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Ethics Awareness, First Oklahoma Bank

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April 22, 2013

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Ethics Awareness, First Oklahoma Bank

  1. 1. Ethics AwarenessAndrew L. Urich, J.D.Puterbaugh Professor of Ethics & Legal StudiesSpears School of BusinessOklahoma State Universityaurich@okstate.eduwww.andrewurich.com
  2. 2. Ethics Awareness I am NOT here to moralize. “Awareness” changes human behavior.
  3. 3. Who Am I to Discuss Ethics? I am a hypocrite. I play favorites. I interpret rules to my benefit. I have been known to ignore rules that get in my way. I hate to admit I’m wrong even in those rare situationswhen it looks like I might be. I am much more likely to believe things that benefit me. I like my ideas better just because they’re mine. When things go wrong, I look for someone to share theblame.
  4. 4. Who Am I to Discuss Ethics? Sometimes I think it’s fun to say “no” just because Ihave the power to do so. Here is how I make decisions: I decide what I wantthe answer to be – and then make up the logicalreasons to support my decision. I tend to judge myself by my intentions rather thanmy actions. I tend to judge others by their actions rather thantheir intentions.
  5. 5. Key Points to Remember Human nature is not naturally ethical. Ethics is gray – not black and white. (In other words, you can’t just say you’re an ethical person – andthat’s all there is to it) It is difficult to be ethical all of the time.
  6. 6. Ethical Lapses in the News Enron inflated earnings by $586 million — investors lost $60billion Adelphia founder used corporate assets as collateral for $3.1billion in personal loans — company bankrupt WorldCom overstated profits by $7.1 billion — 17,000 workerslaid off Barings Bank’s Nick Leeson caused his employers collapse in1995 after losing US$1.3 billion in unauthorized derivativestrading.
  7. 7. The Tyco PartyTyco CEO looted company of $600 million
  8. 8. Because yourreputation isworth it!Please rememberEnron’s real problem!Why are we here today?
  9. 9. Case problem The Thrifty V.P.
  10. 10. Case problem 1 The Thrifty V.P.Just following ordersEthics and young peopleEntrapmentDoes everyone have their price?
  11. 11. Ethics Today Times are changing in society! Do ethics change with the times???
  12. 12. Discussion Question What do you use as an ethicalguideline? In other words, how do youdecide what’s ethical? Should ethical decisions be based on“gut instinct” or “conscience?”
  13. 13. Examining Unethical BehaviorOverview of Topics1. It’s easier not to be ethical.2. Beliefs about the ethics of others3. Attitudes toward the company4. Self-delusion (Rationalization)
  14. 14. It’s Easier Not To Be Ethical Easier to do what’s convenient Easier to conform to norms Easier to do what’s profitable Easier to win if you cheat It is very difficult to overcome the challengesof human nature
  15. 15. It’s Easier Not To Be EthicalBut It’s Worth the Trouble Ethics is the key to leadershipand client confidence.“A lie can travel halfway around theworld while the truth is putting onits shoes.”Mark Twain
  16. 16. Case Problem The Sniff Test
  17. 17. 2. Beliefs About the Ethics ofOthers Everyone thinks like me. People follow the leader. Different ethics for different situations? Do you use the same standard of ethics in all aspectsof your life? For example, is your standard the samewith your family, at church, at work, with personalbusiness, etc.?
  18. 18. 3. Attitudes Toward the CompanyThe Need for Ethical Leadership Trust and respect Do managers practice what they preach?(You are the messenger) Employees want to “even things out.” Authority is Out—Influence is In
  19. 19. Trust other peopleDavid Halper, British Sociologist 34% Americans 29% British 31% Mexicans up from 19% in 1983 60% Dutch 68% Scandinavians
  20. 20. Harris Poll on Trust 22% trust media 8% political parties 27% government 12% large corporations Convicts vs. MBAs
  21. 21. Big Idea Do you trust your boss?Productivity and ethical behaviorMercer Management Consulting– 60% of USworkers do not trust their manager tocommunicate honestly Management impacts trust
  22. 22. Showing Respect &Building Trust You will never prove them wrongAdmit to your mistakes “My child choked on a chicken bone” Winston Churchill’s thoughts on the subject
  23. 23. Showing Respect
  24. 24. Showing Respect
  25. 25. Case Problem Mass IP & SSC
  26. 26. Trust is CompetenceWarren Buffett, “It takes 20 years to build a reputationand five minutes to ruin it.” I’m the manager, I can coast while others do thework. Do you have 15 years experience or one year ofexperience 15 times? What do you think of people who cover theirbottoms? What if we train people and they leave?
  27. 27. 4. Self-Delusion Rationalization: polite term for self-delusion “The greatest of all faults, I should say, is tobe conscious of none.”--Thomas Carlyle (1795 – 1881) Scottish writer
  28. 28. Case problem Just Trying to Help
  29. 29. Case ProblemBedlam Football
  30. 30. Guideline forEthical Decision Making1. Is there an applicable law or organizationalpolicy?2. Should I ask about this before acting?3. Have I taken time to think carefully beforeacting?4. Would I disclose my decision to mysupervisor, CEO, mother, etc.?(What if everyone found out?)
  31. 31. Guideline forEthical Decision Making5. Am I avoiding the appearance ofimpropriety?6. Am I defining the problem correctly?7. Am I rationalizing?8. Finally, when in doubt, do I know who tocontact?
  32. 32. The Secret to Happiness Self-delusion Hypocrisy Ignorance
  33. 33. The Secret to HappinessIgnorance is Bliss“People who do things badlyare supremely confident intheir abilities — moreconfident, in fact, than peoplewho do things well. Not onlydo they reach erroneousconclusions and makeunfortunate choices, but theirincompetence robs them ofthe ability to realize it.”Dunning, David Journal of Personality and SocialPsychology December 1999.
  34. 34. Thank You!Facebook.com/ProfessorUrichaurich@okstate.eduwww.andrewurich.com
  35. 35. References Ailes, Roger. You Are the Message. New York. Doubleday, 1988. Bazerman, Max H. Smart Money Decisions, Wiley & Sons, 1999. Blanchard, Kenneth, et.al. The Power of Ethical Management. William Morrow and Company,Inc., 1988. Buckingham, Marcus, et.al. First, Break All The Rules. New York: Simon & Schuster, 1999. Cialdini, Robert B. Influence: The Psychology of Persuasion. Harper Collins, 2007. Cohen, Randy. The Good, The Bad, & The Difference. Broadway Books, 2002. Covey, Stephen R. The 7 Habits of Highly Effective People. New York: Simon & Schuster,1989. Covey, Stephen C.R. The Speed of Trust, New York: Simon & Schuster, 2006. Fisher, Roger and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981. Koch, Charles G., The Science of Success, Wiley & Sons, 2007. Lakoff, George. Moral Politics: How Liberals and Conservatives Think. The University ofChicago Press, 2002. Lattal, Alice Darnell, et. al. Ethics at Work. Performance Management Publications, 2005. Lewicki, Roy J., et. al. Negotiation. 2nd Edition., Irwin, 1994. Lewicki, Roy J., et. al. Essential of Negotiation, 4thEd. McGraw Hill, 2007. Maxwell, John C. There’s No Such Thing as “Business” Ethics. Warner Business Books,2003. Nelsen, Jane, et. al. Positive Discipline, Three Rivers Press, 1998. Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.

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