ETHICALETHICAL VS VS UNETHICALUNETHICAL

YOU DECIDE!!!YOU DECIDE!!!

ELIOT L. SPITZERELIOT L. SPITZER• Former NY State Attorney GeneralFormer NY State Attorney General

• Governor of New YorkGovernor of New York

• Client of a Prostitution RingClient of a Prostitution Ring

Bernard MadoffBernard Madoff

• New York InvestorNew York Investor

• Well Respected by Wealthy ClientsWell Respected by Wealthy Clients

• $50 Billion Ponzi Scheme$50 Billion Ponzi Scheme

John ThainJohn Thain

• CEO of Merrill LynchCEO of Merrill Lynch

• Authorize $3.6 Billion in Bonuses to Top Authorize $3.6 Billion in Bonuses to Top 200 Employees ($18 million) just 200 Employees ($18 million) just before Bank of America signed the dealbefore Bank of America signed the deal

Allen StanfordAllen Stanford

• Owner of Stanford GroupOwner of Stanford Group

• Knighted in Antigua as Sir AllenKnighted in Antigua as Sir Allen

• International PlayboyInternational Playboy

• Center of a $8 Billion Fraud InvestigationCenter of a $8 Billion Fraud Investigation

What is Ethics?What is Ethics?

• the principles of conduct governing an the principles of conduct governing an individual or a group individual or a group

• specifically the standards you use to specifically the standards you use to decide what your conduct should bedecide what your conduct should be

• Involve normative judgments either Involve normative judgments either good or bad, right or wrong, better or good or bad, right or wrong, better or worseworse

Personal EthicsPersonal Ethics

• Depends on personal beliefs and loyaltiesDepends on personal beliefs and loyalties

• Results in behavior in a persons life in their Results in behavior in a persons life in their relationships, family and friendsrelationships, family and friends

• Gives us pride and confidenceGives us pride and confidence

• Often deep within us, not writtenOften deep within us, not written

• Can change with major events in our livesCan change with major events in our lives

Professional EthicsProfessional Ethics

• Depends on the requirements of the Depends on the requirements of the profession looking out for the interest of profession looking out for the interest of the organization as well as the customersthe organization as well as the customers

• Legally held by our professional ethics, Legally held by our professional ethics, such as confidentiality and due diligencesuch as confidentiality and due diligence

• Usually written and signedUsually written and signed

Ethical decisions involve Ethical decisions involve moralitymorality

• Society’s accepted ways of behaviorSociety’s accepted ways of behavior

• Address matter of serious Address matter of serious consequences such as murder, lying, consequences such as murder, lying, slander, fraudslander, fraud

• Moral judgments trigger strong Moral judgments trigger strong emotionsemotions

Ethics and the LawEthics and the Law

• Some actions may be legal but not rightSome actions may be legal but not right

• i.e. firing a person before they have earned i.e. firing a person before they have earned the right to their pension may be unethical the right to their pension may be unethical but not illegalbut not illegal

• Some retailers survey their customer’s buying Some retailers survey their customer’s buying habits using electronic and infrared habits using electronic and infrared surveillance equipment. Not illegal at the surveillance equipment. Not illegal at the moment, but many believe it is an moment, but many believe it is an encroachment on their privacy.encroachment on their privacy.

Individual StandardsIndividual Standards

• People bring to their jobs what is morally right and People bring to their jobs what is morally right and wrongwrong

• They also shoulder most of the credit or blame for They also shoulder most of the credit or blame for the decisions that he or she makes.the decisions that he or she makes.

• A study was conducted to measure the degree to A study was conducted to measure the degree to which age, gender, martial status, education and which age, gender, martial status, education and the number of years employed. It was determined the number of years employed. It was determined that older workers had stricter interpretation of that older workers had stricter interpretation of ethical standards than younger employeesethical standards than younger employees

Organizations Shapes Ethical Organizations Shapes Ethical PracticesPractices

• Ethical crises are sometimes caused by Ethical crises are sometimes caused by unscrupulous employees, but most often that unscrupulous employees, but most often that is not the case. One employee’s character is not the case. One employee’s character rarely causes corporate misconduct.rarely causes corporate misconduct.

• Unethical business practice involves the Unethical business practice involves the cooperation of others and reflects the values, cooperation of others and reflects the values, attitudes, beliefs and behavioral pattern of attitudes, beliefs and behavioral pattern of others in the organization. Ethics is as much others in the organization. Ethics is as much an organizational as a personal issue.an organizational as a personal issue.

Influence of Top Influence of Top ManagementManagement

• Behavior of superiors is an important Behavior of superiors is an important factor influencing ethical decisionsfactor influencing ethical decisions

• Many managers seem to feel that Many managers seem to feel that unethical actions are acceptable if unethical actions are acceptable if their superiors know about them and their superiors know about them and say nothingsay nothing

Ethic Policies and CodesEthic Policies and Codes

• The leader’s actions may be the single most The leader’s actions may be the single most important factor in fostering school division important factor in fostering school division behavior of a high ethical standardbehavior of a high ethical standard

• Many schools have ethic codesMany schools have ethic codes– Top Manager’s role---top manager must make it Top Manager’s role---top manager must make it

clear about code enforcement not only to the clear about code enforcement not only to the employees, but the suppliers and customersemployees, but the suppliers and customers

– Approval of Code---executives must endorse the Approval of Code---executives must endorse the codecode

– Communication of Code---to influence employee Communication of Code---to influence employee behavior, the ethics code must be communicatedbehavior, the ethics code must be communicated

How to Foster Ethics in the How to Foster Ethics in the WorkplaceWorkplace

• Emphasize top managements Emphasize top managements commitmentcommitment

• Publish a codePublish a code

• Establish compliance mechanismsEstablish compliance mechanisms

• Involve personnel at ALL levelsInvolve personnel at ALL levels

• Measure ResultsMeasure Results

Creating the Right CultureCreating the Right Culture

• You know from your own experience You know from your own experience that it’s not just what you say that’s that it’s not just what you say that’s important; it’s what you do as well.important; it’s what you do as well.