BUSI 2304_Slide_00-2_Business Ethics

BUSI 2304: Business Communication and Business Ethics

Course Overview

• Course Code: BUSI 2304

• Focus Areas: Business Communication, Business Ethics

Table of Contents

• Administrative Things

• Business Ethics

Understanding Ethics

• Definition of Ethics:

  • Moral principles that govern a person’s behavior or the conducting of an activity.

  • A branch of knowledge that deals with moral principles.

Case Study: Wells Fargo

Company Overview

• Assets: $1.97 trillion

• Locations: 7,300 worldwide

• Customer Base: 70,000,000

• ATMs: 13,000

• Global Presence: Offices in 36 countries

• Employees: Approximately 266,000

• Market Ranking: 6th in Total Assets; 30th on Fortune 500 (2000)

• Vision Statement:

  • Satisfy customers’ financial needs and help them succeed financially.

• Core Values:

  • What's right for customers

  • People as a competitive advantage

  • Ethics

  • Diversity and inclusion

  • Leadership

Wells Fargo Code of Ethics

• Applicability:

  • All team members, regardless of position or location.

• Commitment:

  • Highest standards of integrity, transparency, and principled performance.

  • Accountability in actions.

Wells Fargo Pre-Scandal Reputation

• Recognized as a "Great Place to Work" by Gallup for multiple years with high employee engagement.

• CEO John Stumpf awarded "Banker of the Year" in 2013.

• Carrie Tolstedt recognized as "Most Powerful Woman in Banking."

• Ranked 7th on Barron’s “Most Respected Companies” in 2015.

Wells Fargo Scandal Timeline

Reasons Behind the Scandal

• Motivated by the phrase “Go for Gr-eight” related to satisfying aggressive quotas, leading to unethical practices:

  • Opening unnecessary accounts for customers.

  • Ordering credit cards without customer consent.

  • Forging client signatures.

  • Coercing family to open ghost accounts.

• Aftermath Impact:

  • 5,300 employees fired between 2011 and 2016.

  • Loss of customer trust; ranking diminished in deposits and assets.

Ethics in Modern Society

• Individuals are often unethical rather than organizations.

• Business ethics align closely with societal ethics; ethical businesses can exist.

Guidelines for Ethical Behavior

1. Universal Nature

2. Golden Rule

3. Truth Telling

4. Responsibility

5. Avoiding 'Victim' Mentality

Class Activities

Case: Selling Off-Label (Gwen Olsen Video)

• Discussion Questions:

  1. Was Gwen's action unethical or illegal?

  2. Should Gwen feel responsible for her actions or blame her manager?

  3. Would leaving the pharmaceutical sales position be the right decision given the circumstances?

  4. What systemic pressures may lead to unethical behavior?

Influences on Business Ethics

• Importance of a Company Code of Ethics:

  • Positively influences employees’ perceptions of the company.

  • Promotes ethical behavior.

Company Code of Ethics Examples

Amazon

• Commitment to lawfulness, ethics, and best interests of the company.

• Guidance on conflicts of interest, and reporting protocols for noncompliance.

Target

• Focus on building trust through ethical practices and decision-making.

• Clear expectations for team member conduct aligned with company values.

Salesforce

• Code of conduct encourages integrity and ethical behavior in all actions.

• Open channels for reporting questions or concerns regarding unethical conduct.

Executives as Role Models

• Managers should embody ethical behavior and explicitly communicate expectations to empower employees.

Personal Code of Ethics Development

• Responsibility to self and others through honesty, accuracy, and maintaining integrity in all business dealings.

Ethics as Good Business

Five-Question Ethics Checklist

1. Is it legal?

2. Is it fair to all concerned?

3. Would I want someone else to act this way toward me?

4. How would I explain my actions to someone else?

5. How will it make me feel about myself?

Inspirational Note:

• “There is no pillow as soft as a clear conscience.”

Key Takeaways

• Developing a Personal Code of Ethics emphasizes:

  • Responsibility to self, company, competitors, and customers.

  • Importance of ethical business practices for sustained success.

Administrative Reminders

• Email Etiquette:

  • Identify yourself, include greetings, and proper closings.

• Seating Arrangements:

  • Sit in your designated seat for consistency.

Upcoming Topics

• Ch1: Establishing a Framework

• Learning Exercise #1

• Ch2: Interpersonal/Group Communication

• Learning Exercise #2