BUSINESS ETHICS

Business EthicsBusiness Ethics 11

BUSINESSBUSINESS ETHICSETHICS

Bill BaddorfBill Baddorf

[email protected]@ngu.edu

915-3654915-3654

mailto:[email protected]


Ethics TestEthics Test

Quick and easy … Quick and easy … First thought that comes to your mind.First thought that comes to your mind.


QUICK TEST OF YOUR ETHICS BELIEFSQUICK TEST OF YOUR ETHICS BELIEFS Answer each question with your first reaction. Circle the number, from 1 to 4, that best Answer each question with your first reaction. Circle the number, from 1 to 4, that best

represents your beliefs if 1 represents “Completely Agree” and 4 represents “Completely represents your beliefs if 1 represents “Completely Agree” and 4 represents “Completely Disagree.”Disagree.”

I consider myself the type of person who does whatever it takes to get the job done, period.I consider myself the type of person who does whatever it takes to get the job done, period. 1 2 3 41 2 3 4 Ethics should be taught at home and in the family, not in professional or higher education.Ethics should be taught at home and in the family, not in professional or higher education. 1 2 3 41 2 3 4 I believe that the “golden rule” is that the person who has the gold rules.I believe that the “golden rule” is that the person who has the gold rules. 1 2 3 41 2 3 4 Rules are for people who don’t really want to make it to the top of a company.Rules are for people who don’t really want to make it to the top of a company. 1 2 3 41 2 3 4 Acting ethically at home and with friends is not the same as acting ethically on the job.Acting ethically at home and with friends is not the same as acting ethically on the job. 1 2 3 41 2 3 4 I would do what is needed to promote my own career in a company, short of committing a I would do what is needed to promote my own career in a company, short of committing a

serious crime.serious crime. 1 2 3 41 2 3 4 Cutthroat competition is part of getting ahead in the business world.Cutthroat competition is part of getting ahead in the business world. 1 2 3 41 2 3 4 Lying is usually necessary to succeed in business.Lying is usually necessary to succeed in business. 1 2 3 41 2 3 4 I would hide truthful information about someone or something at work to save my job.I would hide truthful information about someone or something at work to save my job. 1 2 3 41 2 3 4 I consider money to be the most important reason for working at a job or in an I consider money to be the most important reason for working at a job or in an

organization.organization. 1 2 3 41 2 3 4 Add up all the points.Add up all the points. Total Score is _________Total Score is _________


Self Grading of TestSelf Grading of Test

Add up all the numbers you circled.Add up all the numbers you circled. What was your grade? 10? 15? 30? 40?What was your grade? 10? 15? 30? 40? ………………………………………………………………………………………….... The lower the score, the more questionable The lower the score, the more questionable

are your ethical principles regarding are your ethical principles regarding business activities.business activities.

10 is the lowest … 40 is the highest.10 is the lowest … 40 is the highest. Consider why you answered as you did.Consider why you answered as you did.


R R Business ethics is about Business ethics is about relationships, values, justice, and relationships, values, justice, and identity (personal, professional, identity (personal, professional, corporate, national, and global).corporate, national, and global).

Why does the corporation exist? What is its Why does the corporation exist? What is its raison d’etre?raison d’etre?

How are we going to treat stakeholders?How are we going to treat stakeholders? What’s a stakeholder?What’s a stakeholder? What is our purpose, our values, our What is our purpose, our values, our

culture?culture?


RRWe need an ethical framework to We need an ethical framework to figure this all out!figure this all out!

To make decisions that matter.To make decisions that matter. To collect and analyze our thoughts.To collect and analyze our thoughts. To decide what is right: To decide what is right:

EthicallyEthically MorallyMorally EconomicallyEconomically SociallySocially LegallyLegally Spiritually … and often these disagree!!!Spiritually … and often these disagree!!!


RRFoot Stomper #1 – Classical ethical Foot Stomper #1 – Classical ethical principles remain constant!principles remain constant!

What is the source of What is the source of the mostthe most classical classical source of ethics?source of ethics?

The BIBLE! (keep these Scriptures in mind The BIBLE! (keep these Scriptures in mind for your Operations Manual)for your Operations Manual)


RRSource of all TruthSource of all Truth Heb 13:8Heb 13:8 Jesus Christ is the same yesterday and today and forever. Jesus Christ is the same yesterday and today and forever. NASUNASU

Matt 5:18Matt 5:18 "For truly I say to you, until heaven and earth pass away, not the "For truly I say to you, until heaven and earth pass away, not the

smallest letter or stroke shall pass from the Law until all is smallest letter or stroke shall pass from the Law until all is accomplished. accomplished.

NASUNASU

2 Tim 3:16-172 Tim 3:16-17 16 All Scripture is inspired by God and profitable for teaching, for 16 All Scripture is inspired by God and profitable for teaching, for

reproof, for correction, for training in righteousness; 17 so that the man reproof, for correction, for training in righteousness; 17 so that the man of God may be adequate, equipped for every good work.of God may be adequate, equipped for every good work.

NASUNASU


HousekeepingHousekeeping

Attendance Roster (pass in Ethics Pledge – Attendance Roster (pass in Ethics Pledge – print name – top right)print name – top right)

SyllabusSyllabus Ethics PledgeEthics Pledge 7 step Case Analysis7 step Case Analysis Principles of Operations JournalPrinciples of Operations Journal


Ethics – what is it?Ethics – what is it?

Webster: Relating to, or treating of morals. Webster: Relating to, or treating of morals. Science of morals, moral principles, rules of Science of morals, moral principles, rules of conduct.conduct.

Weiss: Asking what is “right and wrong, Weiss: Asking what is “right and wrong, good and bad, and harmful and beneficial…”good and bad, and harmful and beneficial…”

Bruce Kaye: (Law, Morality and the Bible) Bruce Kaye: (Law, Morality and the Bible) “The ultimate goal of the day-to-day ethical “The ultimate goal of the day-to-day ethical actions of the Christian is the glory of God.”actions of the Christian is the glory of God.”

World café: how did you describe Ethics?World café: how did you describe Ethics?


Chapter OneChapter One

Business Ethics, the Business Ethics, the Changing Environment, Changing Environment,

and Stakeholder and Stakeholder ManagementManagement

Business Ethics: A Stakeholder and Issues Management Approach, 4e, Joseph W. WeissCopyright ©2006 by South-Western, a division of Thomson Business & Economics. All rights reserved.


Recent Examples of Ethical Recent Examples of Ethical Events in Corporate AmericaEvents in Corporate America

ScandalsScandals– EnronEnron– TycoTyco– WorldCom, etc.WorldCom, etc.

Excessive CEO pay and poor firm Excessive CEO pay and poor firm performanceperformance

Sarbanes-Oxley Act of 2002Sarbanes-Oxley Act of 2002 Outsourcing trends Outsourcing trends


Figure 1.1: Environmental Dimensions Figure 1.1: Environmental Dimensions Affecting Industries, Organizations, and JobsAffecting Industries, Organizations, and Jobs


Figure 1.2: Primary vs. Secondary Figure 1.2: Primary vs. Secondary Stakeholder GroupsStakeholder Groups


Secondary StakeholdersSecondary Stakeholders

Local community groupsLocal community groups Special-interest groupsSpecial-interest groups Consumer groupsConsumer groups Environmental groupsEnvironmental groups MediaMedia Society-at-largeSociety-at-large American Civil Liberties groupsAmerican Civil Liberties groups

Should managers pay attention to the needs of Should managers pay attention to the needs of these groups? What priority should they have?these groups? What priority should they have?


What is Business Ethics? What is Business Ethics?

Laura Nash has defined business ethics as Laura Nash has defined business ethics as “the “the study of how personal moral norms apply to the study of how personal moral norms apply to the activities and goals of commercial enterprise,activities and goals of commercial enterprise,” ” as dealing with three basic areas of managerial as dealing with three basic areas of managerial decision making:decision making:

1.1. Choices about what the laws should be and Choices about what the laws should be and whether to follow themwhether to follow them

2.2. Choices about economic and social issues Choices about economic and social issues outside the domain of lawoutside the domain of law

3.3. Choices about the priority of self-interest over the Choices about the priority of self-interest over the company’s interestscompany’s interests


Unethical Business Practices Unethical Business Practices of Employeesof Employees

Showing respect to those who act unethicallyShowing respect to those who act unethically Abusive or intimidating behaviorAbusive or intimidating behavior Misrepresentation of hours workedMisrepresentation of hours worked Lying Lying Withholding informationWithholding information

Context issues:Context issues:– Companies in transition (mergers, downsizing)Companies in transition (mergers, downsizing)– Younger managers and employees with lower Younger managers and employees with lower

tenure in the organizationtenure in the organization


When Organizations Do When Organizations Do Well Well

in Regard to Ethicsin Regard to Ethics

Top management keeps promises and discusses Top management keeps promises and discusses the importance of ethicsthe importance of ethics

Good role models for ethical behavior; honesty Good role models for ethical behavior; honesty and respect practiced moreand respect practiced more

Less unethical behavior observed since 2000Less unethical behavior observed since 2000 More misconduct being reported by employees More misconduct being reported by employees

since 2000since 2000


Where the Most Unethical Where the Most Unethical Behavior HappensBehavior Happens

1.1. GovernmentGovernment

2.2. SalesSales

3.3. LawLaw

4.4. MediaMedia

5.5. FinanceFinance

6.6. MedicineMedicine

7.7. BankingBanking

8.8. ManufacturingManufacturing


The Costs of Doing Business The Costs of Doing Business UnethicallyUnethically

Billions of dollars each year in lawsuits and Billions of dollars each year in lawsuits and settlementssettlements

Deterioration of relationshipsDeterioration of relationships Damage to reputationDamage to reputation Declining employee productivity, creativity, Declining employee productivity, creativity,

and loyaltyand loyalty Ineffective information flow throughout the Ineffective information flow throughout the

organizationorganization Absenteeism and turnoverAbsenteeism and turnover Theft (est. $600 billion annually)Theft (est. $600 billion annually)


Figure 1.3: Business Ethics LevelsFigure 1.3: Business Ethics Levels


Key Questions if Faced with an Key Questions if Faced with an Ethical DilemmaEthical Dilemma

What are my core values and beliefs?What are my core values and beliefs? What are the core values and beliefs of my organization?What are the core values and beliefs of my organization? Whose values, beliefs, and interests may be at risk in this Whose values, beliefs, and interests may be at risk in this

decision? Why?decision? Why? Who will be harmed or helped by my decision or by the Who will be harmed or helped by my decision or by the

decision of my organization?decision of my organization? How will my own and my organization’s core values and How will my own and my organization’s core values and

beliefs be affected or changed by this decision?beliefs be affected or changed by this decision? How will I and my organization be affected by the How will I and my organization be affected by the

decision?decision? WHAT’s MISSING HERE??WHAT’s MISSING HERE??


Key Questions if Faced with an Key Questions if Faced with an Ethical DilemmaEthical Dilemma

#1: What does the Bible say?#1: What does the Bible say? This is the reason for the Principles of This is the reason for the Principles of

Operation Journal … what Operation Journal … what doesdoes the Bible the Bible say? say?

Are my “core beliefs and beliefs of my Are my “core beliefs and beliefs of my organization” more or less important than organization” more or less important than what the Bible says?what the Bible says?


Ps 119:11Ps 119:11 11 Your word I have treasured in my heart,11 Your word I have treasured in my heart, That I may not sin against You. That I may not sin against You.

Ps 119:89Ps 119:89 Forever, O LORD,Forever, O LORD, Your word is settled in heaven. Your word is settled in heaven.

Ps 119:105Ps 119:105 Your word is a lamp to my feet Your word is a lamp to my feet And a light to my path. And a light to my path.

Ps 119:133Ps 119:133 133 Establish my footsteps in Your word,133 Establish my footsteps in Your word, And do not let any iniquity have dominion over me. And do not let any iniquity have dominion over me.

Ps 119:140Ps 119:140 140 Your word is very pure,140 Your word is very pure, Therefore Your servant loves it. Therefore Your servant loves it.

Ps 119:160Ps 119:160 160 The sum of Your word is truth,160 The sum of Your word is truth, And every one of Your righteous ordinances is everlasting. And every one of Your righteous ordinances is everlasting.

John 17:17-18John 17:17-18 A Sanctify them in the truth; Your word is truth. A Sanctify them in the truth; Your word is truth.


Aaron FeuersteinAaron Feuerstein

Malden Mills FireMalden Mills Fire Jewish – relying on lessons from the TorahJewish – relying on lessons from the Torah Kept everyone on salary while closedKept everyone on salary while closed Rebuilt & borrowed $ to upgradeRebuilt & borrowed $ to upgrade ““I did it because it was the right thing to do”I did it because it was the right thing to do” DO RIGHT BECAUSE IT’S RIGHT TO DO DO RIGHT BECAUSE IT’S RIGHT TO DO

RIGHT!RIGHT!


HomeworkHomework

Today’s: 2, 3, 6, 7, 8, (9/10think on those)Today’s: 2, 3, 6, 7, 8, (9/10think on those) ReviewReview Ethical Dilemma: You’re on the Hot SeatEthical Dilemma: You’re on the Hot Seat

– Questions 1 - 3Questions 1 - 3


EthicsEthicsThe Law of ChristThe Law of Christ

John 15:8-11John 15:8-11 8 "8 "My Father is glorified by thisMy Father is glorified by this, that you , that you bear much fruitbear much fruit, ,

and so prove to be My disciples. 9 "Just as the Father has and so prove to be My disciples. 9 "Just as the Father has loved Me, I have also loved you; abide in My love. 10 " loved Me, I have also loved you; abide in My love. 10 " If If you keep My commandmentsyou keep My commandments, you will , you will abide in My loveabide in My love; ; just as I have kept My Father's commandments and abide just as I have kept My Father's commandments and abide in His love. 11 " These things I have spoken to you so that in His love. 11 " These things I have spoken to you so that My joy may be in you, and My joy may be in you, and that your joy may be made fullthat your joy may be made full. .

NASVNASV


See You Thursday!See You Thursday!Build on a good foundationBuild on a good foundation

BUSINESS ETHICS

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