Business Ethics External vs. Internal Environments

No Unequivocal Dedication Walmart Utility Companies Etc. Why do you think commitment to ethics is not consistently paramount on the organizational scene?

Where is the Hope? Overall impact of decision making in business depends on the cumulative effect of moral actors: the stakeholders

Part 2: The Practice of Business Ethics Chapter 3 – Internal Stakeholders Matt’s Dilemma – page 47

Dilemma Is Scott correct? What can Matt do?

Defining Organizational Ethics We learned that business ethics is a study quite distinct from general ethics discussions. Why do you think that is the case? 1) all parties (stakeholders) have a vested interest in ethical performance of an organization In a work environment, you could be placed in a clash with the ethical standards of the organization’s operating culture

Organizational Culture – Remember MGMT 303? Weak or powerful influence on employee? “Values, beliefs, norms shared by all members….” Includes sum of all polices and procedures, written and unwritten by every functional area Includes “soft laws” and actions undertaken by employees

Functional Areas May Include Supply chain, operations, distribution, marketing, sales, service, R&D, HR, C-suite, general administration – aka “value chain”

Chapter 3 Focus – R&D, Manufacturing, Marketing, Advertising, HR and Finance Let’s explore the Ethics of Research and Development, p. 49.

The Manufacturing Tie-In to R&D “Do you want it fast, or do you want it right?” Pressures may be great… Ethical challenges here may include: --coming to safe, fair compromises --quality assurance in the face of uncertainties

How About Marketing? The utilitarian view emphasizes that if customers are satisfied, any end justifies the means. Universal ethics viewpoints warn us of the dangers – and the fleecing—of the public when the utilitarian perspective dominates.

In Fact, We are Constantly Affected by Marketers They shape our world! The Story of our Stuff

Ethics in HR The ideal is as stated in p. 53 of your text On that same page, we’ll review some ethical transgressions and discuss our own thoughts/experiences

Ethics in Human Resources HR professionals need to help ensure that ethics is a top organizational priority To the extent possible, they need to ensure that leader selection and development processes include an ethical component – good advice – is it possible? What do you think? What might a non-profit or organization without an HR dept. do to address this?

HR Responsible to ensure the right programs and policies are in place Must stay abreast of ethical issues –including changing legislation and the consequences of illegal/unethical behaviors

Ethics in Finance – P 54 What is the accounting function? What is the purpose of an audit function? Exercise p. 55

The GAAP Process Accounting is governed by this guidance—generally accepted principles that govern the profession – “operating procedures” These are not the regulations/laws themselves Let’s talk about creative bookkeeping p.56

Sarbanes-Oxley Act of 2002 How it affected my profession in 2002 Based on our learning so far, do you feel it solved the primary problem in marketing in the business I described? Worthwhile or not? Let’s discuss its application to a number of businesses

Who is Ultimately Responsible for an Organization’s Ethical Culture?