What Is Ethics?

Dr. Sharon GreenDepartment of Management

and Finance

Where are we starting from?

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What is ‘Ethics’?

ethics |ˈeθiks| |ˈɛθɪks| |ˈɛθɪks|plural noun

1 [usu. treated as pl. ] moral principles that govern a person's or group's behavior • the moral correctness of specified conduct: the ethics of child labor.

2 [usu. treated as sing. ] the branch of knowledge that deals with moral principles.

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What do we mean by ‘Moral’?

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moral moral |ˈmôrəl; ˈmär-|adjective concerned with the principles of right and wrong

behavior and the goodness or badness of human character • concerned with or adhering to the code of interpersonal behavior that is considered right or acceptable • holding or manifesting high principles for proper conduct

a lesson, esp. one concerning what is right or prudent, that can be derived from a story, a piece of information, or an experience.

morals: a person's standards of behavior or beliefs concerning what is and is not acceptable for them to do • standards of behavior that are considered good or acceptable

What do we mean by ‘Responsible’responsibleresponsible |riˈspänsəbəl| adjective having an obligation to do something, or having control

over or care for someone, as part of one's job or role

being the primary cause of something and so able to be blamed or credited for it

(of a job or position) involving important duties, independent decision-making, or control over others

(responsible to) having to report to (a superior or someone in authority) and be answerable to them for one's actions

capable of being trusted : a responsible adult

morally accountable for one's behavior 5

What do we mean by ‘Prudential’?prudential |proōˈden ch əl| adjective

involving or showing care and forethought, especially in business and financial matters.

prudent |ˈproōdnt| adjectiveacting with or showing care and thought for

the future : No prudent money manager would authorize a loan without first knowing its purpose.

shrewd in the management of of practical affairs. Frugal.

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Are you a…

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or a

Do you know the difference…

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Do you already have all the…

ANSWERS

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Do we have an ‘ethical sense’?

Where and how do we sense right and wrong?

Is there an ‘ethical sense’ that is like our senses of sight, hearing, smell, touch?

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Moral Intelligence

Moral intelligence (MI)The capacity to determine how universal

human principles should be applied to our personal values, goals, and actions (Lennick & Kiel, 2005).

Important “differentiating competency”.MI is a “soft” skill.MI makes a significant difference in

organizational effectiveness.Moral intelligence provides a basis for

insight.

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Moral Intelligence

Four + 2 Principles of Moral Intelligence

IntegrityResponsibilityCompassionForgiveness

Imagination Courage

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Compassion

Responsibility

Forgiveness

Moral CompetencyIntegrity

N

S

W

E

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Moral Competency

“In their decision-making role, executive ethical leaders are thought to hold to a solid set of ethical values and principles.”

From “Moral Person and Moral Manager” by Trevino, Hartman & Brown, 2000

Universal Principles

IntegrityResponsibilityCompassionForgivenessGenerosityCommitment to

a transcending power

JusticeTemperance/

Self-DisciplineHumilityCare for living

things and the environment

Wisdom Courage

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Business Ethics: What is it?

Is “business ethics” an oxymoron?Oxymoron: a combination of contradictory

or incongruous words; e.g., cruel kindness.

Should we be cynical about the potential for ethical action in today’s businesses?Cynical: believing that people are

motivated only by self-interest; distrustful of human sincerity or integrity; pessimistic.

How Cynical Are We?

What was your cynicism quotient?Possible outcomes from 10 to 50, where

50 is COMPLETELY CYNICAL.Plot the class.What are the implications for managing

ethics in an organization?

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Expand your peripheral vision

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Ethical Decision Making Process

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EthicalEthicalAwarenessAwareness

EthicalEthicalJudgmentJudgment

EthicalEthicalBehaviorBehavior

Characteristics of Individuals

Characteristics of Organizations

Thriving at Work Without Selling Your Soul

Understand the difference between healthy vs. unhealthy compromise

Know how to redefine the game and engage at a higher level

Strengthen your ability to engage at a higher level in a wide range of circumstances

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Why be ethical?

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It Pays to be Ethical

22WME: World’s Most Ethical Companies (from Ethisphere)

Mechanical Brake Systems MBS

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3,125 full-time employees116 part-time employees

Started in Union CityBy Floyd & Jake Jenner

Meet Mr. Steve Lee, CEO of MBS

CEO and President of MBS for the last ten years

Background in finance, no manufacturing experience

End MBS’ pension plan and sharply reduce health care benefits?

What is the ethical choice? What do you recommend?

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Design for Ethics & Responsibility: D4E&RDeliverables

20 minute Team PresentationOur Target OrganizationOur research processOur findings (ethical issues, current state of ethics

and social responsibility, examples)Our recommendations, including implementation

7-10 page Management ProposalFollowing the same format, a written proposal to

management of the Target Organization

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Design for Ethics & Responsibility: D4E&RProcess

Meet your team and make Team Agreements Identify your Target OrganizationSecondary Research divided among Team

MembersField Research divided among Team Members

Cultural AssessmentEthics Audit (B Corps)

Analyze results and interpret(re)Design for Ethics & ResponsibilityPlan and complete your Presentation/Proposal

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Team Problem Solving: Dialectic Process

Problemas Given

ProblemChosen

ProblemDefined

SolutionChosen

SolutionImple-

mented

InformationGathering

Visioning/Exploration

IdeaGetting Participation

PrioritySetting

ProblemDefinition

DecisionMaking

Planning

Leader Detective Inventor Coordinator

SituationAnalysis

ProblemAnalysis

SolutionAnalysis

ImplementationAnalysis

Green

Mode

Red

Mode

Team Leaders & Team MembersDecide who will take leadership responsibility

each week, post your schedule to Blackboard.Take your Team Leader responsibilities

seriously. Practice assertive leadership skills. Practice integrity, responsibility, compassion and

forgiveness

Take your Team Member responsibilities seriously. Support the Team Leader. Come prepared, participate and don’t block work.

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Reading & Class Prep for Next WeekManaging Business Ethics Chapter 2Moral Intelligence Chapters 3 & 4The Compromise Trap Chapters 1 & 2Class Prep

Values Ranking Survey (Blackboard) Worksheets 1 & 3 in L & K (pp. 41 & 51) Identify your favorite ‘moral virus’ (L&K Ch. 4 &

BB) Communicate with your team about possible TOs

and your Team Contract Begin Secondary Research for D4E&R

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Values Ranking

Complete the Personal Values Ranking, providing ranks for your terminal values and your instrumental values separately. Attempt to rank all of the values.

Write a one-to-two paragraph commentary and interpretation of your rankings. What was your experience of completing the rankings? What do your value rankings say about you as a business professional? How do your values guide your ethical choices?