Ethics in business

Following a rousing philosophical discussion about ethics, my students asked if there were any guidelines or formula to apply ethical behavior in various business situations. We came up with two lessons. At first glance the lessons may seem rather flippant; however, field testing demonstrated their utility and functionality in creating the discussion that should precede the action in most business situations.

Ethics lesson 1

Formula-based approach to ethics an example when to lie:
A. consequences of being caught (0 to 1.0)
B. Consequences of telling the truth (0 to 1.0)
C. IF A/B < 1.0 = lie!
The closer to 1.0, the greater need for truth.

Ethics lesson 2

Guidance to an operational-based approach to ethics:

-If it feels unethical, it probably is (also known as the intuitive rule).

-Analyze your own ethical framework to determine where are you coming from?

-Examine your assumptions from a different ethical camp (diverse ethical communities)

-Be careful in communication; do not assume that others share your ethical value systems.

-Pretend you are communicating with Martians. Can you explain your decision?

-Do what is in the public good or in the public interest--not what is solely for your private gain.

-If it is small stuff, be reasonable (also known as the "use good judgment rule").

-If it is big stuff, get an ethics buddy.
Talk about the decision, don't be anonymous, do some reality checking.
It is usually best to have an ethics buddy in the same profession.
If you get along with your spouse, find someone else. Your compatible spouse or best friend is usually already aligned with you and will not always see the reality from outside your personal relationship.

-Reporting rule: assume that the issue and your actions will go public. If you take the action, be ready to expose it or have it exposed.
How will you fair in the face of public disclosure?
How will it look on the front page of your local newspaper?
If you can't live with the public scrutiny, it may be unethical.