The current economic meltdown escalated by the recent chaos in the banking and financial industry has rekindled discussions about the ethical practices of businesses. Are business schools to blame or are we all responsible for the meltdown? What guiding principles should future decision-makers follow? Answer these questions by revisiting the complex subject of ethics in this presentation.

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9. Stanley O’Neal, former CEO & Chairman of
now defunct Merill Lynch.
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10. John Thain, former CEO & Chairman of now
defunct Merill Lynch.
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11. Rick Wagoner, former CEO of bankrupt-to-
be GM.
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12. Robert Nardelli, former CEO of bankrupt
Chrysler.
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13. CEO of Citigroup; former Prof. of Columbian
Business School & financier of Morgan
Stanley.
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16. HBS HBS
LBS
HBS CBS
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22. “ The Study of Right & Wrong ”
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23. “
”
Peter Stanwick & Sarah Stanwick (2009)“Understanding Business Ethics”
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31. “
”
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35. Laws
Experience Religion
Common
Traditions
Sense
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36. What is right & wrong is often
subjective .
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37. What is right & wrong is
universally non-binding .
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40. Ethical Decisions
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41. “
The moral basis or implications
of a decision situation.
”
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43. (L-R) Mr. Jeffrey K. Skilling, former President and CEO of Enron Corporation; Dr. Robert Jaedicke, Board of Directors Chairman of Audit and Compliance
Committee of Enron Corporation; and Mr. Herbert S. Winokur, Jr., Board of Directors Chairman of the Finance Committee of Enron Corporation, during the
Oversight and Investigation Subcommittee hearing.
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44. WorldCom Accounting Scandal Revealed: 3.8 billion in mislabeled expenses had been used to inflate cash flow and hide losses in 2001 and early 2002. Shown is
former Worldcom CEO Bernard Ebbers,
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45. Ethical Dilemma
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46. “ ”
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48. Food vs. Fuel
Using corn to make bio-fuel (alternative fuel to power vehicles) when 9
million people (5 million are children) die each year of hunger?
Causes of Hunger are related to Poverty
www.globalissues.org
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54. No justification
f o r “ i m m o r a l a c t i o n s ” .
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57. Deontological approach
is difficult to apply. Why?
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58. 1
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60. 2
“Moral rights”
are not universal.
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62. 3
“Moral rights” | laws | regulations are
subject to interpretation.
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66. Lying, cheating, killing, etc are justifiable under certain conditions.
When maximum benefits
outweighs the maximum bad.
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67. Teleological approach creates
more problems than it solves.
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68. 1
Every behaviour is
right as long I can justify it.
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69. 2
No standard application
o f “ M o r a l r i g h t s ” | l aw s | re g u l a t i o n s
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70. 3
Maximum good is subjective
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71. 4
“good”
Are humans capable to make
judgement of the “maximum” good?
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72. Herbert Simon –
American Psychologist
1916-2001
... explains why
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73. How good is the
information you received?
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75. Ethical Decision-Making
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76. Identify the
ethical issue
Monitor decision Define the
outcomes ethical issue
Make & justify the Identify influencing
ethical decision factors
Select guiding
principles
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77. Identify the
ethical issue
Monitor decision Define the
outcomes ethical issue
Make & justify the Identify influencing
ethical decision factors
Select guiding
principles
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78. What factors do shape your
ability to identify an ethical issue?
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79. Goals Knowledge Interests Past Experiences
Cultural set Education Other Info.
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84. “The fundamentals of our
economy are strong.
”
15 Sept. 2008,
Jacksonville, Florida
Rep. Senator & former US presidential candidate
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85. Did they see “it” coming?
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86. Identify the
ethical issue
Monitor decision Define the
outcomes ethical issue
Make & justify the Identify influencing
ethical decision factors / actors
Select guiding
principles
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87. Do you have complete information
to understand the problem?
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88. Ethical but Unethical &
Illegal Illegal Illegal
Legal and Legal but
Legal Ethical unethical
Ethical Unethical
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89. Ethical but Unethical &
Illegal Illegal Illegal
Legal and Legal but
Legal Ethical unethical
Ethical Unethical
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90. Identify the
ethical issue
Monitor decision Define the
outcomes ethical issue
Make & justify the Identify influencing
ethical decision factors / actors
Select guiding
principles
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91. What | who is at stake?
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92. Stakeholder Stakeholder
High
A B
Low Stakeholder Stakeholder
C D
Low High
Adapted from Mitchell, et al. 1997
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Gardner et al. 1986

93. Identify the
ethical issue
Monitor decision Define the
outcomes ethical issue
Make & justify the Identify influencing
ethical decision factors / actors
Select guiding
principles
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94. Deontological Teleological
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95. Identify the
ethical issue
Monitor decision Define the
outcomes ethical issue
Make & justify the Identify influencing
ethical decision factors / actors
Select guiding
principles
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96. Identify the
ethical issue
Monitor decision Define the
outcomes ethical issue
Make & justify the Identify influencing
ethical decision factors / actors
Select guiding
principles
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