Transcript November 19 Power Point

“You get more cooperation with a smile and
a gun than you do from a smile alone.”
Al Capone
1
Fazendo a Coisa Certa
Fraud
2
You
• What moment in your life are you most
proud of?
3
You
• What moment in your life are you least
proud of?
4
• Why Ethics?
• It’s the right thing to do
• It’s the profitable thing to do!!!
(Can you prove that?)
Yes I Can!!!!
5
Who’s job is it to teach ethics?
• Parents
Or
Educators?
6
• Who educated the parents?
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What right does an accountant
have to teach business ethics?
• The accounting department is the
conscience of a business
• If the accountants for ZZZZ Best had done
the right thing……………..
• If the accountants for Enron had done the
right thing………………
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Closer to home,
• If the accountants for Parmalat had done
the right thing………
9
Personal Bias
• From the perspective of a religious person
• From the perspective of one who teaches
the mechanisms of profit
• From the perspective of a grandparent
10
Why do we even need this?
• What is right is right…………
Não É?
11
Cultural Differences
• Brasilian’s tend to put their group ahead of
their society more than Americans do.
12
Gender Differences
• Women take cheating by their husband
different that men do.
• Women tend to be more hurt much more if
affection for the other party was involved
• Men tend consider cheating is cheating.
13
Gender and Business Cheating
• When it comes to Business cheating
•
• 35% of men said that once they knew
about fraud, they would report it
• 25% of women said they would report it
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• Why wouldn’t you “Blow the Whistle”?
•
Men
Women
• It would alienate me from
my colleagues
21%
26%
• It is none of my business
49%
40%
• It might jeopardize my job 13%
18%
• Everybody’s doing it
30%
42%
15
In our DNA??
• Your Brain is pre-wired to survive
•
We are pre-wired to believe
• But, once deceived by someone, we
never believe that person again (our
brains do not ever really forgive)
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More on Genetics
• Adopted children whose biological father
had no criminal record have a 10.5%
chance of having a criminal record
• Adopted children whose biological father
has a criminal record but whose adopted
father does not, have a 11.5% chance of
having a criminal record.
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• An adopted child whose biological and
adoptive parent both have a criminal
record have a 22% chance of having a
criminal record.
•
The Ethical Executive pp 90-91
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Reputation
• In 2007 Cisco was charged with Brazilian
tax fraud. Company said “it was not us- it
was the middlemen.”
•
44 of the arrests were Cisco people
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• You must always be on guard
• You can lose a reputation that took 37
years to build in les than 37 seconds. And
it will take more that 37 years to rebuild it.
•
Warren Buffett
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The 4 %
• 4 % of the population has no conscience
• Luckily these people tend to be lazy and
only interested in their own self
» "The Sociopath Next Door” Martha Stout
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The Master Emotion
• Empathy
empatia
– To age 2 ½ empathy is mimicry
– After 2 ½ the child realizes that others pain is
different from theirs and this matures through
our lives.
22
You Can Help Your Child
• You can help your child by the way you
discipline
•
“See how you made that person feel.”
•
“Veja como você fez essa pessoa sinta,”
encourages empathy
•
“That was naughty.”
“Que foi desobediente,” does not.
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• Plus, Goleman says, empathy is also
shaped by watching how others respond
to people in distress.
• Michael Schulman says students are born
with a sense of morality. The teacher can
tell the student not to eat in the classroom
and the student will obey and agree.
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Innate Morality
• If the teacher then says it’s ok to eat in the
classroom, the student will eat and feel
fine with that.
• If the teacher tells the student it’s ok to
push another student, the student will balk.
• It seems we are born with a sense of
morality, but not how to apply it.
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Resources
The Ethical Executive
Robert Hoyk
Paul Hersey
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Ethical Traps
• When involved in ethical situations, there
are always consequences.
• Ethics cause deposits and withdrawals to
our self-esteem bank
• And we want the income to be greater
than the costs, but there are costs!
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A Situation
• On the way to school, Erin’s cell phone rang. Her best
friend had just broken up with her boyfriend, and she
asked Erin to skip the first class of the day to comfort
her. Reluctantly, Erin agreed, and they met at the local
coffee house. Erin, a top student, and senior class
president, was promptly busted, which led to a three-day
suspension and a request from the school principal that
she step down from the position of class president
because of her unethical behavior. On top of that, her
parents pulled her cell phone for four weeks and
grounded her for the same period of time.
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• Did Erin do the right thing?
• Were there more deposits or withdrawals
from Erin’s self-esteem?
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Fraud in the business place
• Your employees are 15 times more likely
to steal from you than your customers
• One out of five US Business closings are
caused by employee theft
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Requirements of the thief
• We will be looking at business ethics from
a moral standpoint. Before we start that,
let’s look at it from an objective business
point of view.
• The thief generally has three requirements
in order to steal
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The First Requirements of the thief
Unshareable problem
• Could be gambling, sex, drugs
•
For men tends to be greed related
•
For women tends to be need related
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2nd Requirement
• A way to steal
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The 3rd Requirement
• Moral justification
Has to live with themselves
• it is a loan
• I deserve because I do all the work
• It is company policy
ZZZZ Best
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Moral at the top
Enron's Code of Conduct
So at Enron? At your company?
Avoiding tax
35
Paul Hersey
• Who he is
• Institute for Situational Leadership
• Paul
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Dr. Hersey’s Book
• The Ethical Executive
• Describes 45 ethical “traps”
that executives can fall into.
Primary Traps
Defensive Traps
Personality Traps
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Primary Traps
• Obedience to authority
– He (she) told me to do it
– Small steps
– Indirect responsibility
– Faceless victims
– Lost in the group
– Competition
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More Primary Goals
• Conformity Pressure
• Time Pressure
• The seminary students
– 67 students
» low time pressure 63% offered to help
» Intermediate time pressure 45% offered help
» High time pressure 10% offered help
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Defensive Traps
(Usually after we have been unethical)
• Anger
– (destroys empathy)
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Personality Traps
• Psycholpathy
• Low self-esteem
• Need for closure
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Lets Talk to the man
•Paul
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Ponzi Schemes
• The demonstration
• But they are more sophisticated than that
• Ponzi 1
• Ponzi 2
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What is your future
• The view from the top
• Enron code of conduct
• Brasil
– Parmalat
– Cisco
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Making Decisions
• When your can’t decided which course of
action is right, if you choose the one which
is harder to do, you are probably right.
• Quoted by
Dr. Gaudiani
–Ethics Address
45
Remember
• 80% of our purchases are for status
• Money can bring fear and envy,
–
–
only integrity can bring respect
Jon M. Huntsman
•
46
A thought that is uncomfortable
• Maybe it is not about me
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Your Children
• “Children are a message we
send to a time we will not see.”
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• You are the CEO and CFO of your family.
• You set the moral climate.
• Change now?
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The Final Slide
• Keep Moving Justice ForwardThere is no Greater Task
Also quoted by Dr. Gaudiani
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• Success without honor is like an
unseasoned dish, it will satisfy your
hunger, but it won’t taste good.
•
Joe Paterno
• Sucesso sem honra é como um prato sem
experiência, que irá satisfazer a sua
henger, mas não será bom gosto.
» Joe Paterno
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• The Object of education is action, not
knowledge.
– Thomas Kemp
• A educação é objeto de ação, não
conhecimento
But there is more to it than that.
Hero
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