Business Communication

MGT 5200
Communicating Ethically in Business

Ethics and Business Communication

What are ethics? Give an example of ethical behavior How do ethics relate to business communications? What could be the consequences for companies that communicate unethically?

Ethics and Business Communication

This lecture topic will be in three parts over two lectures:

Understanding ethics Ethics for managers and leaders in business Ethics and business communications

Ethics Defined

Ethics is a branch of philosophy that addresses questions about morality that is, concepts such as: Good and evil Right and wrong Virtue and vice

Ethics - Meaning

The word ethics has its roots in the Greek word ethos which translates to customs, conduct or character

Ethics - Origins

Socrates (469 BC 399 BC) was one of the first Greek philosophers to encourage both scholars and the common citizen to turn their attention from the outside world to the condition of humankind. He posited that people will naturally do what is good, if they know what is right. Evil or bad actions, are the result of ignorance.
Do

you agree with Socrateswhy / why not?

Ethics - Origins

Aristotle (384 BC 322 BC) posited an ethical system that may be termed "self-realizationism." In Aristotle's view, when a person acts in accordance with his nature and realizes his full potential, he will do good and be content. Unhappiness and frustration are caused by the unrealized potential of a person, leading to failed goals and a poor life.

Do you agree with Aristotle that happy and fulfilled people are ethical and unhappy and frustrated people are unethical?

Business Ethics

Ethics as it relates specifically to business leaders is a much more recent area of study. One of the first studies appeared in 1996 a set of working papers brought together by leadership scholars and published as Ethics: The Heart of Leadership

Ethics and Behavior in Business

How do we determine what is good (ethical)? We need to have some measure Two sets of theories: Theories about conduct and theories about character
Conduct Theories Character Theories

Consequences
(teleological theories)

Duty
(deontological theories)

Virtue

e.g. Ethical egoism

Utilitarianism

Conduct Theories - consequences

Greek telos meaning ends or purposes)

Consequences (teleological from the

1. Ethical Egoism: A person should act so as to create the greatest good for him/her self 2. Utilitarianism: We should behave to create the greatest good for the greatest number 3. Altruism: A person should act so as to create the greatest good for others

stress the consequences of our actionswill the persons conduct produce desirable consequences? The consequences of the actions determine whether the behaviour was good or bad

Conduct Theories - Duty

Duty

(deontological

stress whether the action itself is good irrespective of consequences. E.g. telling the truth; keeping promises are inherently good actions. Focus is on the actions of the person and their moral obligation to do the right thing

from the Greek deos meaning duty

Actions and behaviours are either inherently good or inherently bad

Character Theories
Virtue

The focus here is on who leaders are as people (character). Virtues (goodness) is rooted in the persons character. Virtues are not believed to be innate: we can learn virtues and develop goodness (e.g. parents teach children morally appropriate behaviour)

What, then are the virtues of an ethical person? Aristotle said a moral person has: Courage; Generosity; Self-control; Honesty; Sociability; Modesty; Fairness and Justice

Business Ethics and Leaders / Managers

Leaders have an ethical responsibility to treat followers with respect because they are in a position of power and influence over followers Leaders use followers to achieve goals. Because they utilize and direct followers they have an ethical obligation to do so morally Leaders shape organizational values: The values promoted by the leader have a significant impact on the values exhibited by the organization

Principles of Ethical Leadership

Respects others

Builds Builds community community

Ethical
Leadership

Serves others

Manifests honesty

Shows justice

Ethical Leaders Respect Others

Treat others as ends in themselves, not means to an end Treat other peoples decisions and values with respect Leaders who treat others with respect allow them to be themselves with their own wants and desires It means to listen, be empathetic and tolerant of opposing views

Ethical Leaders Serve Others

To put your peoples welfare foremost in your plans In the organization serving is demonstrated through coaching, mentoring, training, team building and empowerment Doctors serve others through the Hippocratic oath. Mother Teresa served others first Leaders should develop, nurture and promote a vision that is larger than themselves

Ethical Leaders are Just

To treat people equally, fairly and justly. Nobody should be treated differently or with favor Rewards and punishments are distributed by rule / principle not based on the individual Just leaders treat others in ways they themselves would wish to be treated

Ethical Leaders are Honest

Leaders must represent reality; lying misrepresents reality and is dishonest Leadership is about building trust and this cannot be created through dishonesty because people see the leader as undependable Lying is a form of manipulating a relationship which strains the bonds between people Dishonesty is a form of putting your own interests before others. Good leaders do not do this

Ethical Leaders Build Community

Leaders must build community to achieve a common goal Building community is a form of working for the common good rather than selfish interests Gandhi built community around the common good and a common goal Hitler coerced people to meet his own agenda and followed goals opposite to the common good

Perceived Leader Integrity Scale (PLIS)

Think of a leader you currently (or previously) work under.
Complete the PLIS this scale measures your perceptions of another persons integrity in an organizational setting Score the questionnaire and interpret the score
It is saved in the Class Activities folder on the L Drive

Case Study
To apply our understanding of business ethics and the lecture material, we will look at a short case study:

Re-examining a Proposal
It is saved in the Class Activities folder on the L Drive

Why it is hard to make ethical decisions in business?

What barriers are there in organizations that often prevent employees from taking ethical decisions?

Why it is hard to make ethical decisions in business

The right decision may conflict with what the organization / manager expects or values We are faced with a new problem One person tells us one thing; another person advises differently It may lose us a sale or client It may show us in a bad light / highlight a mistake The company has conflicting policies / no policy

How the business communicate its ethics to employees

What are some of the ways organizations can communicate to employees their ethical standards and expectations?

How the business communicate its ethics to employees

Vision, Mission and Values statements How (and what) decisions leaders make Responses to complaints and mistakes Code of Conduct Customer Service Charter Policies and procedures Performance evaluations systems Rewards and penalties Promotions Education and training Leading by example

How to Make an Ethical Decision

Analyze the situation/ dilemma

Develop and Assess Solutions

Select the best solution objectively Implement the solution: fair & transparent Follow-up the results; review and evaluate

Making ethical decisions: Step 1

ANALYSIS What are the facts? Who is responsible to act? What are the consequences of action? What and whose rights are involved? What is fair treatment in this case?

Making ethical decisions: Step 2

SOLUTION DEVELOPMENT What solutions are available to me? Have I considered all of the creative solutions, which might permit me to reduce harms, maximize benefits, respect more rights or be fair to more parties.

Making ethical decisions: Step 3

SELECTING THE OPTIMUM SOLUTION What are the potential consequences of my solutions? Which of the options I have considered does the most to maximize benefits, reduce harms, respect rights and increase fairness? Are all parties treated fairly in my proposed decisions?

Making ethical decisions: Step 4

IMPLEMENTATION Who should be consulted and informed? What actions will assure that my decision achieves its intended outcome?

Making ethical decisions: Step 5

FOLLOW-UP Was the decision implemented correctly? Did the decision maximize benefits, reduce harms, respect rights and treat all parties fairly?

8 Ethical Principles when Communicating in Business

HONESTY tell the truth; dont mislead; dont distort information
ACCURACY context is everything; use information in context COMPLETENESS declare conflict; declare sources; declare affiliations TAKING CREDIT give credit where due; accept credit only for what you did RELEVANCE only give relevant information to the issue FULL DISCLOSURE tell all that you know; dont withhold information CLARITY communicate clearly to ensure the right message is received RESPECT remember your audiences feelings; needs; issues

Communicating Ethically
HONESTY

Am I telling the whole truth? Am I in any way misleading my audience? Am I in any way misrepresenting the facts? Am I distorting the way I present the facts? Am I communicating with the interests of my audience in mind?

Communicating Ethically
ACCURACY

Citing something out of context. Quoting out of context. Distorting by going beyond the facts. To link a person or idea or product with another person, idea, or product many induce unwarranted depreciation or prestige.

Communicating Ethically
COMPLETENESS

You should be completely open with your audience about the sources of your information, your purposes, and your affiliations.

Communicating Ethically
TAKING CREDIT

"This is not something I have created all by myself" but, "This is what I believe, this is what I shall take responsibility for

Communicating Ethically
RELEVANCE

You should not include irrelevant material purposely to deceive, mislead, or distract the audience.

Communicating Ethically
FULL DISCLOSURE

Since a basic cornerstone in democracy is the people's "right to know" all necessary information needed to make informed decisions should be provided, any specific audience is thus entitled to all information they would reasonably need.

Communicating Ethically
CLARITY

Information should be presented so that it is clear, understandable and concise. We should consider possible barriers audiences may have to understanding our message (language; education level; culture; age and so on).

Communicating Ethically
RESPECT

Respecting the dignity and feelings of your audience. You should exhibit a high degree of tactfulness, for no one has the right to intentionally or unnecessarily hurt another person by words, any more than by physical means. Be careful of the words you chose and how they are expressed.

Dishonest Claims

Advertised No More Late Fees After 8 days, customer is charged full price to credit card. If returned within 30 Days, customer is reimbursed the full price of movie. Still charged a restocking fees After 30 days, customer can not receive any reimbursement or return movie.

Dishonest Claims

Used to say Provide immediate relief of headaches No published studies shows that any of its ingredients alleviate headache pain. Sold 5 million tubes in past 11 months at $8 a piece. $40 million dollars.

Partial Information

Many companies have tricked customers with rebates telling them how much they save after rebates but in the fine print they tell you that you have only limited time to get your money back or they just dont give you your money back after filling out the rebates.

Omitted Information

Things not told directly to customers in the advertisement 1)Transaction fee for Cash Equivalents: 3% of each such cash advance (minimum $10). 2)Late-payment fee: Based on your balance as of the day the fee is assessed- $15 if $100 or less; $29 if between $100.01 and $250; $39 if over $250. 3)Over-the-credit-limit fee: Based on your balance as of the day the fee is assessed - $15 if $500 or less; $29 if between $500.01 and $1000; $39 if over $1000.

Deliberate Misinformation

Many pharmaceutical companies try to convince consumers to buy a particular drug they manufacture because the drug has been approved by the U.S. Food and Drug Administration (FDA) No drug can be sold in the U.S. unless it has been approved by FDA. Therefore the claim, while literally true, is deceptive because it creates the false impression that drugs produced by others may not have been approved by FDA.

Unfinished Claims

When these claims are made, they might often leave you asking yourself questions about it. Be the first to know CNN advertisement slogan. The first to know what?! It also suggests that CNN company is the first to report ALL newswhich is obviously not true

Uniqueness Claims

Making empty, opinion-based claims about a products superiority

Nothing is better than Anadin -Anadin Advertisement Slogan.

Stating Facts as being special

This basically claims nothing and shows no real advantage over any other product. Rheingold, the natural beer made from grains and water Rheingold Beer Advertisement Slogan. All beers are made from these ingredients! So how is Rheingold any more natural than all other beers?

So What Claims

These claims are almost like making factual statements, but they make claims that competing products do not make or they offer more of something in order to exceed the consumers normal expectations. Tropicana has orange juices that now have extra calcium So what? Do you really need more calcium than what is already provided in orange juice?

Vague Claims

A vague claim states things that are unclear, and not able to be verified. The best a man can get Gillette advertisement slogan. There is no way to verify this!!!

Testimonial Claims

A lot of companies will use famous people to advertise their product hoping to get consumers to buy the product and to believe that the celebrity uses the product and the product has achieved things for the celebrity You too can have a body like mine Charles Atlas advertisement slogan for an exercise machine.

Questionable Statistics

Using claims that have not been verified. On the Centrum Website we find Higher levels* of Vitamins B6 and B12 to support health Then at the bottom of the page : *These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease. They put this on the bottom of the page knowing that some consumers will not bother to go that far down on the page after skimming at the information that is given.

Smarter Consumer Claims

Making the person think that they are better for choosing whatever is being claimed. Choosy moms choose Jiff Jiff advertisement slogan. "The best tires in the world have Goodyear written all over them. -Goodyear tires advertising slogan.

Using Graphs to distort Data

Look at the graph on the next slide and say

What is misleading about this graph?

How could the graph be changed to reflect the data more accurately?
Why would someone make a graph that is misleading in this way?

The same data:

Factors that make a graph misleading:

Y-axis scale is too big or too small Y-axis skips numbers, or does not start at zero X-axis scale is too big or too small X-axis skips numbers, or does not start at zero Axes are not labeled Data is left out What else?

Using Graphs to distort Data

You will now see two more graphs. With the person next to you, discuss the following questions

What is misleading about this graph? How could the graph be changed to reflect the data more accurately? Why would someone make a graph that is misleading in this way?

http://sde.state.ok.us/publ/invest00/bench.html

http://www.brickonomist.net/?cat=20

Visual Misrepresentations

We have looked at examples of unethical written business communications that accompany products And then how graphs can be used to distort information Finally, we will look at visual misrepresentations

Misleading visual communication

Misleading visual communication

Misleading visual communication

Misleading visual communication

Misleading visual communications

Misleading visual communications

Misleading visual communications: Manipulating color

Misleading visual communications: Cropping