Approaches Teaching Bus Ethics

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Approaches Teaching Bus Ethics

Approaches Teaching Bus Ethics

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  • 1. Marketing Management Association Approaches to Teaching Business Ethics… Dr. O.C. Ferrell Ehrhardt, Keefe, Steiner & Hottman, P.C. Professor of Business Administration Colorado State University Copyright O.C. Ferrell; March 2005 Business Ethics… Knowing the difference between what you have a right to do in the organization and what is the right thing to do. Adapted from Former Supreme Court Justice Potter Stewart. What one might do for $500… Stop going to movies for 6 months (62%) Get a tattoo (39%) Switch political parties (35%) Cheat on income taxes (9%) Cheat on spouse (4%) Source: “Anything for Money?” Business Week, August 2, 2004, p. 9. (Progressive Auto Insurance survey of 1,000 adults) 1
  • 2. Principle of Employee Conduct… 10% 40% 40% 10% Follow Try to follow Go along Take their own company policies with the advantage beliefs & rules work group if the risk is low Copyright O.C. Ferrell; March 2005 Corporate Responsibility Crisis… “Opinion polls now place business people in lower esteem than politicians.” Jennifer Merritt (2002) “For MBAs, Soul Searching 101,” Business Week, Sept. 16, p. 64. “A W.S.J./NBC poll found that 57% of the general public believed that standards & values of corporate leaders & executives had dropped in the last 20 years.” Eric Hellweg (2002) www.business2.0.com, Sept. 10. 2
  • 3. American Distrust of Business… 80% 70% 61% ____________________________________________________________________________________________________ American business is If the opportunity Even long too concerned about arises, most established profits, not concerned businesses will take companies cannot about responsibilities to advantage of the be trusted to make workers, consumers & the public if they feel they safe, durable environment. are not likely to be products without the found out. government setting industry standards. Source: J. Walker Smith, Ann Clurman, and Craig Wood of Yankelovich Partners, Inc. Point, Feb., 2005, www.RacomBooks.com; results from Yankelovich MONITOR. Profits vs. Ethics… “Corporate CEOs are being distracted by the demands of management experts and government officials to do ‘what’s right’ rather than what good business sense suggests is best.” George Stalk, Boston Consulting Group Source: George Stalk, “Warm and Fuzzy Doesn’t Cut It,” Wall Street Journal, February 15, 2005, p. B2. What is business ethics? (a managerial perspective) defining appropriate behavior establishing organizational values nurturing individual responsibility providing leadership & oversight relating decisions to stakeholder interests developing accountability relating consequences auditing & improvement Copyright O.C. Ferrell; March 2005 3
  • 4. Myths about business ethics… It’s easy to be ethical Unethical behavior is part of business There are no rewards for being ethical Ethical behavior will prevent me from being successful Business is like a sport, push the rules & try not to get caught Business ethics is about character education and teaching moral philosophy Copyright O.C. Ferrell; March 2005 Who are the primary stakeholders that shape business ethics? employees customers suppliers community government shareholders other… Copyright O.C. Ferrell; March 2005 Interactions Between an Organization and Stakeholders Special Interest Group Mass Media Employee Group Customer Group Government Organization Shareholder Group Regulatory Body Supplier Community Trade Association Competitor Secondary Stakeholders Society at Large Primary Stakeholders Adapted from Isabelle Maignan, OC Ferrell, and Linda Ferrell, “A Stakeholder Model for Implementing Social Responsibility,” European Journal of Marketing, forthcoming. Copyright O.C. Ferrell; March 2005 4
  • 5. Framework for Understanding Organizational Ethical Decision Making Individual moral philosophies and values External Ethical Ethical Evaluation of stakeholder issue decision ethical interests and intensity outcomes concerns Organizational culture, values, and norms Source: O.C. Ferrell, 2005 © Copyright O.C. Ferrell; March 2005 The Ethics Mirror & Reality… people judge themselves based on their intentions others are judged based on their behavior everyone is accountable for their actions Copyright O.C. Ferrell; March 2005 A Review of 286 AACSB Member Schools Reveals... Ethics in mission statements: 59.4% no reference 23.1% reference importance of ethics in mission statement, yet do not require a course smaller schools more likely to address issue than larger colleges & universities Required ethics course(s): 40.6% (overall) require an ethics course 68% of private 30% public Source: Cheryl L. Buff and Virginia Yonkers (2004) “How Will They Know Right From Wrong? A Study of Ethics in the Mission Statement and Curriculum of AACSB Undergrad. Mkt. Programs,” Marketing Education Review, Vol. 14, #3 (Fall): 71-79. 5
  • 6. Alan Simpson, Former Wyoming Senator… “If you have ethics, nothing else matters. If you don’t have ethics, nothing else matters.” AACSB Teaching Business Ethics Conference Colorado State University, University of Wyoming & University of Colorado Examines approaches, perspectives, tools July 20-22, 2005; Boulder, CO For more information: www.e-businessethics.com Copyright O.C. Ferrell; March 2005 March Madness… Go Illini ! It’s not just about Marketing Management anymore Copyright O.C. Ferrell; March 2005 6