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Ethics 102 Rhonda L. Bishop Chief Compliance and Ethics Officer LIFE @ UCF September 17, 2013 Agenda Ethical Framework Ethical Failures Ethical Decline Ethical Leadership What is Ethics? Merriam-Webster Dictionary 1. Discipline dealing with what is good and bad, with moral duty and obligation 2. Set or system of moral values and principles 3. A guiding Philosophy 3 Ethical Framework for Decision Making Recognize the event, decision, or issue Get the facts ◦ Who will be impacted? ◦ What are your obligations? ◦ What are possible options and consequences (harm, perception etc.) Evaluate alternative actions ◦ Consider your values and the university’s values ◦ How will each option impact others (fairness, equality, most good) Decide on a course of action and test it ◦ Is it consistent with our values? ◦ Discuss with others ◦ Do a litmus test (front page of the newspaper test!) Take action, note the outcome, and reflect Valesquez, M., Moberg, D., Meyer, M, Shanks, T., McLean, M., DeCosse, D., Andre, C., and Hanson, K. (2009, May) A Framework for Thinking Ethically. Retrieved from http://www.scu.edu/ethics/practicing/decision/framework.html 2012 Ethical Failures Scott Thompson- former CEO Yahoo ◦ Lied on his resume Christopher Kubasik – former CEO, Lockheed Martin ◦ Terminated due to an affair with a subordinate Ernst Lieb – former CEO Mercedes Benz USA ◦ Remodeled his house, golf club expenses, favors Lance Armstrong – stripped of seven Tour de France medals ◦ Doping offenses Graham Spanier – former Penn State President ◦ Child abuse scandal, criminal charges files Cheating Statistics High School Students: College Students: 20% reported cheating in 1940 49% reported cheating in 1993 75% to 98% 2003 to 2011 Engineering and business majors more likely to cheat Cheating declined in 2012 for the first time 51% reported cheating in 2012 59% reported cheating in 2010 Cheating begins in middle school Source: Josephson Institute for Ethics Are We in Ethical Decline? Charles Ponzi Ethical Failures 1830’s, Trail of Tears and Indian War against Native Americans 1865 slavery abolished 1920 women allowed to vote 1965 Civil Rights Act prohibited discrimination based on age, race, religion, gender and national origin Ethical Failures 1932 – 1972 more than 400 African Americans deliberately left untreated for syphilis 1950 – 1952 1000 pregnant women given diethylstilbestrol without consent 1953 James Watson and Francis Crick discovered DNA – stole key data from Rosalind Franklin 1956 -1980 Hepatitis experiments conducted on mentally disabled children Ethical Failures 2 million children age 3 and up employed in 1910 1938 Fair Labor Standards Act regulates child labor General Motors Fraud 1920s to early 1940s Formed a holding company to buy streetcar companies Replaced them with buses Standard Oil and Firestone contributed to 9 million 1949 – All three found guilty of conspiracy to monopolize the local market Good News We as a society are less violent than we were 30 years ago Criminologist estimate that homicide rates are 1/6 of what they were in 1700s, 1/4 of 1850 Divorce rates are the lowest since the 1970s Teenage pregnancy at its lowest rate in 40 years 2011 – Americans gave an estimated $347 billion to charity Boomer and older women give 89% more of their total income than male conterparts What Drives Ethical Failures? Pressure to succeed Competing incentives Focus on short term Belief they will not be caught Minimize the wrong doing Different values What Drives Students to Cheat? Too much emphasis on test scores from federal programs: ◦ No Child Left Behind Act ◦ Race to the Top Emphasis on firing teachers Lack of response by parents and schools Better predictors of success are family income and family education Seven Habits of an Ethical Leader 1. strong personal character 2. a passion for doing right 3. a proactive behavior 4. keeping the stakeholders’ interests in mind 5. a recognition of their value as role models 6. an awareness that decision making should be transparent 7. a holistic view of human beings “I” Project Competition ICAC Winners – Azul, Kiran, Nidhi,Yifan Ethical Leadership Lead by example – one person can make a difference Educate yourself - be aware of the rules Use ethics in your decision making Exhibit selflessness Don’t be afraid to ask for help or raise concerns Speak up No One Said it Would Be Easy Doing the right thing is not always easy Competing Incentives Focus on long term results not short term successes Must be visibly ethical and consistent Rhonda’s 4 Rs Respect Responsibility Reconcile Remember “Tough situations don’t build character… tough situations reveal character!” Thank You Contact Information: Rhonda L. Bishop University Compliance, Ethics and Risk Office Millican Hall, Rm 328 [email protected] 823-6263