Ethics Awareness

                Andrew L. Urich, J.D.
    Puterbaugh Professor of Ethics & Legal Studies
             Spears School of Business
             Oklahoma State University
                aurich@okstate.edu
                www.andrewurich.com
Ethics Awareness
   I am NOT here to moralize.

   “Awareness” changes human behavior.
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’m 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.
   When things go wrong, I look for someone to share the
    blame.
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.
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.
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 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.
The Tyco Party
Tyco CEO looted company of $600 million
Why am I here today?

Because your
reputation is
  worth it!

 Please remember
Enron’s real problem!
Do Ethics Change With the
Times?
   The Thrifty V.P.
        Just following orders
        Ethics and young people

        Entrapment
              Does everyone have their price?
It’s Easier Not To Be Ethical
   Easier to do what’s convenient
   Easier to conform to norms
   Easier to do what’s profitable
   Easier to win if you cheat

   It is very difficult to overcome the challenges
    of human nature
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
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
The Secret to Happiness

                  Self-delusion

                  Hypocrisy

                  Ignorance
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.
Thank You!


Facebook.com/ProfessorUrich



    aurich@okstate.edu
  www.andrewurich.com
Case Problem
Bedlam Football
Guideline for
   Ethical Decision Making
1. Is there an applicable law or organizational
    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?)
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?
References
   Ailes, Roger. You Are the Message. New York. Doubleday, 1988.
   Bazerman, Max H. Smart Money Decisions, Wiley & Sons, 1999.
   Blanchard, Kenneth, et.al. The Power of Ethical Management. William Morrow and Company,
    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.
   Fisher, Roger and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981.
   Koch, Charles G., The Science of Success, Wiley & Sons, 2007.
   Lakoff, George. Moral Politics: How Liberals and Conservatives Think . The University of
    Chicago Press, 2002.
   Lattal, Alice Darnell, et. al. Ethics at Work. Performance Management Publications, 2005.
   Lewicki, Roy J., et. al. Negotiation. 2nd Edition., Irwin, 1994.
   Lewicki, Roy J., et. al. Essential of Negotiation, 4th Ed. McGraw Hill, 2007.
   Maxwell, John C. There’s No Such Thing as “Business” Ethics . Warner Business Books,
    2003.
   Nelsen, Jane, et. al. Positive Discipline, Three Rivers Press, 1998.
   Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.

Ethics WSLCA 1.16.13 OKC

  • 1.
    Ethics Awareness Andrew L. Urich, J.D. 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 Ito 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’m 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.  When things go wrong, I look for someone to share the blame.
  • 4.
    Who Am Ito 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 toRemember  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 inthe 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 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 TycoCEO looted company of $600 million
  • 8.
    Why am Ihere today? Because your reputation is worth it! Please remember Enron’s real problem!
  • 9.
    Do Ethics ChangeWith the Times?  The Thrifty V.P.  Just following orders  Ethics and young people  Entrapment  Does everyone have their price?
  • 10.
    It’s Easier NotTo Be Ethical  Easier to do what’s convenient  Easier to conform to norms  Easier to do what’s profitable  Easier to win if you cheat  It is very difficult to overcome the challenges of human nature
  • 11.
    It’s Easier NotTo 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
  • 12.
    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
  • 13.
    The Secret toHappiness  Self-delusion  Hypocrisy  Ignorance
  • 14.
    The Secret toHappiness 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.
  • 15.
    Thank You! Facebook.com/ProfessorUrich aurich@okstate.edu www.andrewurich.com
  • 16.
  • 17.
    Guideline for Ethical Decision Making 1. Is there an applicable law or organizational 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?)
  • 18.
    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?
  • 19.
    References  Ailes, Roger. You Are the Message. New York. Doubleday, 1988.  Bazerman, Max H. Smart Money Decisions, Wiley & Sons, 1999.  Blanchard, Kenneth, et.al. The Power of Ethical Management. William Morrow and Company, 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.  Fisher, Roger and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981.  Koch, Charles G., The Science of Success, Wiley & Sons, 2007.  Lakoff, George. Moral Politics: How Liberals and Conservatives Think . The University of Chicago Press, 2002.  Lattal, Alice Darnell, et. al. Ethics at Work. Performance Management Publications, 2005.  Lewicki, Roy J., et. al. Negotiation. 2nd Edition., Irwin, 1994.  Lewicki, Roy J., et. al. Essential of Negotiation, 4th Ed. McGraw Hill, 2007.  Maxwell, John C. There’s No Such Thing as “Business” Ethics . Warner Business Books, 2003.  Nelsen, Jane, et. al. Positive Discipline, Three Rivers Press, 1998.  Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.

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