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Edit Comment Close Premium member Presentation Transcript Ethics: Have We Lost Our Way?: Ethics: Have We Lost Our Way? 25th Annual International Conference Community College Business Officers Galen Howsare Hawkeye Community College Vice President Administration and Finance Waterloo, Iowa November 12, 2007Important Reminder: Important Reminder Crucial Conversations Opinions vary Stakes are high Emotions run strong “What happens in Vegas, stays in Vegas” The personal stories that get shared today must remain confidential. It’s okay to share stories in the context of a friend in another organization. Slide6: “There is no right way to do the wrong thing.” Kenneth Blanchard and Norman Vincent Peale “The Power of Ethical Management”Slide7: “..to know and not to do is really not to know.” Stephen R. Covey “Crucial Conversations”Outline: Outline Background Ethical Frameworks Personal/Professional Code of Ethics Ethical Dilemmas Conflict of Interest Who would have thought?: Who would have thought? Telling and expecting people to: Be honest and fair Avoid conflicts of interest Model appropriate behavior Work diligently Be accountable Comply with all laws, policies and rules Check your work Keep your work Why?: Why? People betrayed the public’s trust Watergate (President of United States) US Congress scandals Iowa Legislators (Mingo) Iowa Trust scandal Clergy and church leaders (sexual and child abuse) Enron, World Com, Tyco, CIETCRecent headlines within last weeks: Recent headlines within last weeks US Airways CEO Issues on an Apology for DUI Arrest SEC fines TREND Micro CEO Enterosys Ex-Exec Settles with CEO Samsung to Pay U.S. $90 m in DRAM Case Hyundai Chairman goes to Jail for Embezzlement and Breach of Trust Dell Investors File Suit over Accounting Practices Today’s students, Tomorrow’s Leaders: Today’s students, Tomorrow’s Leaders Cheating Nearly 80% report cheating on a test 67% have copied homework USA Today (Aug. 12, 1995) reported Laura Schlessinger as saying, “Cheating has become a sport. Today’s American dream is to be happy, not honorable.” Student-”I’m going to cheat. You do whatever you have to do to get the better job.” If student cheating, parents get mad or sue school.Society’s solution-legislation: Society’s solution-legislation Sarbanes-Oxley Act of 2002 Important elements Whistleblower protection Code of Ethics (framework, not solutions) CEO/CFO certification (Tone at the Top) Definition-Ethics: Definition-Ethics Dictionary Discipline dealing with what is good and bad and with moral duty and obligation Principles of conduct governing an individual or a groupReflection : Reflection Take a few moments individually to answer this question. (3 minutes) During your youth, what did your parents or significant adult teach you about right and wrong? Question-Responses: Question-Responses “Ethics Check” Questions: “Ethics Check” Questions Is it legal? Is it balanced” Sense of fairness and rationality Short vs Long term Win-win How will it make me feel about myself? Make me proud? Published in newspaper? My family knows? Blanchard and Peale (1988)Slide21: “People with humility don’t think less of themselves… They just think about themselves less.” Kenneth Blanchard and Norman Vincent Peale “The Power of Ethical Management”Ethical Frameworks: Ethical Frameworks Justice Care Power Community/Organization Profession (Ethics for School Business Officials, 2005)Justice: Justice Characteristics Rights and laws Rules and regulations Fairness Hierarchy In Practice Supports equality Balances rights of the groups with individual rights Asks: What is the legal course of action? What is fair?Care: Care Characteristics Personal connections Compassion Nurturance Nonhierarchical In Practice Focuses on feelings and individual relationships Asks: How can we promote a nurturing, positive organizational climate?Power : Power Characteristics Power and influence Social class inequities Gender inequities Disabilities Ethnic and racial differences Religious differences In Practice Challenges laws and rules Questions the status quo Considers alternative perspectives Resists abuse of authority Asks: Who made the rule?Community: Community Characteristics Community/organizational standards Community/organizational political influence In Practice Considers both the good and bad aspects of community/organization Asks: Who is the community/organization?Profession: Profession Characteristics Personal ethical codes Professional ethical codes Professional association standards Best interests of the client In Practice Looks at clashes between personal and professional codes Asks: What is in the best interests of the client? What is in accordance with professional norms?What is the FIRST thing you ask or consider?: What is the FIRST thing you ask or consider? What does the law require? (Justice) What promotes a caring culture? (Care) Who made the rules? (Power) Who is the community? (Community) What is in accordance with professional norms? (Profession) Steps in Examining Personal and Professional Codes of Ethics: Steps in Examining Personal and Professional Codes of Ethics Identify your personal code of ethics Articulate your own individual professional code of ethics Compare and contrast personal and individual professional codes Reconcile differences between personal and individual professional codesSlide30: “Honesty is the cornerstone of character. The honest man or woman seeks not merely to avoid criminal or illegal acts, but to be scrupulously fair, upright, fearless in both action and expression. Honesty pays dividends both in dollars and in peace of mind.” B.C. ForbesExample-Personal Code of Ethics: Example-Personal Code of Ethics Deeply personal Based on serious, sometimes painful reflection Treat others as you would like to be treated. Deal honestly with others. Be loyal to family and friends. Take care of physical well-being; avoid excess Attend to spiritual growth. Be happy with what you have; don’t envy others. Be kind to elderly people.Personal Code of Ethics-Where are you?: Personal Code of Ethics-Where are you? Reflection time (5 minutes) Articulate your own individual personal/professional code of ethics to person seated next to you. (5 minutes) What ethical actions do you hold dear (willing to be fired)? What do you think of first? What are the critical incidents in your life that shaped your ethical perspective? What are the moral principles or values that guide your ethical decision making?My Personal Code of Ethics: My Personal Code of Ethics Individual Professional Code of Ethics-Example: Individual Professional Code of Ethics-Example Be loyal to employers. Treat others as you would like to be treated. Deal honestly with others. Be straightforward—frank—with others. Always be courteous and kind. Act as a role model for other professionals. Serve as a mentor for new professionals. Balance time between work home and family.Securities and Exchange Commission requirements: Securities and Exchange Commission requirements Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships Full, fair, accurate, timely and understandable disclosure in a company’s SEC filings and other public communications Compliance with applicable government laws, rules and regulations Prompt internal reporting of violations to the code to a specific staff person named in the code of ethics James A. Autry, “Love and Profit: the art of caring leadership”: James A. Autry, “Love and Profit: the art of caring leadership” “There is no such thing as business ethics, only people ethics.” “We will be fair, sensitive, honest, trusting, and trustworthy in all our dealings among ourselves, with customers, with vendors, and with the community at large. We will obey all laws, in fact and in spirit, and we will always do the right thing, in every situation, to the best of our abilities. And if we fail, we will do whatever is required to make amends.”My Professional Code of Ethics: My Professional Code of Ethics Dealing with Ethical Dilemmas: Dealing with Ethical Dilemmas Recognizing an ethical dilemma Framing it in alternative ways to understand the perspectives and behaviors of others Selecting an appropriate approach to resolving the ethical dilemma Implementing an effective action plan to achieve results (Ethics for School Business Officials, 2005)Ethical Dilemmas: Ethical Dilemmas The following questions were adapted from the book by James A. Autry and Peter Roy, The Book of Hard Choices: How to Make the Right Decisions at Work and Keep Your Self-Respect.(2006)Ethical Dilemmas: Ethical Dilemmas Look the other way or face down the corruption? Fire someone you really like or do her work for her? Say no to your biggest contributor or give up on fairness? Do the right thing immediately or postpone it for the greater good? Ethical Dilemmas: Ethical Dilemmas Go for the quick fix or teach values first? Do what everybody’s doing or do what you know is right? Go for the next big job or return to the quiet life? Take responsibility or rationalize your mistakes? Slide42: Be a manager or be a minister? Have courage for a noble cause or surrender to anger and threats? Tell the public everything or suppress the news? Intervene on behalf of employees or tolerate an executive bully?Ethical Dilemmas: Ethical Dilemmas Quit your job or support a lie? Stick to the vision or go for the money? Stay with high quality and high cost or cut the quality and lower the cost? Protect your career or do your duty? Do the hard right or settle for the easy wrong?Ethical Dilemmas: Ethical Dilemmas Support a colleague or think only of yourself? Go along and get along or rescue the college culture? Fix the management problem or protect your social standing? Live your faith or give in to peer pressure?Ethical Dilemmas: Ethical Dilemmas Extend yourself or defend yourself? What choices have you made?Ethical Dilemma: Ethical Dilemma With the person next to you: Share an ethical dilemma you have dealt with or observed and tell how it was handled? What could have been done better?Conflict of Interest: Conflict of Interest “More generally, conflict of interest can be defined as any situation in which an individual or corporation (either private or governmental) is in a position to exploit a professional or official capacity in some way for their personal or corporate benefit.” Wikipedia EncyclopediaWhat are some conflicts?: What are some conflicts? Inappropriate influences Decision-makers meet higher standard of disclosure and divestiture Prohibit consulting with related organizations Limit money awards from outside organizations Operating a private businessWhat are some conflicts?: What are some conflicts? Outside employment Family interests, family co-workers Gifts from friends who do business with person receiving gifts Social relationship with direct reports Fake resume data Copying other student’s work Other????Ways to mitigate conflicts?: Ways to mitigate conflicts? Remove Full disclosure Recusal Arm’s length transactions Code of EthicsSlide51: Is your organization an ethical workplace? How do you know? “Tone at the Top” If a supervisor, initiate the conversation. If not a manager, talk with others and see if interest before going to supervisor.Slide52: Permission granted by The Wall Street Journal to reprint.Slide53: Thank you for your participation and for inviting me to share some thoughts on ethics. 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