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Ethics Awareness


            Andrew L. Urich, J.D.
  Puterbaugh Professor of Ethics & Legal Studies
           Spears School of Business
           Oklahoma State University
              aurich@okstate.edu
              www.andrewurich.com
Ethics Awareness
   I am NOT here to moralize.

   “Awareness” changes human behavior.
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 situations
    when 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.
Who Am I to Discuss Ethics?
   Sometimes I think it’s fun to say “no” just because I
    have the power to do so.

   Here is how I make decisions: I decide what I want
    the answer to be – and then make up the logical
    reasons to support my decision.

   I tend to judge myself by my intentions rather than
    my actions.

   I tend to judge others by their actions rather than
    their intentions.
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 – and
        that’s all there is to it)


   It is difficult to be ethical all of the time.
Ethical Lapses in the News
   Enron inflated earnings by $586 million — investors lost $60
    billion

   Adelphia founder used corporate assets as collateral for $3.1
    billion in personal loans — company bankrupt

   WorldCom overstated profits by $7.1 billion — 17,000 workers
    laid off

   Barings Bank’s Nick Leeson caused his employer's collapse in
    1995 after losing US$1.3 billion in unauthorized derivatives
    trading.
Ethics
   What is more important than the
    reputation of your organization?

   Perception and reality are both
    important.
Ethics Today
   Times are changing in society!

   Do ethics change with the times???
Case problem
   The Thrifty V.P.
Case problem 1
   The Thrifty V.P.
        Just following orders
        Ethics and young people

        Entrapment
              Does everyone have their price?
Discussion Question
   What do you use as an ethical
    guideline? In other words, how do you
    decide what’s ethical?

   Should ethical decisions be based on
    “gut instinct” or “conscience?”
1. 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 challenges
    of human nature
2. Beliefs About the Ethics of

         Others
   Everyone thinks like me.

   People follow the leader.
   Different ethics for different situations?
3. Attitudes Toward the Company
The Need for Ethical Leadership
   “The fish rots from the head down.”
                            -Sir Andrew Louis

   Employees want to “even things out.”

   Message from higher management
    (It’s the perception that counts.)
4. Self-Delusion
   Rationalization: polite term for self-delusion
The Secret to Happiness

                  Self-delusion

                  Hypocrisy

                  Ignorance
The Secret to Happiness
                 Ignorance is Bliss
               “People who do things badly
                 are supremely confident in
                    their abilities — more
               confident, in fact, than people
               who do things well. Not only
                  do they reach erroneous
                   conclusions and make
               unfortunate choices, but their
                incompetence robs them of
                  the ability to realize it.”
                Dunning, David Journal of Personality and Social
                         Psychology December 1999.
Thank You

   I appreciate your
  time and attention.

     Andrew Urich
  aurich@okstate.edu
 www.andrewurich.com
Additional Training Opportunities
                        Andrew Urich
   Tune Up Your Negotiation and Persuasion Skills

   Influence Skills: Getting Along and Getting Things Done


   Developing Your Professional Image
        Become more successful by building a personal brand image

   Critical Thinking
       Keys to making good decisions, judgments and evaluations
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.
   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 of
    Chicago 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, 4th Ed. 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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Ethics Oklahoma Public Fund Trustee Education Conference

  • 1. Ethics Awareness Andrew L. Urich, J.D. Puterbaugh Professor of Ethics & Legal Studies Spears School of Business Oklahoma State University aurich@okstate.edu www.andrewurich.com
  • 2. Ethics Awareness  I am NOT here to moralize.  “Awareness” changes human behavior.
  • 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 situations when 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.
  • 4. Who Am I to Discuss Ethics?  Sometimes I think it’s fun to say “no” just because I have the power to do so.  Here is how I make decisions: I decide what I want the answer to be – and then make up the logical reasons to support my decision.  I tend to judge myself by my intentions rather than my actions.  I tend to judge others by their actions rather than their intentions.
  • 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 – and that’s all there is to it)  It is difficult to be ethical all of the time.
  • 6. Ethical Lapses in the News  Enron inflated earnings by $586 million — investors lost $60 billion  Adelphia founder used corporate assets as collateral for $3.1 billion in personal loans — company bankrupt  WorldCom overstated profits by $7.1 billion — 17,000 workers laid off  Barings Bank’s Nick Leeson caused his employer's collapse in 1995 after losing US$1.3 billion in unauthorized derivatives trading.
  • 7. Ethics  What is more important than the reputation of your organization?  Perception and reality are both important.
  • 8. Ethics Today  Times are changing in society!  Do ethics change with the times???
  • 9. Case problem  The Thrifty V.P.
  • 10. Case problem 1  The Thrifty V.P.  Just following orders  Ethics and young people  Entrapment  Does everyone have their price?
  • 11. Discussion Question  What do you use as an ethical guideline? In other words, how do you decide what’s ethical?  Should ethical decisions be based on “gut instinct” or “conscience?”
  • 12. 1. 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 challenges of human nature
  • 13. 2. Beliefs About the Ethics of Others  Everyone thinks like me.  People follow the leader.  Different ethics for different situations?
  • 14. 3. Attitudes Toward the Company The Need for Ethical Leadership  “The fish rots from the head down.” -Sir Andrew Louis  Employees want to “even things out.”  Message from higher management (It’s the perception that counts.)
  • 15. 4. Self-Delusion  Rationalization: polite term for self-delusion
  • 16. The Secret to Happiness  Self-delusion  Hypocrisy  Ignorance
  • 17. The Secret to Happiness Ignorance is Bliss “People who do things badly are supremely confident in their abilities — more confident, in fact, than people who do things well. Not only do they reach erroneous conclusions and make unfortunate choices, but their incompetence robs them of the ability to realize it.” Dunning, David Journal of Personality and Social Psychology December 1999.
  • 18. Thank You I appreciate your time and attention. Andrew Urich aurich@okstate.edu www.andrewurich.com
  • 19. Additional Training Opportunities Andrew Urich  Tune Up Your Negotiation and Persuasion Skills  Influence Skills: Getting Along and Getting Things Done  Developing Your Professional Image Become more successful by building a personal brand image  Critical Thinking Keys to making good decisions, judgments and evaluations
  • 20. 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.  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 of Chicago 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, 4th Ed. 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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