Utah Bankers Association

November 18, 2016

9:00 a.m. to 4:00 p.m.

Instructor: Joe Zavaglia, M.Ed.

Credibility & Ethics in Competitive Banking Environments!

Our goals are to:

Enhance our understanding of the four ethical dilemma paradigms and apply them to our experiences

Develop our understanding of the three principles for resolving ethical dilemmas and how we apply them in our business environment

Understand the ethical dilemmas created by “Competition” versus “co-opetition” using discussion and debate around interactive exercises, and shared real-world experiences

Learn about your important role as an ethical role model and ethics coach in your bank

Practicing the Nine Checkpoints for Ethical-Decisions

If someone working for you made a very costly mistake and you realized that your instructions could have been clearer, would you be more likely to describe the incident to your superior in a way that protected your subordinate or yourself? What if one of you would be fired?

What would you do?*The Book of Questions: Business, Politics, and Ethics, by Gregory Stock, Ph.D.

John C. Maxwell’s Observation*

1. I am always ethical2. I am mostly ethical3. I am somewhat ethical4. I am seldom ethical5. I am never ethical

*“Ethics 101, What Every Leader Needs to Know” by John C. Maxwell

Good People Make Tough Choices…

Good People Make Tough Choices…

….and sometimes they make bad ones!

Leadership

Involves actions focused on how to get people to want to perform through their own initiative.

•Credibility

•Visionary

•Empowerment

•Encouragement

•Trustworthiness

Credibility!

What are your values?

Who is the role model?

Business Ethics?

Business Ethics comprises the set of principles and standards that govern our actions and decisions as they pertain to what is right and wrong within the context of business practice.

Three Approaches to Business Ethics*

Immorality

The deliberate violation of laws, moral standards, and ethical principle where the motive is greed.

Amorality

Passive indifference towards laws, moral standards, and ethical principles where the motive is profit.

Morality

The motive is earning a profit with legal and ethical boundaries

*”Effective Small Business Management, An Entrepreneurial Approach”, by Scarborough, Wilson, & Zimmerer

Why Managers Embrace Morality in Business

You prevent damage to the bank’s reputation which can also damage profits.

Banks with good reputations attract quality employees.

Makes it easier for employees to manage the complexities and potential conf licts with stakeholders because they know where they stand.

Four Dilemma Paradigms*Truth versus loyaltyHonesty & integrity versus commitment & responsibility

Justice versus mercyEven handed application of law versus compassion

Short-term versus long-termImmediate needs versus future goals or prospects

Individual versus communitySelf versus others…small group versus the larger group*“Good People Make Tough Choices” by Rushworth M. Kidder

Three Principles for Resolving Dilemmas*

Ends-based ThinkingUtilitarianism-the best choice is the one that provides the greatest good for the most people.

Rules-based ThinkingCategorical Imperative-the best choice utilizes the principle that you expect everyone to follow.

Care-based ThinkingGolden Rule- do to others what you would like them to do to you.

*“Good People Make Tough Choices” by Rushworth M. Kidder

Kidder’s Nine Checkpoints for Ethical Decision-Making*

Recognize that there is a moral issue.

Determine the actor.

Gather the relevant facts.

Test for right-versus-wrong issues.

Test for right-versus-right paradigm.

Apply the resolution principles.

Investigate the “trilemma” options.

Make the decision.

Revisit and ref lect on the decision.

*“Good People Make Tough Choices” by Rushworth M. Kidder

Take Ten!

Cascade

Survivor!!

What happened in your group?

What Seven Adjectives best describe the dynamics of your

group?

Teams and Ethics*

Competition

Cooperation

Competition versus Cooperation

Role of Trust

Collaboration

Co-opetition*”What Would You Do? A Game of Ethical and Moral Dilemma”, by Lorraine L. Ukens

Let’s Do Lunch!!

Stakeholder

Stakeholder*:

stake·hold·er [stáyk holdər]

(plural stake·hold·ers) noun

1. somebody or something with direct interest: a person or group with a direct interest, involvement, or investment in something.*

*Microsoft® Encarta® 2007. © 1993-2006 Microsoft Corporation.

Internal Stakeholders

Employee

Management

Investors

Board of Directors

External Stakeholders

Customers

Suppliers

Special Interest Groups

Government

Creditors

General Public

If your business were going bankrupt and most of the company’s debts would never be paid, would you use the company’s few remaining resources to reimburse customers for unfilled orders, to pay employees their back wages, or to pay suppliers for goods they had given you on credit? Assume you can do only one.

What would you do?

*The Book of Questions: Business, Pol it ics , and Ethics , by Gregory Stock, Ph.D.

Employer Rights*

Conf lict of InterestGifts and EntertainmentTrade SecretsEmployee Productivity MonitoringDownsizingHonesty in CommunicationAgent’s Duties* “Business Ethics”, Third Edition, by Milton Snoeyenbos, Robert Almeder, and James Humber

Employee Rights*

HiringDiversity and DiscriminationSexual HarassmentDischargePrivacyWorker SafetyWhistle blowing

* “Business Ethics”, Third Edition, by Milton Snoeyenbos, Robert Almeder, and James Humber

Take Ten!

Stressors that Challenge Ethical Cultures

Unethical employees

Lack of accountability

Ethical Blind spots

Competition Stress

Opportunity Stress

Setting an Ethical Culture

Role model the expectation

Establish clear tolerance levels for ethical violations

Execute continual training and education programs

Recognize ethical behavior when it occurs

Be an ethics coach

Setting an Ethical Culture

Establish checks and balances

Establish open-door ethics coaching policy

Establish ethical partnerships

Three Additional Approaches Used to Resolve Ethical Dilemmas

The Television or Newspaper Test

The Family Test

The Professional Ethics Panel Test

Thank you!!

Have a good evening!!

Joe !