Ethical Decision Making
Ethical Decisions
Ethical Decisions

• Protect the company’s reputation
Ethical Decisions

• Protect the company’s reputation
• Build customer confidence and trust
Ethical Decisions

• Protect the company’s reputation
• Build customer confidence and trust
• Grow and retain customers
Ethical Decisions

•   Protect the company’s reputation
•   Build customer confidence and trust
•   Grow and retain customers
•   Attract and retain top talent
Ethical Decisions


Most unethical business practices are
made by basically honest people who
face great pressures to perform.
Challenges to Ethical Behavior

• External Pressures
• Self-Imposed Pressures
• Ignorance
External Pressures


Pressure that often comes from
management or demanding customers.
External Pressures


Examples:
• “Results are all that matter.”
• “No one really cares how you get it
   done; just get it done.”
• “Be a team player.”
External Pressures


It’s your duty to help unreasonable
customers understand what can and
can’t be done.
External Pressures


Help set customer expectations at
realistic levels.
External Pressures


Some promises initially reduce
conflict, but they eventually lead to
less customer satisfaction and trust.
Self-Imposed Pressures


Pressure on people to do more with
less and adjust quickly to change.
Self-Imposed Pressures


Cause people to cut corners and
engage in selfish behavior.
Self-Imposed Pressures


People tell managers what they want
to hear, instead of the truth.
Self-Imposed Pressures


Winning at any cost can cause damage
to you and your company’s reputation.
Ignorance


Ignorance of law is not an acceptable
excuse in a court of law.
Ignorance


Ignorance of company’s business
conduct is not an acceptable excuse for
unethical business practices.
Ignorance


It’s your responsibility to know and to
follow your company’s business
conduct, practices and applicable
federal laws.
Ignorance


As a manager, it’s your responsibility to
demonstrate proper conduct that fosters
the same behavior from employees.
Ethical Decisions


Be prepared to deal with external
pressures, self-imposed pressures and
ignorance on a day-to-day basis.
Ethical Decision Model
Ethical Decision Model

• Is it legal?
Ethical Decision Model

• Is it legal?
• Does your decision follow
  company policies?
Ethical Decision Model

• Is it legal?
• Does your decision follow
  company policies?
• Does your decision follow company
 management practices?
Ethical Decision Model

• Does your decision violate any
  ethical values?
Ethical Decision Model

• Does your decision violate any
  ethical values?
• Does your decision violate
  your personal values?
Is It Legal?
Is It Legal?

• Determine the relevant law
Is It Legal?

• Determine the relevant law
• Reveal the court interpretation of it
Is It Legal?

• Determine the relevant law
• Reveal the court interpretation of it
• Determine how the law deals with it
Is It Legal?

•   Determine the relevant law
•   Reveal the court interpretation of it
•   Determine how the law deals with it
•   Determine the chances of going
    to court
Is It Legal?


U.S. laws have been passed to ensure:
• Uninhibited competition
• A free marketplace
• Protection of workers
• Consumers’ rights
Is It Legal?


Specific laws deal with:
• Foreign corrupt practices of
  U.S. multinationals
Is It Legal?


Specific laws deal with:
• Foreign corrupt practices of
  U.S. multinationals
• Contract dealings with the
  U.S. government
Is It Legal?


Specific laws deal with:
• U.S. antitrust and unfair competitive
  practices laws
Is It Legal?


Specific laws deal with:
• U.S. antitrust and unfair competitive
  practices laws
• Local government laws
  and regulations
Is It Legal?


It’s your responsibility to know laws
and regulations that relate to your
company and job.
Guidelines


#1 - Obey the law.
Guidelines


#2 - If you’re not sure it’s legal, don’t
     do it!
Guidelines


#3 - When in doubt, seek advice from
     your legal department.
Company Policy
Company Policy


Your decisions must comply with your
company’s code of ethical conduct.
Company Policy

• What is the published policy?
Company Policy

• What is the published policy?
• What is the intent of this policy?
Company Policy

• What is the published policy?
• What is the intent of this policy?
• Is the alternative in conflict with
 these policies?
Company Policy


Companies have polices to ensure
employees know what treatment to
expect and what the company expects
from them.
Company Policy


You need to be familiar with your
company’s code of ethical conduct.
Management Practices
Management Practices

• How have issues been handled in
  the past?
Management Practices

• How have issues been handled in
  the past?
• What actions took place?
Management Practices

• How have issues been handled in
  the past?
• What actions took place?
• How would you feel describing this
  action to your peers or boss?
Management Practices

• Is the decision in accord with the
 company’s strategic principles?
Management Practices

• Is the decision in accord with the
 company’s strategic principles?
• Would you have to falsify or omit the
  action on any internal reports?
Management Practices

• Is the decision in accord with the
 company’s strategic principles?
• Would you have to falsify or omit the
  action on any internal reports?
• How would you feel if it would be
  published in the company newspaper?
Management Practices


Management practices characterize a
company’s style and culture.
Management Practices


Company policies can’t spell out the
appropriate response for every situation.
Management Practices


Unethical acts usually can’t stand the
test of disclosure or possible scrutiny.
Ethical Values
Ethical Values

• Who benefits and who is harmed?
Ethical Values

• Who benefits and who is harmed?
• How are the benefits and negative
 burdens distributed?
Ethical Values

• Who benefits and who is harmed?
• How are the benefits and negative
 burdens distributed?
• Are anyone’s rights negatively affected?
Ethical Values

• Does this alternative coerce,
  deceive or exploit people to advance
  your interests?
Ethical Values

• Does this alternative coerce,
  deceive or exploit people to advance
  your interests?
• How would this be described in
  the media?
Ethical Values

• Does this alternative coerce,
  deceive or exploit people to advance
  your interests?
• How would this be described in
  the media?
• Does it help or hinder the corporate
  image or goodwill?
Stakeholders

•   Employees
•   Stockholders
•   Customers
•   Vendors
•   General Public
Ethical Values


Consider the consequences of
your decisions.
Ethical Values


Would you find your action
acceptable if it were done to you,
rather than by you?
Personal Values
Personal Values

• Does this decision conflict with what
 you think is right and wrong?
Personal Values

• Does this decision conflict with what
 you think is right and wrong?
• Are you betraying the interests of
 those you’re paid to represent?
Personal Values

• Does this decision conflict with what
 you think is right and wrong?
• Are you betraying the interests of
 those you’re paid to represent?
• Would you feel comfortable telling
 your family this?
Personal Values


Look at the value system you have
constructed for yourself as a guide for
your decisions.
Personal Values


Ethics is about personal choice.
Personal Values

• How you choose to deal with others
Personal Values

• How you choose to deal with others
• How you choose to be regarded
Personal Values

• How you choose to deal with others
• How you choose to be regarded
• How you choose to live your life
Personal Values

•   How you choose to deal with others
•   How you choose to be regarded
•   How you choose to live your life
•   Who you choose to be
Ethical Decision Making

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