need help
hoalicot
ch04.pptx
COMMON ETHICAL PROBLEMS OF INDIVIDUALS
BA 354
COLLEGE OF BUSINESS
1
ASSUMPTIONS OF THE “GIVING VOICE TO VALUES” APPROACH:
Ethical dilemmas at work are common, not rare.
You have values that you want to live up to.
There are many ways that you can voice your values.
Practicing ahead of time will help you to be more effective.
2
THE POWER OF FAIRNESS
The example of grades
Equity
Reciprocity
Impartiality
3
Discrimination
Unequal treatment based on one’s race, gender, ethnicity, national origin, religion, age, disability, etc.
Standard for hiring, promotions, etc., should be the ability to do a job
+
4
Have you ever experienced discrimination?
What could you have done about it?
Why is discrimination an ethical issue?
DISCRIMINATION
5
CONFLICTS OF INTEREST
Objectivity is compromised by possibility of financial or other gains.
Gifts or bribes
Access to resources such as privileged information
Relationships or Influence
6
CONFLICTS OF INTEREST
7
Conflict of Interest
Your daughter is applying to a prestigious university. Since admission to the school is difficult, your daughter has planned the process carefully. She has consistently achieved high marks, taken preparatory courses for entrance exams, and has participated in various extracurricular activities. When you tell one of your best customers about her activities, he offers to write her a letter of recommendation. He's an alumnus of the school and is one of its most active fund raisers. Although he's a customer, you also regularly play golf together and your families have socialized together on occasion.
8
CUSTOMER CONFIDENCE
Includes such issues as
Confidentiality
Product safety
Truth in advertising
Fiduciary responsibilities
9
Confidentiality
You work for a consulting company in Atlanta. Your team has recently completed an analysis of Big Co. including sales projections for the next five years. You're working late one night when you receive a call from an executive vice president at Big Co. in Los Angeles, who asks you to immediately fax her a summary of your team's report. When you locate the report, you discover that your team leader has stamped "For internal use only" on the report cover. Your team leader is on a hiking vacation and you know it would be impossible to locate him. Big Co. has a long-standing relationship with your company and has paid substantial fees for your company's services.
10
Product Safety
You’re the head of marketing for a small pharmaceutical company that has just discovered a very promising drug for the treatment of Alzheimer’s disease. You have spent months designing a marketing campaign which contains printed materials and medication sample kits for distribution to almost every family physician and gerontologist in the country. As the materials are being loaded into cartons for delivery to your company’s representatives, your assistant tells you that she has noticed a typographical error in the literature that could mislead physicians and their patients. In the section that discusses side effects, diarrhea and gastrointestinal problems are listed as having a probability of 2 percent. It should have read 20 percent. This error appears on virtually every piece of the literature and kits, and ads containing the mistake are already on press in several consumer magazines.
11
Fiduciary responsibility
Imagine that your financial firm is offering a new issue--a corporate bond with an expected yield of 4–4.5%. In the past, offerings like this one have generally been good investments for clients, and you have sold the issue to dozens of large and small clients. You're leaving on a two-week vacation and only have a few hours left in the office, when your firm announces that the yield for the bond has been reduced; the high end will now be no more than 4%. The last day of the issue will be next week, while you're away on vacation. What should you do?
12
Fiduciary responsibility
For 12 years, you’ve been the financial advisor for an elderly man in his late 70s who is an active investor of his own portfolio and for a trust which will benefit his two children. In the last few months, you’ve noticed a subtle, yet marked change in his behavior. He has become increasingly forgetful, has become uncharacteristically argumentative, and seems to have difficulty understanding some very basic aspects of his transactions. He has asked you to invest a sizable portion of his portfolio and the trust in what you consider to be a very risky bond offering. You are frank about your misgivings. He blasts you and says that if you don’t buy the bonds, he’ll take his business elsewhere.
13
COMPENSATION ISSUES
Fair wages for honest work
Pay equity (by gender, race, etc.)
“The Dash wonders whether voluntarily surrendering that kind of money is the second costly knee-jerk decision of Andersen’s career. The first was leaving Wisconsin…”
https://sports.yahoo.com/gary-andersens-abrupt-bizarre-break-oregon-state-isnt-first-head-scratcher-career-215015127.html
“Complicating matters is another clause in Pitino's contract that could mean the school is still on the hook to pay the coach the $44 million still left on the deal.”
http://www.businessinsider.com/rick-pitino-contract-louisville-44-million-2017-10
14
USE OF CORPORATE RESOURCES
Includes such issues as
Corporate reputation
Financial resources
Providing honest information
15
BLOWING THE WHISTLE AT WORK
Things to consider:
Should be viewed as a last resort
Be willing to pay a price for it
Make sure your intentions are good
Think about timing
16
Blowing the whistle
A long-time customer approaches you for financing for a new business venture. The customer offers as collateral a piece of property it has purchased in a rural location for the purpose of building a housing development. You send an appraiser to the property and he accidentally discovers that this property holds toxic waste. You’re sure this customer is unaware of the waste; in fact, the waste is migrating and in a few years will invade the water table under a nearby farmer’s fields. You explain the situation to your manager, who naturally instructs you to refuse to accept the property as collateral, but he also forbids you to mention the toxic waste to the customer. “Let them find out about it themselves,” he says. Do you alert the customer to the toxic waste? Do you alert government regulators?
17
How to Blow the Whistle
Approach your immediate manager first
Discuss the issue with your family
Take it to the next level
Contact your company’s ethics officer
Consider going outside of your chain of command
Go outside of the company
Leave the company
18
Part 3 of your Personal Ethical Action Plan
19
Describe your personal professional purpose.
Answer each of the Questions of Personal Purpose from the “Key Self-Assessment Questions” in the Giving Voice to Values book pg. 116. in your appendix for your reference.
Once you have considered each of these questions, craft a brief but clear statement of professional purpose.
Then, describe this purpose in greater detail by including your responses to each of the personal purpose questions. Do not include the questions in Q&A format, but utilize paragraphs to answer them in a way that integrates well with the rest of the paper.
20
What are your personal goals? Your professional goals? What is your personal purpose for your business career? What impact do you want to have through your work? On whom? How do you define your impact as an auditor, investor, manager, product developer, marketer, senior executive and so on? Whom do you want to know you benefited, and in what ways? What do you hope to accomplish? What will make your professional life worthwhile? How do you want to feel about yourself and your work, both while you are doing it and in the end?
Questions of Personal Purpose
21
“JUST THIS ONCE…”
Don’t fall for “just this once” logic. It never stops at once.
Life is often an unending stream of extenuating circumstances.
“It’s easier to hold to your principles 100% of the time than to hold to them 98% of the time.”
-Clayton Christensen, Harvard Business School
22
