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Doing the Right Thing:
Ethical Challenges in
Your Personal and
Professional Lives
Gregory Young, The College of Saint Rose
An Overview
• Philosophical Foundations of Ethics
• Applying Ethical Concerns in the Meeting
Planning Industry
• Establishing Ethical Best Practices
• Case Studies: Ethics in Action
Philosophical
Foundations of Ethics
A Quick Summary
• Utilitarianism – Greatest Happiness
Principle, maximize pleasure and
minimize pain for the greatest number of
people
• Deontological Ethics – Actions are
justified if they are in accordance with a
moral norm, something is intrinsically
good or bad regardless of consequences
• Virtue Ethics – Act reasonably, choose the
mean between excess and deficiency,
people should generally act in a way that
contributes to a virtuous character
Classic Utilitarianism
• Jeremy Bentham & John Stuart Mill used
this philosophy to inspire legal and social
reform in 18th and 19th century England
(e.g. prison system and
disenfranchisement of women)
• “By the principle of utility is meant that
principle which approves or disapproves
to have augment or diminish the
happiness of the party whose interest is
in question: or, what is that same thing in
other words, to promote or to oppose
that happiness”
- Jeremy Bentham
Kant’s Ethics:
Nonconsequentialism
• German Philosopher Immanuel Kant sought
moral principles that did not rest on
contingencies, but rather on reason
• Nothing is inherently good except for good will,
the human ability to act according to principle
• Acts have moral worth when we act from duty,
not feeling, inclination, or self-interest
Kant and Ethics
• Categorical imperative gives us firm rules
to follow in moral decision making
• Human dimension is crucial; must
consider inherent worth and dignity of
humanity
• We must be motivated and act according
to principle, do the right thing for its own
sake
Prima Facie Obligation
• What one ought to do depends on the
circumstances and relative importance of the
conflicting obligations
• Most of our moral obligations can be overridden
by a more serious obligation
• We promise to meet our friend having a crisis,
but, on the way, see an injured motorist
• You tell the truth, but when a murderer asks
where your friend is, you lie out of the obligation
of your friendship (Kant disagreed)
Rights
• An entitlement to act or have others act
in a certain way
• Legal rights are derived from legal system
• Moral rights come from relationships,
roles, and circumstances (e.g. borrowing
something),
• Life, free speech, medical care, housing,
education, and work are viewed as moral
rights without any special relationships,
they are human rights
Virtue Ethics
• Aristotle’s Nicomachean Ethics - Moral character,
rather than right actions are fundamental
• Ethics allow us to live “the good life”
• Virtue is a character trait that is visible in habits
• Benevolence, compassion, courage, courtesy,
honesty, loyalty, moderation, toleration, justice
• Virtues are not the path to a good life, they are
the good life
• Business virtues is working together for a common
good
Ethics at Work:
Applications and
Considerations
•
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Privacy and Confidentiality
Ethical Selling and Negotiating
Gifts, Commissions, & Conflicts of Interest
Human Dignity
Environmental Considerations
Corporate Social Responsibility
Privacy & Confidentiality
• Using information learned in confidence
for personal gain (e.g. Insider trading)
• Providing client lists from a prior
employer to a future employer
• Sharing attendee list with vendors or
other attendees without consent
The Best Price in Town?
• While you are planning a meeting, the
sales manager of the Elmgrove Inn tells
you that she will beat any competitors
rate
• In order to obtain this rate, you will have
to divulge confidential information (i.e.
competitor’s rate)
• Raises ethical concerns and economic
concerns
Trade Secrets
• A supplier for Company X had a really
creative idea for a speed networking
event in their proposal that the client
loved, but we went with a different
vendor.
• Can Company X still use the idea?
• What if they do not use the supplier’s
specific plan for the event?
Ethical Selling and Negotiating
• Sales people may be tempted to conceal info,
make unrealistic promises, due to pressure to
meet goals
• Moral obligation to facilitate a fair transaction
− Deception – False information about a product,
taking a FAM trip to a city outside your region
− Manipulation – No misleading info, but taking
advantage of consumer psychology to make a
sale (e.g. bait and switch, high pressure sales)
− Disclosure – Reveal commissions, surcharges, or
other benefits received to your firm and client
Conflicts of Interest
• When a personal interest comes into
conflict with an obligation to serve the
interests of another
• If a person agrees to act on another’s
behalf, she must act in their benefit for
all matters
• If a hotel or other supplier offers rewards
points, upgrades, or a commission, this
can create a potential conflict of interest
Biased Judgment
• Taking into account something other than
the best interests of clients or the
specialized knowledge of a profession
− E.g. A purchasing agent accepting a
reward or an employee with investments
with a competitor or supplier
− Can you accept a gift from a potential
vendor?
Direct Competition
• When an employee competes against her
employer
− Quality of work performed may decline
− Judgment may be impaired by outside
work
− E.g. Steve works for C&S Events, but
agrees to plan high school reunion as a
favor to a friend
Misuse of Position/Unfair
Advantage
• Using powers or opportunities made
available by holding a position that they
wouldn’t have otherwise
• Employees have obligations not to use
these for personal gain (e.g. demanding a
kickback such as a free room or upgrade
as a result of making a favorable
decision)
• Bribery: Offering improper inducements
to encourage a favorable decision
How can professional
societies and firms manage
conflicts of interest?
• Objectivity – avoiding both actual
conflicts of interest and remaining
independent from relations that would
impair objectivity
• Avoidance – Not acquiring interests that
would bias one’s judgment
How else?
• Disclosure - Being aware allows a client
to disengage or be on guard
− Lawyers can accept a conflict of interest if
they disclose, are confident they can
provide adequate representation, & the
client accepts
− Greater transparency means less
opportunity for conflicts of interest
• Rules and Policies – Banning gifts,
controlling information access
Support Human Dignity
• Treat colleagues, suppliers, clients, and
front-line staff with respect
• Value workers with just working
conditions and compensation
• Work with suppliers who support human
dignity
Discrimination
• Wrongful acts related to employment,
housing, education, healthcare, or some
other area of public accommodation
• A person is deprived of a benefit or
opportunity because of membership in a
prejudiced group
• New York State established first nondiscrimination laws in US in 1948
Ethical Theories Against
Discrimination
• Utilitarianism: Productivity of a business
and of society is best when choosing the
most qualified applicant and productivity
suffers when applicants are evaluated on
the basis of other characteristics
• Kant: Discrimination is a violation of
human dignity and respect for persons
• Virtue: Aristotle would say that treating
people differently requires a good reason
to do so
Support Fairness & Human
Dignity
• Require suppliers who wish to solicit
business to become a sponsor or purchase
a booth
• Take reasonable efforts to make sure all
attendees are registered, but also work
to make sure a conference is reasonably
accessible to those of more limited means
Environmental Responsibility
• Balance the environmental and economic
dimensions of meetings
• Envt’l problems involve allocation and
distribution of limited resources
• There is an optimal level of
pollution/land use that is not zero
• Human ingenuity has found substitutes
when the supply of a resource decreases
and its price increases
Sustainable Business Principles
• 1. Eco-Efficiency: doing more with less, firms
should become more efficient in using
resources (e.g. McDonalds brews coffee hot
to get most flavor out of beans)
• 2. Biomimicry – Firms should model
production process on biological processes
− What is created as waste in one process is
reused in another (e.g. photosynthesis creates
oxygen)
− Shifting from “take-make-waste” to “cradleto-grave” life-cycle responsibility of products
Corporate Social Responsibility
• Often profit and integrity/social
responsibilities (loyalty, patriotism,
consequences of a business deal) will come
into conflict
• Personally: you want a good job, but you
don’t want to break the law or your religion
or turn on friends
− What your social responsibilities? How do they
relate to your personality identity, worth, and
morality?
• How much social responsibility should a
business bear? How can organizations
contribute positively to their communities
and cultures?
Archie Carroll: 4 Stages of Social
Responsibility
Avoid Appearances of Impropriety to
Protect Your/Client’s Reputation
Establishing Ethical Best
Practices
Best Practices Overview
• Develop written policies and procedures
that provide specific guidelines and
responsibilities for your organization
• Communicate policies clearly, disclose
benefits, and respect privacy of
confidential information
• Promote economically and
environmentally sustainable operations
• Avoid the appearance of impropriety
Meeting Professionals
International’s Principles of
Professionalism
• 1) Maintaining Professional Integrity:
Honestly represent and act within one's
areas of professional competency and
authority without exaggeration,
misrepresentation or concealment.
Avoid actions which are or could be
perceived as a conflict of interest or for
individual gain.
•
Offer or accept only appropriate
incentives, goods and services in business
transactions.
2) Utilizing Professional Business
Practices
•
Honor written and oral contracts
Ensure rights to privacy and protect
confidentiality of privileged information
received verbally, in writing, or
electronically.
Refrain from misusing solicited
information, proposals or concepts.
Commit to the protection of the
environment by responsible use of
resources in the production of meetings.
Actively pursue educational growth
3) Respecting Diversity
•
Embrace and foster an inclusive business
climate of respect for all peoples
regardless of national origin, race,
religion, sex, marital status, age, sexual
orientation, physical or mental
impairment.
8 Governing Principles
• Based on Lynn Paine et al, 2005 Harvard
Business Review study of codes of
conduct
• Fiduciary– Diligently work for interests of
org, avoid conflicts of interest
• Property- Respect assets, avoid theft
• Reliability – Fulfill commitments
• Transparency – Be truthful, avoid
deception
Paine, Deshpandé, Margolis, &
Bettcher’s 8 Governing Principles
• Dignity – Respect dignity, health, safety,
privacy, and human rights, promote
learning and development
• Fairness – Treat all parties justly and
equitably
• Citizenship – Obey laws, support
sustainability & community
• Responsiveness – Address concerns
respectfully and in good faith
Specific Issues to Address in a
Code of Conduct
• Gift exchanges – what gifts values are
allowed? What should be done with gifts
that exceed this? When can gifts be
excepted? Are there cultural exceptions?
• Fam Trips – Under what circumstances
can they be accepted?
• Upgrades, Points, & Meals – Can travelers
keep points or must they be remitted to
the organization or the client?
Specific Issues to Address in a
Code of Conduct
• What factors are most important in
selecting suppliers? How are commissions
disclosed?
• The organization’s role in the
communities it serves
• Protections for Intellectual Property and
Confidential Information
• Acceptable behavior while representing
organization
Keeping a Code of Conduct
Effective
• Include code in new staff orientations and
continuing education
• Use the code when conducting staff
evaluations
• Reference the code frequently within
organizational discussions (e.g. contract
negotiations, gift giving or receiving)
• Update the code as needed
Case Studies: Ethics in
Action
Dissecting Dilemmas
1. What competing standards, values, and
available alternatives exist in this
scenario? Be creative. Are there
compromises or less obvious options that
will help you achieve your goals?
2. What are the likely and potential
consequences of each possible course of
action? Consider all of the stakeholders.
Dissecting Dilemmas
3. What legal or contractual obligations
exist?
4. What outcome will minimize negative
risks and/or maximize positive
outcomes?
5. How could an organizational code of
conduct or other policy help to define or
clarify a course of action in this
scenario?
Sample: Access vs. Environment
• You are planning a meeting of the
Coltville Citizens Coalition.
• A segment of this audience has limited
economic resources. These people are
often unable to attend as a result, but
their participation will improve the
event’s outcome.
• The president of the CCC tells you that
they also want to minimize the
environmental impact of the meeting.
Sample: Access vs. Environment
• The Incandescent Lodge has a more
affordable meeting and hotel room rates,
but has a poor environmental record
• The Tree Side Inn is LEED-certified and
composts, but may be cost prohibitive to
some attendees
1. Identify competing standards
and available alternatives
• Conflict between being affordable and
inclusive or lessening environmental
impact
• Choose The Incandescent Lodge or The
Tree Side Inn
• Or: Negotiate a sliding scale for Tree Side
or work with the Incandescent Lodge to
incorporate sustainable practices
2. Identify consequences
• Selecting Tree Side Inn will likely reduce
overall attendance and diversity of
attendance
• Selecting Incandescent Lodge will have a
negative environmental impact
3. Legal or Contractual
Obligations
• Does the Coltville Citizens Coalition have
a policy on selecting “green venues?”
• Would they be willing to grant an
exemption for the Incandescent Lodge?
4. Mitigate Negatives/ Maximize
Positives
• At Tree Side Inn, consider a reduced rate
room block or scholarships and
communicate environmental programs
• At Incandescent Lodge, put local foods on
the menu and reduce paper usage.
Market the meeting to diverse audiences.
5. Develop Policies and Practices
• Does your organization want to encourage
accessibility or sustainability?
• How can your organization support both
of these?
• What are your clients preferences?
Case Studies
• What’s the Catch: The Catering Cost
Overrun
• Disputed Destinations: North Carolina’s
House Bill 2
• A Point of Order: Who Do Points and Miles
Belong To?
• The Paper Caper: Employee Benefits and
Responsibilities
• The Marigold Plan: The Cost of Buying
Direct