1 Chapter 1 Responsible Leadership a Leadership competencies ethical issues in business corporate social responsibility sustainability diversity i Ability or authority to act or decide on one s own without b Responsibility supervision c Responsible leadership i What drives responsible leadership today ii social media distinguishing company profits competition regulation Making business decisions that take into account stakeholders such as workers clients suppliers the environment community and future generations d Exam Question In the list below which is not one of the leadership competencies ethical issues social responsibility responsible leadership sustainability diversity What is the main element driving all of BA 342 responsibility e Smeal Honor Code We aspire to high ethical standards We will hold each other accountable We will not engage in any improper academic or professional actions f Financial Times Responsible Leadership Responsible Leadership Making business decisions that takes into account stakeholders such as workers clients suppliers the environment the community and future generations g Brain Stimulation technology is ahead of ethics h Financial Crisis Fallout Bank of America had largest payout followed by JP Morgan Citibank Wells Fargo Morgan Stanley Goldman Sachs Exam Question Clip Spiderman With great power comes great responsibility i Responsible Business Megatrends global crisis internet transparency institutional power stakeholder wants needs new markets and business case j Smeal Sustainability Strategic Plan be a top ten school in an area of sustainability 2 The World of Ethics a Ethics discipline that deals with moral duty and obligation i Business ethics concerned with morality and fairness b Nexus of Ethics Article Boeing CEO Harry asked to resign after an affair an example of trying to keep personal and private life separate to avoid bad press i Background checks past ethical behavior hypothetical questions credit reports integrity interview personality test c Corporate World i Personal organizational national global ii Ethics Resource Center trends of misconduct are getting a little better for the most part iii Ethics Resource Center Observed misconduct is 41 not specific to just managers in 2013 in slides iv Exam Question 2011 National Business Ethics Survey of Workers perceiving pressure to commit misconduct tested on specific number Should know three numbers that jump out v Types of Misconduct Top 5 Abusive behavior 18 Lying to employees 17 Conflict of Interest 12 Bad Internet Use 12 Discrimination 12 d PG 311 313 e Cultural Relativism adopts norms and standards of a culture f Ethical imperialism take ethics everywhere you go g Moral absolutism ethical view that actions are absolutely right or wrong Stealing example h Hyper norms norms that cross all cultures middle ground i Individual Process 1 Ethical awareness 2 Ethical judgment 3 Ethical behavior j Millennial Ethics i Report just as much as other generations ii More likely to experience retaliation iii Report more to informal sources than formal channels k Video Clip Bounded Ethicality people can be ethical but still do some things unethical because they don t know everything limits to being ethical in order to please company friends etc largely situational l Moral Engagement vs Moral Disengagement i Disengagement when you think ethics don t apply to oneself cheating to get a better grade taking someone s clicker m Exam Question When you consider the question of right and wrong which is true with people in the workplace People largely want to operate ethically 3 Chapter 7 Fundamentals of Business Ethics a Values Framework i Awareness what is the specific issue ii Facts what do don t I know iii Stakeholders anyone with an interest in the situation iv Standards procedures guidelines v Values vi Actions what to do In most cases first step is to report to HR department b Corporate Dilemmas things companies do that create problems for ourselves i Enron criminal enterprise where energy trading company controlled market and dragged money out leadership went to jail after telling employees to buy stock and they lost entire life savings Caused death suicide alcohol drug use depression etc ii Martha Stewart invested in cancer drug but traded the stock the night before bad info was released insider trading and lied to prosecutors iii Exam question In a drug use case what is the most critical action to take first Insure that everyone s safety is assured iv Gallop Survey business executives have 22 high to very high rating low of honesty car sales 9 and congress 8 lowest a somewhat higher rating from average to high still below military professors and above car sales v Marist College Public Opinion on honesty and ethicality the general public has a lesser opinion of business people in ethics than the business people themselves could be due to media s portrayal c Business in Media portrayed poorly i For every one positive thing 17 negative ii 77 of prime time TV plots involving business were negative iii Wall Street 2 Trailer video greed is good Gordon Gecko went to prison for insider trading it s about the game not about doing the right thing iv Office Video let s get ethical dance scene d Ethical Decision Making i Conventional Approach common sense decision behavior practice prevailing norms of acceptability based on how common everyday society views business ethics ii Principals Approach moral guideline focus based on the use of ethics principals or guidelines to justify and direct behavior actions policies and practices iii Ethical Tests Approach applied guideline focus iv Ethics Economics and the Law balancing ethics central variables that must be considered and balanced against each other in order to make wise decisions pg 187 v Descriptive ethics what is occurring in the realm of behavior actions decisions policies and practices of business firms managers or industries Normative what ought to be seeks to uncover develop and justify basic moral principals that are intended to guide behavior actions and decisions vi Case Study Phantom Expenses Ann asked Jane to pad expense account because everyone always does it and she could get her co workers in trouble if she does the right thing and it is unlikely to get caught i Immoral approach that is devoid of ethical principles or precepts and at the same time implies a positive and active opposition to what is ethical only care about own organization gains