Business Ethics - Workshop Slides by Chandramowly
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Transcript of Business Ethics - Workshop Slides by Chandramowly
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
ii VALUESVALUES
++
++
INSPIRING
V+ S+
ROBUSTROBUST
V+ S -
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
--
SKILLSSKILLS--
HOPELESSHOPELESS
V- S-
DANGEROUS
V - S+
Concept;t: Prof S K Chakraborty
iiCodes of Conduct: 5 Generations
Protect workers, customers, 3rd Gen: (1980s)
Protect company reputation / ensure
fair competition @ home & abroad
(bribes, kickbacks)
12nd Gen: (1970 – mid 1980s)
Commercial Conduct
Protect company & shareholders
from Employees
1st Gen: (post WWWII –1970s)
Conflict of Interest
FocusGeneration
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
Mendes, E.P. & Clark, J.A. The Five Generations of Corporate Codes of Conduct and their Impact on Corporate
Responsibility. Working Paper of the Human Rights Research and Education Center, University of Ottowa. Sept 18, 1996.
Concern over Investments in nations
whose gov’ts don’t respect human
rights or rule of law (Burma, Nigeria)
5th Gen: (late 1990 –2000’s)
Accountability and Social Justice
Protect environment and respect
communities in which business
activities occur. (Bhopal, Valdez)
4th Gen: (1990’s)
Community/Environment
Protect workers, customers,
suppliers; improve Corp, Reputation,
motivation, customer satisfaction
3 Gen: (1980s)
Employee & 3rd Parties
ii Business Ethics
• Interest in Business Ethics has been increasing since 1960
• Interest has been spurred by headlines of business scandals
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
business scandals
• A 1982 study reported that of the Fortune 500 companies, 115 companies (23%) had been convicted of at least one major crime or paid penalties for serious misbehavior
• Is the importance of business ethics decliningin business and government practices?
• Greater focus on ethics, morals, and values
iiThe Types
Good SoldiersUnderstand/follow the rules,Have good judgmentExpected to question improper conduct
Loose Cannons
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
Loose CannonsMay have ethical compasses but Don’t know the rules or standards in business.May be inexperienced, naïve.
GrenadesNeither ignorant nor benign.Don’t care about the rules/ have own agenda.Lack loyalty; actions can ‘blow up’ & damage firm.
ii Integrity
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
Do what's right, legally and Do what's right, legally and morallymorally
ii Ethical behaviour
Doing what is right when
nobody is looking
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
nobody is looking
ii What is integrity?
It means …It means …
The thorough integratedness of The thorough integratedness of
Public, Private and Deep Public, Private and Deep
inner life inner life
around a balanced around a balanced
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
Integrity is simply
Keeping promises and fulfilling expectations. Keeping promises and fulfilling expectations. The value we place on ourselves. The value we place on ourselves. The ability to walk our talk. The ability to walk our talk. About what we will not do About what we will not do About what we will not give up About what we will not give up About what we stand for at all costsAbout what we stand for at all costs
around a balanced around a balanced
set of Principles.set of Principles.
iiIntegrity Comes from
Moral Values
• Loyalty
• Duty
•• RespectRespect
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•• RespectRespect
• Selfless Service
•• Honesty, HonorHonesty, Honor
•• IntegrityIntegrity
• Personal Courage
iiEthics are moral principles or rules Ethics are moral principles or rules
of conduct derived from core of conduct derived from core values, that people use to guide values, that people use to guide their behavior.their behavior.
What is Ethics ?
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
their behavior.their behavior.
ii EthicsEthicsEthicsEthics
• Ethics can’t satisfy everyone, but majority should agree.
•• Balance interests of Balance interests of
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
ETHICS
ETHICS
•• Balance interests of Balance interests of constituentsconstituents–– businessbusiness
–– personalpersonal
–– no one group benefit while no one group benefit while others sufferothers suffer
•• Issue of trustIssue of trust
In 90% of the
ethical problems
we face, we know
what we should do.
The real question is
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
The real question is
whether we are willing to
do the right thing when it
is likely to cost more
than we want to pay.
ii Integrity - Two dimensions
Standing up for our most
fundamental
beliefs and commitments,beliefs and commitments,
even in the face of adversity
Personal
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
even in the face of adversity
Professional
Standing up for the
goals and commitments of our profession,goals and commitments of our profession,
even in the face of adversity
ii Breaches of Integrity andReconciliation
Integrity is a harsh virtue
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
……..One who violates integrity is
left without the possibility of
reconciliation.
No way to expiate guilt….
iiii
…….Even if we know we can get Even if we know we can get away with doing something wrong,away with doing something wrong,
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
even if no one ever discovers what even if no one ever discovers what we’re up to, we’re up to,
our vice harms us more than it hurts our vice harms us more than it hurts any of our victimsany of our victims
-- SocratesSocrates
ii What causes unethical behavior?
• Stress
• Confusion
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
• Pressure to perform at expected levels
• Competition within the industry
• No knowledge
iiTypes of Unethical Behavior
•• Cutting corners on qualityCutting corners on quality
•• Covering up incidentsCovering up incidents
•• Abusing or lying about sick daysAbusing or lying about sick days
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•• Abusing or lying about sick daysAbusing or lying about sick days
•• Lying or deceiving customersLying or deceiving customers
•• Putting inappropriate pressure on othersPutting inappropriate pressure on others
•• Taking office supplies from the officeTaking office supplies from the office
•• Taking credit for coTaking credit for co--workers ideas/workworkers ideas/work
•• Charging personal purchases on the Charging personal purchases on the co.co.
•• Taking or Giving bribeTaking or Giving bribe
ii Ethical Weakness
Several high profile ethical weaknesses:Several high profile ethical weaknesses:
•• -- Price fixingPrice fixing
•• -- Restraint of competitionRestraint of competition
•• -- Government corruptionGovernment corruption
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•• -- Government corruptionGovernment corruption
•• -- Financial scandalsFinancial scandals
•• -- Product safetyProduct safety
•• -- DiscriminationDiscrimination
•• -- Sexual harassmentSexual harassment
In a 1993 study, 76% responded that the In a 1993 study, 76% responded that the U.S. was in a moral and spiritual declineU.S. was in a moral and spiritual decline
ii ObstaclesObstacles
•• EgoEgo
•• IgnoranceIgnorance
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•• TimeTime
ET
HIC
SE
TH
ICS
•• Unreliable informationUnreliable information
ii
•Avoiding conflict of interest
•Proper use of company assets
Integrity standardsaddress many subjects...
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•Proper use of company assets
•Accurate recording of documents
•Compliance with laws
•Observance of accounting and control procedures
ii••Employee disrespect harassmentEmployee disrespect harassment
••Non reporting of unsafe practicesNon reporting of unsafe practices
••Abuse of drugs, alcohol or other intoxicantsAbuse of drugs, alcohol or other intoxicants
Prohibit...
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
••Conflict of interest Conflict of interest --Personal & Financial Vs PraxairPersonal & Financial Vs Praxair
••Acceptance of Gifts, Entertainment and favoursAcceptance of Gifts, Entertainment and favours
••Trading based on “ Inside Information”Trading based on “ Inside Information”
••Misuse of company assetsMisuse of company assets
••Use of unlicensed softwareUse of unlicensed software
ii••Downloading inappropriate materials from InternetDownloading inappropriate materials from Internet
••Using electronic mail for ‘nonUsing electronic mail for ‘non--business’ purposesbusiness’ purposes
••Act leading to leakage of ‘ confidential information’Act leading to leakage of ‘ confidential information’
Prohibit...
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
••Act leading to leakage of ‘ confidential information’Act leading to leakage of ‘ confidential information’
••Inaccuracy and incompleteness of company documentsInaccuracy and incompleteness of company documents
••Contribution to political partiesContribution to political parties
••Payments to Govt... officialsPayments to Govt... officials
••NonNon--cooperation with Govt.. investigationscooperation with Govt.. investigations
ii "What’s in it for me to be ethical?,"
""Quite a bitQuite a bit----
--A more accurate perception of the A more accurate perception of the
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
--A more accurate perception of the A more accurate perception of the
world around you, world around you,
--Greater control over your behavior,Greater control over your behavior,
--A stronger personality, and greater A stronger personality, and greater
likelihood of being happy in life." likelihood of being happy in life."
••Individual appreciationIndividual appreciation
ii In simple terms…..
•• Is it Ethical?Is it Ethical?
•• Is it Legal?Is it Legal?
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•• Is it OK?Is it OK?
• Is it Right?
ii and…..and…..and…..and…..
Does it hurt anyone?Does it hurt anyone?
Is it fair?Is it fair?
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
ET
HIC
SE
TH
ICS
Can my conscience live Can my conscience live with this decision?with this decision?
Have I been honest Have I been honest with those affected?with those affected?
ii Double check your decision
Ask yourself the following questions:
•How would I feel if my decision was
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•How would I feel if my decision wasprinted in the local newspapers?
•How would I feel if my family found out about my decision?
ii How being ethical benefits Orgnisation
•• Improve organisational valuesImprove organisational values
•• Customers value us moreCustomers value us more
•• Cultivate strong team work and productivityCultivate strong team work and productivity
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
•• Cultivate strong team work and productivityCultivate strong team work and productivity
•• Support employee growth and meaningSupport employee growth and meaning
•• Ensure policies are legal Ensure policies are legal -- doing right thingsdoing right things
•• Avoid criminal acts “of omission” and lower finesAvoid criminal acts “of omission” and lower fines
•• Promote a strong public imagePromote a strong public image
•• Contributes to enhanced performanceContributes to enhanced performance
Most Problematic
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
Most Desirable
(Congruent)
Least Desirable
(Congruent)
Problematic (Incongruent)
Problematic (Incongruent)
Management by Values by Prof: S K Chakraborty
iiHistory is full of examples History is full of examples to show that structures, to show that structures,
systems, or for that matter, systems, or for that matter, civilizations, without civilizations, without
HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly
civilizations, without civilizations, without ethicoethico--moral content as moral content as
their foundation, are sooner their foundation, are sooner rather than later bound to rather than later bound to
collapse.collapse.