This document provides an overview of a presentation on ethics awareness and managing an ethical workplace given by Andrew L. Urich to OGE Energy. The presentation discusses how human nature is not naturally ethical, examines common rationalizations for unethical behavior, and provides a guideline for ethical decision making. Key topics covered include how it is easier not to be ethical, beliefs about others' ethics, attitudes toward the company, and self-delusion through rationalization. Case problems are also presented to illustrate ethical dilemmas.

1. Ethics Awareness
Managing for an Ethical Workplace
OGE Energy
Spring 2013
Andrew L. Urich
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 am 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 went 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. The Tyco Party
Tyco CEO looted company of $600 million

8. Why are we here today?
Management
cares!!

9. Why are we here today?
Because our
reputation is
worth it!
Please remember
Enron’s real problem!

10. Case Problem 1
 The Thrifty V.P.

11. Case Problem 1
 The Thrifty V.P.
 Just following orders
 Ethics and young people
 Entrapment

12. Do Ethics Change With the
Times?

13. 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?”

14. Examining Unethical Behavior
Overview of Topics
1. It’s easier not to be ethical.
2. Beliefs about the ethics of others
3. Attitudes toward the company
4. Self-delusion (Rationalization)

15. 1. It’s Easier Not To Be Ethical
 Easier to do what’s convenient
 Easier to conform with the norms
 Easier to do what’s profitable
 Easier to win if you cheat
 It is very difficult to overcome the challenges
of human nature.

CRITICAL THINKING

16. 1. It’s Easier Not To Be Ethical
But It’s Worth the Trouble
 Ethics is the key to leadership
and influence.
“A lie can travel halfway around the
world while the truth is putting on
its shoes.”
Mark Twain

17. Case Problem 2
 Just Trying to Help

18. 2. Beliefs About the Ethics of
Others
 Everyone thinks like me.
 People follow the leader.
 Different ethics for different situations?
 Do you use the same standard of ethics in all aspects
of your life? For example, is your standard the same
with your family, at church, at work, with personal
business, etc.?

19. 3. Attitudes Toward the Company
 Do managers practice what they preach?
(It’s the perception that counts)
 “The fish rots from the head down.”
~Sir Andrew Louis
 Employees want to “even things out.”
 Authority is OUT—Influence is IN.

20. 4. Self-delusion
 Rationalization: Polite term for self-
delusion
 “The greatest of all faults, I should say,
is to be conscious of none.”
~ Thomas Carlyle (1795 – 1881) Scottish writer
 “A foolish consistency is the hobgoblin
of little minds.”
~Ralph Waldo Emerson

21. The Secret to Happiness
 Self-delusion
 Hypocrisy
 Ignorance

22. 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.

23. 4. Self-delusion

24. Case Problem 3
Bedlam Football

25. Guideline for
Ethical Decision Making
1. Is there an applicable law or OGE policy?
2. Should I ask about this before acting?
3. Have I taken time to think carefully before
acting?
4. Would I disclose my decision to my
supervisor, CEO, mother, etc.?
(What if everyone found out?)

26. Guideline for
Ethical Decision Making
5. Am I avoiding the appearance of
impropriety?
6. Am I defining the problem correctly?
7. Am I rationalizing?
8. Finally, when in doubt, do I know who to
contact?

27. Thank You!
Facebook.com/ProfessorUrich
aurich@okstate.edu
www.andrewurich.com

28. References
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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.
 Covey, Stephen C.R. The Speed of Trust, New York: Simon & Schuster, 2006.
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 Lattal, Alice Darnell, et. al. Ethics at Work. Performance Management Publications, 2005.
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 Maxwell, John C. There’s No Such Thing as “Business” Ethics . Warner Business Books,
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 Nelsen, Jane, et. al. Positive Discipline, Three Rivers Press, 1998.
 Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.