MORAL VACUUMS and ETHICAL FITNESS

1. MORAL VACUUMS andETHICAL FITNESS EPFP Presentation January 28, 2002

2. Critical World Changes Power to create change is a global possession White nations bordering Atlantic no longer dominate world economies, political and military affairs Asia, Africa, Middle East and others now have the power to alter the course of the world

3. Critical World Changes Technology and science redefining reality Scientific knowledge is doubling at a rapid rate Causing a redefinition of core “truths”—what is life and what is death Natural boundaries (mountains, oceans, desserts, etc.) no longer serve to isolate peoples from one another Within seconds, people can see what is occurring half a world away and then be there in hours

4. Critical World Changes Worldwide system of research, finance, production and trade Change from local or national companies to global corporations Technology can link global locations together in seconds

5. Critical World Changes Population growth 18 % of all people living in the last 2000 years are living today No longer is the concern to protect humans from the environment but protecting the environment from human excess Management of cities more difficult that of many countries

6. Critical World Changes Changing role of western women Women moving into leadership positions in corporations and government Causing a change in corporate cultures from male vertical step by step thinking to more female thinking of care and relationship

7. Impact of Changes Psychological and Spiritual Change Struggle with the psychological concept of now being a member of a global community and no longer a member of a homogenous group Collapse of long held foundation beliefs of what is reality and truth Turning to religion, cults, ethic and separatist groups for true answers

8. Impact of Changes Countries Redefining Nationalism Populations of countries are diverse with ever increasing numbers of cultures, religions, and ethic backgrounds as people move and resettle

9. Impact of Changes Worldwide Reach of Single Decisions A single act or decision can have immediate and far reaching implications involving millions of people, countries, and ecosystems

10. Impact of Changes Imbalance between Information Rich and Information Poor The division between wealthy technology rich countries and technology poor countries is growing The division between wealthy technology rich and technology poor individuals within countries is also growing

11. Unethical Decisions Recent Right versus Wrong Decisions

12. 100 years ago an unethical decision by one individual had limited power and reach in affecting numbers of people and ecosystems. Given today’s world, an individual or handful of individuals making an immoral or unethical decision can have far reaching and devastating effects for the world

13. 1984 - Union Carbide – Bhopal, India Pesticide plant gas leak that killed 3,800 people, permanently disabled 2,720 and injured over 200,000 more Union Carbide curtailed plant maintenance as a cost cutting measure—All safety systems off line Broken Refrigeration Unit hadn’t been repaired Alarm Systems not set properly—so no warning Flare Tower to burn vapors not working Scrubber to neutralize vapors not activated No Union Carbide plan to notify and evacuate population in India even though the plant had 6 prior leaks and warning on sister plant in US (which had 28 leaks) was never send to India Plant abandoned –Company refused to clean up extensive water and soil pollution / Paid $490 Million to date in civil settlements

14. 1986 - Challenger Explosion Political Pressure to Launch President’s State of the Union Vice President to view launch Congress concerned that promise of frequent launches was not being met European vehicle threatened to replace the shuttle Management focused on proving action was “unsafe” vs. “safe” Problems contained and resolved internally by management/ not forwarded to others needing to know Overrode engineers’ opposition to the launch- belief that cold temperature and ice were not safe

15. 1986 - Chernobyl Nuclear Disaster Flawed reactor design operated by inadequately trained personnel Engineers disregarded safety, ran own test taking the core to melt down 30 deaths / 34 cases of radiation poisoning / 200,000 people exposed to large doses of radiation- Incidents of thyroid cancer and leukemia expected to increase 300,000 + people resettled Belarus, Ukraine, Russia, and beyond contaminated

16. 1989 - Exxon Valdez Oil Spill Single hulled ship with Captain who had been drinking 11,000,000 gallons of crude oil spilled / only 14 % recovered – rest continues to damage ecosystem Millions in fines assessed, Exxon has paid very little as they appeal each decision Valdez still at sea carrying oil, barred from Alaskan waters Captain is now a maritime insurance adjustor

17. 1995 - Collapse of England’s Barings Bank 28 year old trader made 10% of Baring’s total 1993 profit– under a system of huge financial rewards Huge 1994 losses -- concealed in 2 accounts by trader Requested more bank funds to trade, hoping recover -- greater losses occurred 1995-Losses discovered causing England’s oldest bank to collapse Trader now on the speaker circuit and a movie about him has been made – “The Rogue Trader”

18. 1998 --- $14 Billion Moral Collapse of Cendant Merger of CUC International and Hospitality Franchise Systems (Ramada, Holiday Inn, Days Inn, Super 8 Motels, Century 21, Coldwell Banker, Travelodge) created Cendant 6 months after the merger $500 million in accounting deception $200 million in accounting errors 61% of CUC’s income was nonexistent

19. Other 1999 and 2000Happenings “Florida Governor’s wife returning from Paris fails to declare $19,000 in clothing and jewelry” Claims she did it to prevent husband from knowing how much she spent Reporters admit bias Reporters admit to biasing coverage to protect their corporate interests, according to new survey

20. 2001 Happenings Three Scientists Vow to Continue Efforts to Clone Humans Failure rates, ethical stigma, criticism from colleagues fail to dissuade them Selected Michigan Schools Accused of Testing Irregularities on the MEAP Test Tyson Foods Indicted on Charges of Smuggling Illegal Workers Tyson recruited and smuggled illegal workers, providing them with fake ID papers, government charges Love Bug Virus Crashes Computer Systems Around The World

21. Ethics Defined • Drawn from the traditions of moral philosophy • Is a standard of conduct • Goes beyond self interests • Goes beyond personal points of views • Based on principals that rest on a foundation of core values • Based on knowing right from wrong and what is right • Entails action Source: Kidder, “How Good People Make Tough Choices”

22. Core Values • Love (Compassion • Truth • Freedom • Fairness • Unity (Valuing Diversity) • Tolerance • Responsibility & Accountability • Respect for Life (Includes Environment) Source: globalethics.com

23. Importance of Ethics(Why Ethics are Needed) • Business: Evidence of Right vs. Wrong Decisions • Technology: Moving Faster Than Ethics “Smart people working in large systems making amoral decisions.” (Kidder) • Education: Incidences of Cheating Not Knowing How to Lose Violence/Values/Ethics

24. OUR HOPE FOR THE FUTURE 1998 Random Survey of 10,069 U.S. Middle School Students and 10,760 U.S. High School Students Found that 70% of the High School Students admitted to cheating on an exam in the last 12 months 1998 Survey of 953 U.S. Parents indicated they believe their teenagers lie to them:  A lot 7% Some of the time 47%Hardly Ever 40% Never 6% Don’t Know 1%

25. Self Interest vs. Universal Good • There appears to be a breakdown in understanding the difference between: “This is right to do.” And “I have a right to do this.”

26. Do Today’s and Future Leaders • Have Ethical Commitment? • Have Ethical Consciousness? • Have Ethical Competency? Source: Josephson.institute.com

27. Right vs. Right Paradigm • Truth vs. Loyalty ex. Lying for a friend • Individual vs. Community • Short-term vs. Long-term • Justice vs. Mercy Source: Kidder, “How Good People Make Tough Choices”

28. Right vs. Right Decision Rules • Ends-Based • Greatest good for the greatest number • Ex. Cost benefit outlook, need to know future • Rule-Based • “If everybody did this.” • Ex. I should only do what I would want everyone else in the world to do if faced with the same situation. • Care-Based • Put yourself in the other person’s position. • Ex. A universal principal across all religions Source: Kidder, “How Good People Make Tough Choices”

29. “In times of change it is the learners who will inherit the earth while the learned will find themselves beautifully equipped for a world that no longer exists.” --Author Unknown