Building an Ethical Culture

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.

3. Where does it start?Where does it start?

4. Levels of Ethical ReflectionLevels of Ethical Reflection
I. Individual/Personal Ethic
II. Organizational Ethics
III. Ethics of the Corporation/Profession

5. Ethics DefinitionsEthics Definitions
♦Lord Moulton – Obedience to the Unenforceable

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!

14. Norms
Heroes
Rituals
Myths/Stories
Language
Ethical/Ethical/
UnethicalUnethical
BehaviorBehavior
Leadership
Structure
Rules/Policies
Reward System
Selection System
Orientation/
Training
Decision
Processes
InformalInformal
SystemsSystems
FormalFormal
SystemsSystems
Align the formal and informalAlign the formal and informalSource: Managing Business Ethics: Straight Talk about How To Do It Right, Linda K. Trevino and Katherine A. Nelson

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.