character should be able to choose well without special training.
“Bad Barrels”
Good character doesn’t prepare individuals to deal with very special ethical problems unique to their particular occupation or organization.

18. Factors that Affect Individual Ethical Decision-Making Behavior
Characteristics
Cognitive
Bias
MORAL
JUDGMENT
Stages of
Moral
Development
AWARENESS
Ethical
Dilemma
Ethical/
Unethical
Behavior
Structural
Characteristics
of Organization
Organizational
Culture
Issue
Intensity