1. 9.03 Explain ethical responsibility in the sports and entertainment industry

2. Ethics  Are the moral decisions of what is right or wrong  Ethical behavior is knowing the difference between right and wrong and consciously choosing to do what is right.

3. Ethical conduct  Ethical conduct of an organization is determined by the action,attitudes, or behavior of employees

4. Ethics  Ethics of companies, athletes, and entertainers has come under increased public scrutiny in recent years.

5. Code of ethics  A written statement of responsibility for proper actions attitudes, or behaviors for employees.

6. Ethical responsibilities to customers  Full disclosure: a. Customers must be informed of products features, conditions, and price. b. Companies have responsibility to inform customers of negative results from the use of products.

7. Ethical responsibilities to customers 2. Truth in advertising a. False advertising is unethical and illegal.

8. Ethical responsibilities to customers b. “Bait and switch” practices lure customers with low-price product, but the company has no intent to sell that product to customer.  Company then attempts to persuade customer to purchase a higher priced product.

9. Bait and switch: Online electronics stores caught in fraud  Once an order was placed, the companies would call consumers and try to sell them additional or "upgraded" merchandise at inflated prices. If the consumer refused to purchase the additional merchandise, the companies would cancel the sale or claim the item was backordered for months. If the consumer did agree to purchase the additional merchandise, the companies would send them lower-quality merchandise than what was promised, or merchandise that the consumer never ordered in the first place. When customers tried to return the items, they would either be denied or be slammed with undisclosed fees. All of the companies further limited customers' ability to return merchandise by requiring them to speak to a live customer representative during limited business hours, and then refusing to answer those telephone calls.

10. Ethical responsibilities to customers 3. Price fixing is an illegal agreement between a manufacturer and a company to set prices for a product.

11. Price Fixing EXAMPLE http://www.tomshardware.com/news/European-Union-Price-Fixing-DRAM,10462.html  Over in Europe, a handful of chipmakers were fined by the European Union for illegally fixing prices. The names of the alleged companies include Elpida, Hitachi, Hynix, Infineon, Mitsubishi, Nanya, NEX, Samsung, and Toshiba.  The EU said that the price-fixing operation covered 1998 to 2002, and featured a network of contacts that shared secret company information. Apparently they all agreed to set a fixed price for DRAM chips sold to major PC makers and server manufacturers, and got away with it over the four years.  On a whole, the EU fined the group $404.2M USD. Samsung received the biggest hit, forced to cough up $179.1M USD whereas Infineon received a $70M USD fine.

12. Ethical responsibilities to customers 4. Unsafe products are manufactured with low quality or potentially harmful materials that could present hazard to customer.  Unsafe products can result in lawsuits and negative company or brand image.

13. Ethical responsibilities to customers  The Consumers Union is an independent, nonprofit testing and information organization that evaluates products for the benefit of consumers.

14. Ethical responsibilities to customers 5. The Federal Trade Commission(FTC) enforces federal antitrust and consumer protection laws such as advertised prices.

15. The Consumer Product Safety Commission  An independent federal regulatory agency.  The CPSC attempts to reduce the risk of injuries and deaths associated with consumer products by developing product standards, conducting research, and educating consumers about potential product hazards.

16. Do You Know?  The independent, nonprofit testing and information organization that evaluates products for the benefit of consumers is the: Consumer Union  As a sports agent, Maxwell was bound to his clients by a written statement of responsibility for proper actions. This is a: Code of ethics  Pops Beverage Wholesaler and Binks Beverage Wholesaler were competitors in a local town. Owners of the two companies secretly agreed to set their own prices together. This is: Price fixing

17. Do You Know?  An agency that enforces federal anti-trust and consumer protection laws, such as advertised prices is the: Federal Trade Commission  Jason was informed of the terms and conditions prior to purchasing a permanent seat license (PSL). The professional football team’s responsibility is to provide (a): Full disclosure  Knowing the difference between right and wrong and consciously choosing to do what is right Ethical Behavior  The recall of a particular model go-kart with exposed rear axles was issued by what federal agency in 1998? Consumer Product Safety Commission.

18. Ethical responsibility of employees Work habits 1.Work habits a. Be on ______ for work. b. Work hard. c. Be truthful and ________. d. Be reliable and dependable. e. Use initiative. f. Give proper notice if ______ a job.

19. Ethical responsibility of employees Loyalty 2. Loyalty a. Keep confidential information classified. b. Avoid gossip. c. Practice good work ________.

20. Ethical responsibility of employees Business image 3. Business image a. Make good first ________ with customers. b.Perform conduct that reflects positively upon business.

21. Character traits  Courage a. Having the determination to do right thing even when _______ don’t. b. Having the strength to follow ones conscience rather than the _______. c. Attempting difficult things that are worthwhile.

22. Character traits Good judgment 2. Good judgment. a. Choosing worthy _________ and setting proper priorities. b. Thinking through consequences of ones _________. c. Basing decisions on practical wisdom and good sense.

23. Character traits Integrity 3. Integrity a. Having inner strength to be truthful, trustworthy and honest in all things. b. Acting justly and honorably.

24. Character traits Kindness 4. Kindness a. Being considerable, considerate, courteous,helpful,and understanding of others. b. Showing care, compassion, friendship,and generosity. c.___________ others as one would like to be treated.

25. Character traits Perseverance 5. Perseverance a. Being persistent in pursuit of worthy goals despite difficulty, opposition, or discouragement. b. Exhibiting patience and having fortitude to try again when confronted with delays, mistakes or _____________.

26. Character traits  Respect a. Showing high regard for ___________, other people, self, property and country. b. Understanding that all people have value as human beings.

27. Character traits  Responsibility a.Being dependable in carrying out obligations and duties b.Showing reliability and consistency in words and conduct c.Being accountable for ones own actions d.Being committed to active involvement in ones ____________

28. Character traits  Self-discipline  Demonstrating hard __________ and commitment to purpose  Regulating oneself for improvement and restraining from inappropriate behaviors  Being in proper control of your ______, actions, impulses, and desires  Doing ones _______ in all situations

29. Importance of ethics in SEM  Employees have social responsibility to companies for which they work.  Responsibilities include being truthful, fair and honest in production, management or selling a _________

30. Importance of ethics in SEM  Athletes and entertainers hire agents to represent them. Agents may be lawyers or accountants.  Responsibilities include negotiating personal services agreements, ___________ and endorsements  Agents usually paid a percentage of PSA, contracts or endorsements

31. Importance of ethics in SEM  Handlers are individuals paid by athletes, entertainers, companies or teams.  Hired to assist with public _________ of athlete or entertainer by regulating their behavior

32. Importance of ethics in SEM  Companies, including teams, require employees to act _______.  Athletes or entertainers who are incapable or reluctant to act ethically require handlers because of the opportunities to make _____.  Often, the investment of hiring a handler is worth the _______.