Discussion post original response required

Post 1

Questions:

1. What does Alexander Wagner mean by the statement, "Fraud has become a feature, not a bug, of the financial services industry"?

 2. According to Mr. Wagner, what really motivates people to be honest in business?

3. As a leader, how can you set the tone for an ethical organizational culture within the organization that you lead?

When Mr. Wagner said, “Fraud has become a feature, not a bug, of the financial services industry,” I believe he means that while there are many organizations that aim to make a profit the honest way, there are some organizations who do not express the whole truth in how they operate their business transactions or are truthful concerning items they sell such as cars as an example (Wagner, 2017).  In other words, in my own interpretation, there are some organizations that will aim to achieve profits no matter the consequences as the consequences associated as not very high, they simply get away with it in general, or people coming forward to whistle blow are not as common as these people are often shunned for doing the right thing in many cases as well.  As an example, a small lie as to how well or not well a product or service is, the lie is a feature as the consumer trusts.  Organizations lie because they know they have the trust of the consumer even if a lot of secrets are now coming to light. 

Wagner suggests that people who have protected values or intrinsic maturation do not see the cost benefit of lying to gain something based on incentives.  These values are defended by a person who would rather gain nothing that to be dishonest in getting something.  Everyone develops morally in different ways and ethics evolve over time in being preconventional, conventional, and postconventional (Saylor, 2014).  The demonstration of the dog was very insightful in which people are challenged with being honest or deceptive, and in being deceptive, the value or whatever it is they will obtain will not be valued the same based on how they came to get it, specifically, in a negative way.  Simply meaning, $100 dollars gained based on a lie is not weighted the same as $100 gained based on the truth (Wagner, 2017). 

As a leader, the tone can be set in leading by example to set the tone in addition to selecting or nurturing the right people which is one of the best ways to ensure an organization’s culture matches your desired outcome as incentives, and how these incentives are approached will vary depending on people’s values and ethical practices.  In other words, and as Wagner suggested, appealing to benefits and costs is one thing while hiring  and ethically preparing people who will uphold the values and practices of the organization is another, especially when it comes to how benefits of incentives are offered which will result in different reactions person to person.  Therefore, either approach can work but in order to maintain ethical stability, how benefits and incentives are managed should be considered and gauged based on the industry as well (Wagner, 2017).

What we find is ethics can be encouraged through nature and/or nurture.  For many people, ethical decisions are complex as people do not always choose to do something because of the same internal or external forces.  In general, some focus on the consequences of making an unethical decision, some focus on what is right versus wrong, some gauge what is expected socially, others focus on laws and authority, and some even consider the opinions and values of others. In any case, as ethics may be complex, this does not remove a proactive need to nurture employees in either selecting those who have the characteristics of being ethical intrinsically, or those who may need additional assistance fostering a realization as to what honest success is and how it can be achieved (Saylor, 2014).

Post 2

1. What does Alexander Wagner mean by the statement,  "Fraud has become a feature, not a bug, of the financial services industry"?

In this statement, he meant that instead of being a rare occurrence in the business environment that comes and goes, it is now a common occurrence. A bug is typically considered an anomaly in the system that shouldn't be there and is oftentimes mentioned as a glitch in electronics. A feature is a typical characteristic of something or something that is considered a prominent part of an item or business. A bug is also something that is more short term and can be fixed, for instance, if a computer has a screen that has flashed on/off since the last update. If this is attributed to the update and fixed in the next update, it would be considered a bug. However, if it was placed in the car during an update and never fixed it would be considered a feature because it is now a known trait of that car. 

2. According to Mr. Wagner, what really motivates people to be honest in business ?

He believes that what motivates people to be honest in business is having protected values. This means they feel so strongly about their values and doing the right thing, that they will forego benefits or financial gain to do the right thing. These people are known to put their own life at risk to help others and do the right thing. He also states that some are motivated by their own self-interest and weigh the cost and benefits of their actions. This is done so they do not damage their reputation or relationships which will end up costing them more in the long run. Lastly, some people will do the right thing just because to them it is clear that there are a right and wrong to every situation.  

3. As a leader, how can you set the tone for an ethical organizational culture within the organization that you lead?

As a leader, there are many ways to set the tone for an ethical organizational culture. It starts with the leader behaving in an ethical manner. This can clearly be seen by the public and employees by how you treat clients, customers, and the environment. For instance, if you realized a product could be a potential danger to the environment but no one else knows this, the company can stop selling the product, explain the issue to the public, fund additional studies, and find an alternative product. While this will cost the company valuable time and money, the employees and the customers will see that the company is behaving ethically. As a leader, you should also hire people that appear to have the same values and competencies that you expect, even if it means not hiring someone who could make you more money.  

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Post 3

1. What does Alexander Wagner mean by the statement, "Fraud has become a feature, not a bug, of the financial services industry"?

Wagner was quoting the president of the American financial institution when he made that statement and its meaning is that fraud has become a staple of the way business is done for at least 1 out of every seven large corporations. The analogy is that of a bug being in your computer can be fixed, fraud is more than just a bug it is more of a feature that stays.

 

2. According to Mr. Wagner, what really motivates people to be honest in business?

What motivates people to be honest in business are a few factors one is incentive another is reputation then another is values. More often than anything what motivates people to be honest is their protected values. Values that are stronger than normal values. So, the thought is to select the right people from the start, people with good strong protected values that align with your company.  

 

3. As a leader, how can you set the tone for an ethical organizational culture within the organization that you lead?

As a leader I would set the tone by standing by my word. Letting my employees see that I mean what I say and I say what I mean. If I show honesty it will be reflected. I would also be sure to have a value statement to accompany my mission and vision statement.