MSETM 5110 Ethics for Technology Managers

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MSETM 5110 Ethics for Technology Managers

• What Constitutes Ethical Behavior?

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MSETM 5110 Ethics for Technology Managers

• Do the Right Thing

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MSETM 5110 Ethics for Technology
ManagersRecap of Session 3

• Continued the Ethics Journey
• More Ethics Issues In the News
• The Relevancy Scale
• The Tylenol Story
• The Business Value of Ethics/Integrity
• Assignment 2 The Final Voyage of the
  Challenger
  

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MSETM 5110 -  Ethics for Technology Managers

• Are There Dueling Agendas?
• Competitive vs. Ethical Conduct
• Flexibility/Adaptability vs. Sound Business
  Practice
  
• Binary vs. Degrees of ("Bend But Don't Break")
• Company/Organizational Values vs. Personal Value
  System
  
• Defining Right vs. Expedient
•                                  

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MSETM 5110 - Ethics for Technology Managers

• Credibility
• Principle Centered
• Reputation
• Relationship

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MSETM 5110 - Ethics for Technology Managers

• Discipline and Commitment

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MSETM 5110 - Ethics for Technology Managers

• Strict Adherence vs. Spirit and Intent
• True North vs. Magnetic North

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MSETM 5110 - Ethics for Technology Managers

• More Examples of Codes of Conduct and Values
  Statements
  

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MSETM 5110 Ethics for Technology Managers

• Code of Ethics and Standards of Practice
• of the NATIONAL ASSOCIATION OF REALTORS
• Effective January 1, 2002
• Preamble
• Under all is the land. Upon its wise utilization
  and widely allocated ownership depend the
  survival and growth of free institutions and of
  our civilization. REALTORS should recognize
  that the interests of the nation and its citizens
  require the highest and best use of the land and
  the widest distribution of land ownership. They
  require the creation of adequate housing, the
  building of functioning cities, the development
  of productive industries and farms, and the
  preservation of a healthful environment.
• Such interests impose obligations beyond those of
  ordinary commerce. They impose grave social
  responsibility and a patriotic duty to which

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MSETM 5110 Ethics for Technology Managers

• Preamble(contd.) NATIONAL ASSOCIATION OF
  REALTORS
  
• REALTORS should dedicate themselves, and for
  which they should be diligent in preparing
  themselves. REALTORS, therefore, are zealous to
  maintain and improve the standards of their
  calling and share with their fellow REALTORS a
  common responsibility for its integrity and
  honor.
• In recognition and appreciation of the
  obligations to clients, customers, the public,
  and each other, REALTORS continuously strive to
  become and remain informed on issued affecting
  real estate and, as knowledgeable professionals,
  they willingly share the fruit of their
  experience and study with others. They identify
  and take steps, through enforcement of this Code
  of Ethics and by assisting appropriate regulatory
  bodies, to eliminate practices which may damage
  the public or which might discredit or bring
  dishonor to the real estate profession. REALTORS
  having direct personal knowledge of conduct that
  may violate the Code of Ethics involving
  misappropriation of client or customer funds

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MSETM 5110 Ethics for Technology Managers

• Preamble(contd.) NATIONAL ASSOCIATION OF
  REALTORS
  
• or property, willful discrimination, or fraud
  resulting in substantial economic harm, bring
  such matters to the attention of the appropriate
  Board of Association of REALTORS. (Amended
  1/00)
• Realizing the cooperation with other real estate
  professionals promotes the best interests of
  those who utilize their services, REALTORS urge
  exclusive representation of clients do not
  attempt to gain any unfair advantage over their
  competitors and they refrain from making
  unsolicited comments about other practitioners.
  In instances where their opinion is sought, or
  where REALTORS believe that comment is necessary,
  their opinion is offered in an objective,
  professional manner, uninfluenced by any personal
  motivation or potential advantage or gain.
• The term REATORS has come to connote competency,
  fairness, and high integrity resulting from
  adherence to a lofty ideal of moral conduct in
  

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MSETM 5110 Ethics for Technology Managers

• Preamble(contd.) NATIONAL ASSOCIATION OF
  REALTORS
  
• Business relations. No inducement of profit and
  no instruction from clients ever can justify
  departure from this ideal.
  
• In the interpretation of this obligation,
  REALTORS can take no safer guide than that which
  has been handed down through the centuries,
  embodied in the Golden Rule, Whatsoever ye would
  that others should do to you, do ye even so to
  them.
• Accepting this standard as their own, REALTORS
  pledge to observe its spirit in all of their
  activities and to conduct their business in
  accordance with the tenets set forth below.
• (Duties to Clients and Customers)

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MSETM 5110 Ethics for Technology
ManagersWal-Mart

• THE WAL-MART CULTURE
• The principles and practices used by Sam Walton
  are still being used today. The secret of our
  culture to success and growth
  
• Sam Waltons 3 Basic Beliefs
• Respect for the Individual
• Service to Our Customers
• Strive for Excellence
• Exceeding Customer Expectations
• Helping People Make A Difference

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MSETM 5110 Ethics for Technology
ManagersWal-Mart (contd.)

• THE WAL-MART CULTURE (contd.)
• Rules for Building A Business
• Sundown Rule
• Ten Foot Rule
• Pricing Philosophy
• The Mart Cheer

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MSETM 5110 - Ethics for Technology Managers

•                                              
  Communication. Respect. Integrity.
  Excellence.
  
• Enron Values Statement
• 2000 Annual Report

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MSETM 5110 - Ethics for Technology Managers
General Electric

• VALUES
• Unyielding Integrity, Commitment to Performance
  and Thirst for Change
  

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MSETM 5110 - Ethics for Technology
ManagersPhillip Morris Companies

• Listening, Learning and Changing The Path to
  Corporate Responsibility at Phillip Morris
  Companies
  
• (Rotary Club of Fresno - July 15, 2002)
• David P. Nicoli
• Vice President, Corporate Affairs Strategy and
  Social Responsibility
  
• Phillip Morris Management Corporation
• --------------------------------------
• Phillip Morris Companies is actually a holding
  company whose businesses make up the worlds
  largest consumer packaged goods company.
  
• We own Phillip Morris U.S.A., the nations
  largest cigarette manufacturer Phillip Morris
  International, one of the largest
  

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MSETM 5110 - Ethics for Technology
ManagersPhillip Morris Companies (contd.)

• (contd.)
• international cigarette manufacturers and Kraft
  Foods, the nations largest food company, and the
  second largest in the world.
  
• We are a Fortune 10 global company with 169,000
  employees worldwide and operations in about 100
  countries.
  
• First, we are working to create a values-based
  culture one in which we demonstrate integrity,
  honesty, respect and tolerance.
  
• To do it right, we have to hardwire integrity
  into our food and tobacco businesses at every
  level so that each individual, from our CEO to
  our factory workers, takes responsibility of
  doing the right thing.

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MSETM 5110 - Ethics for Technology
ManagersPhillip Morris Companies (contd.)

• Last year, Phillip Morris Companies appointed a
  Chief Compliance Officer. His job is to make
  sure that every employee worldwide has the
  information, training and tools to live up to our
  commitment to responsible behavior.
• Later this year, he will take the lead in
  introducing an expanded Corporate Code of Conduct
  enterprise-wide.

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MSETM 5110 - Ethics for Technology
ManagersPhillip Morris Companies (contd.)

• But to go beyond compliance and drive integrity
  into everything we do, he is reinforcing that
  code by helping management and employees focus on
  four key questions before making a significant
  business decision
• Is it legal?
• Is it consistent with company policy?
• Is it right?
• And how would it look to the outside world?

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MSETM 5110 - Ethics for Technology
ManagersBiogen

• Biology has entered the post-genomics era. We
  believe the significance of the mapping of the
  human genome will surpass that of the original
  genetic-engineering revolution of the 1970s.
  This will lead to more efficient identification
  of breakthrough biological molecules and targeted
  drug design from which the next generation of
  biopharmaceutical drugs will emerge.
• Currently, scientists understand the function and
  importance of only about 10 percent of the genes
  in the human genome. During the next decade, we
  anticipate an extraordinary amount of new
  information will become available.

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MSETM 5110 - Ethics for Technology
ManagersBiogen (contd.)

• We believe that Biogen, with its extraordinary
  depth of experience in Biological research, is
  uniquely positioned to be among the companies
  that figure out which genes are therapeutically
  useful and commercially valuable. Our core
  research strength is the rapid discovery of new
  drug candidates by capitalizing on our biology
  expertise to accelerate the elucidation of gene
  function.

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MSETM 5110 - Ethics for Technology
ManagersBiogen (contd.)

• OUR VISION VALUES
• Vision
• We dedicate ourselves daily to improving the
  lives of people around the world.
  
• Our imagination and our passion for science drive
  us to discover. We will unlock the secrets of
  human biologyfinding answers that promise new
  hope in humanitys quest to prevent and cure
  disease.
• Our determination and discipline deliver results.
  We will deliver breakthrough medicines that
  transform the practice of healthcare..so people
  can lead longer, healthier, happier lives.
• Our success has no limits. We will build a
  sustainable enterprise by continuously delivering
  superior value to patients, customers,
  shareholders, employees, business partners, and
  the communities where we work and live.

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MSETM 5110 - Ethics for Technology
ManagersBiogen (contd.)

• OUR VISION VALUES
• Shared Values
• These shared values describe our Companys
  culture Who we are and how we act in pursuit of
  our vision, mission and strategy. Our shared
  values represent standards for assessing our
  behavior and performance. They also describe how
  we aspire to work together and to lead. Biogens
  success is based on its people, and every person
  here is expected to be a leader. The core of
  leadershipintegrity, courage, and teamworkare
  characteristics we seek in every Biogen
  employee.
• Keep talent the priorityattract, develop, and
  retain only the highest quality people, those who
  have the best minds and share our
  valuesencourage each persons development and
  take responsibility for your own.

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MSETM 5110 - Ethics for Technology
ManagersBiogen (contd.)

• OUR VISION VALUES
• Shared Values (contd.)
• Value each individualrecognize there are
  differences in peoplelook for the diverse ways
  each person can contribute to our successcommit
  to a safe work environment for all Biogen
  employeestreat everyone with respect and
  dignityhelp others succeed, even at some cost to
  yourself.
• Communicate and obtain alignmentassure that our
  values, our strategy and our goals are
  consistentvigorously pursue the interdependent
  goals of world-class science and successtalk to
  people face-to-face about our business priorities
  and our valuesuse plain language.
• Face the factstell the truth, even when it
  appears to be difficult, and expect nothing less
  from othersadmit mistakesaccept criticism and
  use it to improvelearn from anyone, any placebe
  intolerant of arrogance.

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MSETM 5110 - Ethics for Technology
ManagersBiogen (contd.)

• OUR VISION VALUES
• Shared Values (contd.)
• Make an impactassume your responsibilities are a
  starting point, not a limitationtake
  initiativestrive for speed and the highest
  quality in all that you do.
• Build teamssupport teamwork within and across
  functional and geographical boundariesplay
  whatever role is required to get the job
  doneshare information openly, up, down, and
  across the organization.
• Operate a meritocracyempower peopleset
  aggressive performance standards and hold
  yourself and others accountable for meeting
  themassure that rewards are directly linked to
  performance, not to seniority, position level, or
  titleresist adding layers, and the unnecessary
  controls and lack of trust that accompany
  bureaucracy.

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MSETM 5110 - Ethics for Technology
ManagersBiogen (contd.)

• OUR VISION VALUES
• Shared Values (contd.)
• Embrace changesee change as an opportunity, not
  a threatrecognize the need for flexibilitydeal
  positively with ambiguity and uncertainty, yet
  maintain a sense of urgency and commitment to
  resultskeep the organization alive and fluid.

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MSETM 5110 - Ethics for Technology
ManagersLockheed Martin

• CORPORATE ETHICS
• Ethics The Essence of Our Business
• Business without ethics is not the kind of
  business we want to be in. Business with ethics
  improves, strengthens, and clarifies all we do.
  Ethics gives all our efforts a solid foundation
  and makes working atand withLockheed Martin a
  pleasure.
• Our Ethical Principles
• Honesty To have the courage to speak our truth,
  and to be absolutely forthright in all cases,
  with our customers, co-workers, suppliers,
  communities, and shareholders.

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MSETM 5110 - Ethics for Technology
ManagersLockheed Martin (contd.)

• CORPORATE ETHICS
• Our Ethical Principles (contd.)
• Integrity To say precisely what we mean, and to
  deliver what and when we promise. To be willing
  to raise and address difficult issues that may
  affect safety, performance, or legal
  responsibility. To forthrightly admit error and
  make amends where appropriate.
• Responsibility To speak out without fear of
  reprisal to call attention to any workplace
  violation of law, safe design and engineering
  standards, ethical codes, community standards,
  sexual harassment, equality, diversity, health,
  safety, and related issues.

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MSETM 5110 - Ethics for Technology
ManagersLockheed Martin (contd.)

• CORPORATE ETHICS
• Our Ethical Principles (contd.)
• Trust To recognize our position as stewards of
  our customers businesses. To place the best of
  our thinking, energies and abilities into
  supporting customer enterprises. To be willing
  to raise issues if customer practices are not in
  alignment with our ethics policies.
• Respect To value the differences as well as
  similarities in all of our customers, co-workers,
  suppliers, communities, and shareholders. To
  support and assist minority candidates in their
  endeavors, so that the Corporation reflects
  national diversity.
• Citizenship To obey all the laws of any country
  in which we do business, to respect environmental
  concerns, and to give back to the communities by
  improving and enriching community life.

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MSETM 5110 - Ethics for Technology
ManagersMcDonalds

• SOCIAL RESPONSIBILITY
• The principle of giving back runs deep at
  McDonaldsinstilled in us nearly 50 years ago by
  our founder, Ray Kroc. It is a part of our
  culture.
• We are committed
• To doing what is right.
• To being a good neighbor and partner in your
  community.
  
• To conducting our business with the environment
  in mind.
  
• We are committed to making the world a better
  place and to providing socially responsible
  leadership in every community where we do
  business.

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MSETM 5110 - Ethics for Technology
ManagersMcDonalds (cont.d)

• SOCIAL RESPONSIBILITY
• Community
• Examples of our contributions to local community
  development, our involvement in disaster relief,
  and our support for education. Also highlights
  some of the great work of the Ronald McDonald
  House Charities.
• Environment
• Our worldwide recycling, resource conservation,
  and waste reduction programs.
  
• Marketplace
• Our work with our suppliers to improve animal
  welfare, ensure quality and safety, and promote
  protection of workers health, safety, and human
  rights.

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MSETM 5110 - Ethics for Technology
ManagersMcDonalds (cont.d)

• SOCIAL RESPONSIBILITY
• People
• Our commitment and approach to diversity
  Hamburger University (our premier training
  facility) and our People Promise to our
  employees.

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MSETM 5110 - Ethics for Technology ManagersFord
Motor Company

• CORPORATE CITIZENSHIP
• As we endeavor to become a leading contributor to
  a more sustainable world, corporate citizenship
  has become an integral part of every decision and
  action we take. We believe corporate citizenship
  is demonstrated in who we are as a company, how
  we conduct our business and how we take care of
  our employees, as well as in how we interact with
  the world at large. It is our aspiration to be
  among the most respected, admired, and trusted
  companies in the world.

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MSETM 5110 - Ethics for Technology
ManagersGeneral Motors Company

• CORE VALUES GUIDING PRINCIPLES
• Winning With Integrity
• These guidelines for employee conduct demonstrate
  GMs commitment to integrity and cover the
  subjects of personal integrity, integrity in the
  workplace, integrity in the marketplace, and
  integrity in society and its communities.
• Antibribery and Foreign Corrupt Practices Act
  (FCPA) Conducting business globally poses
  special challenges. Employees are cautioned
  against accepting illegal or unethical conduct
  such as demands for bribes in other cultures
  simply because they are considered common or
  customary. The basic guidelines of the FCPA and
  GM policy are described and explained.

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MSETM 5110 - Ethics for Technology
ManagersGeneral Motors Company (contd.)

• CORE VALUES GUIDING PRINCIPLES
• Winning With Integrity (contd.)
• Conflict of Interest GM employees have a duty
  to the company to give their best effort and to
  remain loyal to the interests of the company.
  Examples highlight the potential for conflicts in
  investment oppor-tunities, charitable activities,
  public service, supplier relationships and
  outside employment.
• Export Controls All products and technical data
  are likely to fall under export control rules, a
  complicated area of law and taxation. Employees
  are encouraged to seek expertise whenever they
  are in doubt about an exporting activity, even if
  its something as simple as traveling overseas
  with a laptop computer.

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MSETM 5110 - Ethics for Technology
ManagersGeneral Motors Company (contd.)

• CORE VALUES GUIDING PRINCIPLES
• Winning With Integrity (contd.)
• Gifts, Entertainment and Gratuities Employees
  are guided through the rules for receiving gifts,
  entertainment or other gratuity from suppliers
  and others.
• Integrity of Our Information and Property GMs
  information related to its business, products,
  and innovations is a valuable asset and
  protecting it is the shared responsibility of all
  GM employees. Careful and accurate record
  keeping is discussed, as are the hazards of
  giving technical papers, working with media and
  making careless conversation in social
  situations.

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MSETM 5110 - Ethics for Technology
ManagersGeneral Motors Company (contd.)

• CORE VALUES GUIDING PRINCIPLES
• Winning With Integrity (contd.)
• Integrity in the Workplace GMs work culture
  depends on teamwork and diversity. This booklet
  offers guidance on managing diversity and
  treating co-workers with fairness and equality.
• Personal Integrity The essential traits of
  integrityhonesty, trustworthiness, respect for
  the law and respect for othersare a matter of
  each employees personal conduct on the job.
  Guidance is offered on maintaining this integrity.

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MSETM 5110 - Ethics for Technology Managers

• Ethics The One-Company Approach
• Policy on Gifts, Gratuities, and Business
  Entertainment?
  
• Local?
• Regional?
• Worldwide?

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MSETM 5110 - Ethics for Technology Managers

• The Three-Part Challenge to Business Ethics
• Developing managers as moral individuals
• Building an environment in which standards and
  values are central to the companys strategy,
  just as economic purpose is
  
• Formulating and implementing policies that
  support ethical performanceas well as safeguards
  to assure that they are observed.
  
• Kenneth R. Andrews, Ethics in Practice, HBR
  89501.
  

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MSETM 5110 - Ethics for Technology Managers

• Why Ethics?
• Makes Good Business Sense
• Establishes a Governance Process for Expected
  Behavior and Desired Culture
  
• Enhances/Perpetuates Morale
• Protects the Public Health, Safety, and Welfare
• Meets Shareholder/Stakeholder Expectations
• Assures Viability/Sustainability of the
  Organization
  
• Legal Compliance

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MSETM 5110 Ethics for Technology Managers

• Due Date
• Assignment 0 - Personal Profile 8/28/02
• Assignment 1 - Read HBR Articles
• George Iwaki and Oscar Hauptman, Final Voyage of
  the Challenger.
  
• Trevino, et al., Managing Ethics and Legal
  Compliance What Works and What Hurts.
  
• Paine, Managing for Organizational Integrity.
• Assignment 2 - 9/18/02
• In approximately 400 words, critique the decision
  process to launch the Challenger, including the
  respective roles of the engineers and management
  team. What would you have done differently?