1. What Is Ethics?
Dr. Sharon Green
Department of Management and
Finance

2. Where are we starting from?
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3. What is ‘Ethics’?
ethics |ˈeθiks| |ˈɛθɪks| |ˈɛθɪks|plural
noun
 1 [usu. treated as pl. ] moral principles
that govern a person's or group's
behavior • the moral correctness of
specified conduct: the ethics of child
labor.
 2 [usu. treated as sing. ] the branch of
knowledge that deals with moral
principles. 3

4. What do we mean by ‘Moral’?
moral |ˈmôrəl; ˈmär-|adjective
 concerned with the principles of right and wrong behavior and
the goodness or badness of human character • concerned
with or adhering to the code of interpersonal behavior that is
considered right or acceptable • holding or manifesting high
principles for proper conduct
 a lesson, esp. one concerning what is right or prudent, that
can be derived from a story, a piece of information, or an
experience.
 morals: a person's standards of behavior or beliefs
concerning what is and is not acceptable for them to do •
standards of behavior that are considered good or acceptable
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5. What do we mean by ‘Responsible’
responsible |riˈspänsəbəl| adjective
 having an obligation to do something, or having control over
or care for someone, as part of one's job or role
 being the primary cause of something and so able to be
blamed or credited for it
 (of a job or position) involving important duties, independent
decision-making, or control over others
 (responsible to) having to report to (a superior or someone in
authority) and be answerable to them for one's actions
 capable of being trusted : a responsible adult
 morally accountable for one's behavior
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6. What do we mean by ‘Prudential’?
 prudential |proōˈden ch əl| adjective
 involving or showing care and forethought,
especially in business and financial matters.
 prudent |ˈproōdnt| adjective
 acting with or showing care and thought for
the future : No prudent money manager would
authorize a loan without first knowing its
purpose.
 shrewd in the management of of practical
affairs. Frugal.
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7. Are you a…
or a
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8. Do you know the difference…
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9. Do you already have all the…
ANSWERS
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10. Do we have an ‘ethical sense’?
 Where and how do we sense right and
wrong?
 Is there an ‘ethical sense’ that is like our
senses of sight, hearing, smell, touch?
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11. Moral Intelligence
 Moral intelligence (MI)
 The capacity to determine how universal human
principles should be applied to our personal
values, goals, and actions (Lennick & Kiel, 2005).
 Important “differentiating competency”.
MI is a “soft” skill.
MI makes a significant difference in
organizational effectiveness.
Moral intelligence provides a basis for
insight.
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12. Moral Intelligence
 Four + 2 Principles of Moral Intelligence
Integrity
Responsibility
Compassion
Forgiveness
Imaginat ion
Cour age
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13. Moral Competency
Integrity
Responsibility W N
Forgiveness S E Compassion
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14. Moral Competency
“In their decision-making role,
executive ethical leaders are
thought to hold to a solid set of
ethical values and principles.”
From “Moral Person and Moral Manager”
by Trevino, Hartman & Brown, 2000
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15. Universal Principles
 Integrity  Justice
 Responsibility  Temperance/ Self-
 Compassion Discipline
 Forgiveness  Humility
 Generosity  Care for living
things and the
 Commitment to a environment
transcending
 Wisdom
power
 Courage 15

16. Business Ethics: What is it?
 Is “business ethics” an oxymoron?
 Oxymoron: a combination of contradictory or
incongruous words; e.g., cruel kindness.
 Should we be cynical about the potential
for ethical action in today’s businesses?
 Cynical: believing that people are motivated
only by self-interest; distrustful of human
sincerity or integrity; pessimistic.
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17. How Cynical Are We?
 What was your cynicism quotient?
 Possible outcomes from 10 to 50, where 50 is
COMPLETELY CYNICAL.
 Plot the class.
 What are the implications for managing ethics
in an organization?
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18. Expand your peripheral vision
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19. Ethical Decision Making Process
Characteristics of Individuals
Ethical Ethical Ethical
Awareness Judgment Behavior
Characteristics of Organizations
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20. Thriving at Work Without Selling
Your Soul
 Understand the difference between
healthy vs. unhealthy compromise
 Know how to redefine the game and
engage at a higher level
 Strengthen your ability to engage at a
higher level in a wide range of
circumstances
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21. Why be ethical?
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22. It Pays to be Ethical
WME: World’s Most Ethical Companies (from Ethisphere) 22

23. Mechanical Brake Systems MBS
Started in Union City 3,125 full-time employees
By Floyd & Jake Jenner 116 part-time employees
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24. Meet Mr. Steve Lee, CEO of MBS
 CEO and President of MBS for
the last ten years
 Background in finance, no
manufacturing experience
 End MBS’ pension plan and
sharply reduce health care
benefits?
 What is the ethical choice?
What do you recommend?
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25. Design for Ethics & Responsibility:
D4E&R
 Deliverables
 20 minute Team Presentation
 Our Target Organization
 Our research process
 Our findings (ethical issues, current state of ethics
and social responsibility, examples)
 Our recommendations, including implementation
 7-10 page Management Proposal
 Following the same format, a written proposal to
management of the Target Organization
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26. Design for Ethics & Responsibility:
D4E&R
 Process
 Meet your team and make Team Agreements
 Identify your Target Organization
 Secondary Research divided among Team Members
 Field Research divided among Team Members
 Cultural Assessment
 Ethics Audit (B Corps)
 Analyze results and interpret
 (re)Design for Ethics & Responsibility
 Plan and complete your Presentation/Proposal

27. Team Problem Solving:
Dialectic Process
Situation Problem Solution Implementation
Analysis Analysis Analysis Analysis
Visioning/ Information Idea
Participation
Exploration Gathering Getting
Geen
r
M de
o
Solution
Problem Problem Problem Solution
Imple-
as Given Chosen Defined Chosen
mented
Red
Priority Problem Decision
M de
o
Setting Definition Making
Planning
Leader Detective Inventor Coordinator27

28. Team Leaders & Team Members
 Decide who will take leadership responsibility
each week, post your schedule to Blackboard.
 Take your Team Leader responsibilities
seriously.
 Practice assertive leadership skills.
 Practice integrity, responsibility, compassion and
forgiveness
 Take your Team Member responsibilities
seriously.
 Support the Team Leader.
 Come prepared, participate and don’t block work. 28

29. Reading & Class Prep for Next Week
 Managing Business Ethics Chapter 2
 Moral Intelligence Chapters 3 & 4
 The Compromise Trap Chapters 1 & 2
 Class Prep
 Values Ranking Survey (Blackboard)
 Worksheets 1 & 3 in L & K (pp. 41 & 51)
 Identify your favorite ‘moral virus’ (L&K Ch. 4 & BB)
 Communicate with your team about possible TOs and
your Team Contract
 Begin Secondary Research for D4E&R
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30. Values Ranking
 Complete the Personal Values Ranking,
providing ranks for your terminal values and
your instrumental values separately. Attempt
to rank all of the values.
 Write a one-to-two paragraph commentary
and interpretation of your rankings. What
was your experience of completing the
rankings? What do your value rankings say
about you as a business professional? How
do your values guide your ethical choices?
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