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Tom Selleck, Commencement Speech, Pepperdine University, 2000

The board of directors of a large company asked each of four candidates for CEO a basic math question: "How much is 2 plus 2?" The responses were: 1) The comptroller answered "4" and that the answer will always be 4. 2) The head of R&D, an engineer, said the answer depends on if the 2s are positive or negative, so it could be 4, 0, or -4. 3) The head of marketing answered "22", focusing more on sales than the actual math. 4) Legal counsel looked at each board member and asked "How much do you want it to be?", prioritizing pleasing the board over giving a

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165 views8 pages

Tom Selleck, Commencement Speech, Pepperdine University, 2000

The board of directors of a large company asked each of four candidates for CEO a basic math question: "How much is 2 plus 2?" The responses were: 1) The comptroller answered "4" and that the answer will always be 4. 2) The head of R&D, an engineer, said the answer depends on if the 2s are positive or negative, so it could be 4, 0, or -4. 3) The head of marketing answered "22", focusing more on sales than the actual math. 4) Legal counsel looked at each board member and asked "How much do you want it to be?", prioritizing pleasing the board over giving a

Uploaded by

Nur Iskandar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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A large company was hiring a new CEO.

The four leading


candidates worked inside the company so the board decided to
ask each candidate a very basic question. The comptroller was
brought in. "How much is 2 plus 2?" "This must be a trick question,
but the answer is 4. It will always be 4." They brought in the head
of research and development, an engineer by training. "How much
is 2 plus 2?" "That depends on whether it is a positive 2 or a
negative 2. It could be 4, zero or minus 4." They brought in the
head of marketing. "The way I figure it, 2 plus 2 is 22." Finally, they
brought in legal counsel. "How much is 2 plus 2?" they asked. He
looked furtively at each board member. "How much do you want it
to be?"
Tom Selleck, Commencement Speech,
Pepperdine University, 2000.
2-2
Defining Business Ethics
A Descriptive summation of the customs,
attitudes, and rules that are observed within a
business. As such, we are simply documenting
what is happening.

A Normative (or Prescriptive) evaluation of the


degree to which the observed customs,
attitudes, and rules can be said to be ethical.
Here we are more interested in recommending
what should be happening.
2-3
Who Are Stakeholders
• Stockholders
• Employees
• Customers
• Suppliers / vendor partners
• Retailers / wholesalers
• Government
• Creditors
• Community / society

2-4
A Code of Ethics
The Ethics Resource Center (ERC) defines a
Code of Ethics as:

"..a central guide to support day-to-day decision making


at work. It clarifies the cornerstones of your organization
– its mission, values and principles – helping your
managers, employees and stakeholders understand how
these cornerstones translate into everyday decisions,
behaviors and actions. While some may believe codes
are designed to limit one’s actions, the best codes are
actually structured to liberate and empower people to
make more effective decisions with greater confidence."

2-5
Doing The Right Thing
A series of clichés:
• Consult the Company Code of Ethics
• Do what’s right for the Organizations
Stakeholders
• Do what’s legal
• Do what you think is best (‘use your best
judgment’)
• Do the right thing.

2-6
Resolving an Ethical Dilemma - I
Truth versus Loyalty
o Do you tell the truth or remain loyal to the person or organization that is
asking you not to reveal that truth?
Short-Term versus Long-Term
o Does your decision have a short-term consequence or a longer-term
consequence?
Justice versus Mercy
o Do you perceive this issue as a question of dispensing Justice or Mercy?
(and which one are you more comfortable with?).
Individual versus Community
o Will your choice impact one individual or a wider group or community?

2-7
Resolving an Ethical Dilemma - II
3 resolution principles:

• ‘Ends-Based’- which decision would provide the


greatest good for the greatest number of people?
• ‘Rules-Based’- what would happen if everyone
made the same decision as you?
• ‘The Golden Rule’ – ‘do unto others as you would
have them do unto you’.

2-8
Justifying Unethical Behavior
1. A belief that the activity is within reasonable ethical and
legal limits – that is, that it is not “really” illegal or immoral.
2. A belief that the activity is in the individual’s or the
corporation’s best interests – that the individual would
somehow be expected to undertake the activity.
3. A belief that the activity is “safe” because it will never be
found out or publicized; the classic crime-and-punishment
issue of discovery.
4. A belief that because the activity helps the company, the
company will condone it and even protect the person who
engages in it.

2-9

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