Slide 1-2lnweb90.worldbank.org/ECA/Transport.nsf/ExtECADocByUnid/AEBC8BC811... · Module 1-1:...

Module 1-1: Business Ethics Facilitator

1-1

Overview

When you start the first session introduce yourself to the

participants. Inform them of your credentials and studies. Then, ask

the participants to introduce themselves.

Show Slide 1-2. Give an overview of business ethics. Clarify each

topic given in the overview.

Objectives

What are you expecting to learn about Business Ethics?

(Let the participants share/discuss their expectations. Give 2

minutes for answers.)

Show Slide 1-3. Inform the participants of the objectives. Make

sure the participants understand each objective clearly.

Please turn to page 1-2 of your manual.

5 minutes

Overview

New Page

Question

Objective

2 minutes

Attention

Slide 1-2

Slide 1-3


1-2

The Egyptian Book of Dead

Show Slide 1-4 and start the process with the poem “Egyptian

Book of Dead.”

Whilst reading the poem, choose and emphasis the most relevant

sentences.

After reading the poem talk about the ideas given in the poem.


Attention

Facilitator

Slide

New Page

3 minutes

Slide 1-4


1-3

Introduction

Continue the process with the introduction of the unit.

For thousands of years people have developed “elaborate and

sophisticated rules and codes” of ethics for individual and

organizational behavior. Inform the participants of the history of

ethics.


Attention

Facilitator

New Page

5 minutes


1-4

Show Slide 1-5 and continue the process.

Let some of the participants answer the questions in the exercise.

Have you ever thought about these questions before?

(Ask several of the participants. Give 2 minutes for answers)


Slide

5 minutes

New Page

Question

Exercise

Slide 1-5


1-5

What is Ethics?

How do you define ethics in related to your experiences?

(Ask several of the participants. Give 2 minutes for answers)

Show Slides 1-6 and continue the process with the subject “Ethics

Refers to…”


Question

Slide

New Page

13 minutes

Slide 1-6


1-6

Show the Slide 1-7 and continue the process with the subject

“Ethics is not...”

How can you illustrate ethical and unethical conduct related to

these explanations?

(Ask several of the participants. Give 5 minutes for answers.)

Ethics is concerned with the right and the wrong and the good or the

bad. But it is hard to decide between right or wrong. Give examples

to clarify decision between right and wrong.

Direct attention of the participants to the post-it box and explain

“What Ethics is”.

Show Slide 1-8 and continue instruction.


Slide

Question

Facilitator

Slide

New Page

Post-it

Slide 1-7

Slide 1-8


1-7

Most people when faced with a choice between the right, the

wonderful and the good on the one hand, and the wrong, the terrible

and the bad on the other would choose to do the right thing.

Sometimes it is helpful to use a tool to determine if a choice is right

or wrong.

Show Slide 1-9 which identifies the right versus wrong situation

and differentiating wrong things from right things.

Explain the legal, gut-feeling and front page test as shown in the

related paragraphs of the page.


Slide

New Page

Facilitator

Facilitator

Slide 1-9


1-8

Explain the role-model test. Give a situation to some participants

and let them apply the role-model test to these situations.

Emphasize and explain unethical conduct as explained in the last

paragraph of the page.


New Page

Facilitator

Facilitator


1-9

Business Ethics

Explain the context of ethical and unethical conduct as explained on

page 1-9.

Show Slide 1-10 and continue the process by explaining each item

that defines Business Ethics.

Show Slide 1-11 and continue the process with the levels of

Business Ethics.


Slide

New Page

Facilitator

10 minutes

Slide

Slide 1-11

Slide 1-10


1-10

Individuals and organizations act within a framework of laws. Their

actions affect other individuals and organizations or the welfare of

society as a whole. Explain areas where people have a free

choice when making decisions.

Show the Slide 1-12 and explain the three domains of human

action.


New Page

Facilitator

Slide

Slide 1-12


1-11

Ethical Climate Items

�� After this exercise the participants will be able to analyze the

ethical climate of an organization.

�� Let the participants describe the ethical climate of an

organization according to the given sentences in the exercise.

Why do we act or have to act ethically in our life?


Summarize and write the participants’ answers on the flipchart.

Give a 10 minutes break.


New Page

Exercise

7 minutes

Question

Flipchart

Break


1-12

Why Ethics?

It appears that being ethical and socially responsible is not rational

for an organization. But in the long term, the benefits of being

ethical and having a reputation for being ethical outweigh the costs

undertaken in the beginning. Explain these benefits and give

examples.

Direct the attention of the participants to the post-it box and explain

“Impact of an Unethical Conduct”.


Facilitator

New Page

15 minutes

Post-it


1-13

Show Slide 1-13 and explain the inseparable parts of ethics.

Ethics sets the standards to be applied in making a choice from

different alternatives. In practice there are two inseparable parts of

ethics: Consistency and Integrity.


New Page

Slide

Facilitator

Slide 1-13


1-14

Show Slide 1-14 and explain the differences between ethical,

unethical, legal, and illegal behavior as shown in the figure.

The actions or decisions that fall into quadrant 4 are legal and

ethical. The actions or decisions that lie within quadrant 2 are illegal

and unethical. The decisions that create dilemmas are the ones that

fall into quadrants 1 and 3. Explain the quadrant with concrete

examples. Let the participants find more examples.


Slide

New Page

Facilitator

Slide 1-14


1-15

Which is Correct?


situations with the ethical matrix.

�� Let the participants divide into groups of two and match the

answers for each sentence.

�� Ask the participants to explain their reasons for each answer.

The maximum limit for gifts is $250 US.


New Page

Exercise

15 minutes

Attention


1-16


“Setting the Standards”.

The meaning of right and wrong differs in different cultures, in

different societies and at different times.

Have you ever been in a situation where you had to choose

between your duties and individual values?


Please turn to page 1- 17 of your manual.

Post-it

New Page

Facilitator

Question


1-17

Values

Show Slide 1-15 and continue the process by explaining values.


5 minutes

New Page

Slide

Slide 1-15


1-18


“Values”.

Direct the attention of the participants to the post-it box and give

examples of “Some Values”.

Rules, laws, operational procedures and perceptions about

performance levels and prescriptions of behavior are the tools which

explicitly define the norms for most cultures.


Post-it

Post-it

Facilitator

New Page


1-19

What is your Ethical Orientation?

�� After this exercise the participants will be able to evaluate the

acceptability of behavior with their personal values.

�� Let the participants divide into groups of three.

�� Let each group read and evaluate the statements by using the

scale.

�� After finishing the exercise ask the groups to discuss their

reasons for each statement according to the ratings.


New Page

Exercise

10 minutes


1-20

Social Responsibility

Show the Slide 1-16 and continue the process by explaining the

stakeholders of a transport company.

Social responsibility is a new term that emerged in the twentieth

century. It refers to developments in the economic arena which

brought a new perspective to the business firms’ role in society. This

concept refers to the management’s obligation to make choices and

take actions that will contribute to the welfare and interests of its

internal and external stakeholders.

What does social responsibility mean to you? On a personal

basis? From the point of view of your organization?





Question

New Page

Slide

Facilitator

5 minutes

Slide 1-16

Flipchart

Break


1-21

The Work Ethic

Continue the process with the work ethic as explained on the page.

Show Slide 1-17 and explain the factors of a strong work ethic.

The work ethic defines the role of work in society. It reflects the

importance that an individual gives to work. Continue explaining the

work ethic as explained in the related paragraphs.

Why is the work ethic important in our life?



Facilitator

New Page

Question

Facilitator

Slide

Slide 1-17

6 minutes


1-22

The Work Ethic Scale


role of ethics in the work environment.

�� Let the participants complete the exercise by using the scale.

�� Ask the participants to calculate their total scores.

�� After the exercise let the participants discuss each item given in

the exercise.


New Page

Exercise

10 minutes


1-23

Show Slide 1-18 and explain the impact of work and non-work

factors on the quality of life.


Slide

New Page

Slide 1-18


1-24

The Level of Ethical Behavior

The Individual

Show Slide 1-19 and explain the Model of Ethical Behavior.

A number of different factors influence an individual towards ethical

behavior in an organization. As seen in the slide, there are the

cultural, organizational and environmental factors in addition to an

individual’s characteristics that influence a person to act ethically or

unethically.


Slide

New Page

Facilitator

15 minutes

Slide 1-19


1-25

The individual has to be conscious of the ethical aspects of different

situations in order to make a choice on the matter. Ethical

consciousness of an individual can only be developed through

education and training which starts with the family the child is raised

in. Continue explaining the individual level as described in the

paragraph.

Show Slide 1-20 and explain the steps of ethical awareness.

Explain each step of ethical awareness as defined in the related

paragraphs.


New Page

Slide

Facilitator

Facilitator

Slide 1-20


1-26

Continue the process by explaining the relationship between ethical

sensitivity, ethical perception and ethical awareness.


“Key Elements of Sensitivity”.


New Page

Post-it

Facilitator


1-27

The Organization

An organization’s culture either encourages and supports ethical

behavior or gives no importance to it. Continue the process by

explaining the organizational levels.

Emphasize the factors on ethical values of an organization as

highlighted in the separate box on the page.

Can you think of any other factors that have important effects

on the ethical values of an organization?


The trust atmosphere in the work place is another important

determinant of an ethical organization.

In your opinion, does developing a trustful relationship or

climate in the workplace affect the employee’s performance

and efficiency?




Question

New Page

Facilitator

Attention

6 minutes

Facilitator

Question

Flipchart


1-28

Show Slide 1-21 and explain the requirements for building a trustful

relationship.

Explain each item shown on the slide.

The Society

Show Slide 1-22 and continue the process by explaining the most

prominent cultural values.

Explain each item shown on the slide.


Slide

Facilitator

Facilitator

4 minutes

New Page

Slide

Slide 1-22

Slide 1-21


1-29

How can these values affect society as a whole?


Summarize and write the answers of the participants on the flipchart.

Direct attention to the post-it box and explain “Musts for

Development”.

Managing Ethics in Organizations

Organizations are responsible for making it clear to their employees

the type of behavior expected from them. Managers are also

responsible for providing and maintaining an ethical environment so

employees can perform their duties efficiently and provide guidance

to subordinates.


Question

Post-it

New Page

Facilitator

7 minutes

Flipchart


1-30

To promote ethical behavior in an organization management has to

build an ethics infrastructure.

Show Slide 1-23 and continue the process by explaining the key

variables of an ethics infrastructure.


Slide

New Page

Facilitator

Slide 1-23


1-31

Show Slide 1-24 and continue the process by explaining how to

create and maintain an ethical environment.

Leadership by Example

List the ethical environment elements and talk about leaders in an

organization.


“Top Management Role”.

Give a lunch break.


Slide

Post-it

2 minutes

New Page

Facilitator

Break

Slide 1-24


1-32

Who do you Respect?

�� After this exercise participants will be able to explain the factors

of earning respect.


�� Ask them to write their own criteria for respect. For example,

friendly, successful, valuable, correct, moral, reliable, etc.

�� After the group discussion let each group leader explain their

criteria.

Write the answers of each group on the flipchart. Then let the groups

determine the characteristics of respect.

Organizational Code of Ethics

Organizations and professions tend to devise a code of ethics to

guide the behaviors of their members. Explain the subject as

mentioned in the related paragraph of the page.

Direct the attention of the participants to the post-it box about “Code

of Ethics”.


New Page

Facilitator

7 minutes

Exercise

Post-it

Flipchart

4 minutes


1-33

A code of ethics mainly defines the values and principles that

should guide decision makers. It shows to the world the values and

principles the organization abides by in the conduct of its

operations. Explain the code of ethics broadly.


Facilitator

New Page


1-34

Show Slide 1-25 and continue the process by explaining the code

of ethics development process.

Developing a Code of Ethics

�� The participants will be able to write code of ethics for their own

sector.


�� Ask them to write a code of ethics for the transport sector by

using the flowchart.

�� Point out the missing points and give feedback to each group

according to Table 2: A Model Code of Ethics for the Transport

Industry on page 35.

Does your organization or sector have a code of ethics?



Slide

Question

New Page

Slide 1-25

Exercise

7 minutes


1-35

Show Slide 1-26 and continue the process by explaining a code of

ethics for the transport industry.


New Page

Slide

Slide 1-26


1-36

Ethics Committees and Ethics Ombudsman

Ethics committees are one of the most common structures to follow

up adherence to the code of ethics. The members of the committee

may be selected from among the directors of an organization and

should include members from outside the company.

Show Slide 1-27 and continue the process by explaining the job of

the ethics committee.

Do you have an ethics committee in your organization?



Slide

Question

New Page

Facilitator

4 minutes

Slide 1-27


1-37

Whistle Blowing

Whistle blowing is going to outside bodies with information about

unethical practices in the organization.

Case: Unstable Worker


�� Ask each group to select a leader.

�� Give each group one copy of the case study.

�� Let the groups discuss and find solutions to the questions about

the situation.

�� Ask the group leaders to explain their group’s solutions.

�� Finally, give feedback to the participants and finish the exercise.


New Page

Facilitator

5 minutes

5 minutes

Exercise


1-38

It is necessary for top management to take precautions in order to

decrease the chances of whistle blowing in the organization.

Show Slide 1-28 and explain the precautions for decreasing

whistle blowing.

Management Development and Training Programs

Show Slide 1-29 and continue the process by explaining

management development and training programs.


Slide

Slide

New Page

Facilitator

10 minutes

Slide 1-28

Slide 1-29


1-39

Do you think that training programs are an effective way of

increasing sensitivity and awareness towards ethical issues?


Summarize and write the answers on the flipchart.

Ethical Decision Making

What can I do?

�� Let the participants complete the exercise individually.

�� Ask the participants to explain their reasons for each answer.

�� Give feedback after the exercise.


Question

New Page

Exercise

8 minutes

Flipchart


1-40

Show Slide 1-30 and continue the process by explaining the

statements of ethics decision making.

Ethical decision making deals with the defense and evaluation of

that value perspective that eventually decides the case.


Slide

New Page

Facilitator

Slide 1-30


1-41

Show Slide 1-31 and explain the factors influencing the ethical

decision making process.


Steps in Ethical Decision Making

Show Slide 1-32 and explain the steps in ethical decision making.

Define an Ethical Situation

Show Slide 1-33 and continue the process by explaining how to

define ethical situations.

Please turn to page 1-42 of your manual

Slide

Slide

Slide

10 minutes

New Page

Slide 1-32

Slide 1-33

Break

Slide 1-31


1-42

After analyzing the first step and deciding that it’s an ethical problem

or involves ethical values, continue with the second step and list the

items.

Get the Facts

Show Slide 1-34 and Slide 1-35. Explain Step 2.

Evaluate the Alternative Actions



Slide

Slide

New Page

Facilitator

Slide 1-34 Slide 1-35



1-43

Choose One of the Alternatives


Act, and then Reflect on the Decision Later

Show Slide 1-40 and Slide 1-41 Explain Step 5.

At this point remind the participants of the four-step test for ethical

issues described at the beginning of the topic: The legal, gut feeling,

front page and role model test.


Slide

Slide

New Page

Facilitator




1-44

Make a Decision

�� After this exercise the participants will be able to apply the

ethical decision making steps.

�� Let the participants read and analyze the situations.

�� Ask several of the participants to answer the questions.


New Page

Exercise

5 minutes


1-45

How to Deal with Specific Unethical Conduct


actions against perceived unethical practices.

Fighting against unethical conduct in an organization is a difficult

endeavor. As with all managerial action, one needs courage,

patience and support from others in the organization. Some luck is

also necessary.

Have you ever been in a situation where the type of action you

took was individual or collective?



Slide

Question

New Page

Facilitator

5 minutes

Slide 1-42


1-46


“Situational Support”.

Why is ethics important for the society as a whole?


Ethics in the Public Service

Show Slide 1-43 and continue the process by explaining public

service ethics.

In the private sector ethics concerns the stakeholders of the

companies involved in unethical conduct. However, in the public

sector unethical behavior has wider repercussions on a larger

number of stakeholders and mostly the public.

Can you give an example of unethical behavior which can be

observed both in the private and the public sector?



Post-it

Question

Slide

New Page

Facilitator

13 minutes

Question

Slide 1-43


1-47

In the public sector, the main goal is to optimize public value that is

completely different concept from optimizing the market value of a

firm. The public sector has the responsibility of being efficient and

effective in the use of the public’s resources.

What are the effects of the actions of politicians and public

servants in the public sector?


Summarize and write the answers of the participants on the flipchart.

Why are public service ethics important?



“Ethics is for Good Governance.”


New Page

Question

Question

Post-it

Facilitator

Flipchart


1-48


bureaucrat’s ethical relations.

The public servant’s position amongst his/her superiors and the

public and the laws of the country puts him/her in an especially

difficult position when making decisions. He/she has to be loyal to

his/her superiors; he/she has to considerate the public; and he/she

has to be exemplary in obeying the laws.


Slide

Facilitator

New Page

Slide 1-44


1-49

Obedience to law is the cornerstone of public service ethics. And in

the legal domain, the constitution of a country is the guideline to all

the values and constrains in daily decision-making.


“Core Values in OECD Countries.”


Post-it

New Page

Facilitator


1-50

Do you think that all countries can have the same code of conduct

in their public services?

Explain the international code of conduct for public officials as

mentioned in Table 5.


New Page

Facilitator

Discussion


1-51

Continue the process by explaining the international code of

conduct for public officials.


New Page

Facilitator


1-52

Professionalism

Show Slide 1-45 and explain the three main tasks which are the

purpose of the public service.

Do you think that the transport industry is well organized as a

profession?



Slide

New Page

Question

3 minutes

Slide 1-45


1-53

Show Slide 1-46 and explain the characteristics of ideal

professions.

Values of Professionalism

Professionalism has values of its own that guide behavior in its

practice. Professionalism brings many values to the public sector

and helps its legitimization. Explain the related paragraphs.


Slide

2 minutes

Facilitator

New Page

Slide 1-46


1-54


“Some Professional Standards”.

Stress the professions mission and effectiveness in public and in

society.


Post-it

Attention

New Page


1-55

Summary

Summarize the important points of Part 1 and continue the process

with the progress check.

Ethical conduct is a global subject that concerns the individuals in a society, rich and

poor nations: International, multinational and national companies and public officials.

Meaningful work and good interrelationships within the organization of which an ethical

climate is an important area are necessary for an individual to perform his/her job and express

him/herself in his/her job and vocation.

Individuals and organizations act within the framework of laws when their actions affect

other individuals and organizations or the welfare of the society as a whole. However, laws do

not regulate all the actions of individuals and organizations. There are areas where they have a

free choice when making decisions. Outside of these two areas, there is a third domain where

individuals and organizations have to abide by the norms of the society in which they operate.

In the ethical domain the standards of conduct are based on the common principles and

values of society in general. An ethically acceptable decision is also that which is accepted by

the legal and moral standards of the community as a whole.

Principles guide the behavior of the individual: Whereas rules and procedures guide

behavior in an organization and laws and professional codes guide behavior in a society.

Therefore, it is natural that organizations develop some ethical criteria stated in codes of

conduct to help them solve the problems they are faced with.

Ethical conduct is also important in the public sector where decisions affect the welfare

of the whole society. Therefore, professionalism is an important factor in the public sector in

developing and maintaining an ethical environment.


Summary

2 minutes

New Page


1-56


New Page


1-57

Progress Check

Let the participants take the test and explain the correct answer for

each question after completion of the test.

1. What is ethics concerned with?

a. The right and the wrong, the good and the bad

b. Is related to feelings

c. Is abiding by the law

d. Doing whatever is socially acceptable

e. The same thing as religion

2. What is considered an ethical dilemma?

a. If a person cannot decide if an action is right or wrong

b. When there are clear guidelines to behavior

c. When all alternative choices and behaviors are considered

undesirable

d. Free choice of the individual

e. The common principles and values of the society in general

3. Why are business ethics important?

a. It is nice to be seen as an ethical and responsible organization

b. Because investors prefer to buy the stocks of ethical companies

c. It is costly to be ethical

d. Unethical conduct leads to loss of consumer satisfaction with

reduced quality and bad consumer relations

e. In order to be a famous organization

Check

10 minutes


1-58

4. Why are clear statements of ethical rules necessary in an organization?

a. It makes it easier for employees to differentiate between right and

wrong

b. It makes decision making easier

c. It guides behavior

d. It creates a motivating, respectful and trustful environment

e. All of the above

5. The major factors that induce ethical or unethical behavior in the

workplace are:

a. The laws and regulations of the country

b. The ethical conduct of competitors

c. Ethics of the system, ethics of the organization and ethics of the

individual

d. None of the above

e. All of the above

6. Trust is an important matter for an ethical environment because:

a. In a trustful environment the wealth of a nation increases faster

b. Trust flourishes in an environment where rules, laws and regulations

are abided by

c. It creates a motivating, respectful and orderly environment


e. All of the above


1-59

7. Why is it important to get support from your superiors in the organization

when dealing with unethical conduct?

a. It is more rational to act as a group if the situation is favorable

b. It is easier to stand up to threats as a group than as an individual

c. Support will make it easier for one to prove that he /she is right

d. All of the above

e. None of the above

8. Why is ethical conduct in the public sector more important than in the

private sector?

a. Because public servants are trusted with the stewardship of

public resources

b. Because public servants get lower pay than their counterparts in the

private sector

c. Because public servants represent the top administrators of a country


e. All of the above

9. Why is building trust important in the public sector?

a. Because the welfare of the citizens are in the hands of public

servants

b. Because it is necessary for democracy to flourish

c. Because the public servant has to obey his/her superiors


e. All of the above


1-60

10. Professionalism in the public sector is a necessity because:

a. It is a facilitator of dialogue in society

b. Public resources are trusted to public officials

c. They are the leaders in solving social, economic and technical

problems in society

d. All of the above

e. None of the above

Give 10 minutes for a break.

Break

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