Chapter 17 In CSM Chapter 2 In S E Management Decision Making and Ethics

Purpose Help you be sensitive to ethical issues around us Help you think more – Clearly – Logically – Critically About difficult ethical issues

We will encounter ethical issues throughout the entire course. Need a foundation in ethics

Will not provide a list of do’s and don’ts Will not provide a list of rules

All Around Us Ethics (or lack of ethics) is everywhere!!!

Goals Recognize need for ethical awareness Have basic grasp of – Nature of values And their influence on behavior Knowledge of your own values and behavior

What Are Ethics? Can be defined in many ways – It is about how people ought to live – Concerned with how human beings should treat each other Not how we actually do treat each other

What Are Ethics? Knowledge of the difference between right and wrong is essential Based on values

Values Moral Values Social Values Nonmoral values

Moral Values Values that are universal in nature on the advancement of human condition – Against murder – Against starvation

Social Values Values based on the norms of a group or society – Life, liberty and pursuit of happiness – Japanese and Americans – Treatment of women – “bribery”

Non Moral Values Values that concern things, events and places

Activity You have saved $250,000 to open a business. It is your money and you worked hard for this money. Your plan requires you hire five people. Your success or failure depends on these five hires. First – List a minimum five character traits you want in the people you hire and answer WHY for each. Second - List a minimum five character traits you would find completely unacceptable and answer WHY for each

Activity Learning Activity – Page 377

Discuss Why did you chose the values you did for hiring or not hiring someone? The bigger question, in looking at yourself, do you yourself have and live by the values you want in a person?

Additional Types Of Values Tend to be associated with social values – Core values – Intended values – Adopted – Weak

Core Values Held no matter the circumstance Are acted upon regardless of circumstance – Example: Safety of my child and students Nothing will change or compromise

Intended Values Those values we intend to hold – But are affected by other Things Situations – Example: Exercise Sometimes things interferes with this value

Adopted Value Adopted to conform to society – Out of perceived pressure Example: Have come to adopt ecological thinking and beliefs because of societies shift in thinking

Weak Value Espoused values but do not lead to action – Most believe they should study – Most know it will improve grades and lead to greater knowledge – BUT this does not lead to action – Valuing thin but still being heavy is another example

What About Lies? What is a lie? Is lying right or wrong?

Ethical Questions To Consider 1.Is it ever morally right to tell a lie to avoid hurting a close friends feelings? – Why? 2.Is it ever morally right to tell a lie to save another persons life? – Why? 3.Is it morally right for a doctor to lie to dying patients about their prospect of survival? – Why?

What Can We Conclude? What is our conclusion about telling lies? Are there blurred lines? Why?

Business Ethics Ethics in which moral principles and values are tied to workplace questions

B Ethics and Success Can a business succeed that acts ethically? Unethically? – What is success in a business? Fortune 500 is top 500 businesses in profit Can a business act in an ethical manner and be successful?

What About--- All’s fair in love, war and business? – If money is only measure of success There are no rules to making money--- Right? Or Wrong?

Is It Acceptable? For a company to – Falsely advertise? – Deceive customers? – Treat employees unfairly? As long as you make large profits, these acts are acceptable, right? – Why or why not?

Reality In Ethics 85% of corporations in US have written codes of ethics and conduct – A written set of guidelines workers are expected to follow Many companies have ethics training You do have ethical duties to your employer

Typical Ethical Duties To be honest Act with integrity Be loyal to your company – Example: Not giving competition trade secrets Fair days work for your pay Employees that break these duties may be disciplined or fired

Sometimes employee duty conflicts with other values – Some companies expect you place a higher value on company over family – Keep quiet about “unethical practices”

Business Ethics Companies have found that unethical actions can be expensive – Enron is out of business At one time one of US largest energy suppliers Some of corporate executives went to jail Many thousands of employees lost all retirement savings. – Arthur Anderson went out of business Largest accounting firm at the time

Largest Fines J P Morgan - $13 billion BP Oil - $4 billion Glaxo-SmithKline - $3 billion Big Tobacco - $206 billion HSBC - $1.6 billion

Business Ethics American companies lose billions of dollars in profits per year – Theft – Abuse of sick time – Drug and alcohol abuse Corporations held responsible for employees actions

Test Yourself How ethical are you in a business environment? See my web site under Saturday for link d/ d/3090

Not What To Do Ethically

Conclusion You will find ethical issues, questions and problems in your future profession Will need to rely on your – Ethical principles – Critical thinking and decision making skills Ethics in workplace not much different from personal life – Just more money is involved

"The measure of a man's real character is what he would do if he knew he never would be found out." - Thomas Babington Macaulay

What are your ethics and values?