BUSINESS ETHICS & RELATED APPROACHES
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Transcript of BUSINESS ETHICS & RELATED APPROACHES
BUSINESS ETHICS & RELATED APPROACHES
Bilge ÖztürkMehmet HartlapMurat AkkayaMehtap Ulusal
Topics to be Covered
Basic Definitions & Ethical Approaches Business Ethics and its Evolution Ethics in Business Managing Business Ethics
Basic Definitions and Ethical Approaches
Bilge ÖZTÜRK
Basic Definitions
Norms Values Morality Ethics
Norms
Action directives that tell us what we should or should not do in certain situations.
Values
Intrinsically worthy experiences, states of affairs and qualities of people or organizations.
Morality
The special set of values that mark off the more or less absolute limitations on behavior
Ethics
Ethics – A set of moral principles or values that governs the conduct of an individual or a group.
Ethics Continued
Micro ethics: our personal and professional concerns for living well and doing what is right
Macro ethics: larger concerns about the kind of society we live in, the kind of economic system that serves the society
Ethical Theories
Ethical RelativismEthical Relativism
Ethical Ethical FundamentalismFundamentalism
UtilitarianismUtilitarianism
Kantian EthicsKantian EthicsRawls’s Social Rawls’s Social Justice TheoryJustice Theory
Ethical Fundamentalism
Ethical fundamentalism - When a person looks to an outside source for ethical rules or commands.
Utilitarianism
A moral theory that dictates that people must choose the action or follow the rule that provides the greatest good to society.
This does not mean the greatest good for the greatest number of people.
Kantian Ethics (Duty Ethics)
A moral theory that says people owe moral duties that are based on universal rules.
This theory would have people behave according to the categorical imperative:
“Do unto others as you would have them do unto you.”
Kantian Ethics (Duty Ethics) (continued)
Deontology’s universal rules are based on two important principles:
1. Consistency 2. Reversibility
Rawls’s Social Justice Theory
Rawls’s social contractA moral theory that says each person is presumed to have entered into a social contract, with all others in society, to obey moral rules that are necessary for people to live in peace and harmony.
Rawls’s Social Justice Theory (continued)
Rawls’s Distributive Justice Theory “veil of ignorance” would permit the
fairest possible principles to be selected.
Ethical Relativism
A moral theory that holds that individuals must decide what is ethical based on their own feelings as to what is right or wrong.
If a person meets his or her own moral standard in making a decision, no one can criticize him or her for it.
Business Ethics and Its Evolution
Mehmet Hartlap
“The most powerful argument for ethics in business is success.”
Robert C. Solomon
What is Business Ethics?
Consist of principles and standards that guide behavior in the world of business.
Evolution of Business Ethics
Before 1960: Presented from a religious viewpoint…concerns about fair wages; labor practices; capitalism
The 1960s: organization became ethical unit; numerous consumer protection laws
The 1970’s
Began to develop as a field of study Business Professors began to teach
& write about corporate social responsibility
Philosophers applied ethical theories to business
Centers dealing with issues of business ethics established
The 1980s - Consolidation
Acknowledged as a field of study Growth of college courses Growth of services provided by
Centers of Business Ethics
The 1990s - Institutionalization
support of free trade, but greater restrictions on tobacco companies’ advertising
Guidelines for Organizations, setting tone for ethical compliance programs
2000 & Beyond
Trend to move away from legally based ethical efforts to….
Culturally-based ethical initiatives Seeing development of global
standards of ethics
Business Ethics: Today vs. Earlier Period
Ex p
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Eth
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Ethical Problem
Ethical Problem
Society’s Expectations of Business Ethics
Actual Business Ethics
1950s 2000sTime
Ethics in Business
Murat Akkaya
Why study business ethics?
Why? Why? Why?
According to the study carried by Price Waterhouse Coopers, Turkey is the 4th country in CORRUPTION among 35 countries.
According to international transparency, Turkey is numbered as 62nd among 102 countries in 2002, 52nd in 2001 and 27th in 1995.
We think, these are the enough results that shows the need to ethical studies of Turkey.
Common Causes of Unethical Behavior
Following boss’s directives Meeting overly aggressive
business/financial objectives Helping the organization survive Meeting schedule pressures Be a team player (group think) Rationalizing that others do it Resisting competitive threats Advancing own career
1-Following boss’s directives
To be a journalist in Doğan Holding!
Some Examples From Milliyet
Aydın Doğan yine rekortmen!(http://www.milliyet.com/2004/04/07/ekonomi/aeko.html)
Erzincan’a Aydın Doğan Kız Öğrenci Yurdu!
(http://www.milliyet.com/2006/03/19/guncel/gun05.html)
500 ağaçlık Aydın Doğan Ormanı!(http://www.milliyet.com/2002/04/12/yasam/yas09.html)
Sweet Heart Aydın Doğan in every topic!!!
To be a journalist in Doğan Holding!!!
You may see lots of topics in Milliyet or Hürriyet that priase Aydın Doğan.
But surprisingly! You can not find such topics in other newspaper groups (Ciner, Uzan).
Because the boss of the newspapers is Aydın Doğan and
The boss’s directives is clear: Show me as the sweet angel of Turkey But we know from our research that ethical
studies say journalism had to be independent. So, it is difficult to be an ethical journalist in
Milliyet or Hürriyet. And What about us???
2-Meeting overly aggressive business/financial objectives
To Be a banker in
To Be a banker in
Citibank in Germany Citibank in Japan Citibank in European Area
(Hürrüyet, 16.12.2004)
3-Advancing own career
To be a manager in
(Vatan, Emine Algan)
To be a manager in
You can buy a cancer drug of Roche privately for 88 YTL in Turkey.
But, it was sold to SSK for 230 YTL, because Roche assume that the government was so rich.
Veysi Mungan, an engineer in Roche, complained to court about this interesting situation.
But, all the top managers want to stop him.
Common Unethical Acts
Lying to supervisors Falsifying records Conflict of Interest Stealing Gift/entertainment receipt in
violation of company policy
Common Misconduct in Organizations
Misrepresenting hours worked Management lying to employees,
customers, vendors or the public Misuse of organizational assets Lying on reports/falsifying records Sexual harassment Stealing/theft Accepting or giving bribes or kickbacks Withholding needed information from
employees, customers, vendors or public
1-Misrepresenting hours worked
Textile industry in Turkey and China
No boundary of overworking (12 hour a day, 7 days in a week)
No social gains (SSK in Turkey) No legal salary (Asgari Ücret in Turkey) Children meet to Factories in Turkey and also in china So, Who cares the rules?
2-Management lying to employees, customers, vendors or the public
‘s message to customers and public:
I do not hire children in my company. But I work with the Chinese companies that
hires children.
3-Sexual harassment
A question to business woman in Turkey
Do you face to sexual harassment in your business life?
Yes %40/No %48.84/I’m not certain %11
(İnsankaynakları.com)
What are the effects of sexual harassment?
4-Withholding needed information from employees, customers, vendors or public
Enron Tyco World-com …
EXAMPLES OF UNETHICAL BEHAVOIR
Causing the removal/disappearance of information
Professionals practicing beyond area of expertise
Unnecessary stimulation of conflict Failure to follow proper procedure Disregarding individual privacy Misleading advertising Conflict of interest
1-Misleading advertising
Norwegian Fishers-Cosmetics Firms Pantene Pro-V, P&G in England Gençleştiriyor, yeniliyor, sıkılaştırıyor,
besliyor.
(Hürriyet, 13.05.2005)
The Summary Of this Section
Hiçbir zaman idealist olmadım, ne yani aç mı
kalsaydım?
Mehmet Ali Erbil
(Taken from the magazine, Haftalık)
Managing Business Ethics
Mehtap UlusalMehtap Ulusal
Ethical Dilemmas
Making decisions under stress or dealing with complex issues that have no clear indication of what is right or wrong.
There are NO simple ethical dilemmas…all have layers of meaning and effect.
Ethical Dilemmas
Honesty & integrity
Conflict of interest
Loyalty vs.. truth
Whistle-blowing
A Real Life Example…
WHAT WOULD YOU DO IF YOU WERE THE SALES MANAGER???
The Ethics Check
Is it Legal? Is it Fair? How do I feel about it?
Helping Employees Do the Right Thing
Prepare an Ethics Statement (codes of ethics)
a written outline of the ethical principles of a business
Codes of Ethics
Areas often covered by codes of ethics: Workforce diversity Bribes and kickbacks Political contributions Honesty of books or records Customer/supplier relationships Confidentiality of corporate information
A Good ExampleJohnson & Johnson
We believe our first responsibility is to the doctors, nurses and patients, to the
mothers and fathers and all others who use our products and services. In meeting their needs, everything must be of high
quality. We constantly strive to reduce our costs in order to maintain reasonable
prices. Customers’ orders must be serviced promptly and accurately. Our
suppliers and distributors must have an opportunity to make a fair profit.
A Good ExampleJohnson & Johnson
Clearly established Code of Ethics Constancy in adherence to Code Positive Community perception
Higher Management support Maintenance of Focus
Staff Involvement
Helping Employees Do the Right Thing (continued)
Talking about ethics Clarify employees responsibilities to
stakeholders Don’t punish employees for expressing
moral views Encourage people to resolve problems
through collaboration Eliminate all abuses of ethical standards Encourage discussion of ethical
standards
Helping Employees Do the Right Thing (continued)
Don’t reward unethical behavior Create departments of ethics and
law Provide legal and Ethics Training Provide ethical leadership Maintain constancy of purpose
Good Managers Make the Difference
Managers must accept personal responsibility for doing the “right” things.
Managers play a crucial role in responding to public demands.
Ethics and social responsibility play a central role in managers’ decisions and activities.
Benefits of Managing Ethics in the Workplace
Improves society. Maintains a moral course in turbulent
times. Cultivates employee teamwork,
productivity, morale and development. Establishes values for quality
management, strategic planning and diversity management.
Promotes strong public image. It is the RIGHT thing to do!
CLOSURE OF TOPIC
Business ethics, practiced throughout the deepest layers of a company, become the heart and soul of the company's culture and can mean the difference between success and failure…
Be Trustful, keep an Open Mind, Meet Obligations, Have Clear
Documents, Become Community Involved, Maintain
Accounting Control, Be Respectful...
Robert Moment
THANK YOU!!!