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Building an Ethical Culture by PANO
1. Presented by: Tish Mogan and Stephanie
Taylor
Building anBuilding an
Ethical CultureEthical Culture!!
2. Built to Last, Succe ssfulHabits o f Visio nary Co m panie s Collins
& Porras
At the heart of allAt the heart of all
visionary, successful andvisionary, successful and
lasting companies is alasting companies is a
strong sense of ethicsstrong sense of ethics.
4. Levels of Ethical ReflectionLevels of Ethical Reflection
I. Individual/Personal Ethic
II. Organizational Ethics
III. Ethics of the Corporation/Profession
6. Ethical InfluencesEthical Influences
FamilyFamily
FriendsFriends
Religion/SpiritualityReligion/Spirituality
Social and Cultural MilieuSocial and Cultural Milieu
EducationEducation
Professional EnvironmentProfessional Environment
MediaMedia
ExperienceExperience
7. Universal BeliefUniversal Belief
BuddhismBuddhism:: “Hurt not others in ways that you yourself would find harmful.”“Hurt not others in ways that you yourself would find harmful.”
ChristianityChristianity:: “Whatsoever you wish that men would do to you, do so to them.”“Whatsoever you wish that men would do to you, do so to them.”
ConfucianismConfucianism:: “What you do not want done to yourself, do not do to others.”“What you do not want done to yourself, do not do to others.”
HinduismHinduism:: “Do naught to other which would cause pain if done to you.”“Do naught to other which would cause pain if done to you.”
JudaismJudaism:: “What is hateful to you, do not to your fellow man.”“What is hateful to you, do not to your fellow man.”
IslamIslam:: “No one of you is a believer until he desires for his brother that which he“No one of you is a believer until he desires for his brother that which he
desires for himself.”desires for himself.”
8. Cultural InfluencesCultural Influences
Western…Western…
DualismDualism
Graeco Roman influenceGraeco Roman influence
Utilitarianism – led to Cost Benefit AnalysisUtilitarianism – led to Cost Benefit Analysis
Ford’s choice: “Cost of Dying in a Pinto.”Ford’s choice: “Cost of Dying in a Pinto.”
Eastern…Eastern…
Holistic versus dualisticHolistic versus dualistic
Collectivism vs. individualismCollectivism vs. individualism
9. Gender Note:Gender Note:
How much has the “hunter/gatherer” experienceHow much has the “hunter/gatherer” experience
shaped our moral decision making?shaped our moral decision making?
Increased awareness of the differences in male andIncreased awareness of the differences in male and
female behaviors and decision making.female behaviors and decision making.
Models of authority – hierarchical vs. collaborative.Models of authority – hierarchical vs. collaborative.
Jacob’s ladder vs. Sarah’s circle.Jacob’s ladder vs. Sarah’s circle.
Influences (continued)Influences (continued)
10. Ethics and the OrganizationEthics and the Organization
ProblemsProblems
CulturesCultures
Products/ServicesProducts/Services
11. Organizational EthicsOrganizational Ethics
Involves EveryoneInvolves Everyone
What is a Shareholder?What is a Shareholder?
Consumers/CustomersConsumers/Customers
EmployeesEmployees
BoardsBoards
CommunityCommunity
VendorsVendors
12. Organizational CultureOrganizational Culture
What is culture?What is culture?
Problems with “CookieProblems with “Cookie
Cutter” approachesCutter” approaches
Aligning multiple systems toAligning multiple systems to
support ethical behaviorsupport ethical behavior
Audit of Ethical CultureAudit of Ethical Culture
13. It’s more than a code!It’s more than a code!
(( Policies and CodesPolicies and Codes
98% of firms addressed ethics in formal98% of firms addressed ethics in formal
documents – increase in past 20 yrs.documents – increase in past 20 yrs.
Code alone is not the answerCode alone is not the answer
Daily actions centered around core valuesDaily actions centered around core values
It’s a system!It’s a system!
15. Trevino’s “Managing to Be Ethical:Trevino’s “Managing to Be Ethical:
Debunking Myths”Debunking Myths”
Myth #1Myth #1
It’s easy to be ethical.
RealityReality
Ethical decisions are complex and ambiguous.
80% of adults look outside themselves
for guidance.
Five Business Ethics Myths
16. Myth #2Myth #2
Unethical behavior in business is the result
of “bad apples.”
RealityReality
Most people are followers; bad behavior
comes from a system that is flawed.
Five Business Ethics Myths (continued)
Trevino’s “Managing to Be Ethical:Trevino’s “Managing to Be Ethical:
Debunking Myths”Debunking Myths”
17. Myth #3Myth #3
Managing ethics can be accomplished through
formal ethical codes and programs.
RealityReality
Must be part of a larger coordinated cultural
system supporting ethical conduct every day.
Five Business Ethics Myths (continued)
Trevino’s “Managing to Be Ethical:Trevino’s “Managing to Be Ethical:
Debunking Myths”Debunking Myths”
18. Trevino’s “Managing to Be Ethical:Trevino’s “Managing to Be Ethical:
Debunking Myths”Debunking Myths”
Myth #4Myth #4
Ethical leadership is mostly about leader integrity.
RealityReality
Need to address what you expect of others.
Five Business Ethics Myths (continued)
19. Trevino’s “Managing to Be Ethical:Trevino’s “Managing to Be Ethical:
Debunking Myths”Debunking Myths”
Myth #5Myth #5
People are less ethical than they used to be.
RealityReality
Scandals are age old. Business & economies addressed
in Scripture, Talmud, Koran, etc.
Greenspan: “It is not that humans have become anymore greedy
than in generations past, it is that the avenues to express greed
have grown so enormously.”
Five Business Ethics Myths (continued)
20. Levels of Ethical ReflectionLevels of Ethical Reflection
Name and live our own personal ethicName and live our own personal ethic
Define and maintain a culture of ethicsDefine and maintain a culture of ethics
within our corporation, company, businesswithin our corporation, company, business
Support “raising the bar” for theSupport “raising the bar” for the
corporation/profession/nonprofitcorporation/profession/nonprofit
organization as a whole.organization as a whole.