Ethical Decision Making

Ethical Decisions

Ethical Decisions

• Protect the company’s reputation

Ethical Decisions

• Protect the company’s reputation

• Build customer confidence and trust

Ethical Decisions

• Protect the company’s reputation

• Build customer confidence and trust

• Grow and retain customers

Ethical Decisions

• Protect the company’s reputation

• Build customer confidence and trust

• Grow and retain customers

• Attract and retain top talent

Ethical Decisions

Most unethical business practices are made by basically honest people who face great pressures to perform.

Challenges to Ethical Behavior

• External Pressures

• Self-Imposed Pressures

• Ignorance

External Pressures

Pressure that often comes from management or demanding customers.

External Pressures

Examples:

• “Results are all that matter.”

• “No one really cares how you get it

done; just get it done.”

• “Be a team player.”

External Pressures

It’s your duty to help unreasonable customers understand what can and can’t be done.

External Pressures

Help set customer expectations at realistic levels.

External Pressures

Some promises initially reduce conflict, but they eventually lead to less customer satisfaction and trust.

Self-Imposed Pressures

Pressure on people to do more with less and adjust quickly to change.

Self-Imposed Pressures

Cause people to cut corners and engage in selfish behavior.

Self-Imposed Pressures

People tell managers what they want to hear, instead of the truth.

Self-Imposed Pressures

Winning at any cost can cause damage to you and your company’s reputation.

Ignorance

Ignorance of law is not an acceptable excuse in a court of law.

Ignorance

Ignorance of company’s business conduct is not an acceptable excuse for unethical business practices.

Ignorance

It’s your responsibility to know and to follow your company’s business conduct, practices and applicable federal laws.

Ignorance

As a manager, it’s your responsibility to demonstrate proper conduct that fosters the same behavior from employees.

Ethical Decisions

Be prepared to deal with external pressures, self-imposed pressures and ignorance on a day-to-day basis.

Ethical Decision Model

Ethical Decision Model

• Is it legal?

Ethical Decision Model

• Is it legal?

• Does your decision follow

company policies?

Ethical Decision Model

• Is it legal?

• Does your decision follow

• Does your decision follow company management practices?

company policies?

Ethical Decision Model

• Does your decision violate any ethical values?

Ethical Decision Model

• Does your decision violate

• Does your decision violate any ethical values?

your personal values?

Is It Legal?

Is It Legal?

• Determine the relevant law

Is It Legal?

• Determine the relevant law

• Reveal the court interpretation of it

Is It Legal?

• Determine the relevant law

• Reveal the court interpretation of it

• Determine how the law deals with it

Is It Legal?

• Determine the relevant law

• Reveal the court interpretation of it

• Determine how the law deals with it

• Determine the chances of going to court

Is It Legal?

U.S. laws have been passed to ensure:

• Uninhibited competition

• A free marketplace

• Protection of workers

• Consumers’ rights

Is It Legal?

Specific laws deal with:

• Foreign corrupt practices of U.S. multinationals

Is It Legal?

Specific laws deal with:

• Foreign corrupt practices of U.S. multinationals

• Contract dealings with the

U.S. government

Is It Legal?

Specific laws deal with:

• U.S. antitrust and unfair competitive practices laws

Is It Legal?

• Local government laws

Specific laws deal with:

• U.S. antitrust and unfair competitive practices laws

and regulations

Is It Legal?

It’s your responsibility to know laws and regulations that relate to your company and job.

#1 - Obey the law.

Guidelines

Guidelines

#2 - If you’re not sure it’s legal, don’t

do it!

Guidelines

#3 - When in doubt, seek advice fromyour legal department.

Company Policy

Company Policy

Your decisions must comply with your company’s code of ethical conduct.

Company Policy

• What is the published policy?

Company Policy

• What is the published policy?

• What is the intent of this policy?

Company Policy

• What is the published policy?

• What is the intent of this policy?

• Is the alternative in conflict with these policies?

Company Policy

Companies have polices to ensure employees know what treatment to expect and what the company expects from them.

Company Policy

You need to be familiar with your company’s code of ethical conduct.

Management Practices

Management Practices

• How have issues been handled in

the past?

Management Practices

• How have issues been handled in

the past?

• What actions took place?

Management Practices

• How would you feel describing this

• What actions took place?

• How have issues been handled in

the past?

action to your peers or boss?

Management Practices

• Is the decision in accord with the company’s strategic principles?

Management Practices

• Would you have to falsify or omit the

• Is the decision in accord with the company’s strategic principles?

action on any internal reports?

Management Practices

• How would you feel if it would be

• Would you have to falsify or omit the

• Is the decision in accord with the company’s strategic principles?

action on any internal reports?

published in the company newspaper?

Management Practices

Management practices characterize a company’s style and culture.

Management Practices

Company policies can’t spell out the appropriate response for every situation.

Management Practices

Unethical acts usually can’t stand the test of disclosure or possible scrutiny.

Ethical Values

Ethical Values

• Who benefits and who is harmed?

Ethical Values

• Who benefits and who is harmed?

• How are the benefits and negative burdens distributed?

Ethical Values

• Who benefits and who is harmed?

• How are the benefits and negative burdens distributed?

• Are anyone’s rights negatively affected?

Ethical Values

• Does this alternative coerce, deceive or exploit people to advance your interests?

Ethical Values

• How would this be described in the media?

• Does this alternative coerce, deceive or exploit people to advance your interests?

Ethical Values

• How would this be described in the media?

• Does it help or hinder the corporate image or goodwill?

• Does this alternative coerce, deceive or exploit people to advance your interests?

Stakeholders

• Employees

• Stockholders

• Customers

• Vendors

• General Public

Ethical Values

Consider the consequences of your decisions.

Ethical Values

Would you find your action acceptable if it were done to you, rather than by you?

Personal Values

Personal Values

• Does this decision conflict with what you think is right and wrong?

Personal Values

• Does this decision conflict with what you think is right and wrong?

• Are you betraying the interests of those you’re paid to represent?

Personal Values

• Does this decision conflict with what you think is right and wrong?

• Are you betraying the interests of those you’re paid to represent?

• Would you feel comfortable telling your family this?

Personal Values

Look at the value system you have constructed for yourself as a guide for your decisions.

Personal Values

Ethics is about personal choice.

Personal Values

• How you choose to deal with others

Personal Values

• How you choose to deal with others

• How you choose to be regarded

Personal Values

• How you choose to deal with others

• How you choose to be regarded

• How you choose to live your life

Personal Values

• How you choose to deal with others

• How you choose to be regarded

• How you choose to live your life

• Who you choose to be

Ethical Decision Making