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BOM 120 Ethics and Social Responsibility in Business

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Ethics Standards of moral behaviour, that is, behaviour that is accepted by society as right versus wrong.

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Personal Ethics Personal ethics are what guide us in making the right decisions. It is not asking the question Will I be able to get away with it? Deeper consideration is needed to make the right decision.

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The Five Step Process 1) Recognize an ethical issue: First, does the issue go beyond what the law requires? Is it legal? Can the conflict potentially have impact on individuals? If the answer is yes to these questions, you are likely dealing with an ethical issue.

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Five Step Process 2) Get the facts: What are the important aspects of the situation? Whom does it impact? Are there some people who have a personal stake in how the ethical situation might turn out? Is there a conflict of interest? Getting the facts in a situation allows us to see all sides of it

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Five Step Process Evaluate alternative actions: Consider which option would do the most good and the least harm to the majority of individuals. Ask yourself if you would be okay with having your actions reported on the front page of the newspaper.

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Five Step Process Act on your decision: put your ethical making into action. Make sure your decision is balanced. Consult for advice.

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Five Step Process Reflect on your decision: was it the right thing to do? Do you feel comfortable with the decision? Learn from your mistakes.

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Abraham Lincoln When I do good, I feel good. When I do bad, I feel bad. Thats my religion.

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At the end of the day You have to look at yourself in the mirror. Bertuzzi Video http://www.youtube.com/watch?v=Fz9RE9RGrVY http://www.youtube.com/watch?v=Fz9RE9RGrVY

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Is it Fair? Todd Bertuzzi was suspended from the NHL for 18 months. Steve Moore never played in the NHL again. It is important to remember that in the hockey world, Todd Bertuzzis actions were seen by some as sticking up for a teammate.

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Ethical Dilemmas Activity Remember: It basically boils down to 3 questions. 1) Is it legal? 2) Is it balanced? 3) How will it make me feel about myself?

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Ethics: Part 2 Corporate Ethics DO NOW: Personal Ethics Questionnaire.

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Corporate Ethics Just like individuals, corporations and those who run them must make ethical decisions on a daily basis. Most companies (89%) have a formal code of ethics by which employees must abide.

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Corporate Ethics To be successful: Top management must adopt and unconditionally support an explicit corporate code of conduct. All employees must understand expectations for ethical behaviour. Outside suppliers, subcontractors, distributors and customers must be aware of the corporate code of ethics and the penalty for violation. The code of ethics must be strictly enforced.

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Compliance Based Ethics Codes Emphasize preventing unlawful behaviour by increasing control and by penalizing wrongdoers.

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Integrity Based Ethics Codes Define the organizations guiding values Create an environment that supports ethically sound behaviour. Stress a shared accountability among employees.

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Video http://www.youtube.com/watch?v=AIOov3QVRzQ http://www.youtube.com/watch?v=BGviXZqpQjU

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Conflict of Interest Defined: a conflict of interest is a situation in which a person has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties as, say, a public official, an employee, or a professional. -Ethical behaviour in business means avoiding possible conflicts of interest.

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Are these conflicts of interest? Why or why not? -A male manager dates a female employee who reports to him. -A purchasing agent hires his brother-in-law to provide vending services to the company lunch areas. -An employee starts a company that provides similar services to similar clients as those of her full time employer.

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Continued -An employee who is a member of a company employee selection team fails to disclose that he is related to a job candidate whom the company team is considering for a position. -An employee works part time in the evening for a company that makes a product that competes with the products of his full time employer. -A member of the company board of directors accepts fees and provides advice to a company that is in direct competition with the company on whose board of directors he sits.

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Ethics is More Than Legality It is not uncommon to hear of instances where business people are involved in unethical behaviour. After two years of denying accusations, WestJet Airlines admitted to spying on Air Canada. WestJet was accessing a confidential Air Canada website designated for reservations. As part of the settlement WestJet was required to pay Air Canadas investigation and litigation costs of $5.5 million and make a $10 million donation in the name of both airlines to childrens charities across Canada.

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Activity