MGMT 202 1st Edition Lecture 13 Outline of Last Lecture I. Gilbert Davidson’s Career/BackgroundII. Old Student Union Renovation and ILC HistoryIII. Advice for Current StudentsIV. Ethics and Integrity and Davidson’s Application to His CareerOutline of Current Lecture I. AnnouncementsII. Accountability and Trust in BusinessIII. Cell Tower DilemmaIV. Effects of Trust on ProfitCurrent LectureWhat is accountability in business? Acknowledging and taking responsibility for problems without pointing fingers. Part of gaining/regaining trustNext you have to find solutions. They can be hard to find in ethical dilemmas. Solutions can come from strange, unexpected sources. Be creative. Finally, you have to have the courage and character to follow through with your decision. Cell Tower Dilemma – Hot dog stand owner made a self-change box because he trusted his customers…speed allowed him to sell more hot dogs and make more profitUS/Canada border is easy to get through but US/Mexico border isn’t because there isn’t trust…which raises cost because of all the officials you have to hireSame issue with security at airports…no trust after 9/11, have to hire more workers to check passengers, which makes it much less efficient and more expensiveWhen employers build employee trust and satisfaction they build commitmentInvestors look for good returns and keep an eye out for problems – CEO’s want to build an ethical environment that will attract and retain investors (investor loyalty)Businesses want to satisfy their customers because they will spread the word about your company and either harm or help it. If you’re fair and take care of your customers, they’ll take care of you. Customers consider price and quality. Now, they also look at the company’s impact on the environment and society in general.Companies that do these things make more profit. Oftentimes companies only seek the first 3 things to make more profit, but they’re still doing what’s best for everyone by doing these things. When companies mess up, their profits go down and sometimes they can never recover, and they go under. Example: Sears made incentives for employees to sell things and get bonuses, but then they took advantage of older people and replaced car parts that weren’t in need of replacement. When people found out, it broke trust and they lost profits and never
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