MSETM 5110 – Ethics for Technology Managers
What Constitutes Ethical Behavior?
1
MSETM 5110 – Ethics for Technology Managers
“Do the Right Thing”
2
MSETM 5110 – Ethics for Technology Managers
Recap of Session 3
• Continued the Ethics Journey
• More Ethics Issues “In the News”
• The Relevancy Scale
• The Tylenol Story
• The Business Value of Ethics/Integrity
• Assignment 2: The Final Voyage of the Challenger
3
MSETM 5110 - Ethics for Technology Managers
Are There Dueling Agendas?
• Competitive vs. Ethical Conduct
• Flexibility/Adaptability vs. Sound Business
Practice
• Binary vs. Degrees of ("Bend But Don't Break")
• Company/Organizational Values vs. Personal
Value System
• Defining Right vs. Expedient
4
MSETM 5110 - Ethics for Technology Managers
Credibility
• Principle Centered
• Reputation
• Relationship
5
MSETM 5110 - Ethics for Technology Managers
Discipline and Commitment
6
MSETM 5110 - Ethics for Technology Managers
Strict Adherence vs. Spirit and Intent
True North vs. Magnetic North
7
MSETM 5110 - Ethics for Technology Managers
More Examples of Codes of Conduct and Values
Statements
8
MSETM 5110 – Ethics for Technology Managers
Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS®
Effective January 1, 2002
Preamble…
Under all is the land. Upon its wise utilization and widely allocated
ownership depend the survival and growth of free institutions and of
our civilization. REALTORS® should recognize that the interests of
the nation and its citizens require the highest and best use of the land
and the widest distribution of land ownership. They require the
creation of adequate housing, the building of functioning cities, the
development of productive industries and farms, and the preservation
of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce.
They impose grave social responsibility and a patriotic duty to which
9
MSETM 5110 – Ethics for Technology Managers
Preamble…(cont’d.) NATIONAL ASSOCIATION OF REALTORS
REALTORS should dedicate themselves, and for which they should be
diligent in preparing themselves. REALTORS, therefore, are zealous
to maintain and improve the standards of their calling and share with
their fellow REALTORS a common responsibility for its integrity and
honor.
In recognition and appreciation of the obligations to clients, customers, the
public, and each other, REALTORS continuously strive to become and
remain informed on issued affecting real estate and, as knowledgeable
professionals, they willingly share the fruit of their experience and
study with others. They identify and take steps, through enforcement
of this Code of Ethics and by assisting appropriate regulatory bodies,
to eliminate practices which may damage the public or which might
discredit or bring dishonor to the real estate profession. REALTORS
having direct personal knowledge of conduct that may violate the Code
of Ethics involving misappropriation of client or customer funds
10
MSETM 5110 – Ethics for Technology Managers
Preamble…(cont’d.) NATIONAL ASSOCIATION OF REALTORS
or property, willful discrimination, or fraud resulting in substantial
economic harm, bring such matters to the attention of the appropriate
Board of Association of REALTORS. (Amended 1/00)
Realizing the cooperation with other real estate professionals promotes the
best interests of those who utilize their services, REALTORS urge
exclusive representation of clients; do not attempt to gain any unfair
advantage over their competitors; and they refrain from making
unsolicited comments about other practitioners. In instances where
their opinion is sought, or where REALTORS believe that comment is
necessary, their opinion is offered in an objective, professional manner,
uninfluenced by any personal motivation or potential advantage or
gain.
The term REATORS has come to connote competency, fairness, and high
integrity resulting from adherence to a lofty ideal of moral conduct in
11
MSETM 5110 – Ethics for Technology Managers
Preamble…(cont’d.) NATIONAL ASSOCIATION OF REALTORS
Business relations. No inducement of profit and no instruction from
clients ever can justify departure from this ideal.
In the interpretation of this obligation, REALTORS can take no safer
guide than that which has been handed down through the centuries,
embodied in the Golden Rule, “Whatsoever ye would that others
should do to you, do ye even so to them.”
Accepting this standard as their own, REALTORS pledge to observe its
spirit in all of their activities and to conduct their business in
accordance with the tenets set forth below.
(Duties to Clients and Customers)
12
MSETM 5110 – Ethics for Technology Managers
Wal-Mart
THE WAL-MART CULTURE
The principles and practices used by Sam Walton are still being used
today. The secret of our culture to success and growth:
•
Sam Walton’s 3 Basic Beliefs:
1)
2)
3)
Respect for the Individual
Service to Our Customers
Strive for Excellence
•
Exceeding Customer Expectations
•
Helping People Make A Difference
13
MSETM 5110 – Ethics for Technology Managers
Wal-Mart (cont’d.)
THE WAL-MART CULTURE (cont’d.)
• Rules for Building A Business
• Sundown Rule
• Ten Foot Rule
• Pricing Philosophy
• The Mart Cheer
14
MSETM 5110 - Ethics for Technology Managers
Communication. Respect. Integrity. Excellence.
Enron Values Statement
2000 Annual Report
15
MSETM 5110 - Ethics for Technology Managers
General Electric
VALUES
Unyielding Integrity, Commitment to Performance and
Thirst for Change
16
MSETM 5110 - Ethics for Technology Managers
Phillip Morris Companies
Listening, Learning and Changing: The Path to Corporate
Responsibility at Phillip Morris Companies
(Rotary Club of Fresno - July 15, 2002)
David P. Nicoli
Vice President, Corporate Affairs Strategy and Social Responsibility
Phillip Morris Management Corporation
--------------------------------------
Phillip Morris Companies is actually a holding company whose businesses
make up the world’s largest consumer packaged goods company.
We own Phillip Morris U.S.A., the nation’s largest cigarette manufacturer;
Phillip Morris International, one of the largest
17
MSETM 5110 - Ethics for Technology Managers
Phillip Morris Companies (cont’d.)
(cont’d.)
international cigarette manufacturers; and Kraft Foods, the nation’s
largest food company, and the second largest in the world.
We are a Fortune 10 global company with 169,000 employees worldwide
and operations in about 100 countries.
First, we are working to create a values-based culture; one in which we
demonstrate integrity, honesty, respect and tolerance.
To do it right, we have to hardwire integrity into our food and tobacco
businesses at every level so that each individual, from our CEO to our
factory workers, takes responsibility of doing the right thing.
18
MSETM 5110 - Ethics for Technology Managers
Phillip Morris Companies (cont’d.)
Last year, Phillip Morris Companies appointed a Chief Compliance
Officer. His job is to make sure that every employee worldwide has
the information, training and tools to live up to our commitment to
responsible behavior.
Later this year, he will take the lead in introducing an expanded Corporate
Code of Conduct enterprise-wide.
19
MSETM 5110 - Ethics for Technology Managers
Phillip Morris Companies (cont’d.)
But to go beyond compliance and drive integrity into everything we do, he
is reinforcing that code by helping management and employees
focus on four key questions before making a significant business
decision:
1.
2.
3.
4.
Is it legal?
Is it consistent with company policy?
Is it right?
And how would it look to the outside world?
20
MSETM 5110 - Ethics for Technology Managers
Biogen
Biology has entered the “post-genomics” era. We believe the significance
of the mapping of the human genome will surpass that of the original
genetic-engineering revolution of the 1970s. This will lead to more
efficient identification of breakthrough biological molecules and
targeted drug design from which the next generation of
biopharmaceutical drugs will emerge.
Currently, scientists understand the function and importance of only about
10 percent of the genes in the human genome. During the next decade,
we anticipate an extraordinary amount of new information will become
available.
21
MSETM 5110 - Ethics for Technology Managers
Biogen (cont’d.)
We believe that Biogen, with its extraordinary depth of experience in
Biological research, is uniquely positioned to be among the companies
that figure out which genes are therapeutically useful and
commercially valuable. Our core research strength is the rapid
discovery of new drug candidates by capitalizing on our biology
expertise to accelerate the elucidation of gene function.
22
MSETM 5110 - Ethics for Technology Managers
Biogen (cont’d.)
OUR VISION & VALUES
Vision
We dedicate ourselves daily to improving the lives of people around the
world.
• Our imagination and our passion for science drive us to discover.
We will unlock the secrets of human biology—finding answers that
promise new hope in humanity’s quest to prevent and cure disease.
• Our determination and discipline deliver results. We will deliver
breakthrough medicines that transform the practice of healthcare..so
people can lead longer, healthier, happier lives.
• Our success has no limits. We will build a sustainable enterprise by
continuously delivering superior value to patients, customers,
shareholders, employees, business partners, and the communities
where we work and live.
23
MSETM 5110 - Ethics for Technology Managers
Biogen (cont’d.)
OUR VISION & VALUES
Shared Values
These shared values describe our Company’s culture: Who we are and
how we act in pursuit of our vision, mission and strategy. Our shared
values represent standards for assessing our behavior and performance.
They also describe how we aspire to work together and to lead.
Biogen’s success is based on it’s people, and every person here is
expected to be a leader. The core of leadership—integrity, courage,
and teamwork—are characteristics we seek in every Biogen employee.
• Keep talent the priority…attract, develop, and retain only the highest
quality people, those who have the best minds and share our
values…encourage each person’s development and take responsibility
for your own.
24
MSETM 5110 - Ethics for Technology Managers
Biogen (cont’d.)
OUR VISION & VALUES
Shared Values (cont’d.)
• Value each individual…recognize there are differences in
people…look for the diverse ways each person can contribute to our
success…commit to a safe work environment for all Biogen
employees…treat everyone with respect and dignity…help others
succeed, even at some cost to yourself.
• Communicate and obtain alignment…assure that our values, our
strategy and our goals are consistent…vigorously pursue the
interdependent goals of world-class science and success…talk to
people face-to-face about our business priorities and our values…use
plain language.
• Face the facts…tell the truth, even when it appears to be difficult, and
expect nothing less from others…admit mistakes…accept criticism and
use it to improve…learn from anyone, any place…be intolerant of
arrogance.
25
MSETM 5110 - Ethics for Technology Managers
Biogen (cont’d.)
OUR VISION & VALUES
Shared Values (cont’d.)
• Make an impact…assume your responsibilities are a starting point,
not a limitation…take initiative…strive for speed and the highest
quality in all that you do.
• Build teams…support teamwork within and across functional and
geographical boundaries…play whatever role is required to get the job
done…share information openly, up, down, and across the
organization.
• Operate a meritocracy…empower people…set aggressive
performance standards and hold yourself and others accountable for
meeting them…assure that rewards are directly linked to performance,
not to seniority, position level, or title…resist adding layers, and the
unnecessary controls and lack of trust that accompany bureaucracy.
26
MSETM 5110 - Ethics for Technology Managers
Biogen (cont’d.)
OUR VISION & VALUES
Shared Values (cont’d.)
• Embrace change…see change as an opportunity, not a
threat…recognize the need for flexibility…deal positively with
ambiguity and uncertainty, yet maintain a sense of urgency and
commitment to results…keep the organization alive and fluid.
27
MSETM 5110 - Ethics for Technology Managers
Lockheed Martin
CORPORATE ETHICS
Ethics: The Essence of Our Business
Business without ethics is not the kind of business we want to be in.
Business with ethics improves, strengthens, and clarifies all we do.
Ethics gives all our efforts a solid foundation and makes working at—
and with—Lockheed Martin a pleasure.
Our Ethical Principles:
Honesty – To have the courage to speak our truth, and to be absolutely
forthright in all cases, with our customers, co-workers, suppliers,
communities, and shareholders.
28
MSETM 5110 - Ethics for Technology Managers
Lockheed Martin (cont’d.)
CORPORATE ETHICS
Our Ethical Principles: (cont’d.)
Integrity – To say precisely what we mean, and to deliver what and when
we promise. To be willing to raise and address difficult issues that
may affect safety, performance, or legal responsibility. To forthrightly
admit error and make amends where appropriate.
Responsibility – To speak out without fear of reprisal to call attention to
any workplace violation of law, safe design and engineering standards,
ethical codes, community standards, sexual harassment, equality,
diversity, health, safety, and related issues.
29
MSETM 5110 - Ethics for Technology Managers
Lockheed Martin (cont’d.)
CORPORATE ETHICS
Our Ethical Principles: (cont’d.)
Trust – To recognize our position as stewards of our customers’
businesses. To place the best of our thinking, energies and abilities
into supporting customer enterprises. To be willing to raise issues if
customer practices are not in alignment with our ethics policies.
Respect – To value the differences as well as similarities in all of our
customers, co-workers, suppliers, communities, and shareholders. To
support and assist minority candidates in their endeavors, so that the
Corporation reflects national diversity.
Citizenship – To obey all the laws of any country in which we do
business, to respect environmental concerns, and to give back to the
communities by improving and enriching community life.
30
MSETM 5110 - Ethics for Technology Managers
McDonald’s
SOCIAL RESPONSIBILITY
The principle of giving back runs deep at McDonald’s—instilled in us
nearly 50 years ago by our founder, Ray Kroc. It is a part of our
culture.
We are committed…
• To doing what is right.
• To being a good neighbor and partner in your community.
• To conducting our business with the environment in mind.
We are committed to making the world a better place and to providing
socially responsible leadership in every community where we do
business.
31
MSETM 5110 - Ethics for Technology Managers
McDonald’s (cont.d)
SOCIAL RESPONSIBILITY
Community
Examples of our contributions to local community development, our
involvement in disaster relief, and our support for education. Also
highlights some of the great work of the Ronald McDonald House
Charities.
Environment
Our worldwide recycling, resource conservation, and waste reduction
programs.
Marketplace
Our work with our suppliers to improve animal welfare, ensure quality
and safety, and promote protection of workers’ health, safety, and
human rights.
32
MSETM 5110 - Ethics for Technology Managers
McDonald’s (cont.d)
SOCIAL RESPONSIBILITY
People
Our commitment and approach to diversity; Hamburger University (our
premier training facility); and our People Promise to our employees.
33
MSETM 5110 - Ethics for Technology Managers
Ford Motor Company
CORPORATE CITIZENSHIP
As we endeavor to become a leading contributor to a more sustainable
world, corporate citizenship has become an integral part of every
decision and action we take. We believe corporate citizenship is
demonstrated in who we are as a company, how we conduct our
business and how we take care of our employees, as well as in how we
interact with the world at large. It is our aspiration to be among the
most respected, admired, and trusted companies in the world.
34
MSETM 5110 - Ethics for Technology Managers
General Motors Company
CORE VALUES & GUIDING PRINCIPLES
Winning With Integrity
These guidelines for employee conduct demonstrate GM’s commitment to
integrity and cover the subjects of personal integrity, integrity in the
workplace, integrity in the marketplace, and integrity in society and its
communities.
Antibribery and Foreign Corrupt Practices Act (FCPA) – Conducting
business globally poses special challenges. Employees are cautioned
against accepting illegal or unethical conduct such as demands for
bribes in other cultures simply because they are considered “common”
or customary.” The basic guidelines of the FCPA and GM policy are
described and explained.
35
MSETM 5110 - Ethics for Technology Managers
General Motors Company (cont’d.)
CORE VALUES & GUIDING PRINCIPLES
Winning With Integrity (cont’d.)
Conflict of Interest – GM employees have a duty to the company to give
their best effort and to remain loyal to the interests of the company.
Examples highlight the potential for conflicts in investment opportunities, charitable activities, public service, supplier relationships and
outside employment.
Export Controls – All products and technical data are likely to fall under
export control rules, a complicated area of law and taxation.
Employees are encouraged to seek expertise whenever they are in
doubt about an exporting activity, even if it’s something as simple as
traveling overseas with a laptop computer.
36
MSETM 5110 - Ethics for Technology Managers
General Motors Company (cont’d.)
CORE VALUES & GUIDING PRINCIPLES
Winning With Integrity (cont’d.)
Gifts, Entertainment and Gratuities – Employees are guided through
the rules for receiving gifts, entertainment or other gratuity from
suppliers and others.
Integrity of Our Information and Property – GM’s information related
to its business, products, and innovations is a valuable asset and
protecting it is the shared responsibility of all GM employees. Careful
and accurate record keeping is discussed, as are the hazards of giving
technical papers, working with media and making careless
conversation in social situations.
37
MSETM 5110 - Ethics for Technology Managers
General Motors Company (cont’d.)
CORE VALUES & GUIDING PRINCIPLES
Winning With Integrity (cont’d.)
Integrity in the Workplace – GM’s work culture depends on teamwork
and diversity. This booklet offers guidance on managing diversity and
treating co-workers with fairness and equality.
Personal Integrity – The essential traits of integrity—honesty,
trustworthiness, respect for the law and respect for others—are a
matter of each employee’s personal conduct on the job. Guidance is
offered on maintaining this integrity.
38
MSETM 5110 - Ethics for Technology Managers
Ethics: The One-Company Approach
Policy on Gifts, Gratuities, and Business Entertainment?
• Local?
• Regional?
• Worldwide?
39
MSETM 5110 - Ethics for Technology Managers
The Three-Part Challenge to Business Ethics:
1.
Developing managers as moral individuals;
2.
Building an environment in which standards and values are
central to the company’s strategy, just as economic purpose
is;
3.
Formulating and implementing policies that support ethical
performance—as well as safeguards to assure that they are
observed.
Kenneth R. Andrews, Ethics in Practice, HBR 89501.
40
MSETM 5110 - Ethics for Technology Managers
Why Ethics?
• Makes Good Business Sense
• Establishes a Governance Process for Expected
Behavior and Desired Culture
• Enhances/Perpetuates Morale
• Protects the Public Health, Safety, and Welfare
• Meets Shareholder/Stakeholder Expectations
• Assures Viability/Sustainability of the Organization
• Legal Compliance
41
MSETM 5110 – Ethics for Technology Managers
Due Date
Assignment “0”
- Personal Profile
Assignment 1 - Read HBR Articles:
1.
2.
3.
8/28/02
George Iwaki and Oscar Hauptman, Final Voyage of the
Challenger.
Trevino, et al., Managing Ethics and Legal Compliance: What
Works and What Hurts.
Paine, Managing for Organizational Integrity.
Assignment 2 -
9/18/02
In approximately 400 words, critique the decision process to launch
the Challenger, including the respective roles of the engineers
and management team. What would you have done differently?
42