April 22, 2013

1. Ethics Awareness
Andrew L. Urich, J.D.
Puterbaugh Professor of Ethics & Legal Studies
Spears School of Business
Oklahoma State University
aurich@okstate.edu
www.andrewurich.com

2. Ethics Awareness
 I am NOT here to moralize.
 “Awareness” changes human behavior.

3. Who Am I to Discuss Ethics?
 I am a hypocrite.
 I play favorites.
 I interpret rules to my benefit.
 I have been known to ignore rules that get in my way.
 I hate to admit I’m wrong even in those rare situations
when it looks like I might be.
 I am much more likely to believe things that benefit me.
 I like my ideas better just because they’re mine.
 When things go wrong, I look for someone to share the
blame.

4. Who Am I to Discuss Ethics?
 Sometimes I think it’s fun to say “no” just because I
have the power to do so.
 Here is how I make decisions: I decide what I want
the answer to be – and then make up the logical
reasons to support my decision.
 I tend to judge myself by my intentions rather than
my actions.
 I tend to judge others by their actions rather than
their intentions.

5. Key Points to Remember
 Human nature is not naturally ethical.
 Ethics is gray – not black and white.
 (In other words, you can’t just say you’re an ethical person – and
that’s all there is to it)
 It is difficult to be ethical all of the time.

6. Ethical Lapses in the News
 Enron inflated earnings by $586 million — investors lost $60
billion
 Adelphia founder used corporate assets as collateral for $3.1
billion in personal loans — company bankrupt
 WorldCom overstated profits by $7.1 billion — 17,000 workers
laid off
 Barings Bank’s Nick Leeson caused his employer's collapse in
1995 after losing US$1.3 billion in unauthorized derivatives
trading.

7. The Tyco Party
Tyco CEO looted company of $600 million

8. Because your
reputation is
worth it!
Please remember
Enron’s real problem!
Why are we here today?

9. Case problem
 The Thrifty V.P.

10. Case problem 1
 The Thrifty V.P.
Just following orders
Ethics and young people
Entrapment

Does everyone have their price?

11. Ethics Today
 Times are changing in society!
 Do ethics change with the times???

12. Discussion Question
 What do you use as an ethical
guideline? In other words, how do you
decide what’s ethical?
 Should ethical decisions be based on
“gut instinct” or “conscience?”

13. Examining Unethical Behavior
Overview of Topics
1. It’s easier not to be ethical.
2. Beliefs about the ethics of others
3. Attitudes toward the company
4. Self-delusion (Rationalization)

14. It’s Easier Not To Be Ethical
 Easier to do what’s convenient
 Easier to conform to norms
 Easier to do what’s profitable
 Easier to win if you cheat
 It is very difficult to overcome the challenges
of human nature

15. It’s Easier Not To Be Ethical
But It’s Worth the Trouble
 Ethics is the key to leadership
and client confidence.
“A lie can travel halfway around the
world while the truth is putting on
its shoes.”
Mark Twain

16. Case Problem
 The Sniff Test

17. 2. Beliefs About the Ethics of
Others
 Everyone thinks like me.
 People follow the leader.
 Different ethics for different situations?
 Do you use the same standard of ethics in all aspects
of your life? For example, is your standard the same
with your family, at church, at work, with personal
business, etc.?

18. 3. Attitudes Toward the Company
The Need for Ethical Leadership
 Trust and respect
 Do managers practice what they preach?
(You are the messenger)
 Employees want to “even things out.”
 Authority is Out—Influence is In

19. Trust other people
David Halper, British Sociologist
 34% Americans
 29% British
 31% Mexicans up from 19% in 1983
 60% Dutch
 68% Scandinavians

20. Harris Poll on Trust
 22% trust media
 8% political parties
 27% government
 12% large corporations
 Convicts vs. MBAs

21. Big Idea
 Do you trust your boss?

Productivity and ethical behavior

Mercer Management Consulting– 60% of US
workers do not trust their manager to
communicate honestly
 Management impacts trust

22. Showing Respect &
Building Trust
 You will never prove them wrong

Admit to your mistakes
 “My child choked on a chicken bone”
 Winston Churchill’s thoughts on the subject

23. Showing Respect

24. Showing Respect

25. Case Problem
 Mass IP & SSC

26. Trust is Competence
Warren Buffett, “It takes 20 years to build a reputation
and five minutes to ruin it.”
 I’m the manager, I can coast while others do the
work.
 Do you have 15 years experience or one year of
experience 15 times?
 What do you think of people who cover their
bottoms?
 What if we train people and they leave?

27. 4. Self-Delusion
 Rationalization: polite term for self-delusion
 “The greatest of all faults, I should say, is to
be conscious of none.”
--Thomas Carlyle (1795 – 1881) Scottish writer

28. Case problem
 Just Trying to Help

29. Case Problem
Bedlam Football

30. Guideline for
Ethical Decision Making
1. Is there an applicable law or organizational
policy?
2. Should I ask about this before acting?
3. Have I taken time to think carefully before
acting?
4. Would I disclose my decision to my
supervisor, CEO, mother, etc.?
(What if everyone found out?)

31. Guideline for
Ethical Decision Making
5. Am I avoiding the appearance of
impropriety?
6. Am I defining the problem correctly?
7. Am I rationalizing?
8. Finally, when in doubt, do I know who to
contact?

32. The Secret to Happiness
 Self-delusion
 Hypocrisy
 Ignorance

33. The Secret to Happiness
Ignorance is Bliss
“People who do things badly
are supremely confident in
their abilities — more
confident, in fact, than people
who do things well. Not only
do they reach erroneous
conclusions and make
unfortunate choices, but their
incompetence robs them of
the ability to realize it.”
Dunning, David Journal of Personality and Social
Psychology December 1999.

34. Thank You!
Facebook.com/ProfessorUrich
aurich@okstate.edu
www.andrewurich.com

35. References
 Ailes, Roger. You Are the Message. New York. Doubleday, 1988.
 Bazerman, Max H. Smart Money Decisions, Wiley & Sons, 1999.
 Blanchard, Kenneth, et.al. The Power of Ethical Management. William Morrow and Company,
Inc., 1988.
 Buckingham, Marcus, et.al. First, Break All The Rules. New York: Simon & Schuster, 1999.
 Cialdini, Robert B. Influence: The Psychology of Persuasion. Harper Collins, 2007.
 Cohen, Randy. The Good, The Bad, & The Difference. Broadway Books, 2002.
 Covey, Stephen R. The 7 Habits of Highly Effective People. New York: Simon & Schuster,
1989.
 Covey, Stephen C.R. The Speed of Trust, New York: Simon & Schuster, 2006.
 Fisher, Roger and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981.
 Koch, Charles G., The Science of Success, Wiley & Sons, 2007.
 Lakoff, George. Moral Politics: How Liberals and Conservatives Think. The University of
Chicago Press, 2002.
 Lattal, Alice Darnell, et. al. Ethics at Work. Performance Management Publications, 2005.
 Lewicki, Roy J., et. al. Negotiation. 2nd Edition., Irwin, 1994.
 Lewicki, Roy J., et. al. Essential of Negotiation, 4th
Ed. McGraw Hill, 2007.
 Maxwell, John C. There’s No Such Thing as “Business” Ethics. Warner Business Books,
2003.
 Nelsen, Jane, et. al. Positive Discipline, Three Rivers Press, 1998.
 Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.