Ethical IQ Test

1.
You are a newly hired junior executive in a large manufacturing firm. The business conference you have been attending on behalf of your firm for the last two days in over. You had planned to fly home, but a couple of friends you’ve made at the conference are driving back by car and have invited you to ride with them. It would be a five-hour drive instead of a two-hour flight, but they would drop you at your doorstep. It would be stimulating to ride back with your new friends and it might benefit the company. You reason that the additional travel time would be out of your pocket, so to speak, not the firm’s. You decide to drive back with you new colleagues. You toss Rs. 100 into the refueling kitty during the midpoint pit stop.

Q. Would you cash in the return flight ticket and keep the money? NO

Depends

YES

Ethical IQ Test
2.
You have a strict code of ethics in your office regarding employee appropriation of office supplies. The most competent and longesttenured secretary is caught by you, the secretary’s boss, taking typewriter ribbons and erasure tapes home in a briefcase. There is a rule against this as well as a clearly established procedure for providing employees with supplies if they do company’s work at home. The code requires you to fire the secretary on the spot Q. Would you make an exception for this loyal worker?

NO

Depends

YES

Ethical IQ Test
3. A friend at work asks whether you’d like a take-home copy of an expensive computer software program. You know it is protected by copyright.

Q. Would you let your friend make a copy for you?

NO

Depends

YES

Ethical IQ Test
4. You are the senior vice president for public relations in a large multinational corporation. One of your long-time friends in the marketing department confides to you that the boss is subtly suggesting that sales representatives give misleading information to prospective clients about a particular product. Your friend is very upset about it and wants your advice.
Q. Would you encourage your friend to follow the boss’s suggestion?

NO

Depends

YES

Ethical IQ Test
5.
You are a marketing professional in a medium – sized midwestern city. Three months ago you set up your own company. Your first big client wants to promote throughout your region a passive exercise machine. The home office in Texas claims the device is “scientifically proven to take off pounds easily and quickly”. The manufacturing firm does not have a national reputation and despite your repeated requests, has been unable to provide you with any scientific proof of its claims. Q. Would you continue serving this firm as a client without the scientific proof?

NO

Depends

YES

Ethical IQ Test
6.
You are the Director of research and development in your firm. The Personnel Officer has found two candidates for a vacant position in new product testing in your department. The better qualified candidate with more potential for promotion and future contribution to the organization appears to be rather cold and aloof and will likely clash with your personality. The less qualified candidate is your personal choice,even though the company will not be as well served. Q. Would you choose the less qualified candidate?

NO

Depends

YES

Ethical IQ Test
7.
You are the Product Manager for one of your firm’s largest dollar volume brands. You know that your product will soon be challenged by an improved version from a strong, wellfinanced competitor. One of your vendors offer to provide you with a confidential copy of the competitors strategic marketing plan. No price for the copy is mentioned.

Q. Would you utilize this vital information to help your brand?

NO

Depends

YES

Ethical IQ Test
8.
You have recently accepted the top marketing position at a new company. One of your first assignments is to approve an all expensespaid trip for the senior purchasing officer of one of your largest client firms. The four-day seminar in the Caribbean, sponsored solely by your company, would include first-class airline tickets for client and spouse, a three-day cruise following the seminar, plus a $ 500 honorarium. You know that this particular company does not have a written conflict-ofinterest policy. You also know that your new boss is very eager to have this purchasing officer of the seminar.

Q. Would you authorize the expenditure for this client?

NO

Depends

YES

Ethical IQ Test
9.
You serve as an outside member on the audit committee of the board of directors of a major pharmaceutical company that markets new drugs through practicing physicians. You have secretly learnt that your research department has developed an abortion pill that appears to be 100 percent safe and effective. However, it has been repeatedly rumored that your Chief Executive Officer will not let this product be brought to market because of deep religious convictions. Millions of dollars of potential revenue and profits will be lost.

Q. Would you let this secret decision of your CEO go unchallenged?

NO

Depends

YES

Ethical IQ Test
10.
You happen to overhear a couple of engineers in your company discussing a radically new product that your colleagues in upper management are anxious to see hit the market on schedule. You accidentally learn that the engineers are also quite concerned about some design flaws that could be harmful to product users, although the probabilities are very remote. Q. Since you are not directly responsible for his product, would you completely ignore their comments?

NO

Depends

YES

Total up the number of times you circled each No. Depends, or yes in the space provided. Take the highest number in only one of the three categories, multiply it by 100, and then divide by 5.

This is your ethical IQ

Average is 100 perfect score is 200.

What the categories mean:
Purist A high number in No - Kind of a person who always acts ethically
-Confidence in your intrinsic sense of -what is good and true

You are first to cry out against unfairness or injustice You would not authorize the lavish Expenses for Caribbean Seminar You would ‘ blow the whistle” on the ethically timed engineers

You would not let the secret decision of the CEO go unchallenged regarding the abortion pill

As a purist, you bring ethical stability and high standards to the groups of which you are an integral part.

Expedient: A high number in the Yes -Willing to breakrules if they seem silly -You believe you are doing right and your right is short term consequences -Some may call you as ‘self centered’. -Purists will call you ‘greedy’ ambitions

You may ignore the rules in respect of Q2 the secretary - code of ethics are for others As an expedient manager you may in reply to Q7. ask a copy of software

 

As an expedient person your response will reflect your age, your ambition, the competitive intensity. You ethical contribution to groups and organisations is excitement and enthusiasm You tend to be a loner You are economically motivated, probably rich but lonely You are capable of risky ethical decision some of which could be disastrous.

Pragmatist -A high number of ‘depends’ -- likely to feel conscience ridden frequently -You may appear to the ethically insecure since people judge by actions and you are passive

In Q4 you would take a long time to answer as senior VP PR about misleading clients You may answer Q6 on hiring the person on think though You response to Q3 regarding software think through on a no of factors

 

As a ‘depends’ person in the group thoughtfully reasoned temperate ethical leadership You can bring extremes to centeryou are less vocal –serve as ethical CATALYST

Ethical Algorithm Ethical decision become more complicated for respondents higher up the corporate ladder As you move up the corporate ladder the ethical side also expands
1. As greater number of constituents will be affected by your decisions

2.

Your decisions will have increased visibility throughout the company.

3. Your decisions are more likely to have a permanent effect on employees, company policy and community 4. Doing the ‘right thing’ will depend more on whose perspective you take 5. One or more constituents likely to disagree strongly with whatever decision you take.

Sound ethical decision making in today’s business environment requires a lucid and vigorous instrument. The ethical algorithm is such a tool Four critical dimensions of corporate action • • • • Goals Methods Motives Consequences

How the Ethical Algorithm works Goals Methods Motives : : : What do you want to achieve? How will you pursue the goals? What personal needs drive you to achieve? What results can you anticipate?

Consequences: A career decision: Goal Method Motive : : :

Get Rich Rob banks Financial security make crores – retire early

Consequences :

If you had an ethical side Method Consequences : : Would be unacceptable Caught, a prison term

If you get caught motives surface: Kleptomaniac Feed starving family Play Robinhood Unrepentant thief

Motives make a big difference
• Hardest to unravel • Rooted in childhood training culturally conditioned shaped and sustained by beliefs.

You can expand the algorithm
Goals : 1. Do you have multiple goals ? - business goals - an ethical goal Softer side - Jobs - Social benefits hard side - market share - profits

2. Are your goals compatible?

- Achieve both? - Might you have to sacrifice or reduce profits to meet ethical goals? - Parker Bros - Surrendered the business goal - J&J

3. Which constituents get top priority? Whom you feel accountable? - Stock holders customers - Employees employee - Management government

Business side

ethical side

Business goals are fairly routine ethical change with situation You can view ethical consideration as a constraint – Your mission statement does not have an overtone of ethics

We are not suggesting that such companies are not law abiding. They enter the arena when they tend to start practices which are unacceptable – price rigging - EF Hutton Kite Flying

What impact will your anticipated consequences have on your constituents? Put yourself in the shoes of each of your constituents in the GOALS go down the list and imagine consequences of each one of the constituents Are there any exogenous factors ? Uncontrollable unpredictable Murphy’s law “What can go wrong- Will”

Making money? Or doing right things
What is best for your employer? What is best for your own career? What is best for the customer?

Business Ethics are built on Personal Ethics no real separation:

Business Ethics are based on fairness

Does each transaction take place on a “level playing field”

Business Ethics require : Integrity Wholeness Reliability’ Consistency Treat with respect Honesty Keep promises Commitment

Business Ethics requires : Truth telling

Advertising Products Promises

Business Ethics require dependability - you may be new - unstable - going out of business

Business Ethics require a Business Plan - an image of itself - a vision of the future

Clearer the goal the stronger is the commitment

Business Ethics apply internally and externally
- Conference room - negotiations in good faith - Keep promises

Meet obligations to staff employers Vendors

Business Ethics require a profit

How we would live in the future is out of how we live in the present means and also end.

Business Ethics are values based Ideals Aspirations Clarity must on intent

Business Ethics comes from the Boss - Sets the tone

Either lead the way or communicate whether cutting corners, dis-respect or deception

Five Basic Assumptions

1.

Business Ethics is a process : means – ends - little bit wrong: ?

2. Human behaviour is caused Why do business leaders behave the way they do? Personal values leadership styles

3.Actions have consequences: even unseen or delayed e.g: ASBESTOS TYLENOL 4.What is perceived as ethical depend upon the viewpoint of the constituent? 5. The need for good ethics
promote - permit

Democracy and free enterprise
Foster:

10 Myths about Business Ethics
1. Myth: Business ethics is more a matter of religion than management. “Altering people’s values or souls isn’t the aim of an organizational ethics program – managing values and conflict among them is..? 2. Myth: Our employees are ethical so we don’t need attention to business ethics. When the topic of business ethics comes up, people are quick to speak of the Golden Rule, honesty and courtesy.

10 Myths about Business Ethics
3. Myth: Business ethics is a discipline best led by philosophers, academics and theologians. Business ethics is a management discipline with a programmatic approach that includes several practical tools.

4. Myth: Business ethics is superfluous –it only asserts the obvious: “do good!” If an organization is struggling around continuing occasions of deceit in the workplace

10 Myths about Business Ethics
5. Myth: Business ethics is a matter of the good guys preaching to the bad guys Stress or confusion are not excuses for ethical actions – they are reasons. 6. Myth: Business ethics in the new policeperson on the block. Business ethics was written about even 2,000 years agoat least since Cicero wrote Business ethics has got more attention recently because of the social responsibility 1960s.

10 Myths about Business Ethics
7. Myth: Ethical can’t be managed Strategic priorities (profit maximization,expanding market share, cutting cost, etc.) are still skeptical about business ethics, believing you can’t manage values in an organization 8. Myth: Business ethics and social responsibility are the same thing Social responsibility movement is one aspect of the overall discipline of business ethics

10 Myths about Business Ethics
9. Myth: Our organization is not in trouble with the law, so we’re ethical. Withhold information from superiors, fudge on budgets, constantly complain about others, etc. “The boil the frog” phenomena

10. Myth: Managing ethics in the workplace has little practical relevance Values management is also highly important in other Management and strategic planning.