MSETM 5110 – Ethics for Technology Managers
What Constitutes Ethical Behavior?
Webster’s definition
Dialectic approach
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MSETM 5110 – Ethics for Technology Managers
Recap of Session 4
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Continued the Ethics Journey: Valuing Ethics
“In the News”
Principles/Reputation/Relationships
Discipline and Commitment
Some corporate/Organization Examples: Biogen, Form, GM,
NAR, McDonald’s, Wal-Mart, Phillip Morris, Lockheed Martin
Technology Innovation and Ethics
Values-Based vs. Compliance-Based Ethics
Core Values vs. Aspirational Values
A Framework: Right, Legal, Compliance with Enterprise Policy
Building/Enhancing Trust
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MSETM 5110 - Ethics for Technology Managers
Personal “Mini Survey”
1.
My company acts ethically and with integrity:
a. consistently
b. occasionally
c. rarely or not evident
2.
My company promotes acting with integrity:
a. strongly
b. somewhat
c. not evident
3.
I act with honesty and integrity:
a. consistently
b. most of the time
c. occasionally
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MSETM 5110 - Ethics for Technology Managers
Personal “Mini Survey” (cont’d.)
4.
Place your company on the following continuum:
Lowest Integrity
Average Integrity
Highest Integrity
0
5
10
_________________________________________________________
5.
Place yourself on the following continuum:
Lowest Integrity
Average Integrity
Highest Integrity
0
5
10
_________________________________________________________
6.
Your comfort level with your company’s behavior and commitment to
ethical behavior:
a. very comfortable
b. somewhat comfortable
c. Uncomfortable
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MSETM 5110 - Ethics for Technology Managers
Personal “Mini Survey” (cont’d.)
7.
Your comfort level with your own behavior:
a. very comfortable
b. somewhat comfortable
c. uncomfortable
8.
I am familiar with my company’s values statement:
a. yes
b. no
9.
I am familiar with my company’s strategic/business plan:
a. yes
b. no
10.
There is clear linkage/integration of values and strategic/business plan:
a. yes
b. no
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MSETM 5110 – Ethics for Technology Managers
What Happened to Our Corporate Icons?
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MSETM 5110 – Ethics for Technology Managers
Fortune Top 10:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Wal-Mart
Exxon Mobil
General Motors
Ford Motor
Enron
General Electric
Citigroup
Chevron Texaco
IBM
Phillip Morris
Rev. $’s B
219.8
191.6
177.3
162.4
138.7
125.9
112.2
99.7
85.9
72.9
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MSETM 5110 – Ethics for Technology Managers
Most Admired U. S. Companies (Fortune Magazine):
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
General Electric
Southwest Airlines
Wal-Mart Stores
Microsoft
Berkshire Hathaway
Home Depot
Johnson & Johnson
FedEx
Citigroup
Intel
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MSETM 5110 – Ethics for Technology Managers
Most Admired Global Companies (Fortune Magazine):
1.
General Electric
14.
Target
2.
Wal-Mart Stores
15.
PepsiCo
3.
Microsoft
16.
Proctor and Gamble
4.
Berkshire Hathaway
17.
AOL Time Warner
5.
Home Depot
18.
Anheuser-Busch
6.
Johnson & Johnson
19.
Exxon Mobile
7.
FedEx
20.
Coca-Cola Enterprises
8.
Citigroup
21.
J. P. Morgan Chase
9.
Intel
22.
American International Group
10.
Cisco Systems
23.
Dell Computer
11.
Merck
24.
Nokia (Finland)
12.
Pfizer
25.
Toyota Motor (Japan)
13.
United Parcel Services
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MSETM 5110 – Ethics for Technology Managers
Purpose
• Create Value/Improve Quality of Life
• Sustainment/Survivability
Connectivity
• Responsibility
• Accountability
Relevancy
• HBR Articles/Case Studies
• Newspaper Articles
Application
• Capturing the Learnings
• Furthering Science and Technology
• Personal Growth and Development
Science: “what is”
Engineering: “creating what has never been”
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MSETM 5110 - Ethics for Technology Managers
Why Ethics?
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Makes Good Business Sense
Establishes a Governance Process for Desired Culture
Enhances Employee Morale
Protects the Public Health, Safety, and Welfare
Meets Stakeholder Expectations
Assures Long-Term Viability of the Organization
Assures Compliance
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MSETM 5110 – Ethics for Technology Managers
Corporate Ethics*
Problem: A Betrayal of Quality Principles
1.
Results:
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Pumping Up Stock Price at Any Cost (vs. Fundamental
Focus on Quality and Customer Satisfaction)
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Malfeasance Robs the Stakeholders of Better Product and
Services, and Long-Term Value
2.
Myths:
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Audited Financial Statements Accurately Reflect the
Financial Condition of the Firm
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Stock Analysts Offer Unbiased Research
•
Corporate Boards Exercise Independent Oversight of
Management
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MSETM 5110 – Ethics for Technology Managers
Corporate Ethics*
Problem: A Betrayal of Quality Principles
2.
Myths (cont’d.):
•
Regulatory Mechanisms Provide Adequate Protection to
Investors
•
American Business Is An International Haven of Fair Play,
Healthy Competition, Ethical Behavior, and Trustworthiness
•
Few U. S. Organizations Have Reached World-Class
Excellence (Dr. Joe Juran)
•
Even Fewer Organizations Have Sustained Excellence
during Changes in Leadership (Juran)
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Most corporate Quality Failures Rest with Leadership
(Juran)
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MSETM 5110 – Ethics for Technology Managers
Corporate Ethics*
Problem: A Betrayal of Quality Principles
3.
What Went Wrong?
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Ethical Lapses at Top Levels of Businesses
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Away From Principle-Centered Leadership
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Companies Chasing Paper Profits Sought to Grow
Bigger/Faster
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Managing by the Numbers Resulted in “Cooking the Books”
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Corporate Leaders Pursued Easy Riches and Personal Gain
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Corporate Leaders Focused on Short-Term Bottom Line
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Lip Service to Corporate and Personal Ethics
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Penalizing the Most Flagrant Criminal Activity Does Not
Address the Need to Raise the Overall Ethical Standards of
Business Conduct
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MSETM 5110 – Ethics for Technology Managers
Corporate Ethics*
Problem: A Betrayal of Quality Principles
4.
The Solution:
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Applying Principles of Effective Leadership—Clear Vision,
Doing the Right Thing and Doing Things Right
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The Discipline of Quality Management As a Systematic
Approach Involving:
– Problem-Solving Diagnostics
– Training
– Change Management
– Policy Reform
•
A Quality Culture and a Habit of Ethical Business Behavior
Must Operate in Parallel to Restore The Foundation of Trust
Upon Which Our Economic Systems Operate Smoothly
*American Society for Quality
September 9, 2002
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MSETM 5110 - Ethics for Technology Managers
So, What’s at Stake?
“By exhibiting and supporting ethically sound behavior,
managers can strengthen the relationships and
reputations their companies depend on.”*
*Paine, Managing for Organizational Integrity.
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MSETM 5110 - Ethics for Technology Managers
Doing the Right Things
[Strategic What]
and
Doing Things Right
[Tactical How]
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MSETM 5110 – Ethics for Technology Managers
The Journey
Leadership
(Mission/Values)
Management
(Operating Principles)
Business Model
(Structure)
Culture for Excellence
(Energy/Innovation)
Right Metrics
(Stakeholder Value)
Sustained Success
(Performance Measures)
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MSETM 5110 – Ethics for Technology Managers
The Final Voyage of the Challenger
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MSETM 5110 - Ethics for Technology Managers
Challenger Disaster
Challenger Disaster, accident that destroyed the United States space
shuttle Challenger 73 seconds after takeoff from the Kennedy
Space Center on January 28, 1986. The crew—mission
commander Francis R. Scobee; pilot Michael J. Smith, mission
specialists Ronald E. McNair, Ellison S. Onizuke, and Judith A.
Resnik; and payload specialists Gregory B. Jarvis and Christa
McAuliffe, a high school teacher from New Hampshire—died in
the accident.
Following the incident, President Ronald Reagan appointed a special
commission to investigate the cause of the accident and to develop
corrective measures based on the commission’s findings. The
commission was headed by former secretary of state William
Rogers and included former astronaut Neil Armstrong and former
test pilot Chuck Yeager. It found fault with a failed sealant ring
and with the officials at the National Aeronautics and Space
Administration (NASA) who allowed the launch to take place
despite concerns voiced by NASA engineers.
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MSETM 5110 - Ethics for Technology Managers
Challenger Disaster (cont’d.)
According to the commission’s report, the disaster was caused by the
failure of an “O-ring” seal in the solid-fuel rocket on the shuttle’s
right side. The seal’s faulty design and the unusually cold weather,
which affected the seal’s functioning, allowed hot gases to leak
through the joint. Flames from inside the booster rocket escaped
through the failed seal and enlarged the small hole. The flames
then burned through the shuttle’s external fuel tank and through
one of the supports that attached the booster to the side of the
tank. The booster broke loose and collided with the tank, piercing
the tank’s side. Liquid hydrogen and liquid oxygen fuels from the
tank and booster mixed and ignited, causing the shuttle to tear
apart.
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MSETM 5110 - Ethics for Technology Managers
Challenger Disaster (cont’d.)
The shuttle launch program was halted during the commission’s
investigation and was not resumed until shuttle designers made
several technical modifications and NASA management
implemented stricter regulations regarding quality control and
safety. Shuttle missions resumed on September 28, 1988, with the
flight of the shuttle Discovery. See Space Exploration: Current
and Future Programs.
“Challenger Disaster.” Microsoft® Encarta Online Encyclopedia
2002 http://encarta.msn.com (3 Sept. 2002)
©2002 Microsoft Corporation. All Rights Reserved.
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MSETM 5110 – Ethics for Technology Managers
Where Do We Go From Here?
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MSETM 5110 – Ethics for Technology Managers
Course Syllabus
Scope
• Strategies that can help to keep yourself and your organization on
the right track
• Techniques for finding practical, responsible approaches to
handling the challenges and ethical dilemmas that confront people
every day
• Guidance on how bet to build an organization that values doing
the right thing rather than the expedient thing
• Explanations as to why Enron, WorldCom, Global Crossing,
Adelphia, and others are in the news
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MSETM 5110 – Ethics for Technology Managers
Four Key Questions Before Making a Business Decision:
• Is It Right?
• Is It Legal?
• Is It Consistent With Company Policy?
• How Will It Look to the Outside World?
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MSETM 5110 – Ethics for Technology Managers
“Do the Right Thing”
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