Ethics rutgers march2012

Building Ethical Building Ethical Organizations for Organizations for

Success.Success.

The Chazin Group

Special thanks to:Special thanks to:

Ms. Carol Broccoli

Program directorRutgers-Cook College

Continuing Professional EducationNJ agriculture experiment station

About ME

BA in Comms (MBA in Mktg) 20 Years In Corp. America Began Career as a Recruiter Marketing/Sales Background Launched The Chazin Group 2004

Contact me:Tel: (201) 683-3399Cell: (917) 239-5571Email: Ethan@TheChazinGroup.com

What I DoWhat I Do Job Search Strategies Interviewing & Networking Career Coaching Life / Work Balance Business Owner Coaching Human Capital Development Professional Development Salary Negotiations

What’s “ETHICAL” What’s “ETHICAL” Behavior?Behavior?

“Being in accordance with the accepted

principles of rightright and wrongwrong that govern the conduct of a

profession.”

/www.thefreedictionary.com/ethical

Ethics refers to standards of right and wrong that prescribe what we ought

to do, usually in terms of rights, obligations, benefits to society,

fairness, or specific virtues. Ethics refer to the standards that impose the reasonable obligations to refrain from

rape, stealing, murder, assault, slander, and fraud.

www.scu.edu/ethics/practicing/decision/whatisethics.html

Ethical standards also include those that enjoin virtues of honesty,

compassion, and loyalty. Ethical standards include: standards relating to rights (right to life, freedom from

injury, the right to privacy.) Such standards are adequate standards of ethics, because they’re supported by

consistent/well-founded reasons.

www.scu.edu/ethics/practicing/decision/whatisethics.html

Ethics refers to the study and development of one's ethical standards. Feelings, laws and social norms can deviate from what is

ethicalethical.

So it’s necessary to constantly examine our standards, to ensure that they’re

reasonable and well-founded. Ethical behavior requires we continuously study our beliefs and conduct, and striving to ensure that we, and the institutions we work for, live up to standards that are

reasonable and solidly-based.

•Ethical EgoismEthical Egoism: acting for your OWN self interest.

•UtilitarianismUtilitarianism: creating the greatest good for the greatest number of people.

•AltruismAltruism: advancing the best interest of others.

KEY TERMS

Does compliance reinforce inaction and only token responses?

The Chazin Group The Chazin GroupFOR DISCUSSION

Ready to See How Ready to See How ETHICALETHICAL You Are? You Are?

Let’s take a quiz...Let’s take a quiz...

www.ea.ne.gov/PDFs/presentations/BusEthicsQuiz.pdfwww.ea.ne.gov/PDFs/presentations/BusEthicsQuiz.pdf

You are an office manager and you discover that an upper-level

manager has repeatedly used the company credit card for personal

expenses.

What do you do?What do you do?

Example #1

a) I do nothing. The person is higher than I am so it must be OK.

b) I confront the person and hope that this won't threaten my job.

c) I confront the person and reveal what I know to a higher-level manager or someone in human resources.

Correct Answer: CC

Talking to the person is not enough to ensure that the behavior won't continue.

"Intervening directly is necessary but not sufficient," says Bruce Weinstein, Ph.D., who writes the column "Ask the EthicsGuy.“ Weinstein says management or HR should monitor the person.

You have authority over HumanResources and an employee comes to you and says: "I want to tell you something about someone, but you can't tell anybody." He then reveals that someone pushed another employee in the company kitchen.

What do you do?What do you do?

Example #2

a) I promised not to tell, so I don't.

b) I find out if the employee was injuredand decide based on that whether to tell.

c) Even though it breaks my promise, I tellmy boss so the incident goes on record.

Correct answer: CC

Jenn Crenshaw, a professor at the Univ. ofPhoenix in VA says a human resources manager should warn employees before they divulge a secret that her position and the law might require her to tell someone else. "Then they get to decide whether or not they're going to tell me," Crenshaw says. Even if she doesn't get a chance to forewarn the employee before sensitive information is revealed, she makes sure anything important, like physical assault, goes on the record by telling a higher-up.

A coworker who is also a friend tells youthat he has major concerns about a largeproject and plans to tell the VP overseeing the project. You know that the VP has been known to fire people who have been too vocal against this project. Do you encourage your friend to be honest anyway?

What do you do?What do you do?

Example #3

a) Yes, honesty is ALWAYS the best policy.b) No, I reveal the dangers of the decision and encourage the friend to protect his job.c) I explain what I know but try to avoid encouraging my friend one way or another.

Correct answer: CC

I explain what I know but try to avoid encouraging my friend one way or another. Personal ethics are important, but it's also important not to force those decisions on others, says Don Schierling, a professor at Regis University. Giving others information so they can make the best choice for themselves is generally the bestoption, Schierling explains.

You have been asked to work with the public relations department in writing a press release about a new product that didn't turn out quite as well as promised in earlier reports. How much do you reveal to the public in the press release?

What do you do?What do you do?

Example #4

a) I don't hint at it. It's important that the company's image is not damaged by the flawed product. b) I write a more mildly enthusiastic, but honest release than I would if the product were perfect.c) I'm completely honest, believing it will earn the respect of customers to be forthcoming.

Correct answer: BB

People in PR must toe the line between talking positively about a company and lying outright. Since it's understood that a press release is going to put a positive spin on any topic, it's not expected to be fully frank about then flaws. A major disaster can sometimes be avoided by an honest and upfront handling of the issue with the press. "Ultimately, you have to answer to yourself,” says Schierling.

What ETHICALWhat ETHICALOrganizationsOrganizations

Look LikeLook Like

Is It Hard to be Ethical In Is It Hard to be Ethical In These Trying Times?These Trying Times?

• Statewide budget shortfalls.• Increased global competition.• The critical importance placed on our quarterly

financial performance reporting.• 24x7x365 news reporting cycle.• Social media and the Internet.• No job security.• Tremendous demands made for productivity

gains.

The Chazin Group The Chazin GroupThese Trying Times

How How NOTNOT to Act to Act

Hall of ShameHall of Shame

Unethical Behavior Unethical Behavior Surrounds UsSurrounds Us

• Extended unpaid internships.• Plagiarism.• Lying on your taxes, resumes.• Falsifying professional credentials.• Construction companies ignoring

codes, taking shortcuts.• Mortgage robo-signings.

The Chazin Group The Chazin GroupUnethical Behavior

• Producing/marketing dangerous products.

• Legalized gambling.• Police misconduct.• Accepting bribes.• Piracy.• Vulture Capitalists.• False/inaccurate job postings.

The Chazin Group The Chazin GroupUnethical Behavior

• Division I College athletics.• People trying to “GAME” the system.• The Military covers up soldier burial

remains.

The Chazin Group The Chazin GroupUnethical Behavior

• Discrimination• Sexism (Glass Ceiling)• Sexual Harassment• Cronyism/Nepotism• Office Politics• Companies Backing Political Parties

The Chazin Group The Chazin GroupThe Workplace

Does The Workplace Does The Workplace Breed Unethical Breed Unethical

Behavior?Behavior?

The Chazin Group The Chazin GroupFOR DISCUSSION

Are ETHICSAre ETHICS

Situational?Situational?

Guidelines DO ExistGuidelines DO Exist

• Sarbanes-Oxley (2002)• Stock Exchange Standards (2003)• McNulty version of Principles of

Prosecution (2006)• U.S. Sentencing Commission

The Chazin Group The Chazin GroupGovernment Guidelines

Apply Your Own StandardsApply Your Own Standards

• Ask: “If I choose to go through with this decision, would I mind seeing it reported on the news tomorrow?”– If YESYES: Proceed– Still Not Sure: Ask four (44) key questions:

• Does my decision match the organization’s vision & mission statements?

• Would it be good for customers?• Would it be good for the organization?• Would it be good for me?

The Chazin Group The Chazin GroupApply your own moral compass

From Gretchen Morgenson

Building an Ethical Building an Ethical OrganizationOrganization

• Create a Value Statement: the principles that your Vision & Mission statements are built on.

• Develop a Code of Ethics: define the organization’s core values.

• Create Ethics policies, include them in employee manual, make each employee sign annually.

• Executive Modeling: How your Senior Management team acts, sets the tone.

The Chazin Group The Chazin GroupBuilding An Ethical Organization

“The ethics of the business are whatever the top dog says they

are.”

Bryce’s LawBryce’s Law

• Building An Ethical Organization

The Chazin Group The Chazin Group

Building An Ethical Organization

Building An Ethical Organization

• Revisit/rewrite your value statement (credo) every few years.

• Training & Communicating.• Systems that embody organizational

values.• Mechanisms to discuss difficult cases.• Audit, enforcement, and discipline.

www.scu.edu/ethics/practicing/focusareas/business/organization.html

• Building An Ethical Organization

The Chazin Group The Chazin Group

Building An Ethical Organization

Building An Ethical Organization

• Hotlines and help lines.• Governance of ethics and values.• Renewal process.• CREATE ETHICAL SUPPORT SYSTEMS.CREATE ETHICAL SUPPORT SYSTEMS.

• Building An Ethical Organization

The Chazin Group The Chazin Group

Building An Ethical Organization

Building An Ethical Organization

• 3 keys that are mandatory for creating an ethical organization:– Ethical people– Ethical practices– Ethical climate

• Respect• Integrity• Customer-focus• Honor

The Chazin Group The Chazin GroupElements of Ethical Organizations

www.entrepreneurship.org/en/resource-center/eight-elements-of-an-ethical-organization.aspx

• Results-oriented• Risk-taking• Passion• Persistence

The Chazin Group The Chazin GroupElements of Ethical Organizations

•Set the bar: promote “POSITIVE DEVIANTS”

•Motivate Ethics: get people to achieve Positive Deviant examples.

•Sustain Ethics: Ensure the commitment to ethics is sustainable.

•Scale Ethics: achieve critical mass by changing what people believe & do.

The Chazin Group The Chazin Group4 Steps to Ethical Behavior

http://ethix.org/2010/07/15/four-steps-to-a-more-ethical-organization

EmotionalEmotionalIntelligenceIntelligence

http://psychology.about.com/od/personalitydevelopment/a/emotionalintell.htm

The Chazin Group The Chazin GroupA Definition

“…the ability to monitor one's own and others' feelings and

emotions, to discriminate among them and to use this information

to guide one's thinking and actions.“

Peter Salovey & John D. Mayer

• Perceiving Emotions: The first step in understanding emotions is to accurately perceive them.

• Reasoning With Emotions: The next step involves using emotions to promote thinking and cognitive activity.

• Understanding Emotions: The emotions that we perceive can carry a wide variety of

meanings.• Managing Emotions: The ability to manage

emotions effectively is a key part of emotional intelligence.

The Chazin Group The Chazin Group4 Branches of EI

• Social & Emotional Learning (SEL): Daniel Goleman

The Chazin Group The Chazin GroupE.I. Goes Mainstream

http://danielgoleman.info/topics/emotional-intelligence

Social Corporate Social Corporate ResponsibilityResponsibility

Corporate social responsibility (also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby businesses monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere.

http://en.wikipedia.org/wiki/Corporate_social_responsibility

ResourcesResources