Unit VIII PowerPoint Presentation

DBA 7632, Business Ethics and Corporate Responsibility 1

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

1. Examine dimensions of ethical theory in business administration. 1.1 Analyze ethical issues in an organization. 1.2 Summarize a plan for addressing ethical issues in an organization.

2. Examine ethical issues in international business.

3. Examine ethical issues in marketing.

4. Evaluate ethical issues in finance and accounting.

5. Evaluate ethical issues in the workplace.

6. Summarize issues relating to corporate social responsibility.

Course/Unit Learning Outcomes

Learning Activity

1.1 Unit Lesson Chapter 9, pp. 258–286 Unit VIII PowerPoint Presentation

1.2 Unit Lesson Chapter 9, pp. 258–286 Unit VIII PowerPoint Presentation

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Reading Assignment Chapter 9: Building an Ethical Organization, pp. 258–286

Unit Lesson The past several units of the course brought forth several issues regarding ethics in organizations. We looked at different case studies of actual businesses, and we followed the case study of Rogers Engineering and Manufacturing (REM). As we bring this course to a close, consider that this is not an exhaustive study in ethics or even ethics in organizations, but it is a foundation that we've laid. As you complete your doctoral program, you will look at ethical issues from a very different perspective than you likely have previously. Ethics in organizations is only one aspect of ethics in research. As a DBA student, and then eventually as a doctor of business administration, you are held to a higher ethical standard than those without the degree and credential. Use this course as a launching point for continued study in ethics in all areas of the work that you do. There is significance in the work that we do, whether it is research or practical application as consultants,

UNIT VIII STUDY GUIDE

Ethics in Business Administration

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coaches, or business leaders. Ethics will impact your integrity and your reputation for how you are perceived in business, the community, and society in general. Over the last several units, you looked at what it means to have ethics in business, and you researched the organizational application of ethics. You completed multiple assignments that discussed the use of ethics in different situations, and you identified research articles and studies to support your position. The past seven units have been a lesson in conducting research as well as applying the research. During this time, you have written article critiques, a case study, a literature review, and an annotated bibliography. These are all steps toward the research that is necessary at the dissertation phase. Applying ethics in all that you do as a business administrator, as a doctoral student, and as a scholar-practitioner is essential as it speaks to your reputation and integrity. This unit is a review of ethical decision-making within organizations and within your research. Ethics changes your thinking, and your thinking impacts your actions. Build upon these experiences, and decide what is ethical decision-making personally and professionally. When you conduct research, are you using someone else's information and twisting it to be something that it was not intended to be? Are you taking information that was studied previously and advancing the study to be something more? The same principle applies within organizations. We build upon the ethical fundamentals that are already in place. Know who has come before, understand what they have done, apply the concepts, and improve upon the results. As a researcher, never stop learning in your field. Conduct yourself in an ethical manner as your studies will be published long after you are no longer researching. Gelman (2007) questioned the validity of conclusions made by a researcher in a Tier 1 academic journal. On the surface, the original research appeared credible; however, when the data and associated conclusions were reviewed by a statistician, it became apparent that the conclusions made by the original researcher were not well-founded. The publisher of the academic journal diminished the quality of journal and the researcher; however, the editors demonstrated ethics and credibility. When someone takes your research after it is published and refutes it, it impacts your credibility and questions your ability to do research correctly. Maintain a high ethical standard in the work that you do as an academic or a practitioner. If you are going to build on the shoulders of others, make sure that you give credit where credit is due. Make sure that you are behaving in a manner that helps the organization you represent and the research you are conducting. Add value by taking your time and by doing added reading, study, and research to ensure the highest level of quality in your research. Once the research is published, it is there for all to review. The same can be said of ethics in business. General Motors, back in the early 2000s, made the decision to use a different mechanism in select model vehicle ignition switches (Weyant, n.d.). Concerns were expressed as to the viability and longevity of these switches, but the company chose to go ahead and implement these components into several lines of vehicles over a 10-year period. Not long after these components were installed, inquiries were made concerning the integrity and the quality of the products and whether they met safety standards. General Motors had done a calculated risk assessment to determine what allowable losses were and the cost savings experienced versus potential lives lost because of damaged or potentially unsafe ignition switches (Weyant, n.d.). General Motors, under its previous chief executive, chose to exercise the option of proceeding with the use of subpar components. When the vehicles equipped with these components were in an accident, significant injury or death occurred as a result of failed equipment in many cases. Lawsuits were filed, and the automobile manufacturer went to court. It was revealed through corporate documentation that the company was aware of the potential failure rate of these devices but chose to go ahead and use these products despite the reported results. The company lost the lawsuits and was ordered to settle the claims. Potentially, the company still made more on the deal, even after having to settle the claims and offer a recall to fix the damaged or subpar components. The company behaved in what many would consider an unethical manner. As such, loss of reputation and integrity occurred. General Motors must work to improve their corporate image in other areas. Currently, the company and its competitors are focusing on young drivers and safety features now embedded within vehicles. This is a large step in a different direction from what the company was doing just a few short years ago when using questionable components in the very same type of vehicles. The company has a responsibility to its customers who it took advantage of since the company sacrificed its reputation and integrity to make a few dollars. When the story came out, many of the customers chose to file lawsuits. The company has been

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working to restore its image and integrity for the past several years as a result. Consider how ethics affects your work. Rangan, Chase, and Sohel (2012) address the need for organizations to strategically develop their corporate social responsibility policies. Ethics plays a major role within business organizations. Ethics plays a central role as a researcher to ensure the highest quality standards are met and implemented to advance the field and bring about greater results. Consider how ethics can impact the organization. Consider how ethics affects your life. How does it impact your relationships at work with colleagues, supervisors, and customers? Ethics and a code of conduct are vitally important in allowing employees to bring out their best, not only for themselves but also for the company. We began the course with a general definition of what ethics is, but has that definition changed now that we are at the end of the course? Generally speaking, ethics is doing the right thing, at the right time, for the right purpose, and when no one is looking (Johnson, 2019). Are we acting with integrity? Are we exercising our morals and beliefs? Just because we are being moral by our standards does not mean that we are being ethical by other people's standards. If you work for an organization, it is important to understand what it is that the company considers to be ethical. What is the company’s code of conduct? Can you agree to be what the company stands for? We may hear colleagues critique and criticize the organization we are affiliated with. It is not our job to agree and help slander the organization. It is important that we step up and represent, through our words and through our actions and stand behind that which we believe. There is a time and a place to speak of our ethics and our morals. There is also a time and a place to represent good ethics in all that we do. This course embarked on a thorough investigation of what ethics looks like, but the topic is not exhausted. There are faculty within the university who are studying ethics in different aspects. There are also faculty and staff who are looking at new challenges for advancement of the organization. It is important that individuals of all levels within the organization understand the value that is available through an organization such as Columbia Southern University. Thank you to each of you for what you have brought to this course. Ethics affects you personally and professionally. You will be known by the code of conduct that you keep. The study on ethics in organizations is a small taste of what is necessary as you venture into a new area of life as a DBA. To have this designation is to be above reproach in your research, in your practices, and among those who you interact with daily. The value of ethics, as proven throughout the past several units, exemplifies the need to take individual responsibility and be accountable for actions, words, and processes that affect those who are around us and those who we interact with either directly or indirectly using our products and services. Ethics touches everything.

References Gelman, A. (2007). Letter to the editors regarding some papers of Dr. Satoshi Kanazawa. Journal of

Theoretical Biology, 245, 597–599. Retrieved from http://www.stat.columbia.edu/~gelman/research/published/kanazawa.pdf

Johnson, C. E. (2019). Organizational ethics: A practical approach (4th ed.). Thousand Oaks, CA: Sage. Rangan, K., Chase, L., & Sohel, K. (2012, April 5). Why every company needs a CSR strategy and how to

build it (Working Paper No. 12-088). Retrieved from https://www.hbs.edu/faculty/Publication%20Files/12-088.pdf

Weyant, C. (n.d.). GM ignition switches. Retrieved from https://www.consumersafety.org/products/gm-ignition-

switches/

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Suggested Reading In order to access the following resources, click the links below. The following article distinguishes between diffuse, teleological, and agential collective and the three types of responsibility (causal, moral, and prospective), and the article analyzes the gaps in collective responsibility. Collins, S. (2018). Collective responsibility gaps. Journal of Business Ethics, 1–12. Retrieved from

https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/2034503954?accountid=33337

Businesses are increasingly doing business on a global scale, which increases the diversity of environments and cultures. The following article reviews literature involved in the ethical marketing in global operations. Javalgi, R. G., & La Toya, M. R. (2018). International marketing ethics: A literature review and research

agenda. Journal of Business Ethics, 148(4), 703–720. Retrieved from https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/2018962820?accountid=33337

The following article analyzes consumer perception of ethics from the view of corporate services brands. Markovic, S., Iglesias, O., Jatinder, J. S., & Sierra, V. (2018). How does the perceived ethicality of corporate

services brands influence loyalty and positive word-of-mouth? Analyzing the roles of empathy, affective commitment, and perceived quality. Journal of Business Ethics, 148(4), 721–740. Retrieved from https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/2018962757?accountid=33337