Business Ethics _ Business Professional Integrity

Dr. Joseph A. PetrickDirector, Institute for Business IntegrityTEACHING BUSINESS ETHICS: THE INTEGRITY CAPACITY APPROACH AT WRIGHT STATE UNIVERSITYRaj Soin College of BusinessWright State UniversityDayton, Ohio USAJuly 22, 2004A.Business Curriculum CoursesB. Institute for Business Integrity (Extracurricular)C. Integrity Capacity Approach to Business Ethics 1. Business Integrity Capacity Approach: Process, Judgment (R2C2), Development & System2. Empirical Documentation of Effectiveness (N = 400)D. SummaryAGENDA Teaching Business Ethics at Wright State University•Cognitive Competence•Character-Strengthening Competence•Conduct Expectations/Sustained, Responsible Behavioral Competence•Context-Enhancement CompetenceGoal Competencies of Teaching Business EthicsThe individual and collective business capability for repeated process alignment of moral awareness, deliberation, character and conduct that demonstrates balanced judgment, enhances sustained moral development, and promotes supportive systemsfor moral decision making.Business Integrity Capacity Instrumental Value of Business Integrity CapacityBusiness Integrity CapacityReputationalCapitalSustainable Competitive Advantage and World-Class Business Performance in the External EnvironmentThe alignment of individual and/or collective business moral awareness, deliberation, character, and conduct on a sustained basis, so that enhanced reputational capital results.Business Process Integrity Capacity Business Process Integrity CapacityMORAL AWARENESSPerceptionSensitivityMORAL DELIBERATIONAnalysisResolutionMORAL CHARACTERCognitive Readiness to ActVolitional Readiness to ActMORAL CONDUCTResponsibleSustainableThe balanced and inclusive use of key ethics theories and their correlated cognate theoretical resources in the analysis and resolution of individual and/or collective business moral issues.Business Judgment Integrity CapacityJudgment Integrity Capacity (R2C2)ExternalInternalControlFlexibilityAchieve Good ResultsFollow Right RulesBuild Virtuous CharacterEnhance Supportive ContextsPositive & Negative Zones of Judgment Integrity Capacity (R2C2)CharacterContextResultsRulesNegative ZoneAmoralManagerNegativeZonePositive ZoneWastes EnergyDisruptsContinuityDestroysCohesionOffendsIndividualsStiflesProgressNeglectsPossibilitiesSlowsProductionAbdicatesAuthorityCollectsInformationMaintains StructureProvides StructureInitiates ActionAcquiresResourcesEnvisionsChangesFacilitatesInteractionShows ConsiderationContextResultsCharacterRulesFlexibilityExternalInternalControl(INVOLVEMENT)(ADAPTABILITY)(EFFECTIVENESS)(CONTINUITY)EXTREME BUSINESS MANAGER CONCERN FOR PROFITSPositive & Negative Zones of Human Reality, “Business Philosophy” & Economic Theories“Developmentalist”CommunityCapitalism“Experimentalist”EntrepreneurialCapitalism“Pragmatic”InvestorCapitalism“Structuralist”RegulatoryCapitalismNegative ZoneAmoralManager/FollowerNegativeZonePositive ZoneWastes EnergyDisruptsContinuityDestroysCohesionOffendsIndividualsStiflesProgressNeglectsPossibilitiesSlowsProductionAbdicatesAuthorityDRIVE TO ACQUIREDRIVE TO LEARNDRIVE TO BONDDRIVE TO DEFENDThe improvement of informal work culture, as well as, individual and collective business moral reasoning capabilities from a stage of self-interested connivance, through a stage of external conformity, and onto a stage of internalized commitment to moral principles.Business Developmental Integrity Capacity Organizational Developmental Integrity Capacity StagesHOUSE OF INTEGRITYHOUSE OF COMPLIANCEHOUSE OF MANIPULATIONDemocratic ParticipationPrincipled IntegrityAllegiance to AuthorityPopular ConformityMachiavellianismSocial Darwinism(Commitment)(Conformity)(Connivance)The development and alignment of the moral infrastructure within the business organization and the shaping of the external moral environment of the business organization to provide a supportive context for sound moral decision making.Business System Integrity Capacity Business OrganizationInternal Systems1. Compliance-Based System-U.S. Federal Sentencing Guidelines-Sarbanes-Oxley Act-External Conformity Infrastructure2. Integrity-Based System-Ethics Needs Assessment-Ethical Leadership Development-Value Commitment InfrastructureBusiness OrganizationExternal Systems1. Domestic External Environment-Corruption Elimination and/or Control-Proactive Positive Stakeholder Relations & TripleBottom Line Accountability2. Global External Environment-Corruption Elimination and/or Control-Proactive Positive Stakeholder Relations & TripleBottom Line AccountabilityA.Business Curriculum CoursesB. Institute for Business Integrity (Extracurricular)C. Integrity Capacity Approach to Business Ethics 1. Business Integrity Capacity Approach: Process, Judgment (R2C2), Development & System2. Empirical Documentation of Effectiveness (N = 400)SUMMARYTeaching Business Ethics at Wright State University