David A. Walker AAI, CIC, LIC, ARM, CRM, CAWC President-Hartland Insurance Agency Inc. Chairman-IIABA DavidWalker@hartlandinsurance.com
With the SEC and Federal Government regulating the big guys.. It is the marketplace that regulates small business
Small to Medium Size Business rely on a very delicate network of business connections
Gallup poll # of people who said a strict moral code is important. 1981 47% 1989 60% Josephson Institute Survey of U.S. Students (1991-1992) 78% said cheating on exams is wrong 90% said being kind and caring is important 2008 Josephson Institute Survey revealed 64% cheated on exams 42% lied to save money 30% stole something from a store
1 in 6 drink or use drugs while on the job 1 in 2 say they can get ahead by politics or cheating vs. work 1 in 4 expect to compromise personal beliefs to get ahead Admit they goof off 20% of time Feel #1 cause of business decline is low executive ethics
ETHIKOS = morals ETHOS = character
Standards of conduct based on moral duties and virtues Applying principals of right and wrong Discipline dealing with good and evil with moral duty
Of or relating to principles of right and wrong Conforming to a standard of right behavior
Values What you believe or hold important Ethics What you do
Honesty and integrity Respect and caring for others Recognize stakeholders rights Promise keeping Trustworthiness Fairness Personal responsibility
Happiness Wealth Status Power Appearance Ego A Ethical values must always trump ethically neutral values A
Meet deadlines Cut cost / increase production Meet immediate self-interest Gain short term benefits Protect someone Avoid punishment Win admiration / interest Avoid embarrassment
Virtue Ethicist Deontologist Relativist Egoist Utilitarianist
Person of good moral character deems appropriate Born with virtue, but can lose Can be enhanced by belief, knowledge Above and beyond
Focus on rights of individuals Freedom of conscience Freedom of consent Freedom of privacy Freedom of speech Due Process Intentions of behavior rather than consequences
From experiences of individuals and groups Use self as basis for ethical decision Actions based on group consensus
Seeking greatest good for the greatest number Comparison of costs to benefits for all parties Select alternative that results in greatest utility
Consequences for self Maximize own self interest Career growth Power Pleasure Fame Physical well being Wealth
A statement of core values and ethical principals designed to guide behavior and/or provide inspiration
Virtually every number in a corporate financial report is created by judgments and estimates made by corporate insiders whose cash bonuses depend upon meeting pre-set earnings targets. William S. Lerach Enron Class Action Lawyer
Uberrima Fides
Corporations and individuals doing the right thing Core ethical principals Honesty Integrity Responsibility Promise keeping Fairness Ethics place in business
Lack of leadership Poor communication Lack of consumer focus Burdensome bureaucracies Unhealthy competition
Truth vs. Loyalty Individual vs. Community Short-term vs. Long-term Justice vs. Mercy
10. Could the decision become habit forming? 9. Is it legal? 8. Is it safe? 7. Is it the right thing to do? 6.Will this stand the test of public scrutiny? 5. If something terrible were to happen, could I defend my actions? 4. Is it just, balanced, and fair? 3. How will it make me feel about myself? 2. Does this choice lead to the greatest good for the greatest number? 1. Would I do this in front of my mother?
The Ford Pinto Low-cost sub-compact Weight less than 2000 lbs. Cost less than $2,000.00 To market in 2 years instead of 4
Met all legal and government standards Car was comparably safe To modify design on 12.5 million autos $11 per unit x 12.5 million = $137 million
180 burn deaths ($200,000 x 180) 180 serious burn injuries ($67,000 x 180) 2100 burned vehicles ($700 x 2100) Total of $49.15 million
The Four Way Test Is it true? Is it fair for all? Will it build good will? Is it beneficial to all?
We judge others by their worst behavior We judge ourselves by our best intentions There is no single right answer to many ethical dilemmas It s easier when you don t need it
Questions????????