Building EthicalBuilding EthicalOrganizations for Success.Organizations for Success.The Chazin Group
Special thanks to:Special thanks to:Ms. Carol BroccoliProgram directorRutgers-Cook CollegeContinuing 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 2004Contact 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 CapitalDevelopment Professional Development Salary Negotiations
“Being in accordancewith the acceptedprinciples of rightright andwrongwrong that governthe conduct of aprofession.”/www.thefreedictionary.com/ethical
Ethics refers to standards of right andwrong that prescribe what we ought todo, usually in terms of rights,obligations, benefits to society,fairness, or specific virtues. Ethicsrefer to the standards that impose thereasonable obligations to refrain fromrape, stealing, murder, assault,slander, and fraud.www.scu.edu/ethics/practicing/decision/whatisethics.html
Ethical standards also include thosethat enjoin virtues of honesty,compassion, and loyalty. Ethicalstandards include: standards relatingto rights (right to life, freedom frominjury, the right to privacy.) Suchstandards are adequate standards ofethics, because they’re supported byconsistent/well-founded reasons.www.scu.edu/ethics/practicing/decision/whatisethics.html
Ethics refers to the study and developmentof ones ethical standards. Feelings, lawsand social norms can deviate from what isethicalethical.So it’s necessary to constantly examine ourstandards, to ensure that they’re reasonableand well-founded. Ethical behavior requireswe continuously study our beliefs andconduct, and striving to ensure that we, andthe institutions we work for, live up tostandards that are reasonable and solidly-based.
•Ethical EgoismEthical Egoism: acting foryour OWN self interest.•UtilitarianismUtilitarianism: creating thegreatest good for the greatestnumber of people.•AltruismAltruism: advancing thebest interest of others.KEY TERMS
Ready to See HowReady to See HowETHICALETHICAL 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 andyou discover that an upper-levelmanager has repeatedly used thecompany credit card for personalexpenses.What do you do?What do you do?Example #1
a) I do nothing. The person is higherthan I am so it must be OK.b) I confront the person and hope thatthis wont threaten my job.c) I confront the person and revealwhat I know to a higher-levelmanager or someone in humanresources.
Correct Answer: CCTalking 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.
You 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?What do you do?Example #2
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.
Correct answer: CCJenn 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.
A 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?What do you do?Example #3
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.
Correct answer: CCI 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.
You 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?What do you do?Example #4
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.
Correct answer: BBPeople 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.
What ETHICALWhat ETHICALOrganizationsOrganizationsLook LikeLook Like
Is It Hard to be Ethical InIs It Hard to be Ethical InThese Trying Times?These Trying Times?
• Statewide budget shortfalls.• Increased global competition.• The critical importance placed on our quarterlyfinancial performance reporting.• 24x7x365 news reporting cycle.• Social media and the Internet.• No job security.• Tremendous demands made for productivitygains.The Chazin GroupThe Chazin GroupThese Trying Times
• Sarbanes-Oxley (2002)• Stock Exchange Standards (2003)• McNulty version of Principles ofProsecution (2006)• U.S. Sentencing CommissionThe Chazin GroupThe Chazin GroupGovernment Guidelines
Apply Your Own StandardsApply Your Own Standards
• Ask: “If I choose to go through withthis decision, would I mind seeing itreported 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 GroupThe Chazin GroupApply your own moral compassFrom Gretchen Morgenson
Building an EthicalBuilding an EthicalOrganizationOrganization
• Create a Value Statement: theprinciples that your Vision & Missionstatements are built on.• Develop a Code of Ethics: define theorganization’s core values.• Create Ethics policies, include them inemployee manual, make each employeesign annually.• Executive Modeling: How your SeniorManagement team acts, sets the tone.The Chazin GroupThe Chazin GroupBuilding An Ethical Organization
“The ethics of the businessare whatever the top dogsays they are.”Bryce’s LawBryce’s Law
• Building An Ethical OrganizationThe Chazin GroupThe Chazin GroupBuilding An EthicalOrganizationBuilding An Ethical Organization• Revisit/rewrite your value statement(credo) every few years.• Training & Communicating.• Systems that embody organizationalvalues.• Mechanisms to discuss difficult cases.• Audit, enforcement, and discipline.www.scu.edu/ethics/practicing/focusareas/business/organization.html
• Building An Ethical OrganizationThe Chazin GroupThe Chazin GroupBuilding An EthicalOrganizationBuilding 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 OrganizationThe Chazin GroupThe Chazin GroupBuilding An EthicalOrganizationBuilding An Ethical Organization• 3 keys that are mandatory forcreating an ethical organization:–Ethical people–Ethical practices–Ethical climate
• Set the bar: promote “POSITIVEDEVIANTS”• Motivate Ethics: get people toachieve Positive Deviant examples.• Sustain Ethics: Ensure thecommitment to ethics is sustainable.• Scale Ethics: achieve critical massby changing what people believe &do.The Chazin GroupThe Chazin Group4 Steps to Ethical Behaviorhttp://ethix.org/2010/07/15/four-steps-to-a-more-ethical-organization
http://psychology.about.com/od/personalitydevelopment/a/emotionalintell.htmThe Chazin GroupThe Chazin GroupA Definition“…the ability to monitor onesown and others feelings andemotions, to discriminate amongthem and to use this informationto guide ones thinking andactions.“Peter Salovey & John D. Mayer
• Perceiving Emotions: The first step inunderstanding emotions is to accuratelyperceive them.• Reasoning With Emotions: The next stepinvolves using emotions to promote thinkingand cognitive activity.• Understanding Emotions: The emotions thatwe perceive can carry a wide variety ofmeanings.• Managing Emotions: The ability to manageemotions effectively is a key part of emotionalintelligence.The Chazin GroupThe Chazin Group4 Branches of EI
Social CorporateSocial CorporateResponsibilityResponsibility
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.http://en.wikipedia.org/wiki/Corporate_social_responsibility