Ethics and Me

BSNS 5600

Ethics DefinedThe explicit, philosophical reflection on moral beliefs and practices.

The difference between ethics and morality is similar to the difference between musicology and music.

Ethics is a conscious stepping back and reflecting on morality, just as musicology is a conscious reflection on music.

Lawrence M Hinman

Sources of Ethical Thinking

Culture

Religious teaching

Laws and customs

Values inherited from parents

Learning – formal and informal

Personal experiences – perceptions

Principles of Ethical Decision Making

• Role Morality– Relativism– Idealism

• Machiavellianism• Conventional Morality

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Deontology

The ethical philosophy based on duty (from the Greek deon - duty). Subscribers include:

Christians, especially traditionalists, fundamentalists

Kantian philosophers (Categorical Imperative)

Muslims

Buddhists

Fosters absolute and idealist approaches to ethics

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Teleology

The ethical philosophy based on the examination

of the consequences of the action. Its best

known branch is Utilitarianism, which was

popularised by John Stuart Mill.

Teleological thinking promotes relativism - the

examination of the action within a context, or in

terms of the value(s) of the consequences and

their effects.

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Business and Ethics

“The practice of good business ethics amounts to no more than enlightened self interest”

Mr. Pocock, CEO of Shell Oil, 1960’s

Ultimately, our actions as business people will be evaluated against the values of the societies in which we operate - their continued tolerance of us depends on their perception of our worthiness.

© Unitec New Zealand8

Managers and Ethics

Managers can have a strong influence on the ethical climate of their team.

• Selection of People

• Training, particularly Ethics Training

• Enforcement of a Code of Ethics

• Personal example and commitment

© Unitec New Zealand9

Personal Moral Philosophy

The personal mix within the sales manager of :

Deontology

Teleology

Ethical skepticism

© Unitec New Zealand10

Relativism v Idealism

Relativism is the extent to which an individual rejects the existence of universal moral laws. Utilitarianism is a form of relativism, in that it takes each case on its merits.

Idealism measures the extent to which an individual is concerned for the welfare of others and lends itself towards Kantian thinking, in that it implies universal obligations.

© Unitec New Zealand11

Forsyth’s Taxonomy

Situationists

Rejects moral codes

Personal analysis of actions in each situation

Relativistic

Idealistic skeptic

Absolutists

Accepts moral codes

Ethical decisions must not harm others

Deontologist

SubjectivistsRejects moral codes

Personal values determine judgements, not universal codes

Ethical egoist

Exceptionists

Accepts moral codes, but open to exceptions

Optimal outcomes not possible for all

Teleoligist utilitarian

High Relativism Low Relativism

High Idealism

Low Idealism

Examples of Pressures Facing Managers

Incentives to provide favorable earnings reports

High rewards for short –term profits at expense of long-term growth

Pressure to achieve results

Greed

Reputation

Fear

Other?

Recognize the Dilemma

Get the Facts

List the Options

Make Your Decision

Ethical Checklist

Common Ethics Issues

• Hiring and Firing• Bullying• Using Company Accounts• Expense Accounts• Gifts for Buyers• Bribes• Entertainment• Sexual Harassment

Is it a Gift or a Bribe?

* Have you or your colleagues ever offered potential clients personal gifts valued at more than $100 in exchange for their business?

88.60%

11.40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

YesNo

Is it a Gift or a Bribe?

In your opinion, would a personal gift valued at $100 - $500 given to a potential client by a salesperson constitutes a bribe?

94.00%

6.00%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Questionable/ BribeAcceptable

Whistleblowing

• A last resort action• Rarely rewarded• Set-up systems for reporting ethics problems

Government Self-regulation

• Too much regulation and red tape slows business and raises costs

Building an ethics program

• Code of ethics– Written– Top management participation

• Ethics Training– Regular discussions– Examination of Cases

Table 10-1 Eight Ways to Keep Your Staff Honest

1. Get support from top management showing that they expect you to follow the spirit and letter of the law.

2. Develop and distribute an ethics policy.

3. Establish the proper moral climate. If the bosses follow the rules, then the troops are apt to do likewise.

4. Assign realistic goals. People who try to meet an unfair quota are more likely to rationalise their way to a dishonest behaviour.

5. Set up controls when needed. Watch people who live above their income.

6. Suggest that people call for help when they face unethical demands.

7. Get together with your competition if payoffs are an industry problem.

8. Blow the whistle if necessary.

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Perceptions of Managers

• Higher levels of Relativism

• Lower levels of Idealism

• Become more idealistic with age

• Women are more idealistic than men

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The Study

Tested six hypotheses by survey of members of the AMA who belonged to the Sales Management Special Interest Group

Sales managers are non-idealistic and relativist

Older sales managers will be more idealistic, less relativist

Women sales managers will be more idealistic than menMore educated sales managers will be more relativistic

Absolutist managers will be more harsh in their ethical judgementsAbsolutist managers will be less likely to engage in unethical practices

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Findings

Sales managers did not differ significantly in their ethical stance to other marketing managers

Establishing an ethical culture, ethics training and codes of ethics should improve ethical behaviour in salesOlder sales managers are less relativistic, younger managers need to be encouraged to be so

Women are more idealistic than men

Idealism seems a more reliable predictor of behaviour than relativism

People make judgements and form attitudes first, then form behavioural intentions based on them.

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Discussion Points

Are ethics important to business people?

What stance should they adopt?

What actions might they take to ensure compliance with community values?

Who comes first, the Shareholder. Other Stakeholders or the Customer?

Why?