BA 342 Exam #1 Study Guide
Hyper norms
Standards that are so basic that they are universally accepted. example: health, safety, freedom
Ethical Culture video clip(Linda Trevino from Smeal College of Business)
Easy to implement program, but culture is very difficult to create and help organization
Spiderman quote
"With great power comes great responsibility." Spiderman demonstrates an ethics business situation.
4 Leadership Competencies in BA 342 (front of course packet)
- Ethical issues in business - Sustainability - Diversity and inclusion - Corporate social responsibility
How does marijuana impact employers on a corporate level?
- Lost productivity - Absenteeism - Injuries - Litigation - Safety - Compliance and risk - Increase to health costs
How does marijuana impact employees on a personal level?
- Short term memory issues - Impaired thinking - Loss of balance and coordination - Decreased concentration - Changes in sensory perception - Impaired ability to perform complex tasks - Decreased alertness - Decreased reaction time
Fraud Triangle
- opportunity, motivation, and rationalization. Opportunity = the ability to commit fraud such as when employees have access to assets and information that allows them to commit and conceal fraud. One of the only aspects we can control - companies need to limit the opportunity to commit fraud. Motivation = a pressure or "need" felt by a person who commits fraud in the form of financial need such as high medical bills, debts, or desire for material goods. Also, can be non financial such as a high pressure for good results at work and also to cover up someone else's poor work. Rationalization = involves a person reconciling his or her behavior with the commonly accepted notions of decency and trust; convincing one that the fraud is okay with excuses. Can say that it is making up for being underpaid, replacing a bonus, "borrowing", or the company doesn't need the money.
Consumer Privacy Issues
-Confidentiality -Spending history -Credit card info -Social Security number -Personal data -Intrusion -Tracking web searches -Selling
Corporate Culture
-Culture shapes attitudes -Reinforces beliefs -Directs behavior -Sets expectations
3 elements Best Practice Org Ethical Culture
-Ethical leadership: continuous presence reflected by board, senior executives and managers -Core ethical values: infused throughout the org by way of policies, processes, and practices -Formal Ethics program: includes a code of ethics, ethics training, and ethics officer and ethics training
Personal Troubles with Technology
-Favor quick fixes -Fear/worship technology -Blurred lines between what is real and fake -Accept violence as normal -Love technology as a toy -We live distanced and distracted -Communication -Relationships -Knowledge -Ethics
The Big Four
-Greed -Speed -Laziness -Haziness Moment of Truth
Economic Eras Technology & Time
-Hunter gatherer (from beginning) 1 unit in 1 unit out -Agrarian (from 2000 BC) 1 in 50 out (ex. farming) -Industrial (1760-1940) 1 unit in 2,500 out (mass production) -Information (1940-1990) 1 in ? out -Knowledge (Big data era) (1990-present) 1 in ? out
Privacy Bill of Rights
-Individual Control -Transparency -Stolen Personal Info -Respect for Context -Security- Access & Accuracy -Focused Collection -Accountability
Rights - Types:
-Negative right: right to be left alone, freedom to false imprisonment, freedom of speech, freedom from illegal search -Positive right: right to something, such as the right to food, health care, clean air
Types of Media Influence
-News -Movies -Ads (reinforcing stereotypes) -Internet -Social media -TV all tend to portray business people as the villains. Social media allows mistakes and scandals to be broadcast all around the world at a very quick speed. Many people base their judgements off of business people by listening to the media.
Corporate Troubles with Technology
-Online scams-identity theft, -Invasion of privacy vs Informed Consent -Intellectual property rights -Stolen data -Hacking of corporate knowledge -Sharing consumers information -Spam -Behavioral advertising -Biotechnology, -Company cell phones -Monitoring -Information overload
3 part Ethics definition
-Set of principles -Right conduct -Underlying values
Employee Privacy Issues
-Sexual Harassment -Social Media -Phone usage/recording -Email -Web history -Health info -Personal Data -Tracking
Two Issues
-Technological Determinism "what can be developed will be developed" Don't care about ethics -Ethical Lag "the speed of technological change far exceeds that of ethical development" Tech Companies have these, in this order: 1. Functionality 2. Financial monetization 3. Ethics is usually last Ethical implications are often the afterthought.
Motivation to Commit Fraud
-Unable to pay bills -Desire for luxury items -Drugs/alcohol/gambling -Tragedy -Medical bills
Rationalization of Fraud
-Underpaid -Not appreciated at work -Company doesn't need the money -They won't miss the money -Just borrowing -Looked over for promotion
Lockheed Martin 5 Elements from Training
1. Ask question 2. Obtain data 3. Talk to others 4. Reframe the issue 5. Report violations
6 Factors that Influence Employee Unethical Behavior
1. Behavior of Superiors (most important) 2. Behavior of Peers 3. Industry Ethical Practices 4. Society's Moral Climate 5. Policy (of lack thereof) 6. Personal Financial Need
3 Approaches to Ethical Decision Making
1. Conventional Approach (Societal Norm Focus) 2. Principles Approach (Moral Guideline Focus) 3. Ethical Tests Approach (Applied Guideline Focus)
What are the 3 steps in the ethical decision making individual process?
1. Ethical Awareness 2. Ethical Judgement 3. Ethical Behavior
5 Elements of Making an Healthy Organization
1. Few employees feel pressure to compromise organizational ethics standards; 2. Misconduct is rare; 3. Observations of misconduct are reported; 4. Reports of misconduct are appropriately addressed, and; 5. Employees who report misconduct do not experience retaliation.
3 Types of Management Ethics Models
1. Immoral 2. Moral 3. Amoral
Smeal Strategic Plan
1. Integrity 2. Diversity 3. Service 4. Sustainability
3 components of ethics and tech
1. Intellectual Property 2. Privacy 3. Security
7 Organizational Ethics Components
1. Leadership support 2. Code of ethics 3. Ethics of officers 4. Compliance standards 5. Company-wide training 6. Clear communication 7. Detection/prevention
Moral Decisions, Moral Managers & Moral Organizations
1. Moral decision: single moral acts made by manager -Simplest and most basic form of achieving moral status 2. Moral Manager: adopted characteristics of moral management and it dominates all their decision making -Ethical leadership and occupy the moral high ground 3. Moral Organization: dominated by the presence of moral managers making moral decisions -Integral part of culture
In a situation such as sexual harassment in the workplace, what should you do if you are told about it?
1. Recognize that if you are being told, you are now involved and you have to take action. 2. You have to get help. 3. Follow up after you take and action and get a status update on the situation.
Sexual Harassment
10% of the time Quid Pro Quo 90% of the time Hostile Workplace
As the Weed Spreads (Video Clip)
60% of people think that marijuana should be legalized for recreational use.
License plates & personal information
75% use of infrared license plate capturing cameras. PRO: helps fight crime and identify people CON: invasion of privacy and the ability to hack/steal information
Prime TV Study
77% of Media portrays Businesses as negative
Merck pharmaceuticals
An example of moral management. Company invested millions of dollars to develop a drug for treating "river blindness", a Third World disease that was affecting almost 18 million people. They agreed to provide the drug free forever when the government and aid organizations refused to buy the drug. They went far beyond industry practice and organized a committee to oversee the drug's distribution. Their CEO is Ken Frazier who is also a Penn State trustee.
Amoral Management
A manager that goes out and makes business decision without thinking or considering the ethics of those decisions. Casual, careless, or inattentive to the fact that their decisions and actions may have a negative or deleterious effects on others.
Sources of values
A person's values come from religion, philosophy, culture, legal, and profession. Values shape ethics. An individual's concept of the relative worth, utility, or importance of certain ideas; what an individual considers important in the larger scheme of things.
Ethical imperialism
A position that holds that the business firm should continue to follow its home countries ethical standards even when operating in another country.
Values Framework for Ethical Decision Making
A structured way to address an ethical issue. 1. Awareness: What are the ethical concerns or issues? 2. Facts: What is known or unknown in the situation? 3. Stakeholders: What individuals or groups are affected or will be affected? 4. Standards: Are there any laws, policies, or professional standards that apply to this situation? 5. Values: What personal or organization values apply? 6. Options/Actions: What options do you have? What actions will you take?
Corruption
Abuse of power through bribery, giving of questionable political contributions, misuse of company assets, kickbacks and protection money for police, secret junkets for government officials, secret price fixing agreements, insider dealings. Attempts to influence the outcomes of decisions in cases when the extent and nature of the influence are not made public.
The top 5 categories of misconduct
According to the global ethics survey, the top 5 kinds of misconduct were... 1. Bribes/corruption 2. Regulatory violations 3. Fraud, lying, and theft 4. Regulatory violation 5. Contracts misconduct
Immoral Management
Aka unethical management - intentionally making bad decisions. An approach that is devoid of ethical principles or precepts and at the same time implies a positive and active opposition to what is ethical. Holds true that management's motives are selfish and that it cares only or primarily about its own or its organizations gains; management does not care about other stakeholders' claims to be treated fairly or justly.
Virtue
All about who you are and what your values are; a system of thought that is centered in the heart of the person.
Technology definition
All of the ways people use inventions and discoveries to meet wants & needs.
Volkswagon case
Another scandal that occurred - VW cheated on their emissions testing by adjusting the software. VW wanted to become the largest car manufactuerer so they advertised a "clean diesel, high-performing vehicle" which ended up being the most polluting car on the market. VW was required to pay out other countries, environmental groups, and states. They also had to buy back the cars from the consumers and there is now 37 car graveyards that hold those bought back cars. 4 of their leaders are in jail.
Ethical principles
An ethical concept, guideline, or rule that if applies when you are faced with an ethical decision or practice, will assist you in taking the ethical course of action. Based on the idea that employees and managers desire to anchor their decisions and actions on a more solid foundation than that provided with the conventional approach.
Technology Pros/Cons
Benefits -Increase in goods/ services -Decrease in Labor to Produce -Labor-safer and easier -Increase in Living standards Side Effects -Depletion of Natural Resources -Technological Unemployment (technology replaces human work) -Environmental Pollution -Creation of Unsatisfying jobs
The Immoral Manager case
Bernie Madoff's ponzi scheme A ponzi scheme is telling people you will double their investments and just take the money and not actually invest. Clients would give Bernie money for him to invest for them and he ended up just putting the money into Chase accounts and spent the money for himself. He was caught in 2009 and put in jail which is where he still is today. In his prison interview, he claims he feels safer in prison because he is no longer living in fear. He also said he realizes what he did was wrong and feels guilty for what he did.
Strong vs. Weak Ethical Culture
It comes down to whether a company has a good or bad ethics program. Good ethics programs lead to strong company culture. Bad ethics programs lead to weak company culture.
Ethics and Technology
Big issues are privacy and security. Chief Privacy Officer-monitors websites, blocks websites, sorts/retrieves mail, monitor phone, tapes conversations, video surveillance. Chief Security Officer-Manages systems, Technical Systems security, manage day-to-day information systems operations, prepare for/manage data breaches
Do you think your personal life should be fair game in an employment situation?
Boeing Case Boeing's unethical CEO was fired. Because the company was at risk of being debarred by the U.S. government, the company was walking on eggshells and former CEO Harry Stonecipher was reappointed. During his time as CEO, Harry had an affair and divorced his wife. He was fired because of this. The question then becomes, should Harry have been fired because of a situation that took place in his personal life? Boeing needed to consider that Harry... 1. Knew "all the secrets" of the company. 2. There was a power differential between him and the lady whom he had an affair with. 3. Boeing was already in trouble with the U.S. government. Theme: Yes, your personal life does have some impact on an organization and depending what is going on, it can harm the reputation of that organization.
Gallop Survey and Marist College Institute
Business executives were reported to be absolutely dishonest.
Connected cars & big data
Cars being created have 100+ sensors and look at every aspect of the vehicle. PRO: keeps you safe and enhances the user experience. CON: Privacy concerns in terms of being able to have information on a person's speed and location.
Cultural relativism
Characterized by foreign direct investors following the host country's ethical standards. Viewed as unacceptable for companies to take this position.
Domino's 30 minutes or free case
Company implemented a policy where your pizza would be delivered in 30 minutes or less and if not your pizza was free. The drivers were required pay for it so there was incentive for them to get there quickly. This policy caused unintended consequences resulting in accidents, lawsuits, injuries, and deaths. This was an example of amoral management because the impact of the business decisions was not considered.
Lockheed Martin case
Company was almost debarred by the government for ethics violations so now they became a big leader on ethics. Their website now states that their success depends on their commitment to integrity and their core values read that they will always do what's right, respect others, and perform with excellence. They also write that they believe doing what is right is more than just obeying the laws and regulations - it is holding themselves to a higher standard, even when the law may not require them to do so. They do not want their integrity to be compromised by their desire to succeed, regardless of the circumstances of their business.
Business ethics textbook definition
Concerned with morality and fairness in behavior, actions, polices, and practices that take place in a Business context.
Benefits of Facebook
Connect with old friends, sharing of photos, communicate with groups, event invitations, world news, remembering birthdays, selling items, communicating across the globe, meeting new people, job postings, roommates, live videos, networking
Ethics, Econ and Law - a Venn Model
Contrast between ethical responsibility, Legal, and economic responsibility
Define ethics Environment
Corporate and Media Dilemma
Is right and wrong the same globally?
Cultural Relativsim - finding out and operating under a nation's specific ethics Hypernorms = shared ethics; example would be that every employee wants to be treated equally. Ethical Imperialism aka Moral Absolutism - operating under native and original ethics no matter where you are
In what ways are PSU students productively and morally engaged?
Dance marathons, Smeal organizations, sports, community service, counseling of friends, coaching and tutoring, resident assistants, teaching assistants.
License to operate
Demonstrates to the world that a company is taking stakeholders into account in all operations. - intangibles - consumers - risk management - employees - investors - operations Volkswagen and Wells Fargo did not do a good job of this.
Conventional Approach Branches
Descriptive = "what is"; concerned with describing, characterizing, and studying the morality of people, an organization, a culture, or a society. A focus on learning what is occurring. *Problem because there is a belief that if everyone is doing it, it must be acceptable. Normative = "what ought to be"; concerned with supplying and justifying a coherent moral system of thinking and judging. Demands a more meaningful anchor besides that "everyone is doing it."
Applying Ethical Principles to the J&J Case
Duties = pull the products from everywhere Utilitarianism = pull all the products in Chicago Rights/justice = Pull all products for benefit of customers and reopen the plant. Virtue = Follow the credo that says decisions should be focused on the good of customers, employees, and community.
EAP
E - Excellent performance A - Academic integrity P - Professional behavior
Companies' Ethics Programs
Employees of companies who have a poor ethics program tend to experience pressure to compromise standards, observe misconduct, do not report the misconduct, and are more likely to experience retaliation if they do report. Employees of companies who have good ethics programs tend to experience minimal pressure to compromise standards, observe less misconduct, report misconduct when it is observed, and experience little retaliation. The leaders of organizations have the ability to drive a culture of integrity. *Most people do not report misconduct because they are afraid of the repercussions.
Enron case
Example of a corporate dilemma and immoral management. 3 people from Enron's leadership team were charged in August 2001 for securities fraud, conspiracy to inflate profits, and corruption of corporate culture. Prior to scandal, Enron was a good, successful company out of Houston, TX. The leaders Andy Fastow, Ken Lay, and Jeff Skilling were doing "creative accounting" to keep jacking up Enron's stock price. They also would manipulate the market by cutting off oil supply to customers. Sherron Watkins was the accountant that realized the numbers did not work and reported the company to the federal authorities.
Goals
First, to facilitate moral decisions, followed by the creation of moral managers, and then the highest goal of moral organizations.
Descriptive
Focus on what IS occurring (systems, practices, beliefs)
Teleological
Focuses on the consequences of the results of the actions that they produce. Utilitarianism is a major principle which recommends taking the action that results in the greatest good for the greatest number of people.
Deontological
Focuses on the duties and duties are an obligation. Kant is a principle that claimed to act like the decision you make is now a rule for the whole world.
7 Ethical Tests
Going public(most important): if you would not be comfortable with people knowing you did something, then don't do it. Common sense: if the proposed course of action violates your common sense, then don't do it. One's Best Self: if the proposed course of action is not consistent to your perceptions of your "best" then don't do it. Ventilation: expose your proposed course of action to other's and get their opinion. Purified idea: do not think that getting the approval from someone else means you are doing the right thing. Gag test: if you gag at the prospect of carrying out a proposed course of action, don't do it. Big Four: do not compromise your action or decision by the tempting behaviors of greed, speed, laziness, and haziness.
Difference between bribery and grease
Grease payments are allowed- paying for something they were going to do anyway
Behavioral ethics
Helps us to understand at a deeper level many of the behavioral processes that research has shown actually are taking place in people and organizations. Gives insights to how people actually behave in organizations as a result of psychological processes or as a consequence of organization factors at work.
Warren Buffet Quote
In looking for people to hire, you look for 3 qualities. 1. Integrity 2. Intelligence 3. Energy "If you don't have the first, the other two will kill you."
Johnson & Johnson 1982 Tylenol Case
In 1982, little girl Mary Kellerman died after taking a dose of Extra Strength Tylenol. Soon, other deaths because occurring after taking the medicine and it was discovered that the capsules contained cyanide. J&J took responsibility early and ordered a mass recall following the company credo that focused on customers, employees, communities, and stockholders. It was discovered that someone had poisoned the capsules. They came back from this situation by introducing the triple safety seal and rebuilt the brand through safety.
Johnson & Johnson 2009 Case
In 2009, J&J experienced another ethical situation. Due to their products being made/packaged outside of the U.S., there were reports of metal filings being found in liquid children's medicine. Instead of issuing a recall, they hired outside contractors to buy up the defective products to avoid a recall and attention to the company. This decision ultimately violated their culture and credo and they wanted to make an effort to go back. They hired Sandi Peterson in 2012 and she helped the company reform and focus on quality control in its plants.
Smart TVs Case, Google Home, Amazon Echo
Issues with hacking, people owning information, and voice activation. The television and other personal assistant devices can see and hear - is that a concern for privacy? Companies justify the selling of data to third-parties by claiming it enhances the user experience.
Phantom expenses case
Jane (a new sales rep) is told by Ann to pad expense vouchers buy 25%. She says everyone does it. What do you do? This would be a situation where you would need to evaluate descriptive vs normative ethics. Descriptive ethics would address what is happening. Normative ethics would address what should be happening. You could also run the values framework on this ethical situation. Awareness: Something about expense accounts. Facts: Cooking the books? Can you get in trouble? Are others doing it? What is Ann's position? Is Ann lying? Did someone say it was okay? Jane is a new employee. Stakeholders: Employees, managers, Ann, Jane, stockholders, customers, government Standards: Company policy, industry standards Values: Your values, Company stated values
Kolberg's Levels of Moral Development
Lawrence Kolberg (1927-1987) concluded that there is a general sequence of 3 levels through which individuals progress in learning to think or develop morality. The focus moves from self to others to humankind. The first level is Self and there are two stages which are punish and reward. This usually occurs during childhood and usually children do not understand "right" vs "wrong" but they learn to behave in accordance with punishment and rewards. The second level is others and the two stages are good and law. Kolberg states that this when social relationships form. The third level is all and the two stages are social and universal. Kolberg argues that only a few individuals reach this stage.
Responsible leadership
Making business decisions that takes into account stakeholders, such as workers, clients, suppliers, environment, the community, and future generations.
Millennials and ethics
Millennials report misconduct just as much as other generations, are more likely to experience retaliation, and report more informally through either social media or friends.
Ethical tests
More practical and hands-on in orientation and does not require the depth of moral thinking that the principles do. Examples of situations needing an ethical test... 1. Ford Motors - sexual harassment 2. Volkswagon - emissions testing 3. General Motors - safety issue
Have you heard it said that Ethics is... - Situational (Relative) - Contextual (Cultural) - "It all depends"
Never call ethics, situational ethics. Ethics start with values and we consider situational factors.
"If it bleeds it leads"
News likes to talk about negative things
Bounded Ethicality:
Occur when managers and employees find that even when they aspire to behave ethically it is difficult doe to the variety of org pressures and psychological tendencies Tendencies may include: claiming credit for a group's work without realizing you are doing it, engaging in implicit discrimination and in group favoritism, falling prey to the influence of conflicts of interest
Penn State's values
P enn State Community R esponsibility R espect I ntegrity D iscovery E xcellence
Ethics can be describes as PONG.
P: Personal - many times ethics begins and ends with people and it is the most important part. O: Organizational - organizations have principles and norms that everyone is expected to follow and leaders (people) will set an ethical culture that impacts the organization. N: National - many nations have similar protocols or hyper norms but there are also differences so people in organizations must understand ethics from a national perspective. G: Global - a multi national corporation operating around the world will find that a challenge is to promote their own ethical protocols in the context of other cultures.
Media portray business
Poorly/mostly bad. The media tends to report ethical problems more frequently and reverently compared to the past. It is possible that the public was unaware of ethical issues in the past due to the lack of technology. Media often portrays business people to be greedy, unethical, and not that bright.
Bribery
Practice of offering something (usually money) in order to gain an illicit advantage A common form of corruption. Illegal in most places and unethical.
Stakeholder analysis Sandusky Scandal
Penn State & NCAA The Sandusky Scandal happened at PSU in 2011 and 2012. President Graham Spanier was fired. Penn State had its sanctions repealed by the NCAA on January 16, 2015. Rodney Erikson was the new PSU president. PSU community feared that they were not going to be recognized school in athletics anymore. Some stakeholders who would have had an interest would be the Sandusky victims, the university, the NCAA, Football program, students, alumni, faculty & staff, families of students, Centre county folks, trustees, lawyers, Penn state sports, Paterno family, local businesses. Theme: When you are the leader and things happen on your watch, its on you!
Two types of responsibility
Personal and corporate
The theme of BA 342
Responsibility and responsible leadership
The Wells Fargo, Volkswagen, playing sports, and license plate camera cases all focus on the ideas of what?
Responsible leadership and trust=value. Wells Fargo and Volkswagen's leaders did not demonstrate responsible leadership - they did not take into account how stakeholders would be affected by their decisions.
Rita Crundwell Horse Case
Rita Crundwell committed public fraud and was charged in 2012. She stole $30 million from the city during her role as city clerk in order to finance her lavish lifestyle. There was no institutional control over her position so no one knew the money was stolen. She wanted to be a champion horse raiser but did not have the funds to do so - that was her motivation.
Fortune 1000 Approach to Ethics
Rules: Found in compliance document Ethics: Found in code of conduct
2015 Economic Impact by Marijuana in Colorado
Sales = $996 million Economic Impact = 2.39 billion Jobs created = 18,005 How does this legalization impact the workplace?
Wells Fargo case
Scandal that took place in which employees opened fake accounts over a 5 year period. Wells Fargo had a high pressure sales culture and people were trying to keep their jobs because quotas were not being made. Adopted a "GR8 strategy" that basically forced employees to open 8 accounts for everyone 1 client. Resulted in over 3.5 million fake accounts being opening which caused car insurance fraud, 401K fee scandals, mortgage fraud payout, frozen asset growth, and impact the bottom line. Those employees were late fired and fined. The company lost the trust of their stakeholders. But are actively working to gain that trust back claiming that they are "reestablished".
Grease payment
Small sums of money given for the purpose of getting minor officials to do what they are supposed to be doing
Threats to privacy
Social networks Hackers Behavioral advertising Data stealing Facial recognition technology GEO-Tags
Employees Morality
Society's moral climate > Business's moral climate > Industry's moral climate > Organization's moral climate > Your personal Situation
Right Wrong John Q Movie
Son is dying and dad wants to kill himself to give his heart to his son.
Side Effects of Facebook
Stalking, trouble with old posts, fake news, cyberbullying, distraction, unwanted tags, checking in, privacy settings, security, oversharing, graphic content, employer access.
Ethics
Standards of conduct which originate from external groups or sources such as society in general or businesses in particular. They may appear in the form of principles, standards, or morals.
Morals
Standards of conduct which originate within an individual; personal compass regarding what is right and wrong.
The Speed of Technology
THEME: The volume of data is on an exponential curve and our ability to keep up with ethics is not up to par. Issues with technology increasing a rapid pace is privacy and ignoring the ethics aspects.
What does trust equal?
TRUST = VALUE
Michigan State Gymnastics
Team doctor Larry Nassar was convicted for sexually assaulting 332 women. USA Gymnastics was also involved because Nassar was one of the team doctors for them also. Some stakeholders who would have had interest in this case would be the victims, MSU, the NCAA, the gymnastics program, MSU sport teams, students, faculty & staff, trustees, alumni, USA gymnastics.
Moral Philosophy Categories
Teleological (consequences or results) Deontological (duties to society)
Honest tea, Doritos, Taco Bell commericals
The Honest Tea commercial demonstrated good ethics where the Doritos and Taco Bell one did not.
Responsibility
The ability or authority to act or decide without supervision.
Moral Management
The extreme opposite of immoral management; the passion to do the right, morally proactive, consider all stakeholders, strong ethical character, obsession with fairness. Management that conforms to the highest standards of ethical behavior or professional standards of behavior. Strives to be highly ethical. Does not pursue profits at the expense of the law and sound ethics.
Bounded ethicality
The idea that a person may act unethically to fit in, please others, or avoid conflict either intentionally or unintentionally. Tends to occur when managers and employees find that even when they aspire to behave ethically, it is difficult due to a variety of organizational pressures and psychological tendencies that intervene.
Red Blue and Blue Pill Clip
The matrix movie clip shows one character being asked if he wants to see what is happening and know the truth or just turn a blind eye and keep existing without knowing. He wanted to understand the relationship between ethics and technology. -Taking the blue pill, is letting you believe whatever you want to believe. Living in ignorance will protect you from the ugliness in the world (not knowing truth) -Taking the red pill, shows you actual reality
The percentage of U.S. workers perceiving pressure to commit misconduct
The percentage has declined from 1994 to 2013 - we can attribute the decline to the big emphasis there is on ethics now.
The Public's View on Business People
The public tends to not have a very high view of business people.
Global Ethics Workplace Survey
Themes of Survey Globally: - 1/5 people felt pressure to commit misconduct. - 1/3 of employees observed misconduct. - 62% of employees reported misconduct. - 1/3 people experienced retaliation. - 1 in 3+ people do not trust their supervisors. It was reported that a lot of people did not report misconduct because of fears which were... 1. Fear report wouldn't be confidential. 2. Fear corrective action wouldn't be taken. 3. Fear that they could not report anonymously. 4. Fear they would be labeled as a snitch.
Foreign Corrupt Practice Act (1977)
This was one of the first initiatives taken by a major government to address the problem of corruption and bribery in international business. The act made it a criminal offense for a representative of an American corporation to offer payment to the officials of other governments for the purpose of getting or maintaining business. It specified a series of fines and prison terms that can result if a company or management is found guilty of a violation. It prohibited bribery but not grease payments which are minor, facilitating payments to officials to get them to do what they should be doing already.
Conventional Approach (Societal Norm Focus)
To compare a decision, practice, or policy that is being used in practice with prevailing norms of acceptability in society - believed to be the way that general society thinks. "Comparison of decision, behavior, or practice to prevailing norms of acceptability." Is cheating okay just because 70% of college students have done it?
Workplace & Computer Tech
Unethical Activities by Employees Related to Technology: - Created a potentially dangerous situation by using new technology while driving - Wrongly blamed an error the employee made on a tech glitch - Copied the company's software for home use - Used office equipment to shop on the Internet for personal reasons - Used office equipment to network/search for another job - Accessed private computer files without permission - Used technologies to intrude on coworker's privacy - Visited porn websites using office equipment
Adam Smith
Was an economist, businessman, and most of all an ethicist. Wrote the publication "Wealth of Nations" in 1776 and it basically read that you have to do business and you have to do it ethically.
6 Factors Influencing Employee Unethical Behavior
We can shape attitude and reinforce beliefs 1. Behavior of Superiors (#1) 2. Behavior of peers 3. Industry ethical practices 4. Society's moral climate 5.Policy (or lack thereof) 6.Personal financial need
Is there such thing as wrong and right?
We did a class activity to answer this question. Professor Johnson pulled out classmates from all different backgrounds and places they lived. He asked each person individually if they would let him steal a TV from their store and everyone said no they would not allow him to because it is wrong. This example showed that everyone has a similar perspective on theft and that there are core values that we all agree with.
College students and moral disengagement
We fail in terms of not doing our own work, clicker violations, bullying, alcohol violations, sexual abuse, and general disrespect. 70% of students claim to have cheated on tests.
Smeal honor code
We, the Smeal College of Business Community, aspire to the highest ethical standards and will hold each other accountable to them. We will not engage in any action that is improper or that creates the appearance of impropriety in our academic lives, and we intend to hold to this standard in our future careers.
Normative
What OUGHT to be (uncover, develop, and justify basic moral principles)
Ethics question regarding driver less cars
Who makes decisions when machines are in control? Think of the Will Smith clip when drowning in car. You may not have time to make a choice
Can you teach ethics?
You cannot "make" someone an ethical person but you can teach them to make decisions ethically through an individual process.
Drug use in the workplace case
You know an employee uses drugs on the job. A friend says to confront them and don't tell the supervisor. What do you do? Awareness: Potential drug violation Facts: Belief that a drug is being used. Impact on others? Is it an illegal drug? Addicted to drugs? What drug is it? Is there a pattern or one time? Stakeholders: Other employees, managers, customers, organization as a whole, community, stockholders, family, employee, dealer, media Standards: Legal, professional practices, company policies. Values: Care for customers, stakeholders, employees. Actions: What should you do?
Playing sports case
You step out of bounds during a basketball game. Do you call yourself out if you were out of bounds or not? Can you do the right thing?
