Navigating the Danger Zone:
Charting the Murky Waters of Business Ethics
By: Paul R. Genender
Partner
Kirkpatrick & Lockhart Preston Gates Ellis LLP
1717 Main Street, Suite 2800
Dallas, Texas 75201
(214) 939-5660 (direct)
(214) 939-5849 (direct fax)
paul.genender@klgates.com
www.klgates.com
February 5, 2008
Overview
Navigating the waters of working with others can be treacherous. You may think
you can swim on your own; but, when you can't, who can you trust when you
begin to sink? Who shares your business values and views on ethical behavior?
And, if you find yourself in an undertow, what recourse do you have? Attend this
session to openly discuss industry case studies; share best practices and
lessons learned; brainstorm solutions with colleagues; and hear a corporate
attorney’s point-of-view on where to draw the line in the sand with a client or
vendor to maintain your reputation and avoid legal action.
Learner Objective #1
Identify situations in business-to-business interaction that can pose ethical
concern and lead to legal entanglement.
Learner Objective #2
Identify specific items, processes and relationships that require protection.
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What is “Ethics?”
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Business Ethics
Legal Ethics
Ethics v. Self Interest
Ethics v. Competition
Ethics v. Reputation
Ethics v. Winning
Situational Ethics v. Absolute Ethics
Ethics v. Doing what is Right
Ethics v. Doing What Works
What is my objective with you this morning?
To provide you a framework for acting ethically in a competitive business
environment when conventional wisdom suggests that ethics and winning
are mutually exclusive.
What is unethical behavior?
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Conflicts of Interest
Deceptive Sales and Marketing Practices
How do we prevent unethical behavior?
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Increase penalties for offenders
Education
Publicize about those who act unethically
Doing what is right?
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Is it legal?
Does it comply with company rules and regulations?
If you do it, will you be comfortable and guilt free?
Would I act this way to my family and friends?
Would I be okay if someone acted that way to me?
Would the most ethical person I know do this?
Who is responsible for our actions?
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Warning signs—common rationalizations for ethical lapses:
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“Everyone else does it”
“They’ll never notice it”
“Nobody will care”
“My boss does it”
“No one will ever find out”
“I don’t have time to do it right”
“This is close enough”
“Some rules were meant to be bent or broken”
“It’s not my job”
“I’m tired of losing by doing it the right way”
“There is no way my competitors are following the rules”
Ethics can be about Respect, Responsibility, and Results
Oftentimes, we are the only one who knows if we act ethically. What are
our personal ethics? The little things we do. The little things we choose
not to do.
What are our available guidelines/resources?
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Laws
Rules and regulations
Values
Conscience
Promises/Trust
Heroes
How to address ethical lapses by others?
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Propose an ethical alternative (I know what you want to do here, but there
may be a better way to do it)
Get buy-in from others (I need your help to make sure we do the right
thing here; will you go along with me to make sure we both do the right
thing?)
Speak up and do so plainly (I have serious concerns about what you are
suggesting and I need you to consider another approach; I cannot do what
is wrong; what you suggest is wrong because…)
If you are not the decision maker, speak up and seek assistance from
superiors.
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Famous quotes:
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“If you don’t stand for something, you will fall for anything.” Multiple
Sources
“To know what is right and not do it is the worst cowardice.” Confucius
“Honesty is the cornerstone of all success, without which confidence and
ability to perform cease to exist.” Mary Kay Ash
It is better to ask for forgiveness than to ask for permission.
Shows business initiatives.
It is better to ask for permission than to ask for forgiveness.
Shows business ethics.
The downside to unethical behavior is devastating.
Ethics test: Have you:
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Passed along information shared with you in confidence?
Failed to do what you said you would do?
Been less than honest to make a sale?
Accepted an improper gift or gratuity?
Taken credit for something someone else did?
Failed to correct or admit a mistake?
Watched someone else make a mistake or error and not do anything to
warn them?
Make sure you do not:
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Convince yourself that cutting corners is necessary to be efficient.
Forget to give others credit when it is due.
Treat anyone in a way you would not want to be treated.
Ignore feedback.
Ignore others.
Forget your customers, employees, industry affiliates, those who rely on
you.
Refuse to admit a mistake.
Be known as someone who does the right thing. There is a silent majority who
only want to do business with others who are ethical.
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Long term success v. Short term success.
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Case Studies, Discussion and Questions
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