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Business Ethics for competitive Advantage


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Ethan Chazin, The Chazin Group Presents on Business Ethics at Rutgers

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Business Ethics for competitive Advantage

  1. 1. The Chazin Group Building EthicalOrganizations for Success.
  2. 2. Special thanks to: Ms. Carol Broccoli Program director Rutgers-Cook CollegeContinuing Professional EducationNJ agriculture experiment station
  3. 3. 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 2004Contact me:Tel: (201) 683-3399Cell: (917) 239-5571Email:
  4. 4. What I Do Job Search Strategies Interviewing &Networking Career Coaching Life / Work Balance Business Owner Coaching Human CapitalDevelopment Professional Development Salary Negotiations
  5. 5. What’s “ETHICAL” Behavior?
  6. 6. “Being in accordance with the accepted principles of right and wrong that govern the conduct of a profession.”/
  7. 7. Ethics refers to standards of right andwrong that prescribe what we ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethicsrefer to the standards that impose thereasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud.
  8. 8. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. Ethicalstandards include: standards relating to rights (right to life, freedom from injury, the right to privacy.) Suchstandards are adequate standards ofethics, because they’re supported by consistent/well-founded reasons.
  9. 9. Ethics refers to the study and development of ones ethical standards. Feelings, lawsand social norms can deviate from what is ethical. So it’s necessary to constantly examine ourstandards, to ensure that they’re reasonableand well-founded. Ethical behavior requires we continuously study our beliefs andconduct, and striving to ensure that we, and the institutions we work for, live up to standards that are reasonable and solidly- based.
  10. 10. KEY TERMS• Ethical Egoism: acting for Egoism your OWN self interest.• Utilitarianism: creating the Utilitarianism greatest good for the greatest number of people.• Altruism: advancing the Altruism best interest of others.
  11. 11. FOR DISCUSSIONThe Chazin Group The Chazin Group Does compliance reinforce inaction and only token responses?
  12. 12. Ready to See HowETHICAL You Are?Let’s take a
  13. 13. Example #1 You are an office manager andyou discover that an upper-levelmanager has repeatedly used thecompany credit card for personal expenses. What do you do?
  14. 14. 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 wont threaten my job.c) I confront the person and reveal what I know to a higher-level manager or someone in human resources.
  15. 15. Correct Answer: CTalking to the person is not enough toensure that the behavior wont continue."Intervening directly is necessary but notsufficient," says Bruce Weinstein, Ph.D.,who writes the column "Ask the EthicsGuy.“ Weinstein says management or HRshould monitor the person.
  16. 16. Example #2You have authority over HumanResources and an employee comes toyou and says: "I want to tell yousomething about someone, but youcant tell anybody." He then revealsthat someone pushed anotheremployee in the company kitchen. What do you do?
  17. 17. a) I promised not to tell, so I dont.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.
  18. 18. Correct answer: CJenn Crenshaw, a professor at the Univ. ofPhoenix in VA says a human resources managershould warn employees before they divulge asecret that her position and the law might requireher to tell someone else. "Then they get to decidewhether or not theyre going to tell me,"Crenshaw says. Even if she doesnt get a chanceto forewarn the employee before sensitiveinformation is revealed, she makes sure anythingimportant, like physical assault, goes on therecord by telling a higher-up.
  19. 19. Example #3A coworker who is also a friend tells youthat he has major concerns about a largeproject and plans to tell the VP overseeingthe project. You know that the VP hasbeen known to fire people who have beentoo vocal against this project. Do youencourage your friend to be honestanyway? What do you do?
  20. 20. a) Yes, honesty is ALWAYS the bestpolicy.b) No, I reveal the dangers of thedecision and encourage the friend toprotect his job.c) I explain what I know but try toavoid encouraging my friend one wayor another.
  21. 21. Correct answer: CI explain what I know but try to avoidencouraging my friend one way or another.Personal ethics are important, but its alsoimportant not to force those decisions onothers, says Don Schierling, a professor atRegis University. Giving others informationso they can make the best choice forthemselves is generally the bestoption, Schierling explains.
  22. 22. Example #4You have been asked to work with thepublic relations department in writinga press release about a new productthat didnt turn out quite as well aspromised in earlier reports. How muchdo you reveal to the public in thepress release? What do you do?
  23. 23. a) I dont hint at it. Its important thatthe companys image is not damagedby the flawed product. b) I write a more mildly enthusiastic,but honest release than I would if theproduct were perfect.c) Im completely honest, believing itwill earn the respect of customers tobe forthcoming.
  24. 24. Correct answer: BPeople in PR must toe the line betweentalking positively about a company andlying outright. Since its understood that apress release is going to put a positive spinon any topic, its not expected to be fullyfrank about then flaws. A major disastercan sometimes be avoided by an honestand upfront handling of the issue with thepress. "Ultimately, you have to answer toyourself,” says Schierling.
  25. 25. What ETHICALOrganizations Look Like
  26. 26. Is It Hard to be Ethical In These Trying Times?
  27. 27. The ChazinThese Group The Chazin Group 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.
  28. 28. How NOT to Act
  29. 29. Hall of Shame
  30. 30. Unethical Behavior Surrounds Us
  31. 31. The Chazin Unethical Group The Chazin Group Behavior• Extended unpaid internships.• Plagiarism.• Lying on your taxes, resumes.• Falsifying professional credentials.• Construction companies ignoring codes, taking shortcuts.• Mortgage robo-signings.
  32. 32. The Chazin Unethical Group The Chazin Group Behavior• Producing/marketing dangerous products.• Legalized gambling.• Police misconduct.• Accepting bribes.• Piracy.• Vulture Capitalists.• False/inaccurate job postings.
  33. 33. The Chazin Unethical Group The Chazin Group Behavior• Division I College athletics.• People trying to “GAME” the system.• The Military covers up soldier burial remains.
  34. 34. TheThe Chazin Group The Chazin Group Workplace• Discrimination• Sexism (Glass Ceiling)• Sexual Harassment• Cronyism/Nepotism• Office Politics• Companies Backing Political Parties
  35. 35. FOR DISCUSSIONThe Chazin Group The Chazin Group Does The Workplace Breed Unethical Behavior?
  36. 36. Are ETHICSSituational?
  37. 37. Guidelines DO Exist
  38. 38. GovernmentThe Chazin Group The Chazin Group Guidelines• Sarbanes-Oxley (2002)• Stock Exchange Standards (2003)• McNulty version of Principles of Prosecution (2006)• U.S. Sentencing Commission
  39. 39. Apply Your Own Standards
  40. 40. The Chazin your own Apply Group The Chazin Group moral compass• Ask: “If I choose to go through with this decision, would I mind seeing it reported on the news tomorrow?” – If YES: Proceed YES – Still Not Sure: Ask four (4) 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?From Gretchen Morgenson
  41. 41. Building an Ethical Organization
  42. 42. The Chazin Group Ethical Building An The Chazin Group Organization• 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.
  43. 43. “The ethics of the business are whatever the top dog says they are.” Bryce’s Law
  44. 44. • Building An Ethical OrganizationThe Chazin Group Ethical Building An The Chazin Group Organization• Revisit/rewrite your value statement (credo) every few years.• Training & Communicating.• Systems that embody Ethical Building An organizational values. Organization• Mechanisms to discuss difficult cases.• Audit, enforcement, and
  45. 45. • Building An Ethical OrganizationThe Chazin Group Ethical Building An The Chazin Group Organization• Hotlines and help lines.• Governance of ethics and values.• Renewal process.• CREATE ETHICAL SUPPORT SYSTEMS. Building An Ethical Organization
  46. 46. • Building An Ethical OrganizationThe Chazin Group Ethical Building An The Chazin Group Organization• 3 keys that are mandatory for creating an ethical organization: – Building An Ethical Organization
  47. 47. The Chazin Group Ethical Elements of The Chazin Group Organizations• Respect• Integrity• Customer-focus•
  48. 48. The Chazin Group Ethical Elements of The Chazin Group Organizations• Results-oriented• Risk-taking• Passion• Persistence
  49. 49. The 4 Steps toThe Chazin Group Chazin Group Ethical Behavior• 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.
  50. 50. EmotionalIntelligence
  51. 51. The Chazin Group Definition A The Chazin Group “…the ability to monitor ones own and others feelings and emotions, to discriminate among them and to use this information to guide ones thinking and actions.“ Peter Salovey & John D. Mayer
  52. 52. The Chazin 4 BranchesThe Chazin Group Group of EI• 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.
  53. 53. E.I. GoesThe Chazin Group The Chazin Group Mainstream• Social & Emotional Learning (SEL): Daniel Goleman
  54. 54. Social Corporate Responsibility
  55. 55. Corporate social responsibility (also calledcorporate conscience, corporate citizenship,social performance, or sustainable responsiblebusiness) is a form of corporate self-regulationintegrated into a business model. CSR policy functionsas a built-in, self-regulating mechanism wherebybusinesses monitors and ensures its active compliancewith the spirit of the law, ethical standards, andinternational norms. The goal of CSR is to embraceresponsibility for the companys actions and encouragea positive impact through its activities on theenvironment, consumers, employees, communities,stakeholders and all other members of the publicsphere.
  56. 56. Resources