September 30 2012 Morris W Beverage Jr EDM President Lakeland Community College Kirtland Ohio A Owns boat B In love with D C 1 st other person D In love with B E 2 nd other person ID: 777812
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Slide1
Ethics: A Challenge For All Times
September 30, 2012Morris W. Beverage Jr., EDMPresident, Lakeland Community College Kirtland, Ohio
Slide2A (Owns boat)
B (In love with D)C (1st other person)D (In love with B)
E (2
nd
other person)
THE RAGING RIVER CASE
Slide3THE RAGING RIVER CASE
Most liked person 1. _________________ 2. _________________ 3. _________________ 4. _________________
Least liked person
5. _________________
Slide4Ethics
The Study of right and wrong, usually including the determining and encouraging of what is right.Ethical Issue A situation in which there is one answer or choice involving the rule of law.
Slide5Slide6Slide7People no different than you or me can do unethical things.
Well, certainly people no different than you!
Slide8WorldCom
Largest corporate fraud in historyInflated profits by $3.9 billion17,000 people were laid-off within a weekStock dropped from $64.50 to 20 centsCEO Bernie Ebbers was found guilty of fraud, conspiracy and filing false documents and faces 85 years in prisonBernie Ebbers was
a great guy
Slide9WorldCom
At one time Bernie Ebbers was no different than us.At one time the CFO was no different than us.At one time the accountants that made the erroneous entries were no different than us – and, they even wrote out their resignation letters and held them all the way through the fraud.
Slide10WorldCom
Accountants knew what they were doing was wrong (Prepaid Capacity)The belief was that it would all turn aroundThey thought they were doing the right thing in the long run by:Protecting shareholdersProtecting workersProtecting the economy
Slide11So, how do we get from
today’s session to perpetratingthe greatest fraud in U.S.corporate history?
Slide12THE RAGING RIVER CASE
Most liked person 1. _________________ 2. _________________ 3. _________________
4. _________________
Least liked person
5. _________________
Slide13Values
A tightly held belief upon which a person acts by choice, an enduring belief that one way of behaving is personally or socially preferable to the opposing way of behaving.Ethical Dilemma A situation in which there is a conflict in the minds of people between values, or a conflict between what is right and what is wrong. You have to make a choice.
Slide14Personal Values
Accomplishment - measurable achievement, fame, career
Independence
- self-reliance, self-sufficiency
Competition
- winning, being #1
Leadership
- exercising influence over others
Cooperation
- helpfulness, being involved in team activitiesLoyalty - sense of dutyCourage - standing up for your beliefsMoney - having it, financial securityCreativity - using imagination, being innovativeRecognition - respect, admiration from others
Equality - equal opportunity for allResponsibility - feeling that others can depend on youExcitement - adventure, challengeSelf Confidence - self-esteem, faith in your talentsHonesty - sincere, truthful, integrityStability
- order, tranquility
Slide15Shadow of the past and the future*
* Robert Axelrod – The evolution of cooperation
Slide16Plain Dealer Big League Baseball Poll*
19 hitters13 pitchersInserted questions about cheating as part of a wide-range anonymous survey
*Dennis Manoloff, The Plain Dealer, June 11, 2003
Slide17Plain Dealer Big League Baseball Poll
To the 19 hitters…….Would you use a corked bat if you were told you could hit a home run in a world series game and never be exposed?
NO:
12
“Couldn’t live with myself.”
YES:
5
“If you
ain’t
cheatin’, you ain’t tryin’.”Abstention:2
Slide18Plain Dealer Big League Baseball Poll
To the 13 pitchers…Would you use a blatantly doctored ball to record a game-ending strikeout in the world series if you were guaranteed never to be exposed?
NO:
8
“If I can’t strike the guy out playing fair, I shouldn’t be playing.”
YES:
2
“Whatever it takes to win a ring.”
Abstention:
3
Slide19Plain Dealer Big League Baseball Poll
To the 19 hitters….If you knew a grounder ruled a hit should have been ruled an error, would you urge the official scorer to change the call if it meant ending your hitting streak at 55 games?
NO:
15
“Why should I?”
YES:
3
“To tie DiMaggio? I’ve absolutely got to get it changed.”
Abstention:
1
Slide20Plain Dealer Big League Baseball Poll
To the 13 pitchers….If you knew a grounder ruled an error in the ninth inning should have been ruled a hit, would you urge the official scorer to change the call if it meant ruining what could have been a no-hitter?
NO:
8
“If one of those jokers wants to call it an error, fine. He’s got to live with that, not me.”
YES:
4
“The last thing you want is a tainted
no-hitter.”
Abstention:1
Slide21Social DefectionSocial Contract
Maximize the capacity to do what I want while also letting OTHERS do what they want.Each individual will forego certain selfish, personal opportunities in exchange for profiting from the cooperation of others.Balancing “self-interest” with “community interest”
Slide22Social Defection
In 2000, Stephen King offered to provide an electronic book, one chapter at a time, if at least 75% of the downloads were paid for ($1 per download)120,000 downloads of the first chapter40,000 downloads of the second chapter, but only 46% were paid forHe said on his website – “If you pay, the story rolls. If you don’t, the story folds.” He folded it.
Slide23Social Defection
Defecting results in gaining at others’ expenseCheating:I cheat + You don’t = I winYou cheat + I don’t = You winOur “social contract” is only in balance if either we both cheat or we both don’t cheat.AKA
“social
reciprocity”: I will commit to NOT defect when I can, and expect others to NOT defect when they can.
Slide24Why “good” managers make bad ethical choices*
Manville CorporationContinental Illinois BankE.F. Hutton*Saul W. Gellerman, Harvard Business Review, July-August 1986
Slide25The Four Rationalizations*
I. A belief that the activity is within the reasonable ethical and legal limits – that is, that it is not “really” illegal or immoral.*Saul W. Gellerman, “Why ‘good’ managers make bad ethical choices,”Harvard Business Review, July-August 1986
Slide26The Four Rationalizations
II. A belief that the activity is in the individual’s or the organization’s best interests - that the individual would somehow be expected to undertake the activity.
Slide27The Four Rationalizations
III. A belief that the activity is “safe” because it will never be found out or publicized; the classic crime and punishment issue of discovery.
Slide28The Four Rationalizations
IV. A belief that because the activity helps the company, the company will condone it and even protect the person who engages in it.
Slide29So What?
So how does it happen?How do we wake up one day and choose to do wrong things instead of right things?
Slide30Defining Moments
Right vs. RightResponsibility to yourself and othersResponsibility for othersResponsibility shared
Slide31So what?
Slide32Ethics: A Challenge for All Times
Thank you!