ETHICS IN A REAL WORLDMORE THAN JUST RIGHT AND WRONG

TOM DARLING

DIVISION MANAGER OF PUBLIC SERVICE UNIVERSITY

THE CITY OF ALBUQUERQUE

TOM DARLING – MAED

WHAT ARE ETHICS?

The word ethics comes from the Greek word ethos, which means a notion of character permeated with values that determine the identity and good or bad of an individual or group.

Ethics is not so much a matter of right or wrong as it is a process by which an organization or individual evaluates their decisions.

WHAT ARE ETHICS?Comprises principles, values, and standards that guide behavior in the world of business

Principles: Specific boundaries for behavior that are universal and absolute

-Freedom of speech, civil liberties

Values: Used to develop socially enforced norms-Integrity, accountability, trust

WHAT WOULD YOU DO?How many of you have ever found money?

Pretend you found a bag of money on the roadside?

What would you do with it?

Why?

A CRISIS IN BUSINESS ETHICS

Consumer trust of businesses is declining…No sector is exempt from ethical misconductStakeholders determine what is ethical/unethical

InvestorsEmployeesCustomersInterest groupsLegal systemCommunity

America’s Trust in Business

Misconduct By Industry

FACTORS THAT INFLUENCE ETHICS?

The individual ethics of organizational members.

The corporate culture of the organization.

Society as a whole.

Examples from your industry?

INDIVIDUAL ETHICS

Values reflected in a person’s behavior and personality can be the basis for professional behavior.

Values are a result of learning and personal experience.

Values are influenced by family, friends, peers, religious beliefs, community, and the organizations in which we are associated.

STAGES OF MORAL DEVELOPMENT

Pre-Conventional Level

Stage 1

Punishment Avoidance – How do I keep out of trouble?

Stage 2Instrumental Purpose Exchange – Self Interest

STAGES OF MORAL DEVELOPMENT

Conventional Level

Stage 3

Interpersonal Conformity – Conforming to expectations of peers

Stage 4Social Accord– Following society’s rules

STAGES OF MORAL DEVELOPMENT

Post-Conventional Level

Stage 5

Social Contract – Seeking social consensus

Stage 6Universal Ethical Principals – Decisions are based on personal moral principals

ETHICAL THEORIES

Consequential Theory

an ethical theory thatemphasizes the

consequences or resultsof behavior

ETHICAL THEORIES

Rule Based Theory

an ethical theory thatemphasizes the

character of the actitself rather than its effects

ETHICAL THEORIES

Character Theory

an ethical theory thatemphasizes the character,

personal virtues, and integrity of the individual

ETHICAL QUALITIES

Reputation

Reputation is one of an organization’s greatest intangible assets with tangible value

What do people say about you when they hear your name?

ETHICAL QUALITIES

Honesty

Honesty: Truthfulness or trustworthiness

Dishonesty: A lack of integrity, incomplete disclosure, or an unwillingness to tell the truth

Issues related to honesty can arise when people begin to perceive business as something that has its own rules

ETHICAL QUALITIES

Fairness

The quality of being just, equitable, and impartial

ETHICAL QUALITIES

Integrity

Uncompromising adherence to ethical values

One of the most important terms regarding virtue.

MISCONDUCTAbusive or Intimidating Behavior

One of the most common ethical problems

Can mean anything from physical threats, false accusations, profanity, insults, harshness, ignoring someone, or even unreasonableness

Bullying is a growing legal problem in the workplace

MISCONDUCTLying

Commission lying is creating a false perception by choosing words that intentionally deceive the receiver

Omission lying is intentionally not informing channel members of problems, related to product that affects awareness, intention, or behavior

MISCONDUCTConflicts of InterestExist when an individual must choose whether to advance his or her own personal interests, those of the organization, or some other group

Individual must separate personal interests from business dealings

MISCONDUCTBriberyBribery is the practice of offering something in order to gain an illicit advantage

Quid Pro Quo – This for That

Different types of briberyActive briberyPassive bribery

MISCONDUCT

Corporate IntelligenceHacking

Dumpster diving

Phone eavesdropping

Social engineering

Password guessing

Shoulder surfing

ETHICS ENHANCING TOOLS

Code of ethics

A written code of beliefs, values, and expected conduct

Review of your code

Policies regarding discrimination and harassment

ETHICS ENHANCING TOOLS

Ethics Tests

The test of common senseThe test of one’s best selfThe “light of day” approachThe test of purified idea

ETHICS ENHANCING TOOLS

Ethical AuditsInternalExternal

Ethical Training

Ethical Decision Making Approach

ETHICAL DECISION MAKING

Benefits of Ethical Decision Making

Improved customer relationsRepeat businessGoodwillEmployee satisfactionEmployee empowerment

You stay out of trouble and keep your license!

ETHICS IN A REAL WORLDTOM DARLING

CITY OF ALBUQUERQUE

PUBLIC SERVICE UNIVERSITY

CONTACT TOM AT:JDARLING@CABQ.GOV