Ethics & Values

1. Ethics & Values Article: Managing to Be Ethical: Debunking Five Business Ethic Myths Author: Linda KlebeTreviño; Michael E Brown Dr. Thomas Tang Presented by: Yunfan “Vick” Guo

2. Question 1 Have you cheated or told a lie?

3. Preview • Learn about the authors • Learn about this article • Discuss our experiences about ethics • How other people view ethics • Summary

4. About the Author Linda KlebeTreviño; Michael E Brown

6. Who? Linda KlebeTreviño Ph.D. in Management, 1987, Texas A & M University M.L.S., 1972, Rutgers University B.A., French language and literature, Douglass College, Rutgers University, 1971 Chair, Department of Management and Organization Smeal College of Business The Pennsylvania State University, 1999-2003 Acting Chair, Spring, 2004 Professor of Organizational Behavior Smeal College of Business The Pennsylvania State University, 1997 – Associate Professor of Organizational Behavior, 1993 - 1997 Assistant Professor of Organizational Behavior, 1987 - 1993

7. Trevino addresses important topics such as: • How widespread is cheating in business schools? • Why is widespread cheating in business schools especially troubling? • What factor has the largest effect on students’ decision to cheat? • Has cheating increased or decreased over time? • How strong is the link between cheating among business students and unethical behavior among business leaders? • What can business schools do to deal with cheating? • How can a business school go about creating a culture of integrity and responsibility? HONORS: • Phi Beta Kappa • Beta Gamma Sigma • Best Paper Award, Academy of Management Review, 1993 • Best Paper Award, Social Issues in Management Division, Academy • of Management meeting, 1996, with K. Butterfield and G. Weaver • Best Paper Award, Social Issues in Management Division, Academy • of Management meeting, 2000, with M. Brown and G. Weaver • Connelly Visiting Scholar in Business Ethics, Georgetown University, • Fall, 1995 • Franklin H. Cook Faculty Fellow in Business Ethics, 2000 - • Chair, Invited Fellows, Ethics Resource Center, 2004 -

8. Michael E Brown • Ph.D., The Pennsylvania State University (2002): Research and teaching interests include business ethics and leadership. • Dr. Brown's research has appeared in a number of leading journals such as the Journal of Applied Psychology, The Leadership Quarterly, Business Ethics Quarterly, Organizational Behavior and Human Decision Processes.  • His work on ethical leadership is being used in the ethics training and leadership development programs of a number of corporations. He has collaborated with companies in the office supply, health care, and financial services industries to study the practice of ethics and leadership. • Dr. Brown provides ethics, leadership, and team building training to businesses and other organizations through Penn State's office of Continuing Education.

9. What… Is Ethic? Definition of ETHIC • the discipline dealing with what is good and bad and with moral duty and obligation • a set of moral principles: a theory or system of moral values  • a set of moral issues or aspects http://www.merriam-webster.com

10. Why… Are we talking about ethics? In the financial world, every investment has an ethical dimension.

11. Question 2 If you answered “yes” on question 1, do you consider it was (they were) ethical?

12. Managing to Be Ethical: Debunking Five Business Ethic Myths • MYTH 1: IT IS EASY TO BE ETHICAL • MYTH 2: UNETHICAL BEHAVIOR IN BUSINESS IN SIMPLY THE RESULT OF “BAD APPLIES” • MYTH 3: ETHICAL CAN BE MANAGED THROUGH FORMAL ETHICAL CODES AND PROGRAMS • MYTH 4: ETHICAL LEADERSHIP IS MOSTLY ABOUT LEADER INTEGRITY • MYTH 5: PEOPLE ARE LESS ETHICAL THAN THEY UESD TO BE

13. MYTH 1: IT IS EASY TO BE ETHICAL • Decisions are complex • Moral awareness is required • Multi-stage • Moral awareness • Moral judgment • Moral motivation • Moral character • Organizational context

14. Question 3 How much does your ethic worth?

15. MYTH 2: UNETHICAL BEHAVIOR IN BUSINESS IN SIMPLY THE RESULT OF “BAD APPLIES” • “…ethics can’t be taught or even influenced in adults because adults are autonomous moral agents whose ethics are fully formed by the time they join work organizations, and they can’t be changed.” • Above is not true. • Those who are challenged to wrestle with ethical dilemmas in their work will develop more sophisticated ways of thinking about such issues, and their behavior will change as result.

16. FNA vs. CNA

17. MYTH 3: ETHICAL CAN BE MANAGED THROUGH FORMAL ETHICAL CODES AND PROGRAMS CODES OF ETHICS By joining their professional organizations, people who work in the field of accounting agree to uphold the high ethical standards of their profession. Each of the major professional associations for accountants has a code of ethics. The Code of Professional Conduct of the American Institute of CPAs (AICPA), the national professional association for CPAs, sets forth ethical principles and rules of conduct for its members. The principles are positively stated and provide general guidelines that CPAs (or any professionals, for that matter) should strive to follow. The rules of conduct are much more explicit as to specific actions that should or should not be taken. The Institute of Management Accountants (IMA) Standards of Ethical Conduct applies to practitioners of management accounting and financial management, and the Institute of Internal Auditors (IIA) Code of Ethics applies to its members and to Certified Internal Auditors (CIAs).

18. MYTH 4: ETHICAL LEADERSHIP IS MOSTLY ABOUT LEADER INTEGRITY “…certain individual characteristics are necessary but not sufficient for effective ethical leadership…in order to develop a reputation for ethical leadership, an executive must be perceived as both a “moral person” and a “moral manager”.”

19. The following result is researched and developed by: Linda K. Trevino, Ph.D. Moral Person:Moral Manager: (leader’s behavior) (directs followers’ behavior) - Traits - Role Modeling honesty, integrity, trust visible ethical action - Behaviors - Rewards/Discipline openness, concern for people, holds people accountable personal morality for ethical conduct - Decision-making - Communicating values-based, fair conveys an “ethics/values” message

20. MYTH 5: PEOPLE ARE LESS ETHICAL THAN THEY UESD TO BE • According to a poll released by PR in summer 2002, 68% surveyed believe that senior corporate executives are less honest and trustworthy than they were a decade ago. • Students cheating hasn’t been changed much during last 30 years • Alan Greenspan, American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006, says: It is not that humans have become any more greedy than in generations past. It is that the avenues to express greed [have] grown so enormously

22. Where… does your ethic exist? Conscience “For some violations of responsibilities, other person punishes us, for some our consciences punish us and for some there is no punish.” -“Moral Responsibilities”

23. Recap • Author: Linda & Michael • Article: Managing to Be Ethical: Debunking Five Business Ethic Myths • People & Connections

24. Questions… • الأسئلة… • सवालों… • Preguntas… • des questions… • 问题?

25. Resource • http://www.darden.virginia.edu/corporate-ethics/pdf/cv-trevino.pdf • http://www.merriam-webster.com/dictionary/ethic • http://www.enotes.com/business-finance-encyclopedia/ethics-accounting