Business Ethics - Workshop Slides By Chandramowly

Chandramowly

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VALUES +

ROBUST

INSPIRING V+

V+ S -

S+ +

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SKILLS DANGEROUS

HOPELESS V- S-

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V - S+

Concept;t: Prof S K Chakraborty

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Codes of Conduct:

5 Generations

Generation 1st Gen: (post WWWII –1970s)

Conflict of Interest 12nd Gen: (1970 – mid 1980s)

Commercial Conduct 3rd Gen: (1980s)

Employee & 3rd Parties 4th Gen: (1990’s)

Community/Environment 5th Gen: (late 1990 –2000’s)

Accountability and Social Justice

Focus Protect company & shareholders from Employees Protect company reputation / ensure fair competition @ home & abroad (bribes, kickbacks) Protect workers, customers, suppliers; improve Corp, Reputation, motivation, customer satisfaction Protect environment and respect communities in which business activities occur. (Bhopal, Valdez) Concern over Investments in nations whose gov’ts don’t respect human rights or rule of law (Burma, Nigeria)

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

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

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Business Ethics

• Interest in Business Ethics has been increasing since 1960 • Interest has been spurred by headlines of 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 declining in business and government practices? • Greater focus on ethics, morals, and values Chandramowly

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The Types Good Soldiers Understand/follow the rules, Have good judgment Expected to question improper conduct

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

Grenades Neither ignorant nor benign. Don’t care about the rules/ have own agenda. Lack loyalty; actions can ‘blow up’ & damage firm. Chandramowly

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Integrity

Do what's right, legally and morally

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Ethical behaviour Doing what is right when nobody is looking

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What is integrity? It means … The thorough integratedness of Public, Private and Deep inner life around a balanced set of Principles. Integrity is simply Keeping promises and fulfilling expectations. The value we place on ourselves. The ability to walk our talk. About what we will not do About what we will not give up About what we stand for at all costs

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Integrity Comes from Moral Values

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• Loyalty • Duty • Respect • Selfless Service • Honesty, Honor • Integrity • Personal Courage Chandramowly

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What is Ethics ? Ethics are moral principles or rules of conduct derived from core values, that people use to guide their behavior.

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Ethics

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ETHICS

• Ethics can’t satisfy everyone, but majority should agree. • Balance interests of constituents – business – personal – no one group benefit while others suffer •

Chandramowly

Issue of trust HUMAN DIMENSIONS

In 90% of the ethical problems we face, we know what we should do. 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. Chandramowly

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Integrity - Two dimensions

Personal

Standing up for our most fundamental beliefs and commitments, even in the face of adversity

Standing up for the Professional

goals and commitments of our profession, even in the face of adversity

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Breaches of Integrity and Reconciliation Integrity is a harsh virtue ……..One who violates integrity is left without the possibility of reconciliation. No way to expiate guilt….

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i …….Even if we know we can get

away with doing something wrong, even if no one ever discovers what we’re up to, our vice harms us more than it hurts any of our victims - Socrates

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What causes unethical behavior?

• Stress • Confusion • Pressure to perform at expected levels • Competition within the industry • No knowledge Chandramowly

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Types of Unethical Behavior

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• Cutting corners on quality • Covering up incidents • Abusing or lying about sick days • Lying or deceiving customers • Putting inappropriate pressure on others • Taking office supplies from the office • Taking credit for coco-workers ideas/work • Charging personal purchases on the co. • Taking or Giving bribe Chandramowly

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Ethical Weakness Several high profile ethical weaknesses: • - Price fixing • - Restraint of competition • - Government corruption • - Financial scandals • - Product safety • - Discrimination • - Sexual harassment In a 1993 study, 76% responded that the U.S. was in a moral and spiritual decline

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Obstacles •

Ego •

ETHICS

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Ignorance

Time •

Unreliable information HUMAN DIMENSIONS

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Integrity standards address many subjects...

•Avoiding conflict of interest •Proper use of company assets •Accurate recording of documents •Compliance with laws •Observance of accounting and control procedures

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Prohibit...

•Employee disrespect harassment •Non reporting of unsafe practices •Abuse of drugs, alcohol or other intoxicants •Conflict of interest -Personal & Financial Vs Praxair •Acceptance of Gifts, Entertainment and favours •Trading based on “ Inside Information” •Misuse of company assets •Use of unlicensed software Chandramowly

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Prohibit...

•Downloading inappropriate materials from Internet •Using electronic mail for ‘non‘non-business’ purposes •Act leading to leakage of ‘ confidential information’ •Inaccuracy and incompleteness of company documents •Contribution to political parties •Payments to Govt... officials •NonNon-cooperation with Govt.. investigations Chandramowly

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"What’s in it for me to be ethical?," "Quite a bit-bit--A more accurate perception of the world around you, -Greater control over your behavior, -A stronger personality, and greater likelihood of being happy in life." •Individual appreciation

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In simple terms….. • Is it Ethical? • Is it Legal? • Is it OK? • Is it Right?

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and….. Is it fair? Does it hurt anyone?

ETHICS

Have I been honest with those affected? Can my conscience live with this decision?

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Double check your decision

Ask yourself the following questions: •How would I feel if my decision was printed in the local newspapers? •How would I feel if my family found out about my decision? Chandramowly

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How being ethical benefits Orgnisation

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Improve organisational values Customers value us more Cultivate strong team work and productivity Support employee growth and meaning Ensure policies are legal - doing right things Avoid criminal acts “of omission” and lower fines Promote a strong public image Contributes to enhanced performance

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Most Desirable (Congruent)

Problematic (Incongruent)

Problematic (Incongruent)

Least Desirable (Congruent) Management by Values by Prof: S K Chakraborty

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History is full of examples to show that structures, systems, or for that matter, civilizations, without ethico--moral content as ethico their foundation, are sooner rather than later bound to collapse. HUMAN DIMENSIONS