BA 342 exam 1

your personal info: private and secure?

"mind reader" actually gets all information from the internet

2020 Wells Fargo code of ethics

"wells Fargos reputation as one of the worlds greatest companies for integrity and principled performance.."

ethics definition

** a set of principles of right conduct, based on underlying values

responsibility today: coronavirus pandemic key stakeholders

**science, economics, stakeholders, business •return to: campus, work, community

responsibility

**the ability or authority to act or decide on ones own without supervision •can you do the right thing? •ranges from personal to corporate

factors influencing employee unethical behavior

1. behavior of superiors (most important0 2. behavior of peers 3. industry ethical practices 4. society's moral climate 5. policy (or lack thereof) 6. personal finance need

3 approaches to ethical decision making

1. conventional approach: societal norm approach 2. principles approach: moral guidelines focus 3. ethical tests approach: applied guideline focus

lockheed martin ethics

1. do what's right 2. respect others 3. perform with excellence

ethical decision making: an individual process

1. ethical awareness 2. ethical judgement 3. ethical behavior •if judgement is strong then behavior will follow

5 principles of a high quality ethics & compliance program

1. ethics central to BUSINESS STRATEGY 2. ethics and compliance risks are IDENTIFIED, OWNED, MANAGED, AND MITIGATED 3. leaders build/sustain a CULTURE OF INTEGRITY 4. the organization VALUES REPORTING of concerns and suspected wrongdoing 5. organization TAKES ACTION and HOLDS ITSELF ACCOUNTABLE

Warren Buffet quote: "in looking for people to hire, you look for 3 qualities:"

1. integrity 2. intelligence 3. energy •kicker: "and if you don't have the first, the other 2 will kill you"

3 components of the fraud triangle

1. opportunity: there is going to be someone who has access to do it; "you've got a lack of internal controls"; have control over 2. motivation: compelling driver to commit fraud 3. rationalization

4 characteristics of ethics:

1. personal: can you do the right thing without someone telling you to? 2. organizational: codes of conduct - ways to operate 3. national: every nation has laws and ethics 4. global: competing on global business - how do you operate ethics everywhere

smeal strategic plan

1. providing extraordinary education 2. highest quality research 3. building our culture of: integrity, diversity, service (social responsibility), and sustainability

2 forms of sexual harassment

1. quid pro quo: "if you want this promotion, you can have it if you give me a sexual favor" 2. hostile work place: unwanted touching, looking, pin up posters

spider man ethics clip

Peter parker immediately becomes a jerk with his power, contributes to uncle being killed, then realizes "with great power comes great responsibility"

technology definition

all the ways people use inventions and discoveries to meet needs and wants

observed misconduct rises with..

an increase in organizational change

international business ethics

balance cultural relativism and ethical imperialism

snapshot case: touched the ball before it went out of bounds during close game

can you do the right thing?

I-robot movie and algorithms

car crashes into river; robot saves will smith (45% chance of survival) and not little girl (11% chance of survival); don't trust robots

business ethics textbook definition

concerned with morality and fairness in behavior, actions, policies, and practices that take place within a business context

on bus going home, woman sitting next to you (from another dept) says she is being sexually harassed at work. you are a manager - what do you do?

contact your company EO or ethics office

ethics: bounded ethicality

did something and afterwards thought "im such an idiot, that's not who I am"

corporate dilemma

do corporations ever do anything that helps create a toxic environment where people are thinking ethics are not a big deal in our companies?

descriptive to normative ethics clip

guy gets his expense accounts every chance he can get (puts $ in to get more out) - says this to the comptroller (chief accountant)

media dilemma

how does media engage with corporations?

developing judgement

looking at different methodologies/approaches of how to solve a dilemma

responsible leadership financial times definition **

making business decisions that takes into account stakeholders, such as workers, clients, suppliers, the environment, the community, and future generations

economics: bounded rationality

not as rational as you should be (picking stocks)

big theme

responsibility and responsible leader

moment of truth ethical test

supervisor steals product and tells person he is training to mark it as if it didn't come in - trainee realties its wrong

if one individual destroys trust

trust is broken, destroys relationships and lives

cultural relativism

whatever protocols and values are in my country, im going to follow them

sexual harassment: 3 things to know

when someone tells you they are being sexually harassed.. 1. you are fully involved 2. get help 3. follow up

average shareholder decline when CEO indiscretion announced:

•$226 mil from firm - 3 days out •11-14% stock price decline next year post announcement

responsibility today: jerry Sandusky scandal

•2012 sanctions applied and then repealed in 2015 •ncaa wanted to give Psu "death penalty" (4 years without football or 4 years of heavy sanctions) but they chose to fine them, no bowl games, no recruitment •didn't take away wins •115 mil in settlement charges •stakeholders: Sandusky victims, Psu university, ncaa, other universities, football program, all Psu sports, media, Psu faculty and staff, Psu students and alumni •Rodney Erickson: president of Psu at time of Sandusky scandal: old president was fired •settlement: $109 million, 33+ millions, 2% of Psu budget

Wells Fargo 2018-2020

•2019 manager firings •2019 shareholder lawsuit •2019 retirement scandal •2020 $3 bil DOJ/SEC fine •summer proposed layoff (thousands of associates) •2018/2019: commercial on bringing back trust

% of US workers perceiving pressure to commit misconduct

•28% in 1994 and 9% in 2013 - understand trend don't memorize •gradually went down with one spike from 2009-2011 •wave of scandals and new laws slowed it -seniors would now be responsible for conduct

Wells Fargo organization structure 2016/2017

•3 reg. bank executives •12 lead reg. pres. •42 reg. presidents •120 area managers •600 district managers •5,700 branch managers *none of these lost their jobs, all lower paid employees did

Wells Fargo & customers

•3.5 mil + fake accounts •car insurance fraud (800,000 cars, $1 bil penalty) •401k fee scandal •wealth management scandal •mortgage fraud payout ($2 bil) •frozen asset growth by fed •unfair foreign exchange practices •$575 million charge all 50 states •employment lawsuit on unfair firing

** those who observe misconduct do not report due to fear that:

•74%: report would not be confidential •69%: corrective action would not be taken •64%: could not report anonymously •63%: they would be labeled as a snitch

marijuana: legal or not

•75% of people say recreational marijuana should be legal •elon musk smoked on Joe rogan show sep 2018: stock price went down •33 states medical, 11 states recreational

high responsibility commercials

•AT&T multi tasking at "romantic dinner"; distracted by phone •it can wait commercial : mom texting and driving and crashes

amazon scandal

•CEO 2019 Jeff and macKenzie bezos •Jeff had an affair •Mackenzie got 35 mil

Wells Fargo oct 2019-present

•CEO: Charlie scharf •2020 board chair: Charles Noski

Dixon and rita crundwell scandal

•CFO for town of Dixon pulled $53 million from city •largest fraud in US history •last 5 months that Rita crundwell was employed: -3.2 mil to crudwell -1 mil to police -589,000 to finance -560,000 to fire -263,000 to streets -241,000 to public works -192,000 to public affairs

a classic case: Enron leadership team

•CFO: Andy fastow •founder: Ken Lay •CEO: Jeff skilling •bad ethics •"..we are responsible for conducting the business affairs of the companies in accordance with all applicable laws and in a moral and honest manner" - ken lay on code of ethics •enrons code of ethics is based on respect, INTEGRITY, communication, and ethics •Sharon Watkins (Enron vp) was the whistleblower that gave them up - accountant and nothing made sense - leaders did insider trading, caused Cali blackout to raise energy rates, 2x profit when beating out employees •Enron share price jan 2000 to dec 2000: $0 •Arthur andersen was in the big 5 - now they call it the big 4: 80,000 auditors lost jobs •started a wave of scandals that wound up getting very highly publicized - started to give people the idea that maybe businesses are not as honest as we think they should be

boeing ethics and relationships

•Harry Stonecipher: new CEO, brought back to fix code of conduct - more loyal and honest - got them off government watchlist (they were looking to decertify them - boeing does huge business with military and government) •THEN Harry and Deborah (senior exec) have an affair, proof is in emails IT people found -harry was fired - rules apply to all employees •issues to consider: HR, organizational, strategic; CEO is very different than senior exec •you represent company 24/7, not just 8-5 •stock market value went down •had to go to all government contracts and apologize

michigan state gymnastics and university scandal 2017/2018

•Larry nassar was the sports medicine doctor who sexually gymnasts during procedures over 20 years at multiple places to over 300 women •athletic director stepped down, officials got reports and did nothing about it •700 mil in costs •stakeholders: nassar victims, msu, ncaa, other universities, gymnastics programs, all sports at msu, alumni, students, families, trustees, activist groups, local businesses •settlement: $500 mil, 332 victims, 37% of MSU budget

Tylenol J & J case

•Mary Kellerman has a headache and takes Tylenol, dies •laced •multiple deaths from Tylenol around 1982 •PONG •took responsibility early - recalled products •rebuilt brand through safety •corporate culture impact •leadership took a credo approach •J&J credo (order to focus): -1. customers -2. employees -3. communities -4. stockholders •James Burke CEO "few managers of a corporate crisis have survived an episode of the perfect crime - unsolved murder - in which their product was the murder weapon and their customers the innocent victims" •2009: Childrens medicine on shelves quality issues - too strong or had methyl specs in it •Sandi Peterson came to reform J&J: manufacturing and supply chain was unwieldy; it would take time to fix but it is fixable; recalled products

Penn State PRRIDE: we are values driven

•Penn State community •Responsibility •Respect •Integrity •Discovery •Excellence

fortune 1000 approach to ethics

•RULES: found in a compliance document •VALUES: found in a code of conduct

Penn State students: productively and morally engaged

•THON (10 mil - 15000 students) •smeal #1 for recruiters •44 smeal orgs •red shoes walk against sexual assault •31 sports •community service •mentor/coaching/tutoring

Wells Fargo 2018

•Tim sloan CEO -rebuild reputation -resigned •Betsy Duke New board Chair -resigned •Allen Parker 2019 CEO -left

trust = value

•Wells Fargo: 266,000 •volkswagen: 670,000 **most people are trying integrity- only some are not •whenever we don't operate with absolute integrity, we learn how much trust = value ; build trust, build value, earn $

who is Adam smith?

•a moral philosopher and an economics thinker •noted for foundational approach to thinking about business and ethics together **father of the free markets principle was an ethicist •invisible hand: smith discourse on the free markets: "I believe that if the entire world operated under free market principles that we could grow everyones wealth" •invisible hand of every individual and every nation doing what's in their best interest/what they are best at and trade fairly, we all would be better off •a fallacy in "a wealth of nations" is that people might not trade fairly

Wells Fargo scandal

•account fraud scandal that is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent •aggressive in sales - cross selling: employees would ask customer to buy more products (checking acct, savings acct, loan, line of credit) and if they bought it, employee would get bonus/promoted so employees opened fake accounts •responsibility today: they are struggling •fined $200 mil for setting up fake accounts •5,300 employees fired

lockheed martin: a best practice company, what do they tell people to do with an ethical dilemma?

•ask questions •obtain data •talk to others •reframe the issue •report violations

** the values framework: ethical decision making assessment framework

•assessment methodology to try to better understand an ethical situation 1. awareness 2. facts 3. stakeholders 4. standards 5. values 6. actions

how many have a connection to 9/11?

•attack and role of corporation today: Budweiser commercial shown at Super Bowl - horses trained to bow in honor of lost lives

phantom expenses values framework: Jane (new sales rep) is told by Ann to pad expense vouchers by 25%. Ann says everyone does it.

•awareness: are you being directed to falsify your expenses? •who is Ann? how do you know everyone is doing this? kinds of expenses, frequency of reports, total $ involved, where •stakeholders: you, Ann, other sales people, department manager, clients, shareholders, HR, legal and compliance, media, family •standards: industry protocols (CPA exam), company guidelines, legal guides •values: your values, company stated values

domino's pizza values framework

•awareness: is trying to get there within 30 min safe for drivers? •facts: drivers rush to get there •stakeholders: driver, dominos, stakeholders •standards: is it worth the risk •values: company values on customers

drug use: values framework

•awareness: worker possibly using drugs, poor decision making, productivity impact, health and safety, liability •facts: what drugs? length of use and how often, are they prescribed, the workers position/role, proof, is the drug helpful or not, level of impairment, type of job, place of use •stakeholders: accused employee, you, the friend, his/her manager, other company leaders, media, police, HR, shareholders, clients, vendors, competitors, society •standards: laws (local, state, federal), company policy, field standards

Facebook benefits and side effects

•benefits: simple to use, keep in touch, track birthdays, share your life, promote products, news/opinions, fundraisers •side effects: privacy leaks, addictive, bullying, fake profiles, frequent ads, stalking

bounded ethicality

•college students talking about bounded ethicality: -seldom gathers all information and does not accurately process it, nor do they know what it is that makes them happy -organizational pressures and psychological factors -external and internal pressure around ethical decisions

Honest Tea and honesty challenge

•commercial on ethics •social experiment of putting out Honest Tea and saying leave $1, do people pay? •92% honest •strong culture and value/experiment gained customers •very much cultural - if you do experiment around the world in poor cultures, numbers would be very different

ethical tests

•common sense: am I doing the right thing? •best self: would the best version of me do this? •venting to others: "im thinking about doing this" - see what they say •purified idea: go to authority figure for advice •gag test: you think you're going to throw up •big four: greed, speed, laziness, haziness

Marist college institute for public opinion

•corporate moral compass negative: general public: 75%; business leaders: 58% are negative •grade for honesty: general public: D or F; business leaders C or B •investment industry negative (D or F): general public: 53%; business leaders: 67% •can business people operate ethically: general public: 75%; business leaders: 94% •business peoples ethics same at home: general public: 28%; business leaders: 44%

John q right and wrong

•dad wants to give his son his heart •doctor says it is unethical •but situational factors prove that none of us know how we would react •look through lense of value based approach •once you start with values, you then begin to work with situational factors (there is never situational ethics) •not situational ethics but situational factors

applying ethical principles to decisions

•deontological: duties to individual and society; "whatever your action you're about to take, make it imperative for whole world"; kants categorical imperative; can't push person in front of train •rights/justice: (fairness, principle): what are their and my rights - save 5 or do nothing •teleological: consequences and results; utilitarianism; outcomes and cost benefit oriented; save 5 people •virtue: who you are; throw myself in front of train

technology cons

•depletion of natural resources •technological unemployment •environmental pollution •creation of unsatisfying jobs

responsibility today: volkswagen

•dieselgate •engine was making air quality bad - caught •VW made pact to fix all cars sold •new Diesel engine: "clean diesel" -problem: testing went well in a lab but not on the road: VW admitted clean diesel was not clean •hoaxwagen •total fines 2020: $3 billion and rising -nations, class actions, shareholders, environmental groups, regions/states •VW graveyard: nuclear plant failure - repurchased VW cars were stored there •watch video listed on lecture p 36 and 37

commercials and responsibility:

•dog bribes owner with Doritos to not tell that he killed the cat •Taco Bell take the money and run: gets to the car before getting a ticket •NOT good ethics approaches

what are you going to learn in BA 342?

•ethical issues in business •sustainability (environmental and social impact) •diversity and inclusion •corporate social responsibility

expectations of you: get your EAP together

•excellent performance •academic integrity •professional behavior

technology and trouble: personal

•favor quick fixes •fear and worship technology •blurred lines between real and false •accept violence as normal •love technology as a toy •we live distanced and distracted •communication better or worse •relationships better or worse •knowledge better or worse •ethics better or worse

previous ethics and compliance initiative (ECI) research indicates an ethically healthy organization is one where:

•few employees feel pressure to compromise organizational ethics standards •misconduct is rare •observations of misconduct are reported •reports of misconduct are appropriately addressed •employees who report misconduct do not experience retaliation

** global business ethics survey: top misconduct categories

•fraud/lying and theft •bribes and corruption •employee abuse •contracts misconduct •regulatory violations

FBI and smart tv's

•gateways for hackers to get to home and take control of mic and camera •questionable data privacy controls •cover camera and mics •Alexa has privacy protection built in

McKinsey report on auto industry

•global megatrends trigger trends in the automotive industry that have the potential to radically change the mobility industry •4 disruptive technology trends radically changing the mobility industry: connectivity, diverse mobility, autonomous driving, and electrification -shifting markets and revenue pools -changes in mobility behavior -diffusion of advanced technology -new competition and cooperation •US: 284.5 mil autos; global: 1.5 bil

college students ethics: moral disengagement

•having someone write your paper •buying a paper on the internet •social media bullying •selling others intellectual property •clicker violations •using phone in class •alcohol abuse •outright cheating •we always need a dose of ethics training

google glass

•headset that allows you to do everything on the internet and take pictures and videos •pushback on ethics ended product •ex: taking it to a swimming pool changing room

kohlbergs levels of moral development

•how you develop morally from a child to today •level 1: preconventional: focus on self; 1. punish 2. reward •level 2: conventional: focus on others; 3. good 4. law •level 3: focus on humanity; 5. social 6. universal

2 hypernorms

•if you are the major trading nation of the world, there are things that we share and things around ethics that are the same - start there with business 1. every employee in every nation wants the same things - fair wage, treated with respect, safe workplace so they can go home and be fine the next day, make enough money to support family, for their kids to grow develop and be okay 2. customers want a product made in the safest manner and can be used safely with good instructions so no harm, high quality product, and represented in a way that makes it clear what the product can and cannot do; marketing to be honest and for product to be fairly priced

managements ethics models

•immoral: wakes up in the morning and says "whatever it is you have, I am going to take so I can make as much money as I can for myself" •moral: you, as a business, looks at the external world, as well as your employees & you consider ethics completely in decision making; never going to forget that every decision has an ethical component; "how do I engage better in the world in a more responsible way?" •amoral: not thinking about ethics as they are making business decisions - just decisions that they think will help sell products and move business forward; not trained well in ethics; don't use ethics filter when making a decision

technology pros

•increase in goods/services •decrease in labor to produce •labor - safer and easier •increase in living standards

business and responsibility: a license to operate

•intangibles: 53% of total value of Fortune 500 or about $24.27 trip •consumers: 85% reputation responsibility key (competitiveness and market positioning) •risk management: government, NGO's, legal •employees: 3 to 5 want to work for values company •investors: 86% institutional investors with reputation of integrity •operations: innovation, energy, waste, water •is your org operating in a way that shows that you are a stakeholder company thinking about providing value to all relevant stakeholders?

driverless cars and ethics

•internal decision making process -> car makes decisions •how do you bring moral philosophy to a car? •ex: large object falls from truck in front of you; what should the driverless car do? homicide if driverless car is trained to pick an outcome; hiring ethicists to help program car •when driving yourself, its a reaction not a decision

implications of data and technology:

•knowledge is doubling •ethical dynamics around innovation never changes •play in an ethical manner as technology moves forward

ohio state scandal

•lawyer in ohio state abuse scandal says #s of accusers surpassed 350 •late 2018-2019 •sports medicine doctor abusing wrestlers, football players, and other male athletes for 20 years •came out after he retired and committed suicide •41 mil settlement •small # of people can cause great pain

elements of strong ethics culture

•leadership support •code of ethics •ethics officers •compliance standards •company wide training •clear communication •detection/prevention

workplace and marijuana: cost to employers issue to address

•lost productivity ($200 bil/year) •absenteeism (75% - 78% higher) •accidents (55% more likely) •injuries (85% more likely) •litigation (general and across state) •safety (equipment or non-equipment) •compliance and risk •health costs increase

types of media influence on business

•media are in the business of optimizing the time we spend paying attention to it, which is a poor indicator that its content is wroth the effort" -WSJ 2020 1. news -"if it bleeds, it leads"; a catastrophe gets more media attention than a positive story; have to have a sensational headline to make people view full story; focuses on negative stories 2. ads -negative commercial: perfect match; model kissing ugly fat boy for go daddy; drove business by showing attractive woman; new CEO found that 60% of customers were woman - changed ads 3. movies 4. social media -it doesn't matter what we do that is negative and where it occurs - the second something negative comes out its going to spread 5. internet 6. TV -study of prime time TV: 77% of plots involving business were negative

principles approach to ethical decision making

•moral guideline focus moral philosophy categories: -teleological: consequences or results; utilitarianism - greatest ratio; good to evil -deontological: duties to society; kant: act as if to will it a universal law

pressure to compromise globally

•more than 1 in every 5 employees feels pressure to compromise their organizations ethics standards, policies, or the law •global median: 22%

% rating group high to very high of honesty

•nurses: 84 •military: 69 •clergy: 54 •business execs: 17 •congress: 8 •car sales: 9

% rating group average to very high on honesty

•nurses: 97 •military: 93 •clergy: 93 •business execs: 67 •congress: 39 •car sales: 54

snapshot case: frank Molinaro rio 2016 biting

•official said he didn't see it •wrestler says he's having a bad day and to take points off

technology and trouble: corporate

•online scams - identity theft •invasion of privacy vs informed consent •intellectual property rights •stolen data •hacking of corporate knowledge •sharing consumers info •spam •behavioral advertising (cookies) •bio technology - personal data and genetics •company cell phones •monitoring •information overload

the trolley problem

•philosophy thought experiment designed to drive you into a deeper understanding of ethical decision making and using moral philosophy to come to conclusions •moral decisions: simply outcomes or about the manner in which you achieve them? •utilitarians: both have similar consequences and consequences are what matters

ERC report on large companies: poor ethics program vs. good ethics program

•pressure to compromise standards: poor 23%, good 3% •observed misconduct: poor 62%, good 33% •reported misconduct of those who observed wrongdoing: poor 32%, good 87% •experienced retaliation of those who reported misconduct: poor 59%, good 4%

program vs. culture

•program: develop a code, have a training program •culture: how program is perceived, reflection of values or how it would be taken in court?

license plate and personal data

•pros: help police/crime, lost because of Alzheimers, abducted kids, possible shootings •cons: get caught •vigilant solutions: company who does license plate recognition -government deploying a technicality -partnering with businesses

government and technology: security & privacy

•pros: safety and security •cons: 1/2 of license plates are matched, people have access to your data if hacked, disproportionate screening of poor to rich

drones pros and cons

•pros: take pictures and videos, deliver packages, catch bad guys, search and rescue •cons: stalking, privacy concerns

most important ethical test

•public disclosure •going public -> disclosure rule •how would I feel if my decision was publicized to the whole world?

what are the roots, trunk, and blossom of smeal?

•roots: intro classes •trunk: core strength (blaw341, ba342, mis204) •blossom: majors

2015 economic impact: Colorado marijuana

•sales = $996 mil •economic impact = 2.39 bil •jobs created = 18,005 •2015 tax revenue: 150 mil •2017 tax revenue: 233 mil •marijuana sales: -2019: $12 bil -2022: $22 bil

corporations and culture

•shape attitudes •reinforce beliefs •direct behavior •set expectations

personal marijuana impacts

•short term memory loss •impaired thinking •loss of balance or coordination •decreases concentration •changes in sensory perception •impaired ability to perform complex tasks •decreased alertness •decreased reaction time

is there such thing as right and wrong?

•situational (what's going on) -relative (happening in world today) •contextual (by industry) -cultural (different societies view things differently) •it all depends •these are the WRONG places to start on ethics -> have to start at a place of value, morals, and ethics

internet of things (IoT) television hearing and seeing

•smart TV hack: can watch and listen to people •doesn't indicate that camera is on •samsung recommends many things to protect customers •camera was a feature that was designed to enhance the users experience

conventional approach to ethical decision making

•societal norm focus •comparison of: decision, behavior, or practice to: prevailing norms of acceptability •what does society decide is true •what we do to deserve what is actually happening •considered common sense of ethics: entire world developing norm that stealing TVs is wrong •societal norm says we aren't supposed to cheat but 70% do -> need conventional help

business roundtable study: high school students on what business people would do

•students said attitudes did not come from someone they knew, but from the media •74% falsify finances •68% secret dumping of toxic waste •62% blackmail normal •53% sabotage competitions facilities •17% injure/murder if you know too much

worrying about weed: what should employers do?

•talk to attorney •review company's drug testing policy •communicate expectations with employees •train HR on changes •continue/increase drug testing

two issues: technological determinism and ethical lag

•technological determinism: give me every type of technology •ethical lag: don't care about ethics, just about how to enhance user experience

applying ethical principles to J & J scandal

•teleological: only being seen in Chicago area, pull product from Chicago only •deontological: everyone in US is mad, we owe a duty to every individual - pull product from everywhere •right/justice: right to safe product - pull product from everywhere - how do we treat the people who have been harmed? •virtue: "our #1 priority is customers" - pull product from everywhere - within 2 years earned back market share

applying ethical principles to autonomous car

•teleological: program car to do least amount of harm •deontological: duty to me as an individual, save my life •rights/justice: what are the rights of the driver or the children on street etc •virtue: program be who we are, whatever you do don't hurt others

bernie Madoff ponzie scheme: immoral manager

•tells people he could double their money - gets you 10% on your money even on a down year •set up fake bank accounts, people put $ in and kept on accounts, he took $ out of funds •couldn't pay people back once they started asking for their money back •two sons died: Andrew of cancer and mark of suicide •interview with Barbara: wizard of lies; "I feel safer here than outside"; doesn't miss old life; he admitted he destroyed his family; contemplated suicide and has nightmares; "you can't do what I've done without guilt"; takes full responsibility for his crimes but doesn't believe he's a bad person •lack of trust destroyed value

merck: the moral manager

•the 1987 decision: Merck gave 2.5 billion pills for free to cure river blindness •ken Frazier: CEO; maintains moral commitment to river blindness today

what is the impact of ethical leadership on pressure to commit misconduct?

•the incidence of pressure was 3x as high for employees with weak leader commitment to organizational values and ethical leadership compared with strong leader commitment •strong culture avoids destroying trust

blue or red: a matrix decision

•the world has been pulled over your eyes to blind you from the truth •blue pill: story ends, wake up in bed •red pill: stay in wonderland and shown how deep the rabbit hole goes •ethics and technology: blue is I don't want to know, red is I want to understand

generations: millennials and ethics

•traditionalists: 1925-1945 •boomers: 1946-1964 •gen x: 1965-1980 •millennials: 1981-2000 •gen z: 2001-?

electronics exercise

•tried stealing a TV from different places around the world •all say they will call the cops •culture around the world is the same •fundamental values have been decided on independently across the world as a norm

motivation to commit fraud

•unable to pay personal bills •desire for luxury items •drug, alcohol, gambling addiction •tragedy: illness, divorce, etc •wanting to look good in some arena •medical bills and debt

rationalization to commit fraud

•underpaid •not appreciated at work •company does not need funds •company deserves to lose •they won't miss this •just borrowing and will pay it back •looked over for promotion

illustration of media and ethics

•wallstreet trailer: gordon grecco was top trader on Wall Street till he went to jail for insider trading - shows business as tough - doing bad things just to make money •"greed is good, it works" - not good ethics •the office - Steve corral dancing saying he wants company to get ethical

corporate and media dilemmas

•we do highly negative things that are mistakes •media sheds negative light -> go to ethics

ethical imperialism

•we have decided in our nation this is exactly what you need to do and this is the exact values to have •pure: close down sweat shops and throw people on the street in poverty

the world needs you to be young and responsible

•what are people saying about you? •are the problems of the world getting bigger or smaller? •strong people + problems of the world -> next great generation

branches of ethics

•what is: descriptive •what out to be: normative

social networks and millennials

•what they post vs. percent reporting •job feelings: 40% •bad joke on boss: 26% •work info: 26% •photo of coworker drinking: 22% •annoying habit of coworker: 20% •opinion on coworker politics: 16%

values framework and responsibility

•whenever you are facing a difficult decision/situation and need to make an ethical choice it can be a struggle •to be stronger: use values framework

dominos: the amoral manager

•wife was cooking and things were burning - dominos that husband orders shows up •playing stereotypes - amoral decision to make this the focus of commercial •cultural dynamic: roles of women are different across nations •30 min or free: stakeholder issues: accidents trying to get there within 30 min •changed to "what are you going to do in your 30 min?" - not free, but puts 30 min to look better than competitor

what impacts managers and employees morality?

•your personal situation •organizations moral climate •industry's moral climate •business's moral climate •society's moral climate