- 1. Marketing Management Association Approaches to
TeachingBusiness Ethics Dr. O.C. FerrellEhrhardt, Keefe, Steiner
& Hottman, P.C.Professor of Business AdministrationColorado
State UniversityCopyright O.C. Ferrell; March 2005 Business
EthicsKnowing the difference between what youhave a right to do in
the organization andwhat is the right thing to do. Adapted from
Former Supreme Court Justice Potter Stewart. What one might do for
$500Stop going to movies for 6 months (62%)Get a tattoo (39%)Switch
political parties (35%)Cheat on income taxes (9%)Cheat on spouse
(4%)Source: Anything for Money? Business Week, August 2, 2004, p.
9.(Progressive Auto Insurance survey of 1,000 adults) 1
2. Principle of Employee Conduct10% 40% 40%10%FollowTry to
followGo alongTake their own company policies with theadvantage
beliefs & ruleswork groupif therisk is lowCopyright O.C.
Ferrell; March 2005Corporate Responsibility Crisis Opinion polls
now place business people in lower esteem than politicians.Jennifer
Merritt (2002) For MBAs, Soul Searching 101,Business Week, Sept.
16, p. 64. A W.S.J./NBC poll found that 57% of the general public
believed that standards & values of corporate leaders &
executives had dropped in the last 20 years.Eric Hellweg (2002)
www.business2.0.com, Sept. 10.2 3. American Distrust of Business80%
70%61%
____________________________________________________________________________________________________American
business isIf the opportunityEven long too concerned about arises,
mostestablished profits, not concernedbusinesses will takecompanies
cannot about responsibilities to advantage of thebe trusted to make
workers, consumers & thepublic if they feel theysafe, durable
environment.are not likely to beproducts without the found
out.government setting industry standards. Source: J. Walker Smith,
Ann Clurman, and Craig Wood of Yankelovich Partners, Inc. Point,
Feb., 2005, www.RacomBooks.com; results from Yankelovich
MONITOR.Profits vs. EthicsCorporate CEOs are being distracted bythe
demands of management experts andgovernment officials to do whats
rightrather than what good business sensesuggests is best. George
Stalk, Boston Consulting Group Source: George Stalk, Warm and Fuzzy
Doesnt Cut It, WallStreet Journal, February 15, 2005, p. B2.What is
business ethics?(a managerial perspective) defining appropriate
behavior establishing organizational values nurturing individual
responsibility providing leadership & oversight relating
decisions to stakeholder interests developing accountability
relating consequences auditing & improvementCopyright O.C.
Ferrell; March 20053 4. Myths about business ethics Its easy to be
ethical Unethical behavior is part of business There are no rewards
for being ethical Ethical behavior will prevent me from being
successful Business is like a sport, push the rules & try not
to get caught Business ethics is about character education and
teaching moral philosophyCopyright O.C. Ferrell; March 2005 Who are
the primary stakeholders that shape business ethics? employees
customers suppliers community government shareholders other
Copyright O.C. Ferrell; March 2005 Interactions Between an
Organization and StakeholdersSpecial Interest GroupMass
MediaEmployee Group Customer GroupGovernment Organization
Shareholder GroupRegulatory Body Supplier CommunityTrade
AssociationCompetitor Secondary StakeholdersSociety at LargePrimary
Stakeholders Adapted from Isabelle Maignan, OC Ferrell, and Linda
Ferrell, A Stakeholder Model for Implementing Social
Responsibility, European Journal of Marketing,
forthcoming.Copyright O.C. Ferrell; March 20054 5. Framework for
Understanding Organizational Ethical Decision Making Individual
moral philosophies andvaluesExternalEthical Ethical Evaluation
ofstakeholder issuedecision ethical interests and intensity
outcomes concernsOrganizationalculture, values,and normsSource:
O.C. Ferrell, 2005 Copyright O.C. Ferrell; March 2005The Ethics
Mirror & Reality people judge themselves based on their
intentions others are judged based on their behavior everyone is
accountable for their actionsCopyright O.C. Ferrell; March 2005A
Review of 286 AACSBMember Schools Reveals...Ethics in mission
statements:59.4% no reference23.1% reference importance of ethics
inmission statement, yet do not require a coursesmaller schools
more likely to address issuethan larger colleges &
universitiesRequired ethics course(s):40.6% (overall) require an
ethics course68% of private30% publicSource: Cheryl L. Buff and
Virginia Yonkers (2004) How Will They Know Right From Wrong? AStudy
of Ethics in the Mission Statement and Curriculum of AACSB
Undergrad. Mkt. Programs,Marketing Education Review, Vol. 14, #3
(Fall): 71-79. 5 6. Alan Simpson, Former Wyoming Senator If you
have ethics, nothing elsematters. If you dont have ethics,nothing
else matters. AACSB Teaching Business Ethics ConferenceColorado
State University, University ofWyoming & University of
ColoradoExamines approaches, perspectives, toolsJuly 20-22, 2005;
Boulder, COFor more information: www.e-businessethics.com Copyright
O.C. Ferrell; March 2005 March MadnessGo Illini !Its not just about
Marketing Managementanymore Copyright O.C. Ferrell; March 20056
