Ethics AwarenessManaging for an Ethical Workplace

OGE EnergySpring 2013

Andrew L. UrichPuterbaugh Professor of Ethics & Legal

StudiesSpears School of BusinessOklahoma State University

aurich@okstate.eduwww.andrewurich.com

Ethics Awareness

I am NOT here to moralize.

“Awareness” changes human behavior.

Who Am I to Discuss Ethics?

I am a hypocrite. I play favorites. I interpret rules to my benefit. I have been known to ignore rules that get in my

way. I hate to admit I am wrong even in those rare

situations when it looks like I might be. I am much more likely to believe things that

benefit me. I like my ideas better just because they’re mine.

Who Am I to Discuss Ethics?

Sometimes I think it’s fun to say “no” just because I have the power to do so.

Here is how I make decisions: I decide what I want the answer to be– and then make up the logical reasons to support my decision.

I tend to judge myself by my intentions rather than my actions.

I tend to judge others by their actions rather than their intentions.

Key Points to Remember

Human nature is not naturally ethical.

Ethics is gray– not black and white. (In other words, you can’t just say you’re an ethical person–and

that’s all there is to it)

It is difficult to be ethical all of the time.

Ethical Lapses in the News

Enron inflated earnings by $586 million—investors lost $60 billion.

Adelphia founder used corporate assets as collateral for $3.1 billion in personal loans—company went bankrupt.

WorldCom overstated profits by $7.1 billion—17,000 workers laid off.

Barings Bank’s Nick Leeson caused his employer's collapse in 1995 after losing US$1.3 billion in unauthorized derivatives trading.

The Tyco PartyTyco CEO looted company of $600 million

Management cares!!

Why are we here today?

Because our reputation is

worth it!

Please rememberEnron’s real problem!

Why are we here today?

Case Problem 1

The Thrifty V.P.

Case Problem 1

The Thrifty V.P.Just following ordersEthics and young peopleEntrapment

Do Ethics Change With the Times?

Discussion Question

What do you use as an ethical guideline? In other words, how do you decide what’s ethical?

Should ethical decisions be based on “gut instinct” or “conscience?”

Examining Unethical BehaviorOverview of Topics

1. It’s easier not to be ethical.

2. Beliefs about the ethics of others

3. Attitudes toward the company

4. Self-delusion (Rationalization)

1. It’s Easier Not To Be Ethical

Easier to do what’s convenient

Easier to conform with the norms

Easier to do what’s profitable

Easier to win if you cheat

It is very difficult to overcome the challenges of human nature.

CRITICAL THINKING

1. It’s Easier Not To Be EthicalBut It’s Worth the Trouble

Ethics is the key to leadership and influence.

“A lie can travel halfway around the world while the truth is putting on its shoes.”

Mark Twain

Case Problem 2

Just Trying to Help

2. Beliefs About the Ethics of Others

Everyone thinks like me.

People follow the leader.

Different ethics for different situations?

Do you use the same standard of ethics in all aspects of your life? For example, is your standard the same with your family, at church, at work, with personal business, etc.?

3. Attitudes Toward the Company

Do managers practice what they preach?(It’s the perception that counts)

“The fish rots from the head down.”~Sir Andrew

Louis

Employees want to “even things out.”

Authority is OUT—Influence is IN.

4. Self-delusion Rationalization: Polite term for self-

delusion

“The greatest of all faults, I should say, is to be conscious of none.”

~ Thomas Carlyle (1795 – 1881) Scottish writer

“A foolish consistency is the hobgoblin of little minds.”

~Ralph Waldo Emerson

The Secret to Happiness

Self-delusion

Hypocrisy

Ignorance

The Secret to Happiness

Ignorance is Bliss“People who do things badly are supremely

confident in their abilities—more confident, in fact,

than people who do things well. Not only do they

reach erroneous conclusions and make

unfortunate choices, but their incompetence robs

them of the ability to realize it.”

Dunning, David Journal of Personality and Social Psychology December 1999.

4. Self-delusion

Case Problem 3Bedlam Football

Guideline for Ethical Decision Making

1. Is there an applicable law or OGE policy?

2. Should I ask about this before acting?

3. Have I taken time to think carefully before

acting?

4. Would I disclose my decision to my supervisor, CEO, mother, etc.?(What if everyone found out?)

Guideline for Ethical Decision Making

5. Am I avoiding the appearance of impropriety?

6. Am I defining the problem correctly?

7. Am I rationalizing?

8. Finally, when in doubt, do I know who to contact?

Thank You!

Facebook.com/ProfessorUrich

aurich@okstate.edu

www.andrewurich.com

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