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Test Yourself: Would You Act Unethically on the Job?

October 19th, 2009 @ 9:00 am

55 Comments

Categories: Academics, Research, Schools

Tags: Situation, Bank, Job, Comptroller, Ethics, Business Ethics, Financial Services, Leadership, Management, Amanda Becker

This post has been updated since it was originally posted.

You’d like to think that even under pressure, your moral compass would keep you from doing anything unethical at work. Only unscrupulous types get caught up in things like backdating stock options and peddling subprime mortgages — right? But Babson College scholar Mary Gentile says acting ethically isn’t as easy as wanting to do the right thing; it’s about knowing how to do the right thing even when the stakes are high. Practice helps.

More than 80 business schools around the world are pilot testing a new approach to teaching ethics developed by Gentile, along with the Aspen Institute and Yale School of Management. The idea is simple: Teach MBAs to anticipate how they will be tempted to rationalize unethical behavior, and get them to practice countering the impulse. The goal: to make ethical choices come naturally, even in difficult situations.

Here are three case studies from the curriculum that are based on real-life dilemmas. In each case, the real subject successfully managed both the ethical issue and the internal politics. Vote for how you would handle each one and then click below for the real-life answer.

Situation #1:

You’re a rising executive just promoted to corporate controller. Shortly after you land the new job, several senior executives pressure you to distort the company’s restructuring charges in a way that would be misleading but not criminal.

What do you do?

View Results

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Situation #2:

You join a nonprofit firm in a junior accounting role. As you review the year’s corporate donations, you quickly realize that no standard procedure exists to determine the value of in-kind donations (gifts in the form of goods or services rather than cash). Some of your most prolific donors inflate valuations to deceive the IRS. Your overworked executive director makes a point of emphasizing relationships above data.

What do you do?

View Results

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Situation #3:

You’re a junior employee at a large investment bank. Hours before a client meeting, a portfolio manager tells you to review the portfolio of one of the bank’s smallest customers and find a new benchmark that will make it look like the portfolio had performed better than it really had. You know that the client remains with the bank as a favor to a friend who works there.

What do you do?

View Results

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Click to the next page to find out what really happened in each scenario.

 
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  •  
    1

    BusinessManExtraordinaire

    10/19/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I think this article teaches an important lesson in that ethics is largely opinion based. Everybody has their own sense of ethics for the most part though some situations are more clear cut than others. Some decisions are obvious to the majority of people where others aren't so clear as to what should be done.

    Also people are very easy influenced by social norms. So if everyone is doing something unethical it's very easy to be pulled into making the same mistakes. It's difficult to stand up and say "No! I don't think that's how things should be done." when everyone else is doing it. In doing so you take the risk of being alienated by your colleagues and by the organization which could lead to your demise.

    I like the fact that in situation 1 he went to the CEO and explained that he wanted to ensure the long-term success of the company though. I think that is a good way of making a statement while reducing the risk of being alienated and also increasing your own credibility and respectability.

  •  
    2

    Ian P

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    In all these scenarios I couldn't see the "what's in it for me" choice.
    The major problem with the current drive to 'ethical behaviour in business' is that it is a cloud designed to gently cover the politicisation of business by extreme socialist governments in Europe and lately the US. We in the UK have seen the benefits of Mrs Thatchers privatisations and drive to open society effectively destroyed as our labour government has used political correctness and so called equality issues to grasp control of how businesses operate and to become closely involved in decision making that should never be in the hands of politicians.
    It is no surprise that Europe is politically and socially weak, what is shocking is that the US is now determined to go the same way.

  •  
    3

    enomer

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I don't like the way the choices were defined as correct. The
    issue with ethics is that situations can't be simulated easily.
    What makes more sense to me is to teach people to come up
    with their own moral code that includes the boundaries of their
    professional associations and the law. Then in tempting
    situations, coming up with a different solution won't seem so
    foreign. In my experience there is always a solution that is legal
    and moral, but it takes an guts, thought and creativity.

  •  
    4

    percychow

    10/20/09 | Report as spam

    Smiling... in the end... can you live with yourself?

    What it boils down to is "Can you live with yourself?"

    Lately, there have been a lot of arrests in the business world.

    And arrests of people who preferred to have cheated their way into success/riches. Oddly enough, they were perfectly talented and smart enough to do it all withing truly legal and ethical means.

    [ Shrugs]



  •  
    5

    AARONDEAN

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    All ethical decisions have costs associated with them. If there are no costs involved then the decision is a programmed one. To make sound ethical choices we need to understand what the costs are and also understand what source from which we draw to evaluate the options. For some, ethics are based in philosphy yet others base ethics in spirituality. Either way, consistently making sound ethical choices requires understanding both the costs involved and the foundation on which the decisions will be made. Ethical decisions are by nature muddled and ambiguous!

  •  
    6

    LLLeader

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I also didn't care for the way the answers were described as "correct" when in some cases a different action might have worked just as well or better.

    Regarding the tax one - I am not an accountant sort so maybe I'm missing some information on part of their role, but I can't begin to imagine how other peole's tax returns enter into MY ethics, unless I'm actively encouraging them to lie by supplying them with or supporting a claim they make of incorrect value. And as someone who has provided many in-kind donations to charities the reality is usually the opposite -- others don't know how to value the item/service and the IRS will always undervalue it given an opportunity.

    Ian P - very interesting comments on the connection between political correctness, socialism, and economic decline. We are now in a situation in the US where the govt. is literally trying to tell private businesses how much they can pay people, as well as getting into bankruptcy negotiations and overriding the law to get deals which benefit certain special interest groups to the detriment of the economy as a whole.

  •  
    7

    Chalo

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Being a manager for quite a while I tell new employees and supervisors that this is the big test which sets one's career: the first time a manager asks one to do something against one's moral code, the law, or the "Mirror Test." If one's boss tells one to do something one disagrees with that is one thing but, something unethical or illegal is quite another matter. A reputation can be ruined in an instant and how one responds in these situations sets the bar for future encounters. I once worked with a person who fudged the numbers for a major customer on a previous job because their boss told them to do it or they would be fired. The customer found out and during the investigation my co-worker initially kept their job since they were coerced. However the company eventually laid off everyone involved. Just today I heard the most senior Procurement Official under the Bush administration is going to jail for a year for failing to disclose the full details of his relationship with an influential lobbyist. It just does not pay to be unethical.

  •  
    8

    Teaney

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    The answer someone would give in an ethics class may be much different than what they would do in a real life scenario.
    The results might have been much different if instead of asking what the student would do, they had asked what they thought the person in the scenario did.

  •  
    9

    crespin79

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I believe that "ethics" should be a part of all management courses. Yes, there are grey areas depending on different perspectives, but there are also areas of "black" and "white". There is more to ethics than drafting and implementing codes of ethics for others to observe. Leaders should lead by example and refrain from adopting an approach which conflicts with ethical interests. Therefore, leaders should respect and care for all stakeholders, rather than only stockholders e.g. show that you care for your employees, customers, suppliers, the community, etc. Moreover, making false promises and unreasonable demands on employees and others, preventing participative management, talking about the "green" approach as a public relations exercise, rather than adopting a "green" approach, is unacceptable. Ethics is conscience-based, knowledge-based and attitude-based, and not suited to some individuals, who, by their very nature, have consistently demonstrated selfishness and greed.

    Can any ethics training program prevent Bernie Madoff, Vincent Lacroix, Conrad Black, etc. from being themselves ?

    No, but a well-designed & implemented program can
    (a) help good people to do the right thing consistently
    (b) make it more difficult for wrong-doers to succeed &
    (c) raise people?s ethical IQS*.
    ?
    * confirmed by Research from the Assocn. of Certified Fraud Examiners, the Ethics Resource Center, and other firms.

    Maxwell Pinto, Business Author: leadership, ethics, teamwork, women in the workforce, trade unions, etc.
    http://www.strategicbookpublishing.com/Management-TidbitsForTheNewMillenium.html

  •  
    10

    Anita Y. Mathis

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I think its very easy to click a button and say you'll do something you wouldn't under pressure. My experience in a junior capacity has helped me realize that how I view a situation may not be accurate. Plus, having a bunch of enemies will get you fired, so you can't go that route because your ability to impact in the end is gone.

  •  
    11

    arnobo

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I think "correct" meant that those choices best aligned with what the actors did in the real-life scenarios, and which turned out well for them. There are usually 2 issues at stake in these situations; results and relationship (or put differently, competence and character) and we usually want to win both. So what typically happens is there is a problem and you are presented with a potential solution which violates your relationships or character. The implication being you either do it that way or produce a better way. What I have learnt is that the principles you live by determine how you will define a problem, and therefore what options are available to you. So we need to calmly learn to explore the gap between the suggested solution and the actual problem. There is still more than one way to skin a cat.
    The ultimate objective of ethics is captured by the Golden Rule: Do unto others as you would have them do to you. The test of the Golden Rule can be in whether one is able to sleep peacefully at night or whether one still remains proud of one's actions when the public light is shone on it. The tricky thing in all this is that these decisions must necessarily arise from values and principles that have been examined, settled and imbibed long before the situation arises because it is difficult to rationalise rightly in the heat and pressure of the moment.

  •  
    12

    pbevilaqua

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    This was kind of an unethical test. If you had given as choice d in Situation 1, 'Use the fact that you are new in the position to ask the CEO to "help" you solve the problem', it would have been an easier choice. Were you perhaps presenting a misleading answer to fool the reader into making the "wrong" choice?

  •  
    13

    arjunmv

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Ethics in this case pertains to Presenting the real scenario
    and not misrepresenting/falsifying the actual information to
    gain material benefits / profits / advantage over some entity
    or a person.

    One of my professors at Univeristy of California, Irvine used
    to tell me . Ask yourself three questions always in this order

    1. Is it legal? (Within allowable limits by the current code of
    law - which would not endanger your own position now or in
    future.)

    2. Is it moral? (Examples include - Trying to sell cigarettes to
    TB patients - perfectly legal - but immoral)

    3. Is it ethical? (bribing a business owner is legally allowed in
    some parts of asia - thats how lots of businesses operate
    and get some resources but do you really want to bribe some
    entity and get what you want? )

  •  
    14

    LTCBill

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    The one sceanario that really surprised me was concerning donations in kind. The greatest hurdle is getting the donors ego out of the picture. Having personally donated everything from furniture to functional automobiles I have yet to come across a non-profit that was willing to accept the liability of determining value of a donation. The only exception is cash. A receipt describing the item and its condition is normal, a value is not.

    Having also coordinated donations on the part of a third party the best rule has been to use the normal tools (ie, Kelly Blue Book for autos) or an independent appraiser and then have the donor utilize these records to deal with their accountant. The test is how will the results stand up under an audit.

    Grandma's jewelry may be priceless to the family but if the appraiser values it at $ 200.00, that's all you get.

  •  
    15

    cindy.yang@...

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    There definitely is no "right" or "wrong" answer here. Being ethical isn't necessarily black or white. There are some situations that prompt for certain actions, while you don't necessarily believe or do it on a constant basis, there are occasional pressures that subject people to do what is necessary (of course not illegal actions!). However, it is important to ask yourself, can you live with your actions?

    great questionnaire, keep the fun tests coming happy

  •  
    16

    rickkennedy

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    As others have stated here, I agree the subject of ethics is... well... subjective. Taking a different perspective on the conversation, however, I could say there are numerous examples of questionable ethics in the business world everyday. Is it ethical that a CEO takes thousand of dollars in bonuses after issuing dozens of pink slips to company workers, many of whom likely had nothing to do with decisions contributing to poor performance, yet get sacrificed to help the bottom line. Is it ethical that big banks, the ones largely responsible for the financial meltdown, are now paying millions in bonus again, even after being bailed out from the taxpayers? Is it ethical that insurance companies take millions in premiums from customers, and then hire claims people whose sole job appears to be not to pay when clients need help? Is it ethical that a health insurance business model is denying care means better profits? In all these situations, however, employees are rewarded for acting -- by some standards -- unethically.

  •  
    17

    david_csa

    10/20/09 | Report as spam

    How Quickly We Forget...

    I'd strongly recommend readers to watch the video series "The Truth Project". It deals wonderfully with the underpinnings of western cultural ethics and philosophy and how it plays out in society; plus it's intelligent, very well made, and it's not "preachy."

    It's funny reading these posts (and in the news) how people struggle with what's right and wrong now. We've forgotten that our great-grandparents and those before had an absolute moral compass, and knew how to use it.
    It doesn't mean they always followed it, but our country was founded on the basis of an absolute and unchanging morality.
    I'd encourage ethics students and those interested to read the Biblical/Torah books of Exodus, Leviticus and Deuteronomy. Don't just dismiss it as religon, heck, call it ancient philosophy if you want, but the foundation of all law and guidelines for behavior are well presented and still applicable today.

  •  
    18

    pwilson143

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    The subject of ethics is simply defined as "Doing the right thing!" And it is done by taking the four-way test:
    1. Is my decision a truthful one?
    2. Is my decision fair to everyone affected?
    3. Will it build goodwill for the organization?
    4. Is the decision beneficial to all parties who have a vested interest in the outcome.

    Phyllis Wilson, Author / Speaker; "Top Ten Things to Consider - All in a Day's work" http://www.3amstrategies.com/products.html

  •  
    19

    makkh@...

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Frankly speaking, there really no defined answer for such contradict situation. For example in Case 1 where the answer provided is the comptroller head right to the manager with the gut feeling the manager will be align with him...... What if the manager doesn't accept? Thus pbevilaqua's approach seems more feasible.

    Just for additional support for arnobo's statement, I think there are difference in how to handle ethical challenge situation based on different culture & continent.

    Majority will favor to consider the relationship more as we'll need to survive in a fresh environment. If we do things in extreme strict manner, you'll be the 1st out of the game. We need to justify is there any other way to resolve such conflict? If not, will you risk your post just to uphold your stand?

  •  
    20

    adeelbukhari

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    These case studies discussed different conditions come during the job. But I think that their is no set pattern or specific correct anwers for the situation. Response would be vary by organizational culture and behaviours.

  •  
    21

    fritztanso

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    When faced with the situations given above the only question I will ask my supervisor will be "Are you prepared to face the consequences of altering the truth?"

  •  
    22

    usl52@...

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    These tests are fine as far as doing them on paper, is concerned. Ponder, what one do in a real life situation, and the percentages will change.

  •  
    23

    Ken Mac

    10/20/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    These situations would have made my recent MBA class on ethics interesting. Our scenarios ran more along the lines of "you are the Ethics Officer for your company and your boss is sexually harrasing you... What do you do?" These would at least have had relevance to things that commonly occur in a business setting. After all, how many people in positions of authority are stupid enough to harrass an Ethics Officer?

  •  
    24

    BLevitan

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I think this article / test is useful in that it reminds us that ethical behaviour is important. It doesn't matter to much that we might disagree with what the "correct" answers were because - as some people here point out - we don't know the full contexts (the brief scenarios only give an overview) and we also don't know what the outcome might have been if another course of action were taken.

    What I'm a little more concerned about is the implication that Gentile's ethics curriculum somehow has the right answers. Based on the "correct" answers given above I'd be pretty unhappy at a personal level with some of the underlying ethics her solutions promote. For example, going to the CEO in scenario 1 is going over the heads of your immediate superiors. Maybe the action gets a better solution for you (in career terms), but for me this is completely wrong because you haven't given your managers the chance to rethink. Conversely the other 2 scenarios down-play one's ability to develop positive solutions and at the same time confront the ethical situation. I'm not saying it's easy for a relatively junior person to do this, but we're not talking about easy here, we're talking about what's best ethically.

  •  
    25

    cverlinden

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I agree with the statements above. A very important point is that the "correct" answers do not match with the results of the poll, which by and large should reflect what people believe to be ethically correct. There is in my view an important risk in taking a different view on ethics than the majority and then 'prove' the point by one individual case.

  •  
    26

    bigglespete

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I valued the emphasis on the power of positive thinking provided by the "correct" answers. How to do the right thing ethically and for the longer term benefit of all involved.

  •  
    27

    pthareja@...

    10/21/09 | Report as spam

    Are you acting unethically on it?

    Can one rule out the inner voice?
    If yes, and even if I am not flouting legal, Moral or social practices, there must be initiated a small prognosis to ensure what I am doing is possibly unethical.
    If the inner voice favours an action as justified or righteous, even when it could be unethical from a religious or any of above considerations, a small prognosis to ensure what I am doing is possibly gravely unethical in the eyes of society or people at large to defend my action?

    In epilogue, the inner voice is important.
    Ethics emanate from inside out, and the world is indeed going unethical with every deviation allowed from the ideal state.

    Priyavrat Thareja
    www.thareja.com

  •  
    28

    njmcdowell

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    To accurately answer the question that the title
    suggests - Would you act unethically on the job? -
    start with a more simple question.

    Are you being paid by your employer as you check
    your personal email and deviate into an unproductive
    web sink?

    Trite? Facetious? It's these little personal decisions
    which affect all companies. They don't make Enron-
    sized headlines [or the basis for magazine articles] but
    they are important.

  •  
    29

    Bob Stewart

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Re acting ethically. It is one thing to question the employees ethics, but what about when a company acts unethically? Take a look at http://www.cdicorp.info to see how a global recruitment franchise MRINetwork misrepresented the truth for years. Look at Roger Ballou's misleading statements the shareholders, look at Joseph R Seiders misstatements to Ohio courts. And much more.....

  •  
    30

    craigwbrown

    10/21/09 | Report as spam

    Respondent bias

    I think there was a strong trend in the surbey results here to facing the issue head on. That probably reflects a bias in the readership/respondents whoare all conficent and probably more senior people.

  •  
    31

    ecto04

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I agree with usl52 in that responses where probably skewed to what people thought "should" do as opposed to "would" do. And it's important to remember that the answers aren't one dimensional. One must weigh the impact of the choice on the rest of their lives as well. For instance, doing what you are instructed as a junior employee is an important component in keeping your job. Assuming that what you are instructed to do isn't illegal, how would you feel if your "ethical" choice left you unemployed with no income to feed your family? Consider that when you read through these choices and your decisions might be different...

  •  
    32

    BusinessManExtraordinaire

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I agree with usl52 and ect004. It's easy to be given a scenario, asked what you would do and say "I would do..." There is no pressure. In a real situation there are many social pressures involved in making those decisions.

    Though I don't necessarily agree with the statement that doing what you are told as a junior employee is essential if you want to keep your job. I think it just depends on how you approach the situation. If you explain that you're concerned for the well being of the company because as an employee you, too, have a vested interest and remind upper level managers if they're prepared to accept the consequences of their actions I believe that would make you more respectable as an employee and you would gain credibility over others who just comply with everything that is asked of them even if they think it is wrong.

    My thoughts are that employers want people who are willing to contribute, provide feedback and express their thoughts, opinions and ideas rather than people that they can just program to shut up and do whatever they tell them to do.

  •  
    33

    pitselp@...

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    People who interview candidates for job positions have long realized that asking "what would you do" questions frequently does not predict what people would actually do on the job. Thus, many have moved to "behavorially descriptive interviewing" techniques where they ask "tell me about a time when . . . ", and ask the candidate to recount a situation that will demonstrate what they have done in specific types of situations, believing that the best predictor of future performance is past performance.
    For teaching purposes, asking students what they think should be done is useful; if you want to know how new hires will actually make ethical decisions, you would probably want to ask them about how they handled previous ethical issues.

  •  
    34

    prmavencolorado

    10/21/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Pwilson143 had the comment that I was looking for, the Four Way Test, which is used by Rotarians around the world. It is a great way to test your moral compass:

    Rotarian Herbert J. Taylor created the Rotary 4-WAY TEST in 1932 when asked to take charge of the Chicago-based Club Aluminum Company, which was facing bankruptcy. Taylor looked for a way to save the struggling company mired in depression-caused financial difficulties. He drew up a 24-word code of ethics for all employees to follow in their business and professional lives. The 4-WAY TEST became the guide for sales, production, advertising and all relations with dealers and customers. The survival of the company was credited to this simple philosophy.
    The 4-WAY TEST was adopted by Rotary International in 1943 and translated into more than 100 languages. Rotarians are encouraged to learn and follow the 4-WAY TEST.
    Of the things we think, say or do:
    - Is it the TRUTH?
    - Is it FAIR to all concerned?
    - Will it build GOODWILL and BETTER FRIENDSHIPS?
    - Will it be BENEFICIAL to all concerned?

    My Rotary Club (the Rotary Club of North Colorado Springs) has taken it one step further. For the last 7 years we have taught the ethics curriculum using the 4 way test to all 9th graders at one of our high school. At 500 a year, we have reached more than 3,500 students with the ethics message, it's bound to stick with a lot of them.
    Rosanne Gain, Gain-Stovall, Inc., a PR firm

  •  
    35

    AARONDEAN

    10/22/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Pwilson143 and prmavencolorado, I have to disgaree! I have great respect for Rotary and the amazing work it has done but the 4-Way Test falls woefully short in addressing the root of an ethical decision or action: cost. As many commenters have said, ethics are not black and white nor are they clearly right or wrong. Ethical decisions have costs associated with them. A sound ethical decision may not benefit everyone, it may not be fair to all concerned, and it certainly might not build goodwill and better friendships. The 4-Way Test is a wonderful guide to live by but it is a naive tool with which to evaluate ethical decisions.

  •  
    36

    river79

    10/22/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Totally disagree that ethics are opinion-based. The "right" thing to do in all these situations was easy to identify, but in real life more difficult to do. It always comes down to doing the right thing even when it costs you more than you are willing to pay. Taught that lesson to our daughter when she was 14 yo with an athletic code violation that she had to self-report. It was pure hell for all of us for weeks, but in the end - worth the pain and the important lesson it taught her and us....it's no different whether at work or home.

  •  
    37

    clarkm

    10/22/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    "It's funny reading these posts (and in the news) how people struggle with what's right and wrong now. We've forgotten that our great-grandparents and those before had an absolute moral compass, and knew how to use it.
    It doesn't mean they always followed it, but our country was founded on the basis of an absolute and unchanging morality."

    davidcsa; I would respectfully disagree with these comments. Our forefathers had an absolute and unchanging morality?? I'm thinking that is just a perceptive of the good ole' days. Every generation has looked at the next and questioned "what has happened to our society?" and have pronounced the world as a worse place to live and the inhabitants as being of lesser moral value. While I think there is general common ground on what is morally correct and what isn't, I think there are widely varying opinions of what specific acts fall under those two catagories.

    Our grandparents may have lead more simple lives but I certainly do not believe that the complexities and tribulations of morality were any less a burden on their souls. Remember, many men have killed to promote their moral beliefs and used those very beliefs as justification.

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    38

    fluidjazz99

    10/24/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Very interesting if somewhat unrealistic test.

    Ian P, I find it astounding that given the events of the last 12 - 18 months you would offer puffery at the alter of unbridled free markets. Look at the absolute demise of 'moral hazard' as far too many in the financial industry tossed ethics aside on their way up and wail for the right to suckle at the government teat on the way down. The Bank of England and the US Treasury have been bolstering the balance sheets of badly run banks and the hell to pay has been borne by those least able to afford it. Your stance is on sandy soil at high tide - not very good footing.

    And LLL, the US government by way of TARP has become a major shareholder of many of those companies to which it has leaned heavily on "modifying their compensation plan". And as a US taxpayer I am damn pleased that they have! Don't take my tax dollars after you squandered your own and run your business boat onto the rocks and then bestow upon yourself multi-million dollar bonuses based on 'earnings' (most of which are derived from darn near scandelous fees on people who once again can scarcely afford it) that would not have come to be if our "socialist" government had not come to bail you out. Frankly, that dog won't hunt!
    Pay us back with interest before you pay yourself. We are VC money here and we want our cash out.

    And as for the other revisionist who opines that our 'forefathers' had some sort of ne'er erring moral compass always headed in the direction of justice, I offer this small 'deviation' from said path as but a sample of many more errant ways - slavery. You don't want to trot down the list of immoral, unethical, downright dastardly deeds done by man with ridiculous rationalizations ruling the roost.

    No, there has not been and there will not be a perfect society anywhere...because people are flawed.

  •  
    39

    LLLeader

    10/25/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Fluidjazz, I understand your point but I think a better solution is to not bail organizations out in this manner to begin with. As you say -- people are flawed -- and when they believe there is no real risk for them or their organization, they are more inclined to forget all about those pesky "ethics" when making decisions that affect many.

    BTW -- th Federal Reserve has announced it now wants to set salary guidelines for all banks with FDIC insurance, not just those that were bailed out.

    I believe an adherence to an ethical standard doesn't just protect other people from us, it also protects us from ourselves -- and our more base instincts.

    Look at something like insider trading. Maybe I'm just an exceptionally bad person, but if I had some hot inside trading tip -- I suspect I would quickly start rationalizing "who would it hurt?" "No one would know..." But the fear of the SEC and actual Jail time is enough to remind me that the system is better for all when we are operating from the same, or at least similar, ethical standards. And a few laws on the books to reinforce them can be helpful...

  •  
    40

    Mcgentile

    10/25/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I am the director and creator of the curriculum described in this story and I felt the need to say that this article entirely misrepresents "Giving Voice to Values". This innovative approach to enabling values-driven management is all about developing one's own strategy and skills for speaking and acting on our ethics. It is NOT about identifying one single "correct" answer. Rather than identifying the "right thing to do," the "Giving Voice to Valeus" approach asks and answers the question "What if I were to act on my values? What would I say and do?" To learn more, visit www.GivingVoiceToValues.org.

  •  
    41

    jcaddy

    10/26/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I thought the test presented some straight forward questions that could only be answered in an ethical way. Acting unethicly in any profession will eventualy catch up with you.
    JE Caddy

  •  
    42

    jcaddy

    10/26/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I thought the questions were straight forward and the answers obvious. Any unethical situation that presents its self must be handled in an ethical way or it will eventually be the demise of your self-esteem. We all know what is right and what is wrong; it is the gray areas that we have the most trouble.
    I would like to see a few questions regarding the medical profession. We deal with ethical decisions every day.
    JE Caddy

  •  
    43

    clarkm

    10/26/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    jcaddy; if "we all know what is right and wrong", then how can there be "gray areas"? Morally or ethically correct answers are always obvious to the observer, you. Are your moral answers the same, and just as obvious, to your neighbor(s)? I'm guessing that a survey of 10 people on any given subject has the ability to produce 7-10 differing "moral" opinions.

    Everything always seems obvious when a person assumes that everyone else thinks the same way as they do. I'll stick to my original comments that ethics and morals are a rather broad spectrum wide open for individual opinion, not simple black and white.

    Fluidjazz; I think you missed IanP's point entirely. I may be wrong but I think his point was that there was nothing in the scenarios that would tempt the decision maker. These were all thoroughly cleansed options, nothing in it to truly test the decision maker's ethics or morals and that these were little more than issues of politcal correctness. IMO, he is right on the money in pointing out the follies of our government's intrusion in business in the name of "ethics". I think it is imperative in this particular discussion to note and remember our government's involvement in everything that lead up to the current global financial situation. Many of the questionable practices that occurred over the past 12-18 months can be traced back to various proactive efforts in business by our government over the previous 2 administrations. Now the BO admin comes riding in on it's white stallion to save us all from the unethical, money grubbing business leaders?? "Unbridled free markets" don't exist and never have. The government was just as much to blame for where we are today as any of our business leaders, probably more so. IanP is simply laughing at our efforts to govern ethics and morals.

  •  
    44

    Ian P

    10/26/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Clarkm
    Excellent analysis.
    However I am weeping over the fall of heroes rather than laughing at the stumbling of fools.
    Throughout the world, regardless of internal politics, the US has long been seen as the beacon of freedom and self-reliance, it looks increasingly like this could dissappear in four short years. All because one view of ethical behaviour becomes predominant.

  •  
    45

    fluidjazz99

    10/26/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Threat (and high probability) of punishment is a good thing. I am certainly not advocating a strictly 'honor system'. That would be doomed to failure. But I alo think it is essential for societies to stand up and call 'em as we see 'em. A thief is a thief be it a loaf of bread or a billion bucks...and frankly I have much less sympathy for the big bucks bandit than the bread thief. Madoff, for example, was already a very very rich man by any standard without resorting to ponzi schemes which deprived social service orgainzations of the funds to do charity where charity is needed. No 'talking head' rationalizations of this sort of behaviour should be coddled either. And if I ran my business like AIG ran theirs there would be no fat bonus at the end of the year.

    I think that it would have been good to allow them to fail - from both an ethical and equity perspective. There would be no bailout if your hardware store bellies up. But the economic downside might have cut off our economic nose to spite our face. If businesses become too big to fail then they are too big to operate unregulated.

    I think the Fed's new compensation approach to FDIC insured banks is an attempt to link compensation to long term performance so as to dissuade bank execs from getting dodgy with depositors money again based on the reduced 'moral hazard' of the FDIC picking up the pieces. The Fed wants higher reserve levels since they are the bank of last resort and they want the execs to have more skin in the game. Makes sense to me.

    I recognize the participation (or maybe better termed abdication) of government to a lot of the present problem but a item (or two) that should not be forgotten is that the '29 Crash safegaurds which were dismantled, removed or where safeguards still remained, ignored were not eviscerated soley under the independent 'creativity' of government but in repsonse to lobby, cajoling and persuasion by the private sector. This pressure does not excuse their capitulation but it is a two way street. And secondly, once given free reign of the cookie jar does not mandate that you eat al the cookies. In either case, just because you are asked to do something does not mean you have to do it and just because there is no rule against an action does not mean you have to take it. If someone is coming in to 'save us' it is not as though no saving is needed. If it is BO then so be it. His actions would not be necessary if previous leadership had acted more like leaders and less like spokesmen.

    As for the US as a beacon of self-reliance and freedom, the image of the Horatio Alger\"up from nothing" story of the US has been carefully crafted and is true in some senses and not very true in others. Quiet as it is kept, our governemnt has been "picking winners" (and losers) for a along time. Freedom - political freedom - is not necessarily linked to a "winner take all" economic system. As was noted above, we have never had a truely "free market" economy and we never will.

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    46

    Bob Wileman

    10/26/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    However principled you may be, experienced managers will encounter circumstances that drive them to a position they regret on grounds of personal ethics. (Never mind what the level of consequences may be)

    What this valuable exchange has shown is that there are always more options than the person under pressure can see or accept.

    Conclusion: You may feel alone, but there is always someone who can help.

  •  
    47

    SamLop

    10/26/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Principles are external, values internal. If the values are aligned with principles which work, we may discover results like never before.

    One empowering question is: "What does this make of me as a person"?

    Sampsa Lopponen
    www.SamLop.com

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    48

    crespin79

    10/27/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Business ethics is concerned with dealing with dilemmas that sometimes do not have a clear indication as to what is right or wrong e.g. potential conflicts of interest, wrongful use of resources, mismanagement of contracts, false promises and exaggerated demands on resources which include personnel.
    Right and wrong are black and white - pure and simple. Our ethical system and behaviour are a function of several factors, including our cultural background, upbringing, education, ego, environment, circumstances and the related stress. Hence, the development of gray areas i.e. areas where explicit rulings or guidance is not available Looked at in another way, there are shades of black and shades of white, just like when you go to a paint shop to buy black paint or white paint or when you go to a clothing store to buy a black suit or a white suit. If you find that your ethical standards are higher than those of most people, you should follow your own standards.
    It is possible to improve, from an ethical point of view.
    As we mature into adulthood, we develop an ego and try to use our communication skills to justify our behaviour, while focusing on our own goals. With our ego-based approach, our innate selfishness, and the influences of friend and environment come many gray areas. One's image will depend on one's operation within the black, white and/or gray areas. This should always be borne in mind.
    Alas, many business schools provide courses in business ethics which which are philosophical, rather than practical, in approach. This needs to be rectified in the light of experience in the real world. Research confirms that the focus on ethics deters people from straying, although it is difficult to alter the basic nature of some people e.g. Bernie Madoff and Vincent Lacroix.
    Constant communication and open discussions on ethics foster a bond between individuals who are keen on being ethical and help promote teamwork built on good spirit.
    Emotionally intelligent people are often more ethical than others.
    I write books on business: ethics, leadership, women in the workforce and the reinforced "glass ceiling," teamwork, sexual harassment, bullying, trade unions, business continuity planning, Japanese management, etc. If anyone is interested in free (abridged) copies of my books, please send an e-mail request to crespin79@primus.ca and I shall do the needful within 72 hours - no strings attached.

    Maxwell Pinto, Business Author: leadership, ethics, teamwork, etc.
    http://www.strategicbookpublishing.com/Management-TidbitsForTheNewMillenium.html

  •  
    49

    SamLop

    10/28/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Operating from "ego" will only create a large personal conflict. Ego operates from the state of fear, as to giving operates from the state of love.

    BTW, how do you define maturity?

    http://www.samlop.com/

  •  
    50

    LLLeader

    10/28/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Thinking about this more, one thing I find noteworthy is that in the test, as in real life, the ethical dilemma for one person is often created by the unethical actions/request of another. And the refusal to behave unethically by either party could prevent the other from behaving unethically too (at least for that one situation).

    In the test for example, a boss or client putting pressure on a new person to "nudge" the truth around a bit.

    Fluidjazz, I'm not sure that I agree the person who steals big money is more unethical than the person who steals just a little. They are both exploiting the opportunity in front of them and I believe the person who would take the loaf of bread would also take the millions if they had that opportunity.

    Applying my theory that multiple unethical behaviors feed each other to the housing market crisis in the US -- We can say "well these greedy CEOs are getting big bonuses while their corporations fail." But they are a VERY SMALL piece of the puzzle. Would these banks have ever created and begun selling these high risk loans if the government hadn't compromised their ethics and pushed the banks to ignore regulations and loosen their standards and take on debt from people who couldn't afford to pay for the loans?

    If the govt.'s Freddie and Fannie weren't leading the charge would private banks have felt compelled to compete with similar loans?

    Could any banks have sold these loans if their agents had said "forget that fat commission check, I won't sell that garbage to a family I know can't afford it?"

    What if would-be homebuyers had ehtically said "I won't commit a felony and lie on a loan app to buy a house I know I can't really afford?" What if politicians had ethically (bwahahahah) said "this is not working out we need to reign it in now?" (I know some tried but others pushed to continue a program they knew was a joke 'cause they wanted votes and lobbyist money)

    Everyone rationalized their position to pursue what they wanted, but if just one group in the system had behaved ethically the entire crisis might have been averted. I don't demonize CEOs, I think we all need to look at our own ethics and where we fit into the big picture and sometimes that takes a lot of courage and determination, especially when it feels like everyone around you is cashing in.

    As for companies being "too big to fail" and people like Bernie Madoff getting away with such a heinous crimes -- we already have anti-trust laws on the books and the SEC knew Maddoff was fishy -- what we did not have was the political will to infuriate special interest groups and VIPs by enforcing our own existing laws and regulations, and now we all get to pay for the unethical behavior of those involved.

  •  
    51

    jcaddy

    10/29/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    clarkm
    After reading your answer and spending time REALY thinking about, "Everything always seems obvious when a person assumes that everyone else thinks the same way as they do. I'll stick to my original comments that ethics and morals are a rather broad spectrum wide open for individual opinion, not simple black and white." I think you are correct.
    Thank you for your insight.
    Jcaddy

  •  
    52

    clarkm

    10/29/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    Thanks Jcaddy, I really appreciate that.

  •  
    53

    stricknein

    11/01/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    The problem with taking these ethics test is that you know it is
    a test. In the real workplace you can get a feel for the
    intentions of your senior execs. Some people will do anything to
    advance in their career. These are the people who end up being
    the mark. Wisdom, and intuition is the key in understanding
    what is right, and what is necessary. There must be a fine
    balance between personal ethics, and getting the job done.

  •  
    54

    fluidjazz99

    11/02/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    LLL, do you really believe this? "...government hadn't compromised their ethics and pushed the banks to ignore regulations and loosen their standards..."

    "Pushed"? Really???

    Do you really believe that 'government' (as some amorphous blob not made up of people) pushed banks to IGNORE regulations? Or was it that regulators - people - in government chose to "call a loose game" (in basketball parlance for fouls) which failed to punish misbehaviour? Didn't financial institutions (banks+) seek to structure themselves so as to avoid certain regulations and regulators so as to allow themselves the greatest 'flexibility'? Was the government's initial 'push' to open up credit markets to more people a response to decades of redlining by banks which too often unfairly locked people out of the mortgage market?

    Who created "no doc" loans? Who created ARMs with 'early payout' penalty clauses? Who created the compensation schemes for mortgage brokers that gives them more $$ for more 'risky' loan products?
    The government? The customers? No sir buddy.

    I agree that key in this is a communal blind eye to dodgy ethical behaviour but was it not possible to open up credit markets to more people and still create fixed rate products which would have been more 'vanilla' and the risks more apparent/transparent? Yup. But they didn't.

    If there had been (and remained) a more robust link between long term performance and compensation AND loan repayment and institutional risk AND a more direct "carrot and stick' between fair lending practices and continuance of the right to do business at all, much of this could have been avoided.

    At the start of TARP (which was prior to last November's election) I kept wondering why it was not more practical and cost effective for the government to simply buy out the exploded subprime loans, tell the institutions they would have to take a haircut on those 'buyout penalty' monies (sounds like usury to me anyway), and tell those who were speculating on buy and flip 'welcome to capitalism! you lose!' than to give money to the same bank guys that (ostensibly) made the bad moves to begin with. Tell the homeowners with exploding ARMS that they would have to pay back the government on their mortgage at a fixed rate. A rate that was above T-bills so the Treasury could make a profit. People would have stayed in their homes, banks would have remained liquid; loans would have continued to flow and the economy would not have dropped as far as it did.
    But that would have focused 'recovery' on average people .... and we couldn't have that now could we?

  •  
    55

    jerryvanrossum

    11/02/09 | Report as spam

    RE: Test Yourself: Would You Act Unethically on the Job?

    I teach Business Ethics in Graduate Studies and find mini case studies a great way to get at how simple it is to act ethically and how simple it is to slide down a slippery slope of unethical behavior.

    Great quizz

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