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WK15.1 Agenda

• Points update• 5 precepts• Ethical video clips discovery• Short ethical reading discovery• Summary

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5 Precepts• What are the 5

precepts? Do you have them all?1. Do not kill2. Do not steal3. Do not indulge in

sexual misconduct4. Do not make false

speech5. Do not take intoxicants

• What’s ethic?• The study of good and

evil or right and wrong.• What’s business ethic?• Apply that to business

actions.

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STAR: Video Clips Discovery

• Watch the following videos.• Situation: What’s the problem?• Task: How did they solve the problem? How

did they respond to the situation?• Action: What would you do if your are the

stakeholders?• Result: What’s the result?

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Short reading• Read the following cases.• Define the problems.• What would you do? Why?

Situation Action Reason

Promotion,Lying in resume

Theft, office supplies

Threatening to sue the company to get extra pay, unequal compensation, fair treatment?

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Short ReadingSituation Action ReasonFake answer, not honest

Did not take action to the ethical issues

Extra sales budget decision, bribing, purchasing procedure?

Fair contribution? Fair promotion?

Fake document for auction, unfairly treated among dealers, boss ignore the problem

Company interestFair? Benefit of the company?

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Summary• Summarize what you’ve learned!• How do you know that your behavior is ethical

or not?• What lead you to act ethically or unethically?• How to encourage people to act ethically and

refrain from doing the unethical thing?

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15.2 Agenda

• Auspicious date? • Why participate? Why self evaluation? Should

I grade only on ability? Your need.• Instant homework grading.• Lecture• Mind map

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Ethics

• Ethics• A concept of right and

wrong conduct.• A study of good and

evil.• Tells us whether our

behavior is moral or immoral.

• Business ethics• Application of general

ethical ideas to business behavior.

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Major Sources of Ethical Values• Time changes, technology

changes but same issues: jealousy, greed, lust, egoism etc.

• Baba Qamma 60a: A person who sets force in motion bears responsibility for any resulting harm, even if natural forces intervene.

• Meaning?• Any other factors?• Education, gender, media

influence

Religion: honesty, fairness, charity, responsibility, the golden rule

Philosophy: stoic school: within virtueRealist school: reject perfection

Culture: Universalism: same rule applicable in all cultures such as justiceRelativism: no universal standard to judge which values are superior

Law:Compensatory damage, punitive damage, sentencing, fines, other penalties

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Why should we be ethical?1. To meet demands of business stakeholders.

10 countries polls showed 90% of general public placed business ethics standards above traditional corporate goals (except China) What about Thailand?

2. To enhance business performance.

3. To comply with legal requirements.

4. To prevent or minimize harm.

Ex: not harming society with toxic waste, protecting business from unethical employees and unethical competitors

5. To promote personal morality.

People want to work for companies that do the right thing.

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Factors Affecting Corporate Ethics

Leader’s exampleCompromise? Communicate?Strategies/Policies 0-tolerance, CompensationOrganization Culture, missionIndividual Characteristics, age, work experience

Ethical Performance

Elevated

Average

Compromised

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Observations of Unethical Behavior at Work

1. Abusive or intimidating towards employees.2. Lying to employees, customers, vendors, or the

public.3. A situation that places employee interests over

organizational interest.4. Violations of safety regulations.5. Misreporting of actual time worked.6. Discrimination on the basis of race, color, gender, age,

or similar categories.7. Stealing or theft.8. Sexual harassment.

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Unethical Behavior in Corporate Functions

• Marketing– 4P

• IT– Privacy, sensitive

information, storage, access of information

• Finance– Insider trading, illegal stock

transaction, accounting fraud

• Manufacturing– Flawed manufacturing,

safety, quality

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Ethical Principles1. The Categorical Imperative:

Act in a way that he believes is right and just for any person in a similar situation. “Could this act be turned into a universal code of behavior?”

2. The Conventionalist Ethic: Business is like a game with permissive ethics and any action that does not violate the law is permitted.

3. The Disclosure Rule: How would you tell the public? Screen out greed and jealousy but not always guide to the best alternative.

4. The Doctrine of the Mean: virtue is achieved through moderation.

5. The Ends-Means Ethic: The end justifies the means.

6. The Golden Rule: Do unto others what you would have them do unto you.

7. The Intuition Ethic: What is good or right is understood by an inner moral sense based on character development and felt as intuition.

8. Might Equals Right Ethic: Justice is the interest of the stronger.

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Ethical Principles9. The Organization Ethic: Be loyal

to the organization.10. The Principle of Equal Freedom:

A person has the right to freedom of action unless such action deprives another person of a proper freedom.

11. The Proportionality Ethic: Manager can risk predictable, but unwilled harms to people after weighing five factors:-type of good and evil-probability-urgency-intensity of influence-alternatives

12. The Rights Ethic: Each person has protections and entitlements that others have a duty to respect. Should we abridge individual rights when it will benefit more to the public?

13. The Theory of Justice: Each person should act fairly toward others in order to maintain the bonds of community.

14. The Utilitarian Ethic: The greatest good for the greatest number.

Use these principles in a good way!

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When in Doubt, Ask Yourself• Are my actions legal?• Am I being fair and honest?• Will my actions stand the test

of time?• How will I feel about myself

afterward?• How will it look in the news?• Will I sleep soundly tonight?• What would I tell my child to

do?• How would I feel if my family

and friends knew what I was doing?

• Warning sign!• Just once.• No one will ever know.• Just get it done.• Too good to be true.• Everyone does it.• Shred that document.• We can hide it.• No one will get hurt.• What’s in it for me?• This will destroy the competition.• We didn’t have this conversation.

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Decision

Do I solve this problem creatively?

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Is this ethical?• A Co worker wanted to

buy a house.• As a manager, you knew

that he would be laid off soon.

• You decided to keep your mouth shut.

• After that employee bought the house, he got laid off. He was bankrupted and went into midlife crisis.

• Utility: • Greatest benefit to the company and

all workers. A frank response here will disrupt operations.

• Rights: • Although the employees had the right

to know but right is not absolute. The manager had to keep the promise of keeping confidential to the company.

• Justice: • Unfair to other employees if the

manager signal layoff to this employee.

• Creativity: • Persuade him not to buy the house

such as expense of owning a house, location, or other ways to get a better house at a later time.

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How will you react to these situations?

• Bad economy, have to increase the price or lower the quality.

• If you can change from labor work to machine production, will you switch?

• When customers have little knowledge about the product, will you explain the information or make them decide right away.

• Class ethical issues.

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Ethical Program in the Company1. Set up standard and code of conduct.2. Assign authorities and responsibilities for compliance.3. Screen out criminals.4. Communicate standard to all employees (training).5. Monitor and set up a hotline.6. Enforce standards, discipline violators.7. Assess areas of risks, modify the program

Whistle blower: An employee who report the wrong doing to boss, media, or government to get the resolution.

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Homework

• In group of 4, find the ethical dilemma situation.

• Analyze it using our concepts.• Present to the class next Friday September 17,

2010.

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Summary

Ethical Action

UtilityBenefit>Cost?

JusticeFair?

RightsHuman Rights?

CreativityCreatively solve

the problem?

Yes, we can improve the situation!

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WK15.3 Agenda

• Review & Mind Map• Role play for the dilemmas.• Ethical in the news.• Exam part III is at the end of this month!

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Review• Are my actions legal?• Am I being fair and honest?• Will my actions stand the

test of time?• How will I feel about myself

afterward?• How will it look in the news?• Will I sleep soundly tonight?• What would I tell my child to

do?• How would I feel if my

family and friends knew what I was doing?

Ethical Action

UtilityBenefit>Cost?

JusticeFair?

RightsHuman Rights?

CreativityCreatively solve

the problem?

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Role Play

• In 3 groups, read the following situation.• Prepare to show the situation to your friends.• Is it ethical? Why?

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Human Rights• Human rights: basic freedoms that all

people are entitle to enjoy such as civil, speech, religion, political, assembly and vote.

• Organization: United Nations, Amnesty International, OAS, FTC, etc.

• Human rights is the focus of the US Foreign policy since 1900. No American aid would go to nations that violate human rights.

• After WWII, the universal declaration of human rights became the new standard which include

– equal rights and freedoms,– right to life, liberty, and security– freedom from slavery or servitude– freedom from torture or cruel– right to equal protection of the law– right to marry– right to own property– right to education

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Universal Declaration of Human Rights1. We are all born free and

equal.2. Everyone is entitle to all the

rights and freedom. No discrimination.

3. Right to life, liberty and security.

4. No slavery.5. No torture.6. Right to recognition

everywhere as a person.7. Equal protection of the law.8. Right to effective remedy.

9. No one shall be subjected to arbitrary arrest, detention or exile.

10. The right to trial.11. Innocent till proven guilty.12. The right to privacy.13.Freedom to move or return

home.14. The right to seek a safe place

to live.15. The right to nationality.16. The right to marry.17. The right to own property.18. Freedom of thought, belief,

religion, or worship.

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Universal Declaration of Human Rights

19. Freedom of expression.20. The right to public

assembly.21. The right to take part in

government.22. Right to social security

(housing, medicine, education and childcare), economic and cultural rights.

23. Worker’s right: choose a job, fair wage, and join trade union.

24. Right to rest and relax (paid vacation).

25. Right to standard of living: food, clothing, housing, and medicine.

26. Right to education.27. Copy right.28. A fair and free world.29. Duty to the community and

respect the right of others. 30. Cannot interpret or aim at

destruction the rights and freedoms set forth herein.MIB, BBA 2010

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Thai Consumer Protection Act• The consumer has the following right of protection:1. The right to receive correct and sufficient information

and description as to the quality of goods or services.2. The right to enjoy freedom in the choice of goods or

service.3. The right to expect safety in the use of goods or

services.4. The right to receive a fair contract.5. The right to have the injury considered and

compensated in accordance with the laws on such matters or with the provision of this Act.

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Ethical in the News

• In group of 3, read the following articles.• Analyze the ethical issues using our concepts.• Any better solution?