Business Ethics for competitive Advantage
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The document discusses building ethical organizations. It thanks Carol Broccoli of Rutgers-Cook College for her contributions. It then provides biographical information about Ethan Chazin, the founder of The Chazin Group, which specializes in career coaching, job searches, and human capital development. The document discusses what constitutes ethical behavior and provides examples of ethical dilemmas that may arise in workplaces. It suggests guidelines for creating and maintaining ethical organizations, including developing codes of ethics and modeling ethical behavior at executive levels.
Business Ethics for competitive Advantage
- 1. The Chazin Group Building Ethical Organizations for Success.
- 2. Special thanks to: Ms. Carol Broccoli Program director Rutgers-Cook College Continuing Professional Education NJ agriculture experiment station
- 3. About ME BA in Comms (MBA in Mktg) 20 Years In Corp. America Began Career as a Recruiter Marketing/Sales Background Launched The Chazin Group 2004 Contact me: Tel: (201) 683-3399 Cell: (917) 239-5571 Email: [email protected]
- 4. What I Do Job Search Strategies Interviewing & Networking Career Coaching Life / Work Balance Business Owner Coaching Human Capital Development Professional Development Salary Negotiations
- 5. What’s “ETHICAL” Behavior?
- 6. “Being in accordance with the accepted principles of right and wrong that govern the conduct of a profession.” /www.thefreedictionary.com/ethical
- 7. Ethics refers to standards of right and wrong that prescribe what we ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethics refer to the standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud. www.scu.edu/ethics/practicing/decision/whatisethics.html
- 8. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. Ethical standards include: standards relating to rights (right to life, freedom from injury, the right to privacy.) Such standards are adequate standards of ethics, because they’re supported by consistent/well-founded reasons. www.scu.edu/ethics/practicing/decision/whatisethics.html
- 9. Ethics refers to the study and development of one's ethical standards. Feelings, laws and social norms can deviate from what is ethical. So it’s necessary to constantly examine our standards, to ensure that they’re reasonable and well-founded. Ethical behavior requires we continuously study our beliefs and conduct, and striving to ensure that we, and the institutions we work for, live up to standards that are reasonable and solidly- based.
- 10. KEY TERMS • Ethical Egoism: acting for Egoism your OWN self interest. • Utilitarianism: creating the Utilitarianism greatest good for the greatest number of people. • Altruism: advancing the Altruism best interest of others.
- 11. FOR DISCUSSION The Chazin Group The Chazin Group Does compliance reinforce inaction and only token responses?
- 12. Ready to See How ETHICAL You Are? Let’s take a quiz... www.ea.ne.gov/PDFs/presentations/BusEthicsQuiz.pdf
- 13. Example #1 You are an office manager and you discover that an upper-level manager has repeatedly used the company credit card for personal expenses. What do you do?
- 14. a) I do nothing. The person is higher than I am so it must be OK. b) I confront the person and hope that this won't threaten my job. c) I confront the person and reveal what I know to a higher-level manager or someone in human resources.
- 15. Correct Answer: C Talking to the person is not enough to ensure that the behavior won't continue. "Intervening directly is necessary but not sufficient," says Bruce Weinstein, Ph.D., who writes the column "Ask the Ethics Guy.“ Weinstein says management or HR should monitor the person.
- 16. Example #2 You have authority over Human Resources and an employee comes to you and says: "I want to tell you something about someone, but you can't tell anybody." He then reveals that someone pushed another employee in the company kitchen. What do you do?
- 17. a) I promised not to tell, so I don't. b) I find out if the employee was injured and decide based on that whether to tell. c) Even though it breaks my promise, I tell my boss so the incident goes on record.
- 18. Correct answer: C Jenn Crenshaw, a professor at the Univ. of Phoenix in VA says a human resources manager should warn employees before they divulge a secret that her position and the law might require her to tell someone else. "Then they get to decide whether or not they're going to tell me," Crenshaw says. Even if she doesn't get a chance to forewarn the employee before sensitive information is revealed, she makes sure anything important, like physical assault, goes on the record by telling a higher-up.
- 19. Example #3 A coworker who is also a friend tells you that he has major concerns about a large project and plans to tell the VP overseeing the project. You know that the VP has been known to fire people who have been too vocal against this project. Do you encourage your friend to be honest anyway? What do you do?
- 20. a) Yes, honesty is ALWAYS the best policy. b) No, I reveal the dangers of the decision and encourage the friend to protect his job. c) I explain what I know but try to avoid encouraging my friend one way or another.
- 21. Correct answer: C I explain what I know but try to avoid encouraging my friend one way or another. Personal ethics are important, but it's also important not to force those decisions on others, says Don Schierling, a professor at Regis University. Giving others information so they can make the best choice for themselves is generally the best option, Schierling explains.
- 22. Example #4 You have been asked to work with the public relations department in writing a press release about a new product that didn't turn out quite as well as promised in earlier reports. How much do you reveal to the public in the press release? What do you do?
- 23. a) I don't hint at it. It's important that the company's image is not damaged by the flawed product. b) I write a more mildly enthusiastic, but honest release than I would if the product were perfect. c) I'm completely honest, believing it will earn the respect of customers to be forthcoming.
- 24. Correct answer: B People in PR must toe the line between talking positively about a company and lying outright. Since it's understood that a press release is going to put a positive spin on any topic, it's not expected to be fully frank about then flaws. A major disaster can sometimes be avoided by an honest and upfront handling of the issue with the press. "Ultimately, you have to answer to yourself,” says Schierling.
- 25. What ETHICAL Organizations Look Like
- 32. Is It Hard to be Ethical In These Trying Times?
- 33. The ChazinThese Group The Chazin Group Trying Times • Statewide budget shortfalls. • Increased global competition. • The critical importance placed on our quarterly financial performance reporting. • 24x7x365 news reporting cycle. • Social media and the Internet. • No job security. • Tremendous demands made for productivity gains.
- 34. How NOT to Act
- 35. Hall of Shame
- 37. Unethical Behavior Surrounds Us
- 38. The Chazin Unethical Group The Chazin Group Behavior • Extended unpaid internships. • Plagiarism. • Lying on your taxes, resumes. • Falsifying professional credentials. • Construction companies ignoring codes, taking shortcuts. • Mortgage robo-signings.
- 39. The Chazin Unethical Group The Chazin Group Behavior • Producing/marketing dangerous products. • Legalized gambling. • Police misconduct. • Accepting bribes. • Piracy. • Vulture Capitalists. • False/inaccurate job postings.
- 40. The Chazin Unethical Group The Chazin Group Behavior • Division I College athletics. • People trying to “GAME” the system. • The Military covers up soldier burial remains.
- 41. The The Chazin Group The Chazin Group Workplace • Discrimination • Sexism (Glass Ceiling) • Sexual Harassment • Cronyism/Nepotism • Office Politics • Companies Backing Political Parties
- 42. FOR DISCUSSION The Chazin Group The Chazin Group Does The Workplace Breed Unethical Behavior?
- 46. Government The Chazin Group The Chazin Group Guidelines • Sarbanes-Oxley (2002) • Stock Exchange Standards (2003) • McNulty version of Principles of Prosecution (2006) • U.S. Sentencing Commission
- 52. Apply Your Own Standards
- 53. The Chazin your own Apply Group The Chazin Group moral compass • Ask: “If I choose to go through with this decision, would I mind seeing it reported on the news tomorrow?” – If YES: Proceed YES – Still Not Sure: Ask four (4) key questions: • Does my decision match the organization’s vision & mission statements? • Would it be good for customers? • Would it be good for the organization? • Would it be good for me? From Gretchen Morgenson
- 54. Building an Ethical Organization
- 55. The Chazin Group Ethical Building An The Chazin Group Organization • Create a Value Statement: the principles that your Vision & Mission statements are built on. • Develop a Code of Ethics: define the organization’s core values. • Create Ethics policies, include them in employee manual, make each employee sign annually. • Executive Modeling: How your Senior Management team acts, sets the tone.
- 56. “The ethics of the business are whatever the top dog says they are.” Bryce’s Law
- 57. • Building An Ethical Organization The Chazin Group Ethical Building An The Chazin Group Organization • Revisit/rewrite your value statement (credo) every few years. • Training & Communicating. • Systems that embody Ethical Building An organizational values. Organization • Mechanisms to discuss difficult cases. • Audit, enforcement, and discipline. www.scu.edu/ethics/practicing/focusareas/business/organization.html
- 58. • Building An Ethical Organization The Chazin Group Ethical Building An The Chazin Group Organization • Hotlines and help lines. • Governance of ethics and values. • Renewal process. • CREATE ETHICAL SUPPORT SYSTEMS. Building An Ethical Organization
- 59. • Building An Ethical Organization The Chazin Group Ethical Building An The Chazin Group Organization • 3 keys that are mandatory for creating an ethical organization: – Building An Ethical Organization
- 60. The Chazin Group Ethical Elements of The Chazin Group Organizations • Respect • Integrity • Customer-focus • Honor www.entrepreneurship.org/en/resource-center/eight-elements-of-an- ethical-organization.aspx
- 61. The Chazin Group Ethical Elements of The Chazin Group Organizations • Results-oriented • Risk-taking • Passion • Persistence
- 62. The 4 Steps to The Chazin Group Chazin Group Ethical Behavior • Set the bar: promote “POSITIVE DEVIANTS” • Motivate Ethics: get people to achieve Positive Deviant examples. • Sustain Ethics: Ensure the commitment to ethics is sustainable. • Scale Ethics: achieve critical mass by changing what people believe & do. http://ethix.org/2010/07/15/four-steps-to-a-more-ethical-organization
- 64. The Chazin Group Definition A The Chazin Group “…the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions.“ Peter Salovey & John D. Mayer http://psychology.about.com/od/personalitydevelopment/a/emotionalintell.htm
- 65. The Chazin 4 Branches The Chazin Group Group of EI • Perceiving Emotions: The first step in understanding emotions is to accurately perceive them. • Reasoning With Emotions: The next step involves using emotions to promote thinking and cognitive activity. • Understanding Emotions: The emotions that we perceive can carry a wide variety of meanings. • Managing Emotions: The ability to manage emotions effectively is a key part of emotional intelligence.
- 67. E.I. Goes The Chazin Group The Chazin Group Mainstream • Social & Emotional Learning (SEL): Daniel Goleman http://danielgoleman.info/topics/emotional-intelligence
- 69. Corporate social responsibility (also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby businesses monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. http://en.wikipedia.org/wiki/Corporate_social_responsibility
- 70. Resources