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Professional Development Seminar
Law and Ethics
Business Ethics
Balance Scorecard Concept
Corporate Social Responsibility
Ethical Business Conduct
Understanding that managerial actions have ethical implications
Managers must have ethical awareness, recognizing organizational values
Recognize and resolve ethical dilemmas
Business Ethics
Managers must understand difference between legal and ethical issues
Managers must make decisions that are both ethical and legal
Increasing awareness and concern about ethical business decisions in society
Principles governing ethical Issues
Business decision have underlying ethical issues
Product making and pricing and promotion decisions (Pharma Bro, Volkswagen, Bodega)
What is Legal is not necessarily Ethical
For example Pricing of products
Ethical behavior is more proactive and law is more reactive
The need to take responsibility for managerial actions.
Principles governing ethical Issues
3. What is the appropriate Ethical Standard
The Professional Ethic
The Golden Rule
Utilitarian Principle (greatest good)
Kant’s imperative (universal rule)
“60 minutes/Mother” test
4. Ethical Awareness increases Ethical sensitivity
Is the statement above defensible?
Principles governing ethical Issues
5. Multiplicity of Ethical standards create problem in a diverse society
6. Individuals are ultimately responsible for ethical decisions made. (stopping an assembly line because of suspected foreign substance)
7. Consensus on ethical decision become more difficult as you consider specific situations or moving from abstract to specific cases
Principles governing ethical Issues
8. Leaders set the moral tone of the organization. As the leader goes ethically so will the organization ( Enron, WorldCom)
9.Pressure of Ethical conflicts are felt more at the lower levels of the organization
10. Individuals tend to consider themselves more ethical than their colleagues.
Principles governing ethical Issues
11. Effective codes of ethics should be clear and meaningful with explicit sanctions for any violations.
12. Very strong protection for whistle blowers
13. Top level management support and appointment of an ombudsman
What to Do?
Ethics matter, and beyond legality.
Organizations have moral responsibility for ethical behavior
Management can set ethical standards.
Effective ethical standards with teeth will be followed by employees
Ethical awareness and ethical sensitivity are related.
Part of the performance metrics—Balance Scorecard.