Business Ethics

Values - form the basis of ethics, a set of moral principles that govern decisions and actions.

Universal values - are values shared by all cultures throughout history.

Business ethics – are moral principals applied to business issues and actions.

Imagine that you are working in a department store.

A co-worker puts an idea into the suggestion box, but signs it “anonymous.”

Your boss thinks it was you and compliments you on your excellent idea.

Would it be ethical to accept the credit? Would it be smart? Why, or why not?

You are meeting with your teacher after class for some special help.

The teacher is called out of the room to take a phone call.

While he’s gone you notice that next week’s exam is in plain view on his desk.

Would it be ethical to read it? Why, or why not?

You take a telephone message for a friend. The message is about a terrific job opening

that requires immediate action. You could easily pocket the message and

try to get the job yourself. Would that be ethical? Why, or why not?

How do we know whether or not something is ethical?

What does “ethical” mean?

For the next few days you will be watch a video series on the subject of business ethics called “Not For Sale.”

There are ten episodes that takes place in a department store named Krieger.

Today we will cover the first two episodes.

Please pay close attention to the different characters in today’s videos.

You will be asked to write a minimum of three paragraphs for a daily grade.

Your paragraphs must be created using Microsoft Word.

A grading rubric will be distributed to you before you leave class.

Your paragraphs are due by the end of class tomorrow.

Ms. Pruitt said, “Most business situations require simple moral choices…but once in a while the right decision will not be so obvious.”

What did she mean by that? Is there a difference between simple morality and business ethics?

John Kraft said to Lydia “if there’s a problem . . . You don’t talk to anyone else, you don’t call that help line, you leave it here. You join my team, we play by my rules.”

What did he mean? Is this right? Why did he tell her that?

After Collins accidentally broke the calculator, he decided to report his mistake rather than cover it up.

What do you think of his decision?

Ellen offended a customer by suggesting that she needed a larger dress size.

Was that unethical? What should she have done differently?

At the orientation meeting Ms. Pruitt said “Our ethics are not for sale.”

What does that mean?

When Lydia met her new boss, John Kraft, he commented on her good looks and suggested that she has a lot of boyfriends.

Was this appropriate? Unethical? Why do you think he did it? What do you think of the way she handled

it? What would you have done if you were

Lydia?

At the orientation meeting, Max said “We at Krieger’s believe that if you treat people fairly, they will be fair with you.”

Do you think he’s right about that? (Why, or why not?)

You are the lunchtime host at a popular restaurant. The waiting list is 30 minutes long. A customer offers you $20 to seat his party next.

Would it be ethical to accept the offer? (Why, or why not).

When you accept a job, what does the employer owe you, and what do you the employer?

What are the obligations of a salesperson to a customer?

Collins exploded at a customer he felt was being racist.

Do you agree with the way Collins handled it? How should Collins have handled it? If we don’t confront racists, make them “pay

a price” for there prejudice, then aren’t we failing to eliminate racism?

Wouldn’t the store be well rid of racist customers?

Wasn’t Lee at fault for making Collins handle it by himself?

Collins’ supervisor, Paul Lee, declined a salesman’s offer of a free lunch at an expensive restaurant.

Why? What do you think of his decision?

Lydia’s supervisor, John Kraft, accepted a gift of a weekend hunting trip from a supplier with whom he agreed to place an order in return.

Is that ethical? (Why, or why not?)

Collins was talking on the phone while a customer was waiting.

What’s wrong with that? Would it have been wrong if there had been

no customers waiting? Would it be wrong if he had nothing else to

do?

Write a minimum of three paragraphs about one of the characters in the “Not For Sale” video. Discuss the ethical situation the character found themselves in and how they dealt with that situation. Discuss how you would have handled the situation differently or why you feel the character handled the situation correctly. This will count as a daily grade.

Your paragraphs should be well organized. Make sure you cover the topic thoroughly. Pay close attention to your spelling and grammar.

Values - form the basis of ethics, a set of moral principles that govern decisions and actions.

Universal values - are values shared by all cultures throughout history.

Business ethics – are moral principals applied to business issues and actions.

Please make sure you have an assignment sheet and grading rubric before you leave. Remember that your assignment is due by end of class tomorrow.

 Daily grade assignment for tomorrow - Choose a rule from any code of behavior – school or employee handbook, traffic regulations, etc. – to write a one page essay. Argue in favor of having such a rule and defend it against possible objections. The essay should meet standards given by your English teacher.

What does “conflict of interest” mean? Give an example.

*Pay attention to the arguments people which people use to justify their behavior.*

“If you scratch my back, I’ll scratch yours!”

“Be careful who your friends are!”

“Everybody does it!”

When Lydia finds out her boss is paying $300 for $50 worth of shopping bags, he says, “It is standard practice to maintain good relationships even if it costs a little extra money.” What does he mean? Why is he doing it?

What do you think of the rationalization that “Everybody does it?”

When might it be ok to “pay a little extra”? What are some of the ways Liz and Sara try

to pressure Ellen into letting them shoplift? What’s wrong with what they do or say? How do Liz and Sara rationalize shoplifting

Krieger’s?◦ Do high prices = customers being ripped off?◦ Will the store miss it?

Liz and Sara are Ellen’s friends, while Krieger’s is just a summer job. Why should she side with Krieger’s and not her friends?

If you owned your own business and the profit or loss was your money, who would you prefer working for you – John Kraft or Max Krieger?

Which of them is better for customer goodwill? Store profits? Employee morale? Teamwork?

What is the problem

with being ignorant or

apathetic?

Whose problem is it?

How can either/both of these conditions prevent success in your chosen field?

How many things can you name that Roy has done wrong since his first day?

How does Roy deal with his dissatisfaction with his job? Is that appropriate?

When Max reprimands Roy for talking on the phone instead of helping his co-workers, Roy replies, “Who cares what they think?” What is wrong with that attitude?

Was it ok for Roy to stop to visit his father while he was making a delivery? Why or why not? Why was Max angry with Roy?

Does the scene between Roy and his father show that Roy’s “bad attitude” isn’t really his fault? Is it fair to hold him responsible for his actions?

When Roy returned to the warehouse with alcohol on his breath, shouldn’t Max have fired him? How do you feel about how Max handled Roy? Should he be more lenient or more strict?

Choose a rule from any code of behavior – school or employee handbook, traffic regulations, etc. – to write a one page essay. Explain the rule, whether you agree with the rule or not, argue in favor of having such a rule and defend it against possible objections.

These are actual cases heard by the Equal Employment Opportunity Commission (EEOC). You decide which cases were ruled as sexual harassment.

Case 1: You are a female shipyard welder. There are pinups of nude women posted at your worksite which you don’t like. Your employer refuses to remove them.◦ Ruling: Yes, b/c such photos create a hostile work

environment.

Case 2: You are the female manager of a mall store carrying clothing for young women. All of your sales personnel are young females. The owner, a male, requires you and the staff to dress in swimsuits and a beach outfit for a promotion. When you refuse, claiming that men in the mall would gawk and whistle, you are fired. Is the store owner guilty of sexual harassment?

◦ Ruling: No, b/c the purpose was promotional and the clothing was revealing but not sexual in nature. The men did not make vulgar or explicitly sexual remarks, therefore no hostile environment was created.

Case 3: You are a male employee with a female supervisor. She asks you to have sex with her and you refuse. Shortly thereafter, you are demoted.

◦ Ruling: Yes, the demotion was clearly a punishment for refusal to have sex with the supervisor

Case 4: You are a female secretary. Your supervisor asks you, at work, to have dinner then go to a hotel. He also brags of how good he is. You are deeply offended!

◦ Ruling: No. Though offensive and distasteful, his behavior does not constitute sexual harassment b/c he never suggested refusal would affect your job, nor does he punish you for refusing. Also, this was an isolated incident, therefore not creating a hostile work environment. His conduct was deemed as inappropriate and unprofessional and his supervisors would reprimand him.

It is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964.

DEFINITION: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitutes sexual harassment when submission to or rejection of this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance or creates an intimidating, hostile or offensive work environment.

Sexual harassment can occur in a variety of circumstances, including but not limited to the following:◦ The victim as well as the harasser may be a woman or a man. The

victim does not have to be of the opposite sex. ◦ The harasser can be the victim's supervisor, an agent of the employer,

a supervisor in another area, a co-worker, or a non-employee. ◦ The victim does not have to be the person harassed but could be

anyone affected by the offensive conduct. ◦ Unlawful sexual harassment may occur without economic injury to

or dismissal of the victim. ◦ The harasser's conduct must be unwelcome.

What to do… It is helpful for the victim to directly inform the harasser that the conduct is unwelcome and must stop. The victim should use any employer complaint mechanism or grievance system available.

When investigating allegations of sexual harassment, EEOC looks at the whole record: the circumstances, such as the nature of the sexual advances, and the context in which the alleged incidents occurred. A determination on the allegations is made from the facts on a case-by-case basis.

Prevention is the best tool to eliminate sexual harassment in the workplace. Employers are encouraged to take steps necessary to prevent sexual harassment from occurring. They should clearly communicate to employees that sexual harassment will not be tolerated. They can do so by establishing an effective complaint or grievance process and taking immediate and appropriate action when an employee complains.

Is it Sexual Harassment?

What should Lydia do?

What are the risks

if she reports it?

Do you think Lydia was inviting Mr. Kraft’s behavior in the way she acted or dressed?

You are the President of a company… Should you use inferior materials (lower cost and

lower quality) to make your product so that you can make higher profits?

Your manufacturing facility is being modernized and within 6 weeks you will have to lay off 50 employees. How much notice will you give them?

The school district has asked that you send some of your engineers to tutor students in math and science a few hours per week. Should you do it?

What does it mean to be socially responsible?

What are ways you can be socially responsible to…

•Your employees?•Your customers? •Your community?

Create a PowerPoint presentation (or poster) explaining the corporate social responsibility efforts of a company. You MUST use the company’s website as your main source.

or Create a PowerPoint presentation (or poster)

about the unethical conduct of a CEO. Explain what he/she did, consequences of their actions, who was affected (self, employees, customers, investors, etc…) ◦ Examples: Bernie Ebbers/Worldcom, Martha

Stewart/ImClone, Ken Lay/Enron, Jeffrey Skilling/Enron

Facts: More than $13 billion worth of goods are stolen from

retailers each year. That's more than $35 million per day.

1 in every 11 people in the US shoplift

Shoplifting affects more than the offender. It overburdens the police and the courts, adds to a store's security expenses, costs consumers more for goods, costs communities lost dollars in sales taxes and hurts children and families.

Approximately 25 percent of shoplifters are kids, 75 percent are adults (men and women). 55 percent of adult shoplifters say they started shoplifting in their teens.

Shoplifting is often not a premeditated crime. 73 percent of adult and 72 percent of juvenile shoplifters don't plan to steal in advance.

89 percent of kids say they know other kids who shoplift. 66 percent say they hang out with those kids.

Shoplifters say they are caught an average of only once in every 48 times they steal. They are turned over to the police 50 percent of the time.

Approximately 3 percent of shoplifters are "professionals" who steal solely for resale or profit as a business. These include drug addicts who steal to feed their habit, hardened professionals who steal as a life-style and international shoplifting gangs who steal for profit as a business. "Professional" shoplifters are responsible for 10 percent of the total dollar losses.

The vast majority of shoplifters are "non-professionals" who steal, not out of criminal intent, financial need or greed but as a response to social and personal pressures in their life.

The excitement generated from "getting away with it" produces a chemical reaction resulting in what shoplifters describe as an incredible "rush" or "high" feeling. Many shoplifters will tell you that this high is their "true reward," rather than the merchandise itself.

Drug addicts, who have become addicted to shoplifting, describe shoplifting as equally addicting as drugs.

Information and statistics provided by the National Association for Shoplifting Prevention (NASP), a non-profit organization;

www.shopliftingprevention.org.”

Theme 1 – THEFT◦ Specify the various types of theft seen in the

series. What were the motivations for the various kinds? Were those involved acting in their own best interest? If not, why did they do it? Shoplifting, internal theft (embezzlement), kickbacks,

stealing time Theme 2 – SEXUAL HARASSMENT

◦ Would Mr. Kraft be found guilty of sexual harassment by the EEOC based on their definition? Explain your reasoning.

Theme 3 – PERSONAL RESPONSIBILITY