Business Communication & Ethics, Week 9 Summary, 6/4/12
Jack Welch Management Institute
Here are the most important concepts and approaches I learned and taking away this week.
1. Gellerman, Why Good managers make bad ethical choices
***********************************************************************
usually honest, intelligent, compassionate humans can act in callous, dishonest and wrongheaded ways with Four Rationalizations
(i) Believing that the activity is not "really" illegal or immoral
(ii) it is the individual's or corporation's best interest
(iii) it will never be found out
(iv) helps the company and the company will condone it
Declaring codes of ethics, teaching them to managers is not enough to deter unethical conduct; something stronger is needed
***********************************************************************************************************************************************
Countermeasure: Top management must exert moral force within the company
-Draw the line on loyalty to the company and action against the law and values of society in which company operated
-React before a prosecutor has a strong enough case to seek an indictment
- Expect loyalty from employees against competitors and detractors but not loyalty against the law or common morality or society
- disservice to customers, innocent bystanders cannot be a service to the company
- excuses of company loyalty will not be accepted for acts that place its good name in jeopardy
- Fire employees who harm other people allegedy for company's benefit
- Corporate misconduct is due to managerial failures
- Avoid management oversights by using control mechanisms; surprise audits as a function of BOD; ensure internal audits are functioning as planned
inspect the inspectors; keep controls working efficiently
- Board should have an independent staff eg Govt Accounting Office which reports to legislative rather than executive branch
- Top management must send clear pragmatic message to all employees - good ethichs is still foundation of good business
2. Nash, Ethics without the Sermon
****************************************
12 Questions for examining ethics of a business decision
*********************************************************
(i) Have you defined the problem accurately ?
(ii) How would you define the problem if you stood on other side of fence ?
(iii) How did this situation occur in the first place ?
(iv) To whom and what do you give your loyalty as a person and as a member of the corporation ?
(v) what is your intention in making this decision ?
(vi) How does this intention compare with probable results ?
(vii) whom could your decision or action injure ?
(viii) Can you discuss the problem with the affected parties before you make your decision ?
(ix) Are you confident that your position will be as valid over a long period of time as it seems now ?
(x) could you disclose without qualm your decision or action to your boss, CEO, BOD, family and society as a whole ? - sunshine test
(xi)What is the symbolic potential of your action if understood ? if misunderstood ?
(xii) Under what conditions would you allow exceptions to your stand ?
3. CEO's private investigation - case study
**************************************************
Here we examined how to think from the perspective of a CEO torn between wanting to take on a major leadership opportunity and contending with ethics violations
4. Lecture1 - What would Jack Welch say about Ethical situations?
******************************************************************************
- Be Honest and Truthful with Expense Accounts
- Celebrate to recognize and appreciate work well done but don't push company accounts; do not go overboard - demonstrate discipline & maturity
- Do not ever pass on company's proprietary information to outsiders; Trust is an enormous part of leadership
- Don't ever get involved with a company that doles out bribes in any form
- Say No to fictitious transactions; if there is no real customer, you don't have a real sale
Eliminate Gray Areas - Look at it with a cool eye, unwavering desire to err on side of integrity
***************************************************************************************************
Jack Welch principle: Eliminate Grey Areas, don't hide behind them as a smoke screen
Once you've discussed a dilemma thoroughly and transparently enough, there is usually very little gray area left.
Right and Wrong are obvious and you can clearly come down on one side or another;
instead of giving excuses to try to cut corners or slip one by or make the situation fuzzy
Tougher situation - If trapped in a corrupt organization or lawless companies, Leave !
*****************************************************************************************
What you must do if you find yourself working in a lawless company or one that otherwise reeks of corruption
When cheating and unethical behavior are winked at or encouraged in a company - it is like swimming in polluted water; you will get dirty or drown
Begin planning escape - be explicit, walk fast and far
Integrity is just your ticket to the game.
If you don't have it, you are not even allowed past the gates (Welch, 2005)
Without integrity, nothing else (energetic, energize-ability, good execution, competitive edge, passion) matters.
Leaders don't want to hire or keep an employee they can't trust.
Ethical honor is your most basic asset.
Take every measure to preserve and protect it.
Don't make mistakes that put your name on the line or risk letting an unethical culture do it for you.
You have the power to stay on the right side of the line.
Don't get stuck in an Enron-like tragedy "The Smartest Guys in the Room (McLean, 2003)"
- Endemic corruption; bankrupt ethical standards in finance, trading, investor relations
5. DQ1 - CEOs private investigation
*****************************************
We examined four commentaries, the merits across all of them and made our own recommendations for the CEO to follow.
It was interesting to see a diversity of views among class mates.
6. Lecture2 - Say Goodbye to Grey Areas
************************************************
Beware of career killers and exercise good judgment in expense accounting, sharing confidential information, agent fees and so on
7. DQ2 - ethical challenge in career or personal life
**********************************************************
Here I examined an ethical challenge I faced and asked myself how the situation could have been handled better.
This training prepared me to think hard and carefully about right and wrong.
Ethics - it is all about the fine line that separates right from wrong
Dr DP
Jack Welch Management Institute
Here are the most important concepts and approaches I learned and taking away this week.
1. Gellerman, Why Good managers make bad ethical choices
***********************************************************************
usually honest, intelligent, compassionate humans can act in callous, dishonest and wrongheaded ways with Four Rationalizations
(i) Believing that the activity is not "really" illegal or immoral
(ii) it is the individual's or corporation's best interest
(iii) it will never be found out
(iv) helps the company and the company will condone it
Declaring codes of ethics, teaching them to managers is not enough to deter unethical conduct; something stronger is needed
***********************************************************************************************************************************************
Countermeasure: Top management must exert moral force within the company
-Draw the line on loyalty to the company and action against the law and values of society in which company operated
-React before a prosecutor has a strong enough case to seek an indictment
- Expect loyalty from employees against competitors and detractors but not loyalty against the law or common morality or society
- disservice to customers, innocent bystanders cannot be a service to the company
- excuses of company loyalty will not be accepted for acts that place its good name in jeopardy
- Fire employees who harm other people allegedy for company's benefit
- Corporate misconduct is due to managerial failures
- Avoid management oversights by using control mechanisms; surprise audits as a function of BOD; ensure internal audits are functioning as planned
inspect the inspectors; keep controls working efficiently
- Board should have an independent staff eg Govt Accounting Office which reports to legislative rather than executive branch
- Top management must send clear pragmatic message to all employees - good ethichs is still foundation of good business
2. Nash, Ethics without the Sermon
****************************************
12 Questions for examining ethics of a business decision
*********************************************************
(i) Have you defined the problem accurately ?
(ii) How would you define the problem if you stood on other side of fence ?
(iii) How did this situation occur in the first place ?
(iv) To whom and what do you give your loyalty as a person and as a member of the corporation ?
(v) what is your intention in making this decision ?
(vi) How does this intention compare with probable results ?
(vii) whom could your decision or action injure ?
(viii) Can you discuss the problem with the affected parties before you make your decision ?
(ix) Are you confident that your position will be as valid over a long period of time as it seems now ?
(x) could you disclose without qualm your decision or action to your boss, CEO, BOD, family and society as a whole ? - sunshine test
(xi)What is the symbolic potential of your action if understood ? if misunderstood ?
(xii) Under what conditions would you allow exceptions to your stand ?
3. CEO's private investigation - case study
**************************************************
Here we examined how to think from the perspective of a CEO torn between wanting to take on a major leadership opportunity and contending with ethics violations
4. Lecture1 - What would Jack Welch say about Ethical situations?
******************************************************************************
- Be Honest and Truthful with Expense Accounts
- Celebrate to recognize and appreciate work well done but don't push company accounts; do not go overboard - demonstrate discipline & maturity
- Do not ever pass on company's proprietary information to outsiders; Trust is an enormous part of leadership
- Don't ever get involved with a company that doles out bribes in any form
- Say No to fictitious transactions; if there is no real customer, you don't have a real sale
Eliminate Gray Areas - Look at it with a cool eye, unwavering desire to err on side of integrity
***************************************************************************************************
Jack Welch principle: Eliminate Grey Areas, don't hide behind them as a smoke screen
Once you've discussed a dilemma thoroughly and transparently enough, there is usually very little gray area left.
Right and Wrong are obvious and you can clearly come down on one side or another;
instead of giving excuses to try to cut corners or slip one by or make the situation fuzzy
Tougher situation - If trapped in a corrupt organization or lawless companies, Leave !
*****************************************************************************************
What you must do if you find yourself working in a lawless company or one that otherwise reeks of corruption
When cheating and unethical behavior are winked at or encouraged in a company - it is like swimming in polluted water; you will get dirty or drown
Begin planning escape - be explicit, walk fast and far
Integrity is just your ticket to the game.
If you don't have it, you are not even allowed past the gates (Welch, 2005)
Without integrity, nothing else (energetic, energize-ability, good execution, competitive edge, passion) matters.
Leaders don't want to hire or keep an employee they can't trust.
Ethical honor is your most basic asset.
Take every measure to preserve and protect it.
Don't make mistakes that put your name on the line or risk letting an unethical culture do it for you.
You have the power to stay on the right side of the line.
Don't get stuck in an Enron-like tragedy "The Smartest Guys in the Room (McLean, 2003)"
- Endemic corruption; bankrupt ethical standards in finance, trading, investor relations
5. DQ1 - CEOs private investigation
*****************************************
We examined four commentaries, the merits across all of them and made our own recommendations for the CEO to follow.
It was interesting to see a diversity of views among class mates.
6. Lecture2 - Say Goodbye to Grey Areas
************************************************
Beware of career killers and exercise good judgment in expense accounting, sharing confidential information, agent fees and so on
7. DQ2 - ethical challenge in career or personal life
**********************************************************
Here I examined an ethical challenge I faced and asked myself how the situation could have been handled better.
This training prepared me to think hard and carefully about right and wrong.
Ethics - it is all about the fine line that separates right from wrong
Dr DP
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