CSE Senior Design II
Ethics in Business
(or, just Ethics)
Mike O’Dell
Most of this presentation is derived from a presentation entitled “Business
Ethics 101” delivered by Albert D. Hoppe at the 2007 AAPL Annual Meeting
in New Orleans, LA. Exercises are taken from the Hoffberger Center at
the University of Baltimore.
1 Ethics, simply defined
“Ethics is about how we meet the
challenge of doing the right thing
when that will cost us more than
we want to pay.”
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From Maxwell, Ethics 101, p.18
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1 A “Viable Moral System”
Textbook author and ethicist Jacques
Thiroux states that the following five
principles are necessary for any ethical
system to successfully govern human
morality:
1. The value of life principle
2.
3.
4.
5.
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The principle
The principle
The principle
The principle
of
of
of
of
goodness or rightness
justice or fairness
truth-telling or honesty
individual freedom
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1 Two Key Aspects of Ethics
There are two key aspects of ethics:
 The first involves the ability to discern right
from wrong, good from evil, and propriety from
impropriety.
 The second involves the commitment to do what
is right, good and proper. Ethics entails action;
it is not just a topic to mull or debate.”
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From Maxwell, Ethics 101, p.18
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1 Ethics In the Workplace
 In a recent workplace survey, 43% of employees
admitted to having engaged in at least one
unethical act in the last year, and 75% observed
such an act and did nothing about it. (John
Maxwell, Ethics 101, p. 10)
 Another recent survey found that 82% of
business executives admitted to cheating at golf,
and 72% believed that actions in business and
golf parallel each other. (John Maxwell, Ethics
101, p. 74)
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1 Three Quick Tests
1. The SELF TEST,
a.k.a. the butterfly test
2. The AUTHORITY TEST,
a.k.a. what would mother say?
3. The PUBLIC SCRUTINY TEST,
a.k.a. what would the neighbors think?
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1 Common Rationalizations
The Josephson Institute of Ethics has
compiled a list of common rationalizations
used to excuse ethical misconduct.
Following are 10 of these rationalizations
(the Institute calls these “obstacles” to
ethical decision making):
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1 Common Rationalizations
1. If it’s necessary, it’s ethical.
2. If it’s legally permissible, it’s
ethically proper.
3. Compartmentalization, a.k.a. dual
morality
4. It’s all for a good cause.
5. I was just doing it for you.
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1 Common Rationalizations
6.
7.
8.
9.
I’m just fighting fire with fire.
It doesn’t hurt anyone.
Everyone’s doing it (universalism).
It’s O.K. since I’m not gaining
anything personally.
10. I’m overworked and underpaid, so
“I’ve got it coming.”
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1 Exercise
You know of a co-worker who is stealing
supplies at work: paper, staplers, tape
dispensers, hole-punchers, scissors, ink
cartridges, folders, and envelopes. He
justifies this by saying, “Everyone does it;
it’s kind of a fringe benefit for low pay.”
What do you do? What are the pros and
cons of your decision?
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From the Hoffberger Center at the University of Baltimore
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1 Exercise
You work in the accounting department of your
company and learn that a customer has been
overcharged $100 per month. The customer has
not yet caught the error. Nevertheless, you bring
the matter to the attention of your supervisor, and
you are nicely told to mind your own business. It is
apparent that nothing will be done about the past
overcharge and that there may be additional
overcharges in the future. You know that your
supervisor does not like to be challenged on any
point and has reacted vindictively in the past
against those who opposed her.
What do you do? What are the pros and cons of
your decision?
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1 Exercise
After buying two CD’s at Best Buy, you
realize, after coming home, that the
checker only charged you for one CD.
What do you do? What are the pros and
cons of your decision?
Would your decision be different if your
younger brother or sister knew that you
had received a “free” CD? Would your
decision be different if you knew the
checker?
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1 Exercise
You are returning a book to an associate at work
who is not in her office at the time. You happen to
glance at her computer screen and notice, from the
e-mail that is open, that she is engaged in nonbusiness activities using the computer. As you read
on, you realize that this activity is an ongoing
independent consulting project that you know is not
for your company. This activity is clearly against
company policy.
What should you do? What are the pros and cons
of your decision ?
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