Ethics test #2

Intel wants less white, less male staff. Good Luck

- CEO pledged 300 million to boost the diversity of the workforce at Intel - tech companies have been cirtizied for not having enough women black or hispanics - diversity takes a long time - Watermark is a company that is trying to increase the representation of female leader in companies -Intel is going to try and attract more women and minority groups by gunning engineering scholarships and working more closely with computer science department at historically black colleges -they have to get these minority people that they hire to stick if they don't feel welcomed they will eave - often minority people and women are felt isolated by their peers in the tech industry - could have them being told not to ask for pay raises, or them being mistaken for a security guard or a adminstative assistant - they have to educate organizations to make sure there are not unconscious biases - it takes a major culture shift

Challenges of Governing Globally

- EVERY ETHICS CODE IS DIFFERENT SO YOU HAVE TO MAKE THE ETHICS CODE WITH THEM TO MAKE SURE YOU TAKE INTO ACCOUNT THEIR ETHICS AA- ALL THEY CARE ABOUT IS SHAREHOLDER COMMUNTERARIAN- CARE ABOUT OTHER SHarholderS SUCH AS SUPPLY CHAIN CUSTOMERS EM: shareholders have very little legal protection more centered around family and government relationship - Corporate governance is the system by which corporations are directed, controlled, and made accountable to shareholders and other stakeholders -anglo-american corporate governance system: - focus primarily on the shareholder and aim to maximize shareholder wealth. - board consists of primarily non executive directors (directors who aren't company employees) - directors are elected by shareholders and can be fired if they feel they ant doing a good enough job Communitarian Corporate: - performance is regulated through statues, codes, and relationships with stakeholders Emerging markets Corporate: - relatively young legal system - share holders often have few credible legal protections Roles of the Board Globally: Accountability: (AA) board is respoabile for holder manager accountable to shareholders (C) the corporation, management, and board to also be accountable to other stakeholders such as employees suppliers ad customers (EM) boards are typically accountable to the controlling shareholders in the corporation which can be there state, a family group, or a corporate conglomerate. Senior-level staffing and evaluation: (AA) pay manages a large compnesation in return for relentless attention to financial returns (C and EM): pay levels, performance based pay, and the role of the board determining pay are considerably smaller Stategic oversight: (AA): managers play big role in strategy formulation and board plays a passive in approving important strategic moves (C): The management board plays a more assertive role in both areas (EM): board members see the formulation and oversight of strategy as the primary role of the board Internal Determinants of corporate boards 1.Board Composition: (AA): formed of nonexcustive directors and independent directors (C): independent directors are less common but still hold a considerable amount of power. (EM): 2. Board system and structure: (AA): broken into committees such as audit, nomination, and compensation that perform much of the boards functions. (C):

Walmart Inquiry Reflects Alarm on Corruption

- Sent a compliance team all over the world and attributed many of the problems they identified do to a lack of training - The times examined the hundred of bribes that walmart de mexico took place to obtain construction permits and other licenses needed to open new stores. - not transparent - didn't audit everyone - executives didn't accept blames - didn't fire the right people

Facial Discrimination

- appearance often play a big role in weather one get hired or not - anti decrimination law: protect any member of a minority law that faces descrimination because of being apart of that group study shows that less attractive people are treated worse then attractive people - lower expectation for children when they are unattractive - helping hand study shows that behavior varies with persons attractiveness - seen that unattractive people are given longer sentences in court - judging writing better if they had attractive photo with essay - biases might lead to employers to under rate the abilities of an unattractive job applicant studies done with obesity: -descrinmated against getting apartment - non obsese more likely to get accepted to certain colleges Appearance descrimination in employee selection: in person interview: they way they look is an important criterion appearance if often rated high or written down during an interview physique seems feminine - extremever short people also face discrimination - black interviewee " large unattractive lip"

the ethics of not hiring smokers

- becoming harder to find employment if you are a smoker - 29 states passed legislation prohibiting employers from refusing to hirer smokers and 21 have no restrictions - justification for not hiring smokers that many health organization have used is that it is symbolic - employees must serve as role models for patients and that only nonsmokers can do - another argument is that employees must take personal respoability for actions that impose financial or other burdens on employers or fellow employees ( smokers should be responsible for the cost of the consquences of their smoking such as high health insurance claims , high rates of being absent , and lower productivity. - argument for smokers is that health care institutions are devoted for caring for people regardless of - it discusses that it is wrong to treat smoking as something fully under an individuals control - the other argument is other diseases such as cancer cause high health insurance and absenteeism, people who participate in risky behavior, getting pregnant, some life style choices which increase chance of diabetes - what should employers do? - Provide information for healthful behaviors -Walgreens proivde nicotine-replacment therapy and smoking-cessation counseling to employees - fiancial niceties can promos smoking cessation promoting public health is a shared responsibility and employers have a social obligation to contribute to the public health mission - more constructive approach then punishing smokers - if workers feel supported the will probs be more productive

A donation with purchase might not be the best way to support a charity: Should you buy a toy and save the whales?

- cause marketing: when companies push items with the promise that part of the purchase price will go to a non-profit - american express and the renovation of the statue of liberty - companies don't do cause marketing sole to give but also to get more money - 90 % of consumer will switch brand associated with good cause if it was similar price and quality -capping its total donation - charities are subject to law that forbid false or misleading advertising, there are 20 standard for charities and there is only one that addresses cause marketing (it requires discloser at the point of appeal that identifies the amount of the purchase price going to the charity and if appicalbe the duration of campaign violate BBB guidelines by sending consumers to a website where it is difficult to find the disclosure or use vague language don't specific the actual portion of the churches price going to the organization Best way to give: study found that cause-buying has a tendency to decrease happiness probably because we realize that buy a 50 dollar necklace is more self-serving than donating directly Give straight to a charity - donation is tax-deductible

Using Social Media to Boost Ethics Compliance

- companies should promote ethical practices and culture around social media - Social networkers can help improve workplace culture - many social networkers say they spend some of their time on social media during the work day (28% admit that the activity is not work related) - social media isn't just for the young - more active social networkers are more likely to see and report misconduct than other US workers - they are also more likely to experience retaliation when reporting it - Training is key 1. communication: have a clear documented policy (allowed to post logo on sm) 2. Prepare: train and educate staff 3. Review: use surveys or internet monitoring to gauge weather or not the policy is working Steps they can take 1. hosting moderated intranet conversation groups 2. providing video podcasting to share positives stories 3. creating a company blog

The unexpected cost of staying silent

- economic crimes is very high a study done my pricewaterhousecoopers - two biggest sources of detection were internal or external tips and companies own internal control - another survey found that auditors were ranked first and whistlebloers ranked second in terms of detection in 1992 and 1999 number around 50% was found that didn't come forward that were are of a crime but now when whistleblowers have the potential to be rewarded financially due to the Doo-Frank Wall Street Reform and Consumer Protection Act Did survey at IMS conference questions about whist blowing and internal controls for a chance to win one of 10 $50 cash prizes - 60% suggested reporting rate - but a lot of those people who blew the whistlee on one situation didn't on another - study was done and study above showed gender difference women blew the whistle more then men did - study showed that a lot of cirfitiied professional people or people that went to graduate school also did blow so they also find it difficult -whistle blowing has stayed constantly around 50% for 18 years - a survey question asked people why they chose to stay silent and the most common reason was fear of retaliation or wrongdoing wasn't serious enough to worry about , didn't have enough proof, someone else would report it 19 of 23 people that didn't report experienced regret associated with their decision to stay silent in all situations business must create or promote an ethical culture, one that is truly motivated from the top tiers of the organizational chart (tone at top) establishing right tone at top is key in the fight against economic crime - stress associated with regret of not blowing

Everything we know about Facebooks secret mood manipulation experiment

- experiment where Facebook users saw happy things for a week and others saw sad thing after the week was over they tended to post sad or happy things themselves - it was legal but was it ethical - when researchers reduced the appearance of either positive or negative sentiments in peoples news feeds when the feeds got general less emotional those people stopped writing so many words on Facebook - design of study: - did not inform the participate that their newsfeed was altered - use algorithm to determine what pops up on your newsfeed increased news stories popping up

Walmart Hushed up a Vast Mexican Bribery Case

- goal was to build hundreds of new stores - bribes accelerated growth - gestures committed the bribe - pure the bribes in accounting records as simple legal fees

Marketing to children: accepting responsibilty

- san från is one of the cities that has voted to ban selling toys with fast food for children that exceeded a certain level of salt, fat, cals - mcdonalds was accused of deceptive marketing practices to children over the lure of toys as an inducement to but happy meals - a campiagn was started to fire ronald mcdonald but mcdonalds quickly denied that because he was the heart and soul of ronald mcdonald house charities -Response: Mcdonald insures the emotional and the marketing: Ronld the symbol to families dealing with sick and dying children is also the brand signifying the food and fun atmosphere to eat it in CEO said they can market freely and offer its menu and lifestyle selection and leave it to the parent the right to chose what their children eat, saying it is up to personal resposibilty Mcdonalds CSR: states that they serve a balanced array of quality food products and provides info to make individual choices Marketing to children nis inherently deceptive because kids take things literally and media characters play a big role in their lives. They don't understand persuasive intent until the are 8 the brain capacity for judgment isn't developed until their 20s which makes them vulnerable as marketing targets

Too much information?

- social media and the recruitment process - is it ethical to look at potential clients social media - why recruiters and job seekers are using social media: - to spread the word, with little to no cost - companies often use Facebook to promote their brand and once they have established that they will often post job openings - recruiters will look at social media sites of potential candidates the problem arises when they use irrevlant info from social media to screen or eliminate candidates from the position - acted unlawfully if you see a social media page of a woman who applied for a job a field sales representative role in her page you see thats she's a mom of three so you just assume she can't do the role because of her domestic circumstances - another example is being able to see what they interests are or what they do in their spare time this will be able to tell you if you will get along with them or not but it doesnt tell you anything about if they can do the job or not - if you are going to use social media in the recruitment process it is important to keep the facts and focus on what is relevant to the job

American Apparel and the ethics of a sexually charged work place

- sued for sexual harassment - creating a hostile work environment - CEO's philosophy is sexual freedom -Irene sued american apparel, and the ceo CHARNEY - she claimsd that he forced her into sexual acts when she was 18 and an employee - the lawyer of the company dismiised her allegation saying when she left the company she sign a waiver saying that she had no accusation against the company - stock prices of american appeal have been dropping because sexy marketing isn't selling like it use too - charley believes there can be consensual sex in the work place - but can it be if both parties art equal (pay, status) - the irony of sexual freedom in the workplace is that it about power not romance - it ends up exploiting those most vulnerable such as the way immigrants have often treated in workplaces - gives ammunition to those who seeing where a co,any has made itself most vulnerable move in for their own kill

overcoming the fraud triangle

-Breaking the cycle of fraud recommends strategies to mitigate wrongdoing in the two areas of the fraud triangle that are most likley connected to ethical matters- finical pressure and rationlization 3 elements that come together when an individual commits fraud 1. opportunity (week internal controls) allows the fraud to occur 2. Financial pressure (motive) is the perceived need for committing the fraud 3. Rationalization (weak ethics) is the mind-set of the fraudster that justifies the crime a company can impose stronger internal controls and process but finical pressure and rationalization involve a persons ethical framework and the organizations culture Fiancial Pressure : - tone at the top is important - lots of examples in history where pressured corporate culture brought ruin - short-term finical performnce targets for bonus purposes were given high priority by senior exec that acting ethically - an ethical culture of failure "walk the talk" promotes employees to do almost anything to please their boss even if it is agaisnt the companies code of conduct or their own personal ethical standards Rationalization: ways to promote an effective ethical culture : 1. useful ethical training tailored to the organization (all levels of organization and real world examples of the negative consequences, be based on the organization's code of ethics, and true to life applications) in person training is the best 2. annual surveys of employee attitude (need to be professionally designed, administered anonymously) 3. effective whistleblowing programs encourage whistle blowing: reasons for not reporting fear of retaliation the believe senior management is involved won't take any action to stop unethical behavior ethical training should include motivation for everyone in the organization to utilize helpline -wide access of global language capability adaptions to local customs protocols for handling any reports professionally documented formal processes procedures for confidential reporting of results documented retention policies

opting to blow the whistle or choosing to walk away

1. misconduct observed : misuse of company time, abusive behavior, lying to employees abusive and offensive behavior create a toxic work environment lying to emplyee: man who worked at global consulting firm learned his manager was lied to deny him a promotion opportunity, no retaliation policy and company has a hotline an he reported to it an investigation happened and no wrong doings were found retaliation begun all direct reports were taken away from him and given the most difficult projects with the least resources during the rcession and afterward when people fear for their job it seems weird that reporting bad behavior would go up but employees were less able to change their job so they might be more willing to try to change negative work culture reporting on the rise so is retaliation its important to be clear why reporting behavior and make sure to do it right a good thing to ask yourself why am i doing this? am i trying to help the company or just to get someone in trouble? employees should follow the proper channels like addressing the issue with the person directly avoid going public with the information or wrong doing don't be afraid of being a tattle tale leadership has to show be example

How marketers are plotting to use neuroscience to control what you buy

a article in journal of marketing research used brain imaging tech to test how the amount of grey matter a person has affects how he or she makes decision about products - previous studies have shown that people are more likely to enjoy consuming a product that is labeled as more expensive even if it is not high quality - "marketing placebo effect": the perceived value of something can affect the actual experience of it" - price of painkillers can affect how people experience pain Study 1 consuming wines told 5 diff ones from 5-90 dollars but really it was only two a 5 and a 90 found: like more expensive wine better if told it was expensive then it must be good only one grey matter section couldn't be a easily tricked with price tag sTUDY 2 grey matter and personality types did wine test again but also had them take a personality test (reward processing) grey matter and personality link together Study 3 placebo effect works for aesthetic consumption

Unethical Behaviors in the workplace

five most unethical frequent beachiors in the US workplace 1. misusing company time (lying on time sheet, calling spouse) 2. abusive behaviors 3. employee theft ( 1 in out every 40 employees in 2012 was caught stealing, fib reported that employee theft is the fastest growing crime in the us today) 4. lying to employeee 5. violating company internet policies: surfing the web when they should be working hard to determine whats abusive and whats not with the internet usage company need to be proactive in their company with explains what is approriate and what is not internet use policy should be tied to the code of ethics this will then give life to the provisions in the code of ethics

CONCEPTUALIZING FRAMEWORK

need to me aware of customs, lang, culture - in developing countries is the american thing to do - a baby formula (nestle) no one could ready the label to know how much to give baby or find safe water they were convinced they needed it giving this formula but hurting them dont want these things because u want to have good corporate governance need to know countries ethical code need to know similarities and difference

when the bully leaves the school yard

work place bullying - verbally berated by ones supervisor during ones meeting - left out of important email convo - exclusion from departmental meeting - spreading rumor - taking credit for ideas - hiding info What to do - seek a mentor that can help to sort out feeling to see if you are actually being bullied - take a stand - you i message ; i find your behavior inappropriate - important set clear and consistent professional boundaries - document interaction with bully (use log track and date your convos) will be valuable if you have to report bullying impacts work and home life more stress less sleep, anxiety - take advantage of employee assistant program services or seek private couseling - if problem continues report to superior or HR provide examples, explain how it is effecting your work, express willingingness to be apart of solution - don't talk about it will a lot of people in order to team up against bully it doesnt work