business ethics - workshop slides by chandramowly

HHUUMMAAN N DDIIMMEENNSSIIOONNSSChandramowlyChandramowly

ii VALUESVALUES

++

++

INSPIRING

V+ S+

ROBUSTROBUST

V+ S -


--

SKILLSSKILLS--

HOPELESSHOPELESS

V- S-

DANGEROUS

V - S+

Concept;t: Prof S K Chakraborty

iiCodes of Conduct: 5 Generations

Protect workers, customers, 3rd Gen: (1980s)

Protect company reputation / ensure

fair competition @ home & abroad

(bribes, kickbacks)

12nd Gen: (1970 – mid 1980s)

Commercial Conduct

Protect company & shareholders

from Employees

1st Gen: (post WWWII –1970s)

Conflict of Interest

FocusGeneration


Mendes, E.P. & Clark, J.A. The Five Generations of Corporate Codes of Conduct and their Impact on Corporate

Responsibility. Working Paper of the Human Rights Research and Education Center, University of Ottowa. Sept 18, 1996.

Concern over Investments in nations

whose gov’ts don’t respect human

rights or rule of law (Burma, Nigeria)

5th Gen: (late 1990 –2000’s)

Accountability and Social Justice

Protect environment and respect

communities in which business

activities occur. (Bhopal, Valdez)

4th Gen: (1990’s)

Community/Environment

Protect workers, customers,

suppliers; improve Corp, Reputation,

motivation, customer satisfaction

3 Gen: (1980s)

Employee & 3rd Parties

ii Business Ethics

• Interest in Business Ethics has been increasing since 1960

• Interest has been spurred by headlines of business scandals


business scandals

• A 1982 study reported that of the Fortune 500 companies, 115 companies (23%) had been convicted of at least one major crime or paid penalties for serious misbehavior

• Is the importance of business ethics decliningin business and government practices?

• Greater focus on ethics, morals, and values

iiThe Types

Good SoldiersUnderstand/follow the rules,Have good judgmentExpected to question improper conduct

Loose Cannons


Loose CannonsMay have ethical compasses but Don’t know the rules or standards in business.May be inexperienced, naïve.

GrenadesNeither ignorant nor benign.Don’t care about the rules/ have own agenda.Lack loyalty; actions can ‘blow up’ & damage firm.

ii Integrity


Do what's right, legally and Do what's right, legally and morallymorally

ii Ethical behaviour

Doing what is right when

nobody is looking


nobody is looking

ii What is integrity?

It means …It means …

The thorough integratedness of The thorough integratedness of

Public, Private and Deep Public, Private and Deep

inner life inner life

around a balanced around a balanced


Integrity is simply

Keeping promises and fulfilling expectations. Keeping promises and fulfilling expectations. The value we place on ourselves. The value we place on ourselves. The ability to walk our talk. The ability to walk our talk. About what we will not do About what we will not do About what we will not give up About what we will not give up About what we stand for at all costsAbout what we stand for at all costs

around a balanced around a balanced

set of Principles.set of Principles.

iiIntegrity Comes from

Moral Values

• Loyalty

• Duty

•• RespectRespect


•• RespectRespect

• Selfless Service

•• Honesty, HonorHonesty, Honor

•• IntegrityIntegrity

• Personal Courage

iiEthics are moral principles or rules Ethics are moral principles or rules

of conduct derived from core of conduct derived from core values, that people use to guide values, that people use to guide their behavior.their behavior.

What is Ethics ?


their behavior.their behavior.

ii EthicsEthicsEthicsEthics

• Ethics can’t satisfy everyone, but majority should agree.

•• Balance interests of Balance interests of


ETHICS

ETHICS

•• Balance interests of Balance interests of constituentsconstituents–– businessbusiness

–– personalpersonal

–– no one group benefit while no one group benefit while others sufferothers suffer

•• Issue of trustIssue of trust

In 90% of the

ethical problems

we face, we know

what we should do.

The real question is


The real question is

whether we are willing to

do the right thing when it

is likely to cost more

than we want to pay.

ii Integrity - Two dimensions

Standing up for our most

fundamental

beliefs and commitments,beliefs and commitments,

even in the face of adversity

Personal



Professional

Standing up for the

goals and commitments of our profession,goals and commitments of our profession,


ii Breaches of Integrity andReconciliation

Integrity is a harsh virtue


……..One who violates integrity is

left without the possibility of

reconciliation.

No way to expiate guilt….

iiii

…….Even if we know we can get Even if we know we can get away with doing something wrong,away with doing something wrong,


even if no one ever discovers what even if no one ever discovers what we’re up to, we’re up to,

our vice harms us more than it hurts our vice harms us more than it hurts any of our victimsany of our victims

-- SocratesSocrates

ii What causes unethical behavior?

• Stress

• Confusion


• Pressure to perform at expected levels

• Competition within the industry

• No knowledge

iiTypes of Unethical Behavior

•• Cutting corners on qualityCutting corners on quality

•• Covering up incidentsCovering up incidents

•• Abusing or lying about sick daysAbusing or lying about sick days


•• Abusing or lying about sick daysAbusing or lying about sick days

•• Lying or deceiving customersLying or deceiving customers

•• Putting inappropriate pressure on othersPutting inappropriate pressure on others

•• Taking office supplies from the officeTaking office supplies from the office

•• Taking credit for coTaking credit for co--workers ideas/workworkers ideas/work

•• Charging personal purchases on the Charging personal purchases on the co.co.

•• Taking or Giving bribeTaking or Giving bribe

ii Ethical Weakness

Several high profile ethical weaknesses:Several high profile ethical weaknesses:

•• -- Price fixingPrice fixing

•• -- Restraint of competitionRestraint of competition

•• -- Government corruptionGovernment corruption


•• -- Government corruptionGovernment corruption

•• -- Financial scandalsFinancial scandals

•• -- Product safetyProduct safety

•• -- DiscriminationDiscrimination

•• -- Sexual harassmentSexual harassment

In a 1993 study, 76% responded that the In a 1993 study, 76% responded that the U.S. was in a moral and spiritual declineU.S. was in a moral and spiritual decline

ii ObstaclesObstacles

•• EgoEgo

•• IgnoranceIgnorance


•• TimeTime

ET

HIC

SE

TH

ICS

•• Unreliable informationUnreliable information

ii

•Avoiding conflict of interest

•Proper use of company assets

Integrity standardsaddress many subjects...


•Proper use of company assets

•Accurate recording of documents

•Compliance with laws

•Observance of accounting and control procedures

ii••Employee disrespect harassmentEmployee disrespect harassment

••Non reporting of unsafe practicesNon reporting of unsafe practices

••Abuse of drugs, alcohol or other intoxicantsAbuse of drugs, alcohol or other intoxicants

Prohibit...


••Conflict of interest Conflict of interest --Personal & Financial Vs PraxairPersonal & Financial Vs Praxair

••Acceptance of Gifts, Entertainment and favoursAcceptance of Gifts, Entertainment and favours

••Trading based on “ Inside Information”Trading based on “ Inside Information”

••Misuse of company assetsMisuse of company assets

••Use of unlicensed softwareUse of unlicensed software

ii••Downloading inappropriate materials from InternetDownloading inappropriate materials from Internet

••Using electronic mail for ‘nonUsing electronic mail for ‘non--business’ purposesbusiness’ purposes

••Act leading to leakage of ‘ confidential information’Act leading to leakage of ‘ confidential information’

Prohibit...


••Act leading to leakage of ‘ confidential information’Act leading to leakage of ‘ confidential information’

••Inaccuracy and incompleteness of company documentsInaccuracy and incompleteness of company documents

••Contribution to political partiesContribution to political parties

••Payments to Govt... officialsPayments to Govt... officials

••NonNon--cooperation with Govt.. investigationscooperation with Govt.. investigations

ii "What’s in it for me to be ethical?,"

""Quite a bitQuite a bit----

--A more accurate perception of the A more accurate perception of the


--A more accurate perception of the A more accurate perception of the

world around you, world around you,

--Greater control over your behavior,Greater control over your behavior,

--A stronger personality, and greater A stronger personality, and greater

likelihood of being happy in life." likelihood of being happy in life."

••Individual appreciationIndividual appreciation

ii In simple terms…..

•• Is it Ethical?Is it Ethical?

•• Is it Legal?Is it Legal?


•• Is it OK?Is it OK?

• Is it Right?

ii and…..and…..and…..and…..

Does it hurt anyone?Does it hurt anyone?

Is it fair?Is it fair?


ET

HIC

SE

TH

ICS

Can my conscience live Can my conscience live with this decision?with this decision?

Have I been honest Have I been honest with those affected?with those affected?

ii Double check your decision

Ask yourself the following questions:

•How would I feel if my decision was


•How would I feel if my decision wasprinted in the local newspapers?

•How would I feel if my family found out about my decision?

ii How being ethical benefits Orgnisation

•• Improve organisational valuesImprove organisational values

•• Customers value us moreCustomers value us more

•• Cultivate strong team work and productivityCultivate strong team work and productivity


•• Cultivate strong team work and productivityCultivate strong team work and productivity

•• Support employee growth and meaningSupport employee growth and meaning

•• Ensure policies are legal Ensure policies are legal -- doing right thingsdoing right things

•• Avoid criminal acts “of omission” and lower finesAvoid criminal acts “of omission” and lower fines

•• Promote a strong public imagePromote a strong public image

•• Contributes to enhanced performanceContributes to enhanced performance

Most Problematic


Most Desirable

(Congruent)

Least Desirable

(Congruent)

Problematic (Incongruent)

Problematic (Incongruent)

Management by Values by Prof: S K Chakraborty

iiHistory is full of examples History is full of examples to show that structures, to show that structures,

systems, or for that matter, systems, or for that matter, civilizations, without civilizations, without


civilizations, without civilizations, without ethicoethico--moral content as moral content as

their foundation, are sooner their foundation, are sooner rather than later bound to rather than later bound to

collapse.collapse.

business ethics - workshop slides by chandramowly

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