EthicsDr. Jeanette Kersten, EdD

Ethics

• Doing what is right in every circumstance• Business ethics –Standard that guide acceptable behavior

• Common unethical behaviors–Lying–Falisfying information–Conflict of interest–Stealing–Violation of company policies

What is Right?• Right vs. Wrong

“No one will know if I do not pay taxes on this under-the-table income, so I can save myself quite a bit of money.”

• Right vs. RightSelecting the best option▫Truth vs. Loyalty▫Individual vs. Community▫Short-Term vs. Long-Term▫Justice vs. Mercy

Ethical Self Assessment Is it legal? Does it comply with our rules and

guidelines? Business conduct rules

Is it aligned with our organizational values?

Corporate governance Will I be comfortable and guilt-free if I

do it?

Ethical Self Assessment…

•Does it match our stated commitments and guarantees?

•Would I do it to my family and friends?•Would I be okay with someone doing it to

me?•Would the most ethical person I know do

it?

Common HR Dilemmas•Employee references•Safety hazards•Financial results

▫Countrywide Mortgage•Confidentiality of information•Truth in claims, data, and

recommendations▫Enron, Tyco, etc▫MMR testing and autism

•Balancing organizational and individual needs and interests▫Ponzi schemes

Ethical Principles

•Know what you believe. ▫Clearly think through what is legally and

morally right and wrong. Understand why you believe what you believe.

•Develop your ability to influence. ▫Offer creative solutions to difficult

situations.•Be able to walk away if your ethical

standards are jeopardized.

Ethics in organizations• Establish a climate of integrity• Build ethical infrastructure• Set ethical and socially responsible

expectations▫“Stakeholder health vs Stockholder wealth”

• Address confidentiality & privacy▫Ethics Hotline▫Ethics training

• Instill ethical decision making processes▫Peer review boards▫Ethics committees▫Ombudsman

Ethics in organizations•Awareness of technology in organizations•Awareness of global and diverse cultures

▫Business Continuity Plans▫Country Laws▫Training programs that think, lead, and act

globally with ethical frameworks•Philanthropy•Volunteerism

▫Service•Dialogue

Ethics Training Programs• Senior management takes an active role• Employees are educated about the importance

of values – in addition to laws and rules – to inspire principled behavior.

• The program encourages active participation.• The program is relevant to actual "real world"

scenarios that employees encounter.• Learning is applied to on the job experiences

▫reinforcing the ethics training program and course content

▫specific

Ethics Training Programs•Should include examples of behaviors that

are similar to participants•Instructors should review and positively

reinforce behaviors•Participants should learn to assess and

manage their experiences and stressors▫Self awareness and assessment▫Self regulation

•Codes of conduct should be an integral part of the training