ethical enlightenment as a foundation for business health
DESCRIPTION
Ethical Enlightenment as a Foundation for Business Health. Sponsored by ASBA, IKEA, and Empowerment Unlimited Coaching, LLC. Agenda. Overview of today’s ethical environment Live simulation of e-Factor! TM Ethical impacts debrief Action plan and evaluation. Ethics - Definition. - PowerPoint PPT PresentationTRANSCRIPT
Ethical Enlightenmentas a Foundation for
Business Health
Sponsored by
ASBA, IKEA, and
Empowerment Unlimited Coaching, LLC
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Agenda
1. Overview of today’s ethical environment2. Live simulation of e-Factor!TM
3. Ethical impacts debrief
4. Action plan and evaluation
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Ethics - Definition
Ethics: “Character or custom” “The code of moral principles
and values that governs the behaviors of a person or group with respect to what is right or wrong.”
- Ferrell and Fraedrich, 1997
Main Entry:eth·ic
Pronunciation:\e-thik\
Function:noun
Etymology:Middle English ethik, from Middle French ethique, from Latin ethice, from Greek ēthikē, from ēthikos
Date:14th century
1 plural but sing or plural in constr : the discipline dealing with what is good and bad and with moral duty and obligation 2 a: a set of moral principles : a theory or system of moral values <the present-day materialistic ethic> <an old-fashioned work ethic> —often used in plural but singular or plural in construction <an elaborate ethics><Christian ethics> b plural but sing or plural in constr : the principles of conduct governing an individual or a group <professional ethics> c: a guiding philosophy d: a consciousness of moral importance <forge a conservation ethic> 3 plural : a set of moral issues or aspects (as rightness) <debated the ethics of human cloning>
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Corporate Social Responsibility
Multi-faceted Examples of success and failure
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Thinking Man…Contingencies Vision Operations
Strategy Profit/ROI Leadership
Employee Factors Teamwork Customers
Innovation Product/Service
Unintended Consequences
Workforce Challenges
Effective Decisions
Communication Economy Sustainability
Future Trends Competition Political Impacts
Generational Viewpoints
Contingencies Vision Operations
Strategy Profit/ROI Leadership
Employee Factors Teamwork Customers
Innovation Product/Service
Unintended Consequences
Workforce Challenges
Effective Decisions
Communication Economy Sustainability
Future Trends Competition Political Impacts
Generational Viewpoints 6
But Where’s the Ethics?
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Does It Really Matter?
“80% of people say they decide to buy a firm’s goods or services partly on their perception of its ethics.”
- 2003 Survey, Wirthlin Worldwide
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Another View…
“It takes years to build a good business reputation, but one false move can destroy it overnight.”
- Edson W. Spenserformer Chairman, Honeywell
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“Despite new regulation and significant resources dedicated to decreasing misconduct and increasing report of misconduct, the ethics risk landscape in business is as treacherous as it was before implementation of the Sarbanes-Oxley Act of 2002.”
- Ethics Resource Center’s 2007 National Business Ethics Survey(www.ethics.org)
The Ethical Landscape
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The Bad News
“Ethical misconduct in general is very high and back at pre-Enron levels – during the past year, more than half of the employees saw ethical misconduct of some kind.”
“Many employees do not report what they observe – they are fearful about retaliation and skeptical that their reporting will make a difference. In fact, one in eight employees experiences some form of retaliation for reporting misconduct.”
“The number of companies that are successful in incorporating a strong enterprise-wide ethical culture into their business has declined since 2005. Only nine percent of companies have strong ethical cultures.”
- Ethics Resource Center’s 2007 National Business Ethics Survey
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Ethics Risk IndexSM
- Ethics Resource Center’s 2007 National Business Ethics Survey
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Current Ethics Deliveries
Live training seminars On-line training with test Code of conduct/stated values Speeches by attorneys, ethicists
and felons Just in time (call the attorney)…
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Role Models
“ ________, I taught you better than that! So now, _____________…”
What did Mom know?
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Behavior Culture
Expectations/parameters/consequences Learn by experiences and mistakes High engagement in the process Encouragement, pride, rewards, and
leading by example Character, reputation, integrity
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The News
“The number of formal ethics and compliance programs is on the rise. Furthermore, in companies with well-implemented programs, there is increased reporting, reducing ethics risk.”
“The 2007 NBES has been able to show definitively that companies that move beyond a singular commitment to complying with laws and regulations and adopt an enterprise-wide ethical culture dramatically reduce misconduct.”
“The 2007 NBES has identified the characteristics that comprise an effective ethical culture, providing a blueprint for individuals within companies responsible for corporate governance and compliance.”
- Ethics Resource Center’s 2007 National Business Ethics Survey
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Strong Enterprise-Wide Culture
“Ethical leadership: tone at the top and belief that leaders can be trusted to do the right thing.”
“Supervisor reinforcement: individuals directly above the employee in the company hierarchy set a good example and encourage ethical behavior.”
“Peer commitment to ethics: ethical actions of peers support employees who ‘do the right thing’.”
“Embedded ethical values: values promoted through informal communications channels are complementary and consistent with a company’s official values.”
- Ethics Resource Center’s 2007 National Business Ethics Survey
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If You Think It Can’t Happen Here…
Real-Life Story of Marcy Maslov, creator of e-Factor!TM
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Are YOUYOU ready to “engage” in a tool that’s foundational to ethical culture and behavior?
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e-Factor!TM Game Play
Simulate creation and launch of new product
Your team is in charge and has authorization to make all decisions for this new product
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e-Factor!TM Game Play
Company Target Current Result
Units Sold 200,000
Unit Price $100
Revenue $ 20.0 MM
Unit Cost $ 55
COGS $ 11.0 MM
Profit Margin $ 9.0 MM
Operating Exp $ 0.5 MM
Net Income $ 8.5 MM
Metrics for the project
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e-Factor!TM Game Play
How to win the game Explanation of PEPs Choose your team token Icons on the board and Milestones
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e-Factor!TM Game Play
Character cards
2-Minute Drill: How would your character guide the team?
Roll die to select starting player
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e-Factor!TM Debrief
List key learnings you experienced
Share two (2) key learnings with your teammates
Team chooses top two (2) learnings to share with everyone
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e-Factor!TM Debrief
Respectful – Enlightened – Sad – Angry – Surprised – Brave
Give one or two-word descriptions
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e-Factor!TM Debrief
- 5 Minute Discussion -
How would an experience
like this simulation
be useful to an organization?
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Summary
Journey from discussion of ethics in general to a live simulation to a sharing of potential outcomes
Experiential learning accelerated your understanding of this complex topic
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Ethics Action Plan
Take a moment to answer these questions:
1. What is one action regarding ethical enlightenment that you could implement in your organization today?
2. What type of ethical culture do you choose for your organization?
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for your participationand interest
Ethical Enlightenmentas a Foundation for
Business Health
Sponsored by
ASBA, IKEA, and
Empowerment Unlimited Coaching, LLC