BA342 EXAM

workplace and computer technology

-Biometrics: the use of body measurements, such as eye scans, fingerprints, or palm prints for determining and confirming identity. Popular uses today include face scanners, hand scanners, finger scanners, retina/iris scanners, and voice scanners. For use in some cases to gain access to accounts, safe deposit boxes, or to make purchases -robotics: can lead to better living, but take away jobs (laws are needed to decide who's at fault if robotic devices harm someone) -Artificial Intelligence: embraces software technologies that make a computer or robot perform equal to or better than normal human computational ability in terms of accuracy, capacity, and speed. Google shocked the field in 2016 when its AI easily defeated the world's best player of the Asian board game "Go" in a 5 game match Microsoft has had problems with a product they called "Tay", an artificially intelligent software chatbox that communicated through messages on social media services → Tay started spewing offense rants -Cell Phones and Texting: the use of company-sponsored cell phones by employees represents one of the fastest growing technologies w/ increasing ethical and legal implications A trend is the growing # of employees using cell phones for talking and texting while driving and chalking up sales or billable hours

Tech 4 benefits

-Increased society's production of goods and services -Reduced the amount of labor needed to produce goods and services -Has made labor easier and safer -Higher standards of living have been a direct result of labor-saving technology

Technological determinism & ethical lag

-TD: is the imperative that "what can be developed will be developed" "whatever new tech there is, I'm in!" Ex. when someone once asked "why do we want to put men on the moon?" the answer was always "because we can put men on the moon" Scientists and those who develop these advanced technologies are driven to push back the frontiers of technological development without consideration of ethical issues, social problems, or side effects. -ethical lag: tech is growing so fast, ethics can't keep up, ppl are focusing on function and finance of technology not ethics

Top Misconduct Categories

-bribes and corruption -regulatory violation -fraud, lying and theft -employee abuse -contracts misconduct

Mary Barra GM CEO

-electrification, connectivity, and autonomous drivers -connected cars and big data

Security

-electronic payment at stores clip: Apple Pay is more secure, won't let cashiers ever see your card number, uses fingerprint which is more secure -Eugene Kaspersky- 7 circles of Cyber Hell 1.Researchers & Scientists (1980's) 2.Hooligans & Jokers (1990's) 3.Criminals (late 1990's) 4.Hacktivists (late 1990's - damage personal/corporate reputations) 5. Espionage (trade stolen data (bus/nations) 6. Military Attacks (cyber warfare) 7. Terrorists (anything) -Ferrari Case Study (1 question) Intellectual property concern: they need their chief engineers ideas and data securely stored and passed while becoming more processor light. Ferrari switched to Kaspersky for IT security provider since they are highly customizable. -Security Bill of Rights Individual Control Transparency Stolen Personal Info Respect for Context Security Access & Accuracy Focused Collection Accountability

Economics invisible hand (Adam smith)

-ethicist first and foremost and an economist -"a wealth of nations" published 1776 -"theory of moral scientists" published in 1759 -ethics professor- trading honestly and fairly will be best, no games -he's a moral philosopher and economics thinker

Digital amnesia

-forgetfulness phenomenon has affected young and old consumers and employees as we are outsourcing our brainwork to digital devices -Link between data available at the click of a button and a failure to remember that information anymore

Bribery: for, against, costs

-the primary form of corruption found in global business, and its practice merits closer examination Practice of offering something in order to gain an illicit advantage Some business people say bribery is necessary in some parts of the world For bribery They are necessary for profits in order to do business Everybody does it-it will happen anyways It is an accepted practice in many countries--it is normal and expected Bribes are forms of commissions, taxes, or compensation for conducting business between cultures Against bribery Bribes are inherently wrong and cannot be accepted under any circumstance Bribes are illegal in the US and most developed nations and therefore unfair anywhere else One should not compromise her or his own beliefs Managers should not deal with corrupt governments Such demands, once started, never stop One should take a stand for honesty, morality, and ethics Those receiving bribes are the only ones who benefit Bribes create dependence on corrupt individuals and countries Bribes deceive stockholders and pass on costs to customers

Privacy

-when agreeing to FB terms and conditions, allowing them to sell all of your info, no privacy on social media -PRIVACY BILL OF RIGHTS: -Individual Control Right to control what data companies collect on you -Transparency Consumers have right to know and access privacy info -Stolen Personal Info -Respect for Context Consumers understand company can use and disclose some personal info -Security Consumers have right to security of personal data -Access & Accuracy Can access data and change if inaccurate -Focused Collection Consumers have a right to personal data that companies collect -Accountability Consumers have a right to have personal data handled by companies w/ appropriate measures in place to assure they adhere to the bill of rights

Tech & Trouble Corporate

1. Online scams-identity theft 2. Invasion of privacy vs. informed consent 3. Stolen data 4. Hacking of corporate knowledge 5. Sharing consumer info 6. Spam 7. Behavioral advertising (cookies) 8. Geo tags w/ photos 9. Bio-technology: personal data and genetics 10. Company cell phones 11. Monitoring 12. Information overload

Tech & trouble personal

1. favor quick fixes 2. fear and worship technology 3. blurred lines between real and false 4. accept violence as normal 5. love technology as a toy 6. we live distanced and distracted 7. communication better or worse 8. relationships better or worse 9. knowledge better or worse 10. ethics better or worse

3 Components of ethics & technology

1. privacy 2. security 3. intellectual property

Principles Approach

Based on the use of ethics principles to justify and direct behavior, actions, and policies Ethical principles: Justice Rights Utilitarianism Golden rule Virtue Caring

Google glass

Can record videos without people knowing and then send them anywhere in the world instantaneously (think unintended consequences)

Benefits & side effects examples from class

Facebook: -better communication, updates, networking, groups etc -privacy breaches, waste of time, stalkers Drones: -search and rescue -spying/ invading privacy

`Article: "Creating an Ethical Culture" (1 question on the theme)

JPMorgan Chase: paid 13 billion to US government (largest corporate settlement in US History) in 2013 for contributing to the mortgage meltdown and misrepresenting mortgage-backed securities. Changing Expectations: After the housing crisis, people lost faith in business leaders. Before 2008, corporate reputations were largely determined by financial success. Today, businesses build trust by treating employees well, demonstrating ethical practices and placing customers ahead of profits. Studies have also found that companies with ethical workplaces see higher stock market returns than general indices (S&P 500). Companies are now becoming "stronger" ethically which is leading to a reduction in misconduct. Manager's Influence: Surveys show managers are responsible for 60 percent of workplace misconduct and the higher up the manager, the more likely they are to break the rules. Additionally, workers who observe misconduct are either too afraid to report (33%) or report and suffered retaliation (20%). Can You Teach Ethics: "Let's Talk Ethics with Hal" CEO Howard "Hal" Brewer "ethics officer" values ethics and is constantly updating his company's ethics training. Beware of Ethical Danger Zones: Conflicting goals (if forced to cut corners to attain performance goals or given objectives that they believe are unattainable, employees may feel pressured to compromise ethical standards and lose trust in their managers), Fear of retaliation, Avoidance (when bad things go unpunished or are ignored, that can lead to even worse behavior), Rationalization (the "Everybody's doing it" mindset), Lowered thresholds (with each unethical decision, the next one becomes easier), and Euphemisms (e.g., "creative accounting") Evaluation Time: Companies switching from surveys since answers are too predictable. Talk About it A lot: Ethics needs to be brought up regularly so that it stays at the top of employees' minds.

Ethics is: PONG

Personal (most important) Organizational National Global

Privacy info employees/ customers

Privacy Issues Employees 1. Sexual harassment 2. social media 3. phone usage/recording 4. email 5. web history 6. health info 7. personal data 8. tracking location 9. Access Privacy Issues Consumers 1. confidentiality 2. spending history 3. credit card 4. ssn 5. personal data 6. intrusion 7. tracking web 8. selling 9. access

Loss of trust and value

Volkswagen, enron, Wells Fargo, etc

Spider man quote

With great power comes great responsibility

Trolley Problem

a thought experiment underlying principles on decision making -would you push a fat man off a bridge to stop a train and save everyone else?

Can you do the right thing sports video

admitted to the foul play at the championship game showing integrity

Technology definition

all the ways people use inventions and discoveries to meet needs and wants -"totality of the means employed to provide objects necessary for human sustenance and comfort"

Foreign Corrupt Practices Act (1977)

before this act, bribes weren't illegal Bc of this act it became a criminal offense for a representative of a US corporation to offer or give payments to the officials of other governments for the purpose of getting or maintaining business -Grease Payment → is paid in order to expedite a deal or transaction, not intended to make a business deal happen, merely makes it happen faster Ex. smaller amounts of money given to get officials to do what they are supposed to be doing better than they would otherwise Bribery → business person pay an official in order to obtain or retain business Ex. large amounts of money given to influence a decision or action that wouldn't otherwise be taken

Deontological theory (duties to society)- Kant

by contrast, focuses on duties. For example it could be argued that managers have a duty to tell the truth when doing business. -says that a person should act only on rules that you would be willing to see everyone follow

7 ethical tests

common sense, big 4, gag test, purified idea, venting others, best self, GOING PUBLIC

Conventional approach (societal norm)

comparison of decision, behavior or practice to prevailing norms or acceptability. -conventional: don't need to learn about ethics, "common sense" -cheating -controller (chief accountant)- corporations -comptroller (lead accountants)- government

Business ethics textbook definitions

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

International business ethics right/ wrong same globally

cultural relativism vs ethical imperialism -hyper norms in the middle: most companies operate under hyper norms (most nations), value that extends across cultures -custom and culture changes from nation to nation -customers want a fair deal, reasonable price, honest info -employers want safe working conditions and good benefits -among nations ethics is very similar

% of US workers perceiving pressure to commit misconduct trend

from 1994-2013 went from 28% to 9% -IT HAS DECLINED

Amoral

lacking a sense of right and wrong, just wants to do business and isn't thinking about the ethics behind their decisios

the big 4

may lead you astray, toward unethical courses of action -greed (acquire more in your own self interest), speed (rush things/ cut corners because of pressure of time), laziness (easy course of action that takes least amount of effort), haziness (act without clear idea of what's going on)

Media influencing data

media reinforces stereotypes -Go daddy commercial- stereotype business woman as beautiful model, and tech guy as ugly and nerdy -liberty mutual commercial: before using liberty mutual the guy was a loser, then went to an attractive, fit man who used liberty mutual

Social networks and millennials

millennials tend to put things on their social media that they shouldn't: job feelings, bad jokes on boss, work info, photo of co-worker drinking -report more to an informal sources like FB -more likely to experience retaliation -report the same amount as other generations, just differently

Media influence types

news, ads, movies, internet, tv, social media

Ethics 3 part definition

set of principles, right conduct, underlying values

Responsibility define

the ability/ authority to act or decide on one's own without supervision

Warren buffet quote

when looking for ppl to hire, must have: 1. integrity 2. intelligence 3. energy "if they don't have the first, other 2 will kill you"

Merck and River Blindness (209-212)

The gift of sight: Merck provides an African village with Mectizan, a drug that will prevent them from losing their eyesight from black fly bites

Teleological theory (consequences or results)

focus on the consequences or results of the actions they produce. Utilitarianism is the major principle in this category. It recommends taking the action that results in the greatest good for the greatest number. (ex: could be argued that the workplace would be better off if only college grads were hired even though not everyone needs a college degree to do our work) -Does not recognize specific actions as inherently good or bad but rather allows us to fit our personal decisions to the complexities of the situation -Strict interpretation of utilitarianism might lead mgr. to fire minorities or old workers bc "they do not fit in"

Management Ethic's Models

immoral, moral, amoral

Responsibility today- Wells Fargo case

-employees open up millions of fake accounts -cross selling- okay to suggest other services in banking, but they were using very high pressure to influence customers -fake accounts, car insurance fraud, 401k payout, frozen asset growth -new CEO had to change the culture, get rip of reputation risk, rebuild trust with stakeholders -2018-2019 manager firings, shareholder lawsuit, retirement scandal

Google effect

-holds that just knowing that some bit of data can easily be retrieved on the Internet makes us less likely to now remember it. -Losing internet connection is becoming more and more like losing a friend

Immoral- Bernie Madoff Ponzi scheme

-largest financial fraud in U.S. -started an investment/ penny stock company -told ppl their money was always safe to invest -took in money, paid off early people the return, convinced ppl to keep investing more and not providing any return -caught in 2008 during crisis (150 years in jail)

Bounded ethicality -UT

-ppl are rational, but bounded (not white and black) -psychological & organizational factors cause us to be boundedly ethical (depends on situation) -psychological factors (2 voices in your head) -organizational pressure causes unethical behavior (pleasing your boss/ superior) -peer pressure on sports teams -to overcome it, have to see that you're doing something wrong -bottom line- all trying to be good people

Michigan State Gymnastics Larry Nassar

-raping gymnasts for over 20 years -used excuse that he could help them medically, but was just abusing them -332 women

Bernie and Barbara prison interview

-said he felt safer in jail -acknowledged that he should be punished -in therapy now, became depressed and feels guilty -said he made wealthier people wealthier -most ponzi schemed get 20% back, Madoff has paid back 13b of the 18b stolen

Have you heard it said that ethics is?

-situational (relative) -contextual (cultural) -it all depends -WRONG PLACE TO START ON ETHICS -always start with VALUES

Internet of things (television seeing and hearing)

-smart TVs can gain access to camera in TV and can watch ppl -no indication that the camera is on so people aren't aware that they're being recorded

Does right/ wrong work the same in every country? Jonh Q movie:

-son is about to die & dad offers to kill himself and give his heart to his son. Doc says it's unethical to do that. When John pulls out a gun, he knows what he's doing is wrong and wants to do it anyways. -difficult situation= situational ethical decision making

Snapshot cases

-trust with shareholders HAS FIRM VALUE -most ppl are trying integrity, only some are not

License plates and personal data

-violation of privacy for innocent people -access to all personal info -needs to be more transparent and add limits -data sharing through vigilant solutions

Lockheed Martin- Review main elements of their ethics program on website***

Core values → Do what's right, Respect others, and Perform w/ excellence What's right is more than just obeying laws, holding selves to higher standards even when the law doesn't require us to

cultural relativism

Cultural Relativism: This position is characterized by foreign direct investors such as MNCS following the host country's ethical standards "When in Rome do as the Romans do" Set aside home country's ethical standards and adopt the ethical standards of the host country (Ex. Saudi Arabia it is illegal to hire women for most managerial positions → MNC would accept and adopt this standard even if it runs counter to it's home country's standards) -Argued that cultural relativism holds that no cultures ethics are better than any others and that there are no international right/wrong doings -Most ethicists find this to be a case of moral and ethical relativism and an unacceptable posture for companies to take

Phantom Expenses Case (pg 668)- values framework

Jane (new sales rep) is told by Ann to inflate expense vouchers by 25%, says everyone does it. 1. are you being directed to falsify your expenses? 2. who is Ann? how do you know everyone is doing this? 3. you, Ann, other sales ppl, department manager, clients, HR, compliance 4. industry protocols, company guidelines, legal guides 5. your values and company

Org. Ethics components (7 elements)

Leadership support Code of ethics Ethics officers Compliance standards Company wide training Clear communication Detection/Prevention

Settlements at PSU vs MSU

PSU: Sandusky, $109m, 33 victims, 2% PSU budget MSU: Nassar, $500m, 332 victims, 37% MSU budget

Penn State Value driven (PRRIDE)

Penn State community Responsibility Respect Integrity Discovery Excellence

ERC report large companies

Poor ethics programs: more pressure to compromise standards, more observed misconduct, didn't report as much misconduct, in poor ethics program they experienced more retaliation of those who reported wrongdoing

Why take BA 342?

Recruiters say that a solid understanding of these leadership competencies will make a candidate stand out in the hiring process (talk about this course in any interview)

Ethical Principles (duties, rights/justice, utilitarianism, virtue ethics)

pg 13 in outline -utilitarianism asserts that we should always produce the greatest ratio of good to evil for everyone (for ex new drug comes out but has some side effects- however its helping more people than hurting, so its considered a good drug even though it has problems for some) -Kant's imperative is a duty based principle of ethics (deontological). Believes that people should only act on rules that you would be willing to see everyone follow -kant's second formulation: principle of ends: each person has dignity and moral worth and should never be exploited or manipulated or merely used as a means to another end; duty to respect persons -kant's third: principle of autonomy: we do not need external authority-- be it God, the state, our culture, ourselves. (every rational person is able to regard oneself as a maker of universal law) Look at outline for rights:

Best practice org Ethical culture (pg 19 of outline)

structure, oversight, due diligence, communication, communication, monitoring, promotion and enforcement, response Must include: -Continuous presence of ethical leadership reflected by superiors -The existence of a set of core ethical values infused throughout the organization by way of policies, processes, and practices -A formal ethics program that includes a code of ethics, ethics training and ethics officer and ethics training

Values framework

structured way to address an ethical issue 1. Awareness (problem definition/ define situation) 2. Facts (currently know vs unknown) 3. Stakeholders (individual/ groups showing interest/ who is impacted) 4. Standards (federal state laws, corporate laws, code of conduct) 5. Values (corporate values/ do our values fit) 6. Actions (what are you going to do) (pg 19 in textbook)

Responsibility leadership financial times definition

"responsible leadership: making business decisions that...takes into account stakeholders, such as workers, clients, suppliers, environment, the community and future defintions

Tylenol case

-1982 Tylenol was huge -Mayr kelerman (12 years old) lives in Chicago, didn't feel well-took Tylenol and started foaming in the mouth and died (stroke) -capsules had potassium cyanide- 7 ppl died around Chicago area -someone bought the bottles and injected cyanide into the pills, not manufacturing issues -was pulled from every store, 100m in recall -PONG -took responsibility, rebuilt brand through safety, corporate culture impact, leadership -had to reorder of focus : 1. customers, 2. employees, 3. communities, 4. stockholders

Ethics case- Boeing 787

-2000 CEO did unethical things -hire chief operations officer Harry to rebuild trust, add in ethical training, got taken off probation -Harry met Debrah and email files between them became public about their relationship -fired Harry and added no dating policy at Boeing

Moral disengagement

-70% of college students have cheated at some point, having someone write your paper, social media bullying, sexual abuse, alcohol abuse, cheating on exams -PSU students are engaged in THON, orgs, sports, etc

Moral decisions, managers and organizations

-A broader goal is to create moral managers. -The highest level goal for managers may be to create moral organizations -Goal of managers should be to create moral decisions, moral managers, and ultimately moral organizations while recognizing that we frequently observe in business is the achievement of moral standing at only one of these levels. -Ideal situation is to create a moral organization that is fully populated by moral managers making moral decisions

Influences on behavior

-Behavior of Superiors: ranked as the primary influence on unethical behavior in all three studies. -MOST IMPORTANT -Behavior of one's peers: ranked high in ⅔ studies. People pay attention to what their peers are doing and expecting. -Industry or professional ethical practices: ranked in the upper half in all 3 studies. These contextual factors are influential -Society's Moral Climate -Policy -Personal financial need: ranked last in the studies. But let's not assume it does not matter bc for some people it does -People in management often times feel pressure to compromise personal standards to achieve company goals → bad bc employees are so easily swayed by what their superiors do -People lower down on the ladder feel more and more pressure

Marijuana cost to employers & people

-Colorado data: made a lot of $ in sales, created jobs -Corporate: lost productivity, absenteeism, injuries, litigation, safety, compliance and risk, health costs increase -Personal: ST memory problems, impaired thinking, loss of balance, decreased concentration, impaired ability to perform complex tasks, less alert

Ethical tests approach (applied guideline focus)

-MOST IMPORTANT TEST: public disclosure -helps decide what the best plan of action is -public disclosure: "How would I feel if others knew I was doing this? How would I feel if i knew that my decisions or actions were going to be featured on the national evening news tonight for the entire world to see?" If this makes you uncomfortable → reconsider

"The fraud triangle and what you can do about it" article on 3 reasons why people commit fraud

-Opportunity: the element which business owners have the most control over. Employees are given access to assets and information over the course of their job that allows them to both commit and conceal fraud. Access must be limited to only those systems, information, and assets that are truly necessary for an employee to complete their job. Opportunity is created by weak internal controls, poor management oversight, and/or through use of one's position and authority. -Motivation (incentive): a pressure or a "need" felt by the person who commits fraud. It can be a real (bills) or perceived (jewelry) financial or non financial need (high pressure for good results or a cover up of poor performance). -Rationalization: determining that committing fraud is acceptable for a variety of reasons such as making up for being underpaid, replacing a bonus that was deserved but not received, tell themselves that the company doesn't need the money or won't miss the assets, or believe that the company "deserves" to have money stolen because of bad acts against employees. -Organizations are implementing tighter controls and broader oversight. The auditing profession has adopted more rigorous auditing standards and procedures, and software developers are adding continuous monitoring features to back-office systems (we don't yet know if these measures will reduce fraud)

Compliance versus values

-Organization w/ a culture of ethics is most likely a mixture of an emphasis on compliance and on such values as integrity or ethics -Compliance focus → could undermine the ways of thinking or habits of mind that are needed in ethics thinking. Ethics thinking is more principles based, while compliance thinking is more rule bound and legalistic Compliance can squeeze out ethics -Ethics perspective is necessary to give a compliance program "soul" and compliance features are necessary to give ethics programs more "body" Both are essential

Big Data define and speed of technology video

-describes the tons of information that are out there and how businesses are striving to put it to work -Characterized by: High volume High velocity High variety -video theme: the volume of data is on an exponential curve (that is, it's increasing exponentially) Texting is infinitely small in terms of the big data being collected

Volkswagon case

-diesel clean cars caused more pollution -cheated on emissions tests -intentional and criminal -52B in fines, sued by every state and environmental companies -breaking trust decreases value of company

Doritos, Taco Bell, and honest tea and ethics

-doritos: dog killed cat and bribed dad with doritos to say that he didn't see anything -Taco Bell: "take the money and run" getting away with something -Hoest tea: $1 for drink on the honor system, secretly recorded, social experiment, testing for integrity to see who would take it without paying

Media & ethics

1. Wall Street 2. Greed is good 3. The office- ethical song 4. Bus & the office -portray business leaders as unethical/ poorly, they're a lot more responsible than people think

Three approaches to ethical decision making

1. conventional approach (societal norm focus) 2. principles approach (moral guideline focus) 3. ethical tests approach (applied guideline focus)

Ethics decision making process, Can you teach ethics: An individual process

1. ethical awareness 2. ethical judgement 3. ethical behavior

4 big topics of BA- leadership competencies

1. ethical issues in business 2. sustainability 3. diversity and inclusion 4. corporate social responsibility -RESPONSIBILITY AND RESPONSIBLE LEADERSHIP: theme of class

Five principles of a high quality ethics & compliance program

1. ethics and compliance central to business strategy 2. ethics and compliance risks are identified, owned, managed and mitigated 3. leaders all levels across the org. build and sustain a culture of integrity 4. the organization encourages, protects, and values reporting of concerns and suspected wrongdoing 5. organization takes action and holds itself accountable when wrongdoing occurs

4 fears of reporting

1. report won't be confidential 2. corrective action won't be taken 3. couldn't report anonymously 4. they'd be labeled as a snitch

Drug use framework example

1. someone using drugs? 2. are they impaired? legal/illegal? 5ws? 3. boss, employees, media, clients, HR, stockholder, competitors 4. federal and state laws, drug testing, company policy, industry focus 5. company's core values 6. fire people, speak to manager, sabbatical

Moral

A practical lesson about right and wrong

PSU & NCAA stakeholder analysis

After Sandusky 2011 NCAA wanted to take us out of the game- team was taken out for 4 years, then had to rebuild the team -stakeholders: Sandusky victims, PSU, NCAA, other university, football program, all sports teams, media, faculty and staff, PR, families, local businesses

Dominos case- values framework (30 minute guarantee)

Amoral management 1. dominos delivery speed 2. they delivered too slow, had to pay out of pocket, car crashes from speeding 3. customers, owners, employees, delivery drivers, family members 4. dominos code of conduct, speed limits and laws 5. safety, responsibility, customer satisfaction, relationships

sexual harassment case- values framework

Awareness: sexual harassment Facts: location, level & type of job, have we reported it, is it true?, who else knows, frequency, where/when?, family engagement? Stakeholders: victim, victims family, mgmt, yourself, harasser, coworkers, stockholders, police, customers, ethics office Values: Does this match company values? Actions: Should contact your company's ethics office Know the three principles: Once you know... (1 question) You are 100% involved You need to get help (HR) You should always follow up (make sure they are okay)

Hyper norms

Can be thought of as standards that are so basic that they are universally accepted Ex. health, safety, and freedom-- but some countries would not accept these examples -Hypernorms are more justified or confirmed when they meet these conditions -Widespread consensus that the principle is universal -A component of well-known global industry standards -Supported by prominent NGO's -Supported by regional govt organizations such as the European community, the OECD, or the Organization of American States -Supported by global business organizations such as the Caux -Round Table and the International Chamber of Commerce

Chief privacy officer

Chief Privacy Officer (CPO)- Principally manages Information Technology Policy Monitor websites Block websites Sort and retrieve mail Monitor phone time and number Tape phone convos Video surveillance for theft

Business and responsibility- a license to operate

Demonstrating to the world that we are taking into account stakeholders in our operations (something Volkswagen & Wells Fargo did not do well) -intangibles: 53% of total value of fortune 500 -consumers: 85% reputation responsibility key (competitiveness and market positioning) -risk management: gov, NGOs, legal -employees: 3 of 5 want to work for a value company -investors: 86% institutional investors -operations: innovation, energy, waste, water

Tech 4 side effects

Environmental pollution Depletion of natural resources Technological unemployment Creation of unsatisfying jobs

Ethical imperialism

Ethical Imperialism: This position holds that the business firm should continue to follow its home country's ethical standards even while operating in another country -US and Western standards for treating employees, consumers, and the environment are quite high relative to standards in developing countries

Expectations of you (EAP)

Excellent Performance Academic Integrity Professional Behavior

Economic eras & tech

Hunter/Gatherer- from beginning Agrarian- from 2000 BCE Industrial- 1760s-1940s Information- 1940s-1990s Knowledge (Big Data)- 1990s-present

Global workplace ethics survey

Interactive maps. Know the themes (do not need to know percentages) Poor Ethics versus Good Ethics Culture (Themes) Pressure to compromise standards (23% in poor, 3% in good) Observed misconduct (62% in poor, 33% in good) Reported misconduct (32% in poor, 87% in good) Experienced retaliation (59% poor, 4% in good)

Kholberg- levels and stages (7.6)

Level 1: Pre-conventional (how people behave as infants/ children focusing on their self) Stage 1: reaction to punishment (if you want a child to not do something, punishment is necessary) Stage 2: seeking of rewards (kids see connection of being good with a reward) kids don't know difference between right and wrong but know how to behave according to consequences Level 2: Conventional- as a person matures, she or he learns that there are others whose ideas or welfare ought to be considered. (initially family and friends) Stage 3: good boy/ good girl (learn that there are intangible rewards such as acceptance, trust or respect, for living up to what is expected by your peers.) Stage 4: law (Individual now recognizes that there are certain norms in society that are expected or needed if society is to function in an orderly fashion-not just laws but muting cell phone in movie theater, tipping a server) Level 3: Post-conentional- individual develops a concept of ethics that is more mature than the conventionally articulated situation (person knows what is morally right now) Stage 5: social (Right action is thought of in terms of general individual rights and standards that have been critically examined and agreed upon by society as a whole.) Stage 6: Universal (The individual uses his or her thinking and conscience in accord with self-chosen ethical principles that are anticipated to be universal, comprehensive, and consistent. Principles may be focused on such ideals as justice, human rights, reciprocity, and social welfare.)

corporate dillema (textbook)

Major executives implicated: Andrew Fastow (CFO), Jeffrey Skilling (CEO), Kenneth Lay (Chairman) Securities fraud, conspiracy to inflate profits, corrupt corporate culture Offload debt to other companies Book revenue but not expenses Improper accounting Went completely against their code of ethics (pg 56 coursepacket)

Blue pill/ red pill

Matrix Clip: take the blue one to forget about the matrix or take the red to know the truth about it and technology

Fraud triangle (horse case)

Rita crundwell: Comptroller of city of Dixon, Illinois Stole 30 Million dollars from the small town by setting up various wire transfers sending city money to her personal account Sentenced to 20 years in prison

Strong vs. Weak Cultures - note the data

Strong vs. Weak Cultures - note the data Weak: Ex. long-time employee embezzled about $20,000 over a 15 yr period, when the employee was questioned as to why she had done this, she said she thought it was ok bc the president of the company had led her to believe it was okay by actions he had taken. President would take money from pettycash box or get key to soft drink machine and raid it, take stamps out of company stamp box, needed leaves raked would take company personnel off their jobs and have them do it. Strong: Ex. vacuum tubes were defective, plant mgr. said what do we do and the vice president immediately said scrap them. This set the tone for the company bc employees knew of the situations in which faulty products had been shipped under pressures of time and budget In the absence of knowing what to do employees look at their leaders actions

Enron case

This involves both bad corporate governance And bad Professional Ethical judgment -Ken Lay, chairman, admitted to being responsible for conducting the business affairs of the company -Enron wanted to show good stock market value so they lied about the supply so that the demand would go up. -California went from 0 to 38 blackouts "Enron deaths" -ppl invested all of their money in Enron, went bankrupt and lost everything

Elements of judgement (7.7)- pg 11/12 in study guide

Transitioning from amoral management to moral management conditions (6 elements) 1. moral imagination (clearly identify ethical issues and develop creative ways to deal with them- developing perspective of searching out subtle places where ppl are acting unethically) 2. moral identification (define moral issue and prioritize them) 3. moral evaluation (Mgrs. need to understand the importance of clear principles, develop processes for weighing ethical factors, and develop the ability to identify what the likely moral as well as economic outcomes of a decision will be) 4. tolerance of moral disagreement and ambiguity (Includes ability to hear, discuss, and be respectful toward other peoples views) 5. integration of managerial and moral competence (The amoral manager sees ethical decisions as isolated and independent of managerial decisions and competence, but the moral manager sees every evolving decision as one in which an ethical perspective must be integrated → essential to sustainable organizations) 6. a sense of moral obligation (requires the intuitive or learned understanding that moral threads (a concern for fairness, justice, and due process to people, groups, and communities) are woven into the fabric of managerial decision making and are the integral components that hold systems together)

Smeal honor code

We aspire to high ethical standards, we will hold each other accountable, we will not engage in any improper academic or professional actions

Descriptive vs normative

what is descriptive ought to be normative -still have potential to make mistakes -Descriptive → what you see, what is Concerned with describing, characterizing, and studying the morality of people, an organization, a culture, or a society. It also compares and contrasts different moral codes, systems, practices, beliefs, and values. -Normative → ought to be, what do you think should be going on? Ex: 0% of college students cheat -Concerned with supplying and justifying a coherent moral system of thinking and judging -Seek to uncover, develop, and justify basic moral principles that are intended to guide behavior, actions, and decisions -Normative business ethics might be based on moral common sense -Descriptive to normative ethics clip → expense accounts are creative writing

Is there such a thing as right and wrong?

yes! values are important

Can you teach ethics to make someone ethical?

you can teach it, but can't physically make someone ethical