david a. walker aai, cic, lic, arm, crm, cawc president...
TRANSCRIPT
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David A. Walker AAI, CIC, LIC, ARM, CRM, CAWC
President-Hartland Insurance Agency Inc.Chairman-IIABA
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With the SEC and Federal Government regulating the
big guys …..
It is the marketplace that regulates small business
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Small to Medium Size Business rely on a
very delicate network of business connections
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Gallup poll – # of people who said a strict moral code is important.
1981 – 47%
1989 – 60%
Josephson Institute – Survey of U.S. Students (1991-1992)
78% said cheating on exams is wrong
90% said being “kind and caring” is important
2008 Josephson Institute Survey revealed
64% cheated on exams
42% lied to save money
30% stole something from a store
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1 in 6 drink or use drugs while on the job
1 in 2 say they can get ahead by politics or cheating vs. work
1 in 4 expect to compromise personal beliefs to get ahead
Admit they “goof off” 20% of time
Feel #1 cause of business decline is low executive ethics
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ETHIKOS
= morals
ETHOS
= character
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Standards of conduct based on moral duties and virtues
Applying principals of right and wrong
Discipline dealing with good and evil with moral duty
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Of or relating to principles of right and wrong
Conforming to a standard of right behavior
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Values
What you believe or hold important
Ethics
What you do
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Honesty and integrity
Respect and caring for others
Recognize stakeholders rights
Promise keeping
Trustworthiness
Fairness
Personal responsibility
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Happiness
Wealth
Status
Power
Appearance
Ego
Ethical values must always trump ethically neutral values
A
A
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Meet deadlines
Cut cost / increase production
Meet immediate self-interest
Gain short term benefits
Protect someone
Avoid punishment
Win admiration / interest
Avoid embarrassment
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Virtue Ethicist
Deontologist
Relativist
Egoist
Utilitarianist
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Person of “good” moral character deems appropriate
Born with virtue, but can lose
Can be enhanced by belief, knowledge
Above and beyond
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Focus on rights of individuals Freedom of conscience
Freedom of consent
Freedom of privacy
Freedom of speech
Due Process
Intentions of behavior rather than consequences
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From experiences of individuals and groups
Use self as basis for ethical decision
Actions based on group consensus
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Seeking greatest good for the greatest number
Comparison of costs to benefits for all parties
Select alternative that results in greatest utility
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Consequences for self
Maximize own self interest Career growth
Power
Pleasure
Fame
Physical well being
Wealth
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A statement of core values and ethical principals designed to guide behavior and/or provide inspiration
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Virtually every number in a corporate financial report is created by
judgments and estimates made bycorporate insiders whose cash bonuses
depend upon meeting pre-set earnings targets.
William S. LerachEnron Class Action Lawyer
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Uberrima Fides
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Corporations and individuals doing “the right thing”
Core ethical principals Honesty
Integrity
Responsibility
Promise keeping
Fairness
Ethics place in business
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Lack of leadership
Poor communication
Lack of consumer focus
Burdensome bureaucracies
Unhealthy competition
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Truth vs. Loyalty
Individual vs. Community
Short-term vs. Long-term
Justice vs. Mercy
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10. Could the decision become habit forming? 9. Is it legal? 8. Is it safe? 7. Is it the right thing to do? 6.Will this stand the test of public scrutiny? 5. If something terrible were to happen, could I
defend my actions? 4. Is it just, balanced, and fair? 3. How will it make me feel about myself? 2. Does this choice lead to the greatest good for the
greatest number? 1. Would I do this in front of my mother?
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The Ford Pinto
Low-cost sub-compact
Weight less than 2000 lbs.
Cost less than $2,000.00
To market in 2 years instead of 4
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Met all legal and government standards
Car was comparably safe
To modify design on 12.5 million autos
$11 per unit x 12.5 million = $137 million
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180 burn deaths ($200,000 x 180)
180 serious burn injuries
($67,000 x 180)
2100 burned vehicles ($700 x 2100)
Total of $49.15 million
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The Four Way Test
Is it
true?
Is it
fair for all?
Will it
build good will?
Is it beneficial
to all?
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We judge others by their worst
behavior
We judge ourselves by our best
intentions
There is no single “right” answer to
many ethical dilemmas
It’s easier when you don’t need it
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Questions????????