SLIDE 1 Ethics Awareness

SLIDE 1

Ethics Awareness

Andrew L. Urich, J.D. Associate Professor of Management Eastin Chair for Talent Development

Spears School of Business Oklahoma State University

[email protected] www.andrewurich.com

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Ethics Awareness

• I am NOT here to moralize.

• “Awareness” changes human behavior.

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Wishful Blindness Economic gain vs. desire to see myself as a nice person

• Richie on respect

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Who Am I to Discuss Ethics? • I am a hypocrite. • I play favorites. • I interpret rules to my benefit. • I have been known to ignore rules that get in my way. • I hate to admit I’m wrong even in those rare situations when it

looks like I might be. • I am much more likely to believe things that benefit me. • I like my ideas better just because they’re mine. • When things go wrong, I look for someone to share the

blame.

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Who Am I to Discuss Ethics? • Sometimes I think it’s fun to say “no” just because I have the

power to do so.

• Here is how I make decisions: I decide what I want the answer to be – and then make up the logical reasons to support my decision.

• I tend to judge myself by my intentions rather than my actions.

• I tend to judge others by their actions rather than their

intentions.

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Key Points to Remember • Human nature is not naturally ethical.

• Ethics is gray – not black and white. – (In other words, you can’t just say you’re an ethical person – and that’s all

there is to it)

• It is difficult to be ethical all of the time.

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Ethical Lapses in the News • Enron inflated earnings by $586 million — investors lost $60

billion

• Adelphia founder used corporate assets as collateral for $3.1 billion in personal loans — company bankrupt

• WorldCom overstated profits by $7.1 billion — 17,000 workers laid off

• Barings Bank’s Nick Leeson caused his employer's collapse in 1995 after losing US$1.3 billion in unauthorized derivatives trading.

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The Tyco Party Tyco CEO looted company of $600 million

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Because your reputation is

worth it!

Please remember Enron’s real problem!

Why are we here today?

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Case problem

• The Thrifty V.P.

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Case problem 1

• The Thrifty V.P. –Just following orders –Ethics and young people –Entrapment

» Does everyone have their price?

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Do Ethics Change With the Times?

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Discussion Question • What do you use as an ethical guideline? In

other words, how do you decide what’s ethical?

• Should ethical decisions be based on “gut instinct” or “conscience?”

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Examining Unethical Behavior Overview of Topics

1. It’s easier not to be ethical.

2. Beliefs about the ethics of others

3. Attitudes toward the company

4. Self-delusion (Rationalization)

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It’s Easier Not To Be Ethical

• Easier to do what’s convenient

• Easier to conform to norms

• Easier to do what’s profitable

• Easier to win if you cheat

• It is very difficult to overcome the challenges of human nature

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It’s Easier Not To Be Ethical But It’s Worth the Trouble

• Ethics is the key to leadership and client confidence.

“A lie can travel halfway around the world while the truth is putting on its shoes.”

Mark Twain

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2. Beliefs About the Ethics of Others

• Everyone thinks like me. • People follow the leader.

• Different ethics for different situations?

– Do you use the same standard of ethics in all aspects of your life? For example, is your standard the same with your family, at church, at work, with personal business, etc.?

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3. Attitudes Toward the Company The Need for Ethical Leadership

• Trust and respect • Do managers practice what they preach?

(You are the messenger)

• Employees want to “even things out.”

• Authority is Out—Influence is In

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Trust other people David Halper, British Sociologist

• 34% Americans • 29% British • 31% Mexicans up from 19% in 1983 • 60% Dutch • 68% Scandinavians

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Harris Poll on Trust • 22% trust media • 8% political parties • 27% government • 12% large corporations

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Big Idea

• Do you trust your boss? • Productivity and ethical behavior • Mercer Management Consulting– 60% of US workers

do not trust their manager to communicate honestly

• Management impacts trust

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Case Problem

• The VW Bug

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Showing Respect & Building Trust

• Winston Churchill’s thoughts on the subject

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Showing Respect

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Showing Respect

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4. Self-delusion Why is it So Hard to Face Reality?

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Case Problem

• The Big Game

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Guideline for Ethical Decision Making

1. Is there an applicable law or organizational policy?

2. Should I ask about this before acting?

3. Have I taken time to think carefully before acting?

4. Would I disclose my decision to my supervisor, CEO, mother, etc.? (What if everyone found out?)

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Guideline for Ethical Decision Making

5. Am I avoiding the appearance of impropriety?

6. Am I defining the problem correctly?

7. Am I rationalizing?

8. Finally, when in doubt, do I know who to contact?

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The Secret to Happiness

Self-delusion Hypocrisy

Ignorance

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The Secret to Happiness

Ignorance is Bliss “People who do things badly are

supremely confident in their abilities — more confident, in

fact, than people who do things well. Not only do they reach

erroneous conclusions and make unfortunate choices, but their

incompetence robs them of the ability to realize it.”

Dunning, David Journal of Personality and Social Psychology December 1999.

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The Secret to Happiness

Why?

Researchers believe that the same skills required for competency are the

same to recognize incompetence.

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Thank You!

Facebook.com/ProfessorUrich

[email protected]

www.andrewurich.com

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References • Ailes, Roger. You Are the Message. New York. Doubleday, 1988. • Bazerman, Max H. Smart Money Decisions, Wiley & Sons, 1999. • Blanchard, Kenneth, et.al. The Power of Ethical Management. William Morrow and

Company, Inc., 1988. • Buckingham, Marcus, et.al. First, Break All The Rules. New York: Simon & Schuster, 1999. • Cialdini, Robert B. Influence: The Psychology of Persuasion. Harper Collins, 2007. • Cohen, Randy. The Good, The Bad, & The Difference. Broadway Books, 2002. • Covey, Stephen R. The 7 Habits of Highly Effective People. New York: Simon & Schuster,

1989. • Covey, Stephen C.R. The Speed of Trust, New York: Simon & Schuster, 2006. • Fisher, Roger and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981. • Koch, Charles G., The Science of Success, Wiley & Sons, 2007. • Lakoff, George. Moral Politics: How Liberals and Conservatives Think. The University of

Chicago Press, 2002. • Lattal, Alice Darnell, et. al. Ethics at Work. Performance Management Publications, 2005. • Lewicki, Roy J., et. al. Negotiation. 2nd Edition., Irwin, 1994. • Lewicki, Roy J., et. al. Essential of Negotiation, 4th Ed. McGraw Hill, 2007. • Maxwell, John C. There’s No Such Thing as “Business” Ethics. Warner Business Books,

2003. • Nelsen, Jane, et. al. Positive Discipline, Three Rivers Press, 1998. • Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.