Transcript Slide 1
Heritage Classical Academy Headlines WorldCom Tyco Enron Are these isolated or symptomatic? The junction of business and morality Educational Models Organizational-centered approach to business ethics Make decisions based on what is best for the company Good decisions=benefit healthy companies Bad decisions=hurt weak companies Society benefits from the growth of good companies Educational Models Human-centered approach to business ethics Change focus from internal organization to external society Direct instead of indirect benefit to society Root Issue Why should a manager care about anything other than utilizing the power of his or her position to further his or her own pursuit of wealth? Is the law an effective deterrent? It may work in some instances What if the action is not yet illegal? Root Issue Ethical behavior, business or otherwise, is based on the idea of a “should”-an appeal to a moral standard. Does the standard need to be fixed? What types of worldviews allows for a fixed standard? What Works Best Our current economic system Based on two foundational principles Right to own property Freedom to make individual choices Capitalism flourished in a JudeoChristian environment The “building” of the free market stands on the “foundation” of a Biblical worldview Why Is This Important? A standard that is not only based on the legality but on the morality of an action is a more effective motivation to conduct business in an ethical manner This provides a form of self-governance that is more effective than threat of law The less government interference in an economic system, the better How to Implement An EthicallyFocused Culture Make sure executive leadership is committed to the goal of establishing and maintaining the organizational morality Formalize company policies and goals regarding ethical behavior Prevention Executive Leadership “People don’t at first follow worthy causes. They follow worthy leaders who promote worthwhile causes. People buy into the leader first, then the leader’s vision.” – John C. Maxwell Leadership provides vision and goals. Leadership is influence Formalize Company Policies Ethical processes must be “institutionalized” from the mission to the strategic plan All new initiatives should address the potential ethical ramifications Whom does this product harm? Who benefits from this product? Prevention Ethical considerations should be part of the hiring process for new employees Allow methods for employees to address ethical concerns without fear of reprisal Independent panel Toll-free number Ombudsman Additional Resources The Victory of Reason- Rodney Stark Visioneering- Andy Stanley The Ethics of Management- LaRue Tone Hosmer The 21 Irrefutable Laws of LeadershipJohn C. Maxwell Questions ?