Ethics
Proxy Fight
A measure used by an acquirer to gain control of a takeover target, by persuading
Stakeholders
A person, group, organization, member or system who affects or can be affected by an organizations actions
Beachnut
About an apple juice manufacturer who claimed they made apply juice for kids, but really their product was hardly juice They knew it contained little to no apply juice Label said 100% juice
Stated Warranty
An assurance, promise / guarantee by 1 party that a particular statement of fact is true
THE EFFECTIVENESS OF GOVERNMENT REGULATION TO LEVEL PLAYING FIELD, PROTECT CONSUMER AND CONTROL THE GAME. EXAMPLES FROM ICELAND MIGHT BE USEFUL.
An example of to regulate by government or to let the industry regulate itself. It was a free for all and the people lost since the banks were playing and betting with other people's money.
INDIRECT COSTS OF REGULATION
An indirect cost would be the cost and effect the regulation has on a person at the receiving end of the accommodation. For example if there were specific working accommodations in a factory, they would benefit any worker who applies for that accommodation. Also, undesirable changes in behavior (consumer cutting costs) because of government regulations (taxe
Shareholder meeting
Annual meeting of members of a corporation to hear reports, plans and prospects of the company
SEXUAL HARASSMENT TWO KINDS QUID PRO QUO AND HOSTILE WORK ENVIRONMENT, CAN YOU APPLY THESE CONCEPTS TO ASTRA AND NORTH COUNTRY?
Astra USA: A sexual discrimination scandal The manager was hiring girls on their looks not if they were qualified The manager would take the hot girls out to bars and get them drinks and dance
THE EFFECTIVENESS OF GOVERNMENT REGULATION TO LEVEL PLAYING FIELD, PROTECT CONSUMER AND CONTROL THE GAME. EXAMPLES FROM BP
BP and their management staff. Money over safety Texas: Explosion killing people Alaska: Pipeline erosion causing leaks and spills Deep water oil retraction in the Gulf of Mexico
Code for making the right choices
Based on morals and values
QUESTION OF LEGAL VS ETHICAL FROM "OTHER PEOPLE'S MONEY" AS IT APPLIES TO CEO BILL
Bill had every legal right to sell his shares but this was not the right ethical decision. As a president of the company for 15 years he had an obligation to Jorgi to not sell his shares, not to mention countless others throughout the company whose job and well being depended on the outcome of the votes. Bill also ignored Kate's question right before the time of the vote, because deep down he knows he did something ethically wrong.
Fiduciaries
Both directors and officers of corporations are fiduciaries for the shareholders. Are persons placed in positions of trust who use due diligence and loyalty (decision is in best interest of company) in acting on behalf of the best interests of the organization. The fiduciary is given these resources to make a return on investment and apply these resources.
CORPORATE GOVERNANCE HAS THREE ELEMENTS IN THE DEFINITION
Corporate Governance is the formal system of oversight, accountability, and control for organizational decisions and resources.
IN YOUR OPINION WHY DO CEO'S AND CORPORATIONS FALL INTO UNETHICAL BEHAVIOR. LEGAL - ETHICAL - TEMPTATION - ILLEGAL OR MAYBE AUTHORITY - BREAD - MIRACLE - MYSTERY OR MAYBE GENDER RELATED BOYS BEING BOYS
Corporations Unethical: Temptation Externality of life: child is dying needs to steal meds Employees stealing Illegal crime saving someones life
Implied Warranty
Created by state law, all states have them, almost every product purchased is covered by one Contract law term for certain assurances that are presumed to be made in the sale of products or real property, due to the circumstances of the sale
COULD YOU DISCUSS THE ROLE OF ORGANIZATIONAL OR NATIONAL CULTURE IN DECISION MAKING, HOW CULTURE MIGHT IMPEDE OR ENHANCE THE ETHICAL ASPECTS OF OUR DECISIONS
Culture creates a common ground for team members. It reduces uncertainty by offering a language for interpreting events and issues. It provides a sense of order so that all team members know what is expected. It contributes to a sense of continuity and unity. And it offers a vision around which a company can rally. The stronger a culture has, the less freedom a manager will have because they are in compliance with others. A manager is able to do whatever they please and make their own decisions in a weaker culture. Decision making differs in other countries because each country has their own set of values, cultures, standards, etc.
Sexual harassment quid pro quo
Direct supervisor seeks sexual favors in return for something within their powers
Normative: (Social Norms)
Do no harm Respect for others Fairness Tell the truth Keep word Do not lie Do good
Duty: (Kant)
Ethical obligation to do what one determines to be "right" through reason, regardless of consequences (non-consequential) Power to determine what is right through personal reason. Duties to self: Duties to others: Duty to treat others as you would like to be treated.
Organizational Ethics
Ethics of an organization, how an organization ethically responds to an internal or external stimulus Organizational ethics is interdependent with the organizational culture
Utility: (Mill)
Greatest good for greatest number (consequential) Act - utility - requires extensive stakeholder analysis in situation to degree consequences to each. Rule - once an analysis has been conducted make a rule... If the rule works for the majority and produces positive results it is an acceptable rule. Problems with utility - what is good for the majority may in fact harm the minority.
THE EFFECTIVENESS OF GOVERNMENT REGULATION TO LEVEL PLAYING FIELD, PROTECT CONSUMER AND CONTROL THE GAME. EXAMPLES FROM LARRY
He took it upon himself to try to overrun the NEW&C by buying all of their shares and running the organization himself
NAME AT LEAST 5 DUTIES THE BOARD OF DIRECTORS HAS. THEN DO AN ASSESSMENT OF NE wire and cable
Hire CEO, conduct annual reports, establishing the mission & goals, oversee day to day operations and make sure the assets are protected, evaluate performance.
Time Warner
Ice-T(rapper) produced a song named "Cop Killer" Offensive lyrics Stopped the production of the album and reinforced new policies
Shareholders
Individual or institution/corporation that legally owns a share of stock in a public or private corporation
HOSTILE WORK ENVIRONMENT
Is created by boss or coworkers whose actions communication or behavior makes doing your job impossible
THEN DO AN ASSESSMENT OF NE wire and cable
Jordy was the CEO of NE Wire & Cable. Family operated company, Not up-to-date, Losing money but never had a lawsuit. Has 100,000,000 dollars in the bank from stakeholders. He cant use this money to buy out Larry because it technically does not belong to him and is only there if there an emergency. Gonna try to buy out Larry but fails to do so.
Mattel
Leader in the toy manufacturing business Tainted paint with lead
Rights: (Locke)
Life Liberty Pursuit of happiness Concept of private property Concept of the common and how one creates private property Concept of social contract - government formed by consent with obligation to protect guaranteed rights.
Greenmail (like blackmail)
Money paid to an aggressor to stop an act of aggression A practice in corporation mergers and acquisitions
MORAL/ETHICAL COMPASS WHAT DOES THIS MEAN TO YOU AND DO YOU HAVE ONE AND IF SO WHICH OF THE MATRIX ELEMENTS MIGHT BE USED AS TRUE NORTH
Moral Compass Anything which serves to guide a persons decisions based on morals and virtues "truth north" is Duty Because based on your morals and sticking to them, do what is right regardless of situations A moral compass expressing responsibility, integrity, compassion and forgiveness will help you do so
Jorgy: DECISION MAKING PROCESS AND THE ETHICAL RATIONALE OR LACK THEREOF IN HIS CHOICES.
More about pride, not maximizing shareholder value Lack of duty to others Lack of concern of consequences Doesn't show concern of company's future in terms of money
Why do people do what they do in business and life making decisions?
Motivation by the benefits that result from actions What is right from wrong Based on comfortability Wanting to fit in or stand out
Justice: (Various)
Obligation of strong to protect the weak Equality Fair-laws - equally enforced Respect for individual rights Distribution of resources Fair punishment for wrongs Compensation for harm done
Individual Responsibility
Owning up to your actions and what you do on a daily bases You are responsible for yourself and those things that affect you and those around you
Oversight
Relates to a system of checks and balances that limit employees' and managers' opportunities to deviate from policies and codes of conduct.
Strict Liability
Standard for liability which may exist in either a criminal or civil context A rule specifying strict liability makes a person legally responsible for the damage and loss caused by his or her acts and omissions regardless of culpability
WHISTLE BLOWER TO REPORT OR NOT REPORT. HOW WOULD YOU DECIDE? WHAT IS THE DECISION MAKING PROCESS YOU MIGHT FOLLOW IN DECIDING TO REPORT OR NOT REPORT? WHAT MIGHT BE THE CONSEQUENCES TO YOU?
Takes great courage to stand up and blow the whistle. The law protects you but not from the slings and arrows of our peers our company or the law firms that might try and tear you apart. It could fall stupidity not my job or under justice or duty or normative . It takes courage to face down the corporation the lady lawyer at ENRON tried and she was pillared and fired. The workers in Alaska were ignored as was the refinery manager in Texas. Even Creon's son fell to his father's anger when he tried to tell him he was doing wrong and Lance's team mates they were black balled. Lots of examples but not that many if you consider the world we live in.
National culture
Te set of norms, behaviors, beliefs and customs that exist within the population of a sovereign nation. International companies develop management and other practices in accordance
Variables that play out while in the moment
Temptations Risk Emotions: risk, fear, happiness, sadness, excitement Consequences
AMERICAN WITH DISABILITIES ACT AS AN EXAMPLE OF REGULATION AND ACTIONS REQUIRED BY BUSINESS.
The Americans With Disabilities Act prohibits discrimination against any people with disabilities in employment. A hiring manager cannot use their disability as a reason to deny them the job. They are also not allowed to ask them during the interview if they have a disability. They are allowed to ask if they can meet with job requirements without reasonable accommodations. These actions are required by a business because a person should not be denied a job just because they have a disability.
Organizational culture
is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs.
Loylaty WHAT DO THEY MEAN AND HOW DO THEY APPLY IN TERMS OF FIDUCIARY RESPONSIBILITY AS A BOARD MEMBER
The duty of loyalty means that all decisions should be in the interests of the corporation and its stakeholders. Conflicts of interests exist when a director uses the position to obtain personal gain, usually at the expense of the organization.
KEY LESSON FROM ROBERT, HELEN, ANN IN TERMS OF LEADERSHIP ETHICS AND PRINCIPLES AS APPLIED IN EACH CASE.
The key question a manager should ask is what do they need to do from a leadership perspective. It is the person with all the power's responsibility to ensure that the employees are satisfied and to see if anything is going on with their life that needs to be addressed. The managers in these cases should've talked face to face with these troubled employees instead of relying on other people's opinions in the workplace.
RED ICE / YELLOW ICE PLAYER FROM "NORTH COUNTRY"
The significance of this saying is to ask the question whether someone is going to stand up and tell the truth or ignore problems and lie. You can either run (yellow) or stand up and fight (red). The lawyer asks the question "What are you supposed to do...when all the ones with power are hurting the ones with none". JUSTICE: The ethical matrix clearly shows that the strong are supposed to protect the weak. More importantly, in an organization where the decisions impact many, the people who are making the decisions (bosses) need to make the right decisions to benefit the majority.
DIRECT COSTS OF REGULATION
There are both direct and indirect costs involved in regulations. Some direct costs include the cost it would take the government to put in the regulation, involving how much it costs to write the regulations, make inspections, enforce the regulations, and pay the staff in the agencies.s).
DUE DILIGENCE WHAT DO THEY MEAN AND HOW DO THEY APPLY IN TERMS OF FIDUCIARY RESPONSIBILITY AS A BOARD MEMBER
There is a duty of care, also called a duty of diligence, to make informed and prudent decisions. Directors have an obligation to avoid ethical misconduct in their role and to provide leadership in decisions to prevent ethical misconduct in the organization. Directors are not held responsible for negative outcomes if they are informed and diligent in their decision making.
Iceland
Was lead in to the film on the economic collapse pristine country natural fuel free health care and education and then they deregulated. Banks went public loaned beyond Iceland over leveraging so when the collapse came they collapsed. An ideal country overrun with big business invaders became a lost cause and it has taken them 10 years to recover and will not recover the loss of the brains of the young who fled because of the collapse.
WHAT WERE THE QUESTIONS MAYBE THREE OF THEM THAT TIME WARNER AND MAYBE ALL CORPORATIONS SHOULD ASK IN TERMS OF DECISION MAKING
What kind of behavior do we want to encourage What kind of behavior do we want to discourage What are the values that our management hold dear and wants its employees to embrace
Control
involves the process of auditing and improving organizational decisions and actions.
Accountability
relates to how well the content of workplace decisions is aligned with a firm's stated strategic direction.