Penny Pincher, CFO of Mature Market Industries was alarmed. With Sarbanes Oxley requirements, raw materials rising, office supplies costs escalating, and shipping costs skyrocketing, were all taking a negative toll on her and the balance sheet. Tired of hearing her purchasing agent say they were bidding everything every year yet year over year costs still rose, frustrated over their transportation manager say they were doing their best but transportation costs year over year continued to climb, the office manager said they were getting great rates from their suppliers. But then, how did she really know as there was no data to support these claims?

Penny’s concerns heightened when she kept seeing various vendor advertising specialties around her business in hats, calendars, pens, not to mention the constant stream of lunch offers, race car event entertainments and year after year the same provider loyalties remained. She checked the company Code of Conduct still posted but buried around the EOE, Safety and other postings on the bulletin board…clearly this nor meetings/memos on the need for costs savings were having any impact. Her hunch was these communications were in name only that the diligence of employees may well be impacted by the salesmanship and schmoozing of vendors with a false sense of accomplishment by bidding or simply renegotiating their business every year to the same group of providers.

If her company books had to comply with Sarbanes scrutiny, and their financial consultant insisted on audits, why shouldn’t transportation, office/plant supplies and raw materials also have a yearly audit to determine cost effectiveness, a benchmarking of how they compare to similar size companies? Having read about scandals in transportation management at similar size companies involving collusion, kick backs and host of other improprieties, this would be the area to start…not to mention transportation was not a core competency, costs were rising more dramatically than any other area and other than anecdotal stories, there was no hard accounting evidence to demonstrate the effectiveness of their spend or deliverable values.

The traffic manager was highly agitated when told to develop costs savings ideas and the criteria their business needed in deliverable values of a transportation provider. He tried asking customer service their needs as well as shipping/receiving and purchasing: they all said they either loved or hated the same providers, transit times critical but to balance value with cost in provider selections by client needs. Confused he turned to his favorite transportation provider sales rep who was happy to create a model that not surprisingly favored their capabilities and easily copied and pasted into a company memo. These efforts coupled with showing he re-bid their business every year…but curiously always landed with pretty much the same providers with year over year costs higher on similar tonnage numbers, was the end result. Penny sensed her lacking transportation knowledge could be a good thing in questions seeking a different approach with better results.

Penny called a counterpart at a non related but similar size industry and asked how they approached controlling transportation costs. She learned that they had determined that bids only got the best of a mediocre bunch, a thorough review of available options and best practices was not practical and that transportation simply was not a core competency, so they turned to a transportation management business process outsource provider. Having outsourced their transportation management two years prior, they were able to report a year over year hard 10% savings, but the pleasant surprise value was the added technology provided that created supply chain visibility/reporting with dedicated account support, all at no cost! A new breed of transportation management providers were leveraging their buying power to make their money from the asset providers and pass the savings on to their shipping clients.

Penny got the contact name and number of the transportation management company and in less than a week, placed a non disclosure agreement and obtained at no cost or obligation, an audit of their small package, less than truckload, truckload and international transportation spend. Utilizing tier 1 transportation providers and gaining supply chain technology their company could not afford, a guaranteed offer of over 10% year over transportation spend savings was presented.

The transportation manager when presented these results said it would not work as they tried something similar before, that internal customers would not like changing carriers, and a host of other anecdotal excuses from over the years. However the hard data of six figure dollars falling directly to the bottom line of the balance sheet was too compelling for Penny.

The smooth transition/implementation took less than 6 weeks and the savings were demonstrated immediately. The previous asset providers howled but in the end offered to lower their now clearly premium rates for mediocre services… Penny declined both on the principle of clearly not being treated as a partner and she still had better savings and value with the new transportation management company. Internal influencers in finance, inventory management, customer service and sales were delighted with the new supply chain visibility and improved shipping reliabilities. The Code of Conduct is more prominent now along with the new earnings report that sparkles center stage in posted results and Penny’s success story featured in the company newsletter. The Purchasing department is the next audit target but will be managed by the new CFO as Penny has been promoted to CEO and is driven to focusing on their core competencies as her new CFO is charged with leveraging additional business process outsourcing successes.

Penny learned that employee’s self preservation can be a greater motivator than a Code of Conduct, that company goals for cost savings are relative when balanced against what’s in it for the department head, and that the greater good of the employer is not as great a good as perks legal and potentially illegal to those who feel entitled. Penny learned to take charge and saved big, enhancing her position and financial health of her company.

Harry Gorden, President, Transportation Management Services, Inc, a transportation management agency with over 35 years sales experience, providing consulting to the equity, capital management and supply chain communities as well as no cost referrals for manufacturers/distributors seeking the right fit transportation management support.

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Tags: dilemma, ethics, customer, advertising, publicity

Can there be any hope in promoting ethical behavior in the modern business culture? The public’s general skepticism of corporate ethics is understandable considering the track record of organizations in recent years of continued downsizing, outsourcing, scandals, increasing executive pay and decreasing employee benefits. “Many believe that executives are not being held accountable for bad management decisions and the pain they inflict on employees as a result(Trevino and Nelson, 2005, p. 3).

For there to be any hope of promoting ethics in a business culture, ethics training, policies, programs and finally, actions, must be deeply ingrained into a culture of an organization in order to be seen as more than half hearted public relations gimmicks that only provide lip service to ethical behavior while the real culture of an organization runs in the opposite direction. Ethics must become a primary function and responsibility of the modern leader in order to have real impact on organizations and teams. While these leaders still must protect and promote the healthy profits of their organization, they also must recognize “”that business has a responsibility to address certain social problems because of its unique abilities, and because a healthy social environment is a prerequisite for a healthy business environment (p. 7). Such a leader recognizes that by serving all of its stakeholders to the utmost of their ability, including their customers, employees, and community, that in the long run they will best bring a return on investment to their shareholders (p. 7).

“Ethics is a body of principles or standards of human conduct that govern the behavior of individuals and groups” (Bottorff, n.d., p.1). While ethical behavior is based on a set of values and principles, ethical behavior goes beyond mere belief; it also encompasses actions of individuals, groups and organizations (p. 2). For there to be ethical behavior in an organization, leaders must not only state a belief in a set of actions, their actions as a leader must be in alignment with those values and beliefs. The leader must work to establish clear business practices within the organization that reward and promote positive ethical behavior and promote the reasoning and consequences of ethics as strongly as they promote business results. In time all individuals and teams must be able to follow the ethical decision-making process involving; “moral awareness (recognizing the existence of an ethical dilemma), moral judgment (deciding what’s right), and ethical behavior (taking action to do the right thing) Trevino and Nelson, 2005, p. 15). They can only do this if an organizational culture has been developed that clearly defines its values and supports actions in alignment with those values. Because individuals may have different values and cognitive ability that influences their ability to recognize and act ethically, leaders must ensure that training, rewards, recognition and consequences are clearly defined in the organization in order to help individuals act accordingly.

A perfect example of such a leader is the story of Aaron Feuerstein, who was the owner and CEO of Malden Mills, the New England manufacturer of “climate control” materials like Polertec and Polarfleece (p. 38). Feuerstein was a business leader who had built his business based on Talmudic teachings and values that extended beyond his responsibilities to the shareholders, but also to the workers and community (Shafran, n.d., p. 1). When a fire destroyed the companies’ New England factories in 1995, Feurestein faced an ethical dilemma (moral awareness). While most other fabric manufactures were closing plants in the US in order to reduce manufacturing costs, he had maintained his factories in Maine. Now he faced a dilemma; would he rebuild in New England or re-establish his facilities overseas where construction and manufacturing costs would have been less. Feuerstein explained “that the ideas of his religious heritage had played the major role in his decision” (p. 1), (moral judgment). He stated in an interview with Parade Magazine in 1996 that “I have a responsibility to the worker; both blue-collar and white-collar…I have an equal responsibility to the community” (p.1). His final decision (ethical behavior), which was in alignment with his stated values, was to rebuild the plants and keep as many employees on the payroll until they opened operations again (p. 1).

All leaders must have the same moral courage to support and to make similar ethical decisions, even if they are on a much smaller scale. I lead the learning and development department for on of the world’s leading organizations for all of Europe, Africa and the Middle East. The company attracted and maintained top talent in part based on one of its stated core values of developing people. Because of this core value and our international approach to development, the company had been recognized for several years as on the world’s top training organizations. I faced an ethical dilemma when the company, which was projecting loses in revenue in the coming years, decided to “downsize” and re-align the Leaning and Development Department. I saw this as a major departure from the company’s stated value of people development (moral judgment). I had to decide whether to abandon this key value and go forward in support of the re-alignment or leave the company. I decided (ethical behavior) that I would stay with the company for one more year in order to ensure all cuts and re-alignments were carried out in a manner that showed respect to the people who had dedicated themselves to people development and to help our clients finish their learning and development commitments. I then left the organization in order to start my own training business where I could contribute to the development of others.

The public’s trust in ethical business behavior can only be re-established by strong leadership of individual leaders within their own sphere of influence; great or small. Leaders must take strong actions to elevate the importance of ethical behavior based on clearly stated values that emphasize equal commitment to all stake holders equally. This may be a strong departure from traditional bottom line focus. Leaders and organizations would benefit from development and coaching from ethics trainers and coaches who can help leaders understand the steps to establish ethics within a team and/or organization.

References:

Bottorff, D. (n.d.). What is Ethics? Retrieved July 6, 2007 from a Website

Shafran, A., (n.d.). Aaron Feuerstein: Bankrupt and wealthy. Retrieved July 6, 2007 from a Website

Trevino, L., and Nelson, K., (2005). Corporate social responsibility and managerial ethics. Hoboken, NJ: John Wiley and Sons, Inc.

Since founding Magnify Leadership and Development, James has developed, facilitated and coached programs including; Change Leadership, Coaching, Communication Skills, Sustaining Learning, Interviewing Skills, Leadership, Territory Management for dozens of leading global organizations; including, Advantis Research and Consulting, IMS, CMOE, Pfizer, Sinclair, Disetronic Medical Systems, StratX, ASTD, Coventry Health Care, Wilson Learning, and many others. James is bilingual and can facilitate and coach in both English and Spanish.

Prior to founding Magnify Leadership and Development, James headed Pfizer’s Learning and Development for all of Europe, Canada, Africa and the Middle East where he was instrumental in the development of a global management curriculum and other training initiatives to enhance organizational effectiveness for over 30,00 employees.

Visit James website here to learn how we can you with your leadership and communication development needs.

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Tags: ethics, business, code, dilemma, issue

What causes people to make unethical choices when they know it is wrong? Ask someone who has stolen money – did you ever think of yourself as a thief? Their answer is always a resounding – No! Yet, their unethical choices tend to lead them to disastrous consequences.

As a Motivational Speaker, no matter how much I share my story, people continue making unethical choices. What really saddens me is to watch people I know enter into ethical dilemmas after all I experienced and all that I share. I certainly do not withhold sharing my story, believing that telling my story helps other people.

There are those who learn by observation – the ones my story helps the most. Then there are those who insist on learning lessons by experience regardless of what they hear. Those people are the ones who live in denial who already have rationalized their behaviors.

My friend shared with me a story of a phone call she received from her niece. She was crying and upset. She felt frightened like the world was crashing in around her. She felt like she needed help – she needed a way out.

My friend listened and finally the story was shared. Apparently a few months ago there arose in her family medical issues. They felt they had nowhere to turn. Her husband managed an account in North Dakota. They decided to “borrow” money to help them cover the medical issues. They believed they had a way of paying it back without anyone knowing. Over a period of months they paid back all but $2000. The account could soon be audited. The niece and her husband were terrified of the outcome. There were many sleepless nights and lots of planning on how to replenish the balance – and how to cover up the fraud.

My friend’s heart ached. She knew from my experiences what the possible outcome could be. Her niece knew as well. They could be exposed, lose their reputation, be charged with embezzlement, and even go to jail. It seemed the house of cards was crashing down. My friend was frightened for them and the possible outcome. Her niece had so much integrity and kindness in her. She was shy and quiet. She hated to draw attention to herself. What happened?

This woman had grown up in an environment where lack and limitation was practiced. There was a period of time that she and her mother were homeless. Her mother worked hard to take care of her. This woman as a child, felt ashamed of where she lived, what she wore. She was envious of what other people had in their lives. She didn’t have a father and money was a huge problem. Although she knew her mother did her best and that her mother loved her dearly, she wanted a different for herself and her children.

They have raised their children to have everything they didn’t have. Both parents came from broken homes. Her husband was given everything he could want by his parents, but love. The woman was given all the love she wanted but not the things. They worked hard to have a home in the suburbs, meaningful jobs, name brand clothing for the children. Maintaining the illusion of a happy life was getting quite expensive. There was no savings account. They went more and more into debt. When the medical situation arose, they felt there were no more options and they “borrowed” the money – rather stole the money under the guise of “borrowing.”

Whenever someone enters into making an unethical choice, typically there are three things that occur. First, there is a need. In this case, this young family had a medical necessity and no immediate money to cover the expense. Second, there is opportunity. They had access to the money. Third, there is rationalization. This family had to take care of a medical need, the money was there, and they would pay it back.

They were good people. But then, in reality, most “white-collar criminals” would call themselves good people as would the people they associated with. All the ingredients were in line for them to make an unethical choice and in their mind they were only “borrowing” – a typical rationalized cover for theft.

Now they are faced with another ethical dilemma. They want to turn the finances over to someone else recognizing that they made a mistake. Can they do that without the new person reviewing the account records? Will the leadership demand a financial accounting? Do they hold onto the books so no one will find out? Do they turn them over confessing their situation and hope for mercy? What if there is no mercy? Will there be jail time? What about the reputation?

There is nothing easy about the consequences of making unethical choices especially if you are a person of integrity. In this woman’s case, she had a lot of integrity. She moved away from her authentic self. She did not honor who she is as a person. This just didn’t happen overnight. It happened over time. Once we move away from self-integrity, we are living with illusion and open to attracting more illusions to our lives.

As of this writing, the outcome is yet to be determined. What choice they make today will have an effect on their lives and the lives of their family forever. All I know for sure, is that if they make an ethical choice today, they will reap the benefits in the future. If they make an unethical choice today, eventually it will collapse around them.

My greatest lesson in life came from sitting in Federal Prison 13 years ago. I, too, created an illusory life and my house of cards crashed down around me. I made the exact choices my friend’s niece except mine involved $250,000. Just the amount of the money is different. I had a need, I had the opportunity and I rationalized it. Eventually it caught up to me. It was the worst and the best time of my life. It was the worst because I lost everything: my job, my family, my reputation, my things. It was the best because I became integrous to myself for the first time in my life. I learned invaluable lessons which I share today as a Motivational Speaker whenever possible. We can all make mistakes. We are not our mistakes. We are more than what we seem…especially when we make choices that create a positive outcome.

Chuck Gallagher is an international motivational speaker and author who shares his life experience in a way that is meaningful for his audiences. For information on Chuck’s presentations on choices and consequences or how to subscribe to his free ezine…visit his site.

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Tags: ethical, dilemma, issues, corporate, business

What an interesting situation. The Supreme Court validated our right to own guns. I’m not a gun owner, I don’t believe in it. I love to shoot and I lean toward a non-violent approach to life. Disclosures over, I don’t see how they could have come up with a different verdict. I do think the constitution gives us the right to bear arms. That said, what are the ethical implications and considerations that lie under this issue?

The essay by Donald M. Wolfe in Executive Integrity edited by Suresh Shrivasta, set my perspective on this a long time ago. He posits primary and secondary ethics. Primary ethics are the ethics of survival. This is the ethical stance that the NRA (National Rifle Association) and many pro-gun folks take. The ability to protect oneself is a primary right. We have even coded this into law assuring our ability to self-defend. What becomes unethical is the conscious fostering of fear (The Bush Administration’s terrorism mantra) to stimulate and maintain that fear.

Secondary ethics moves away from the fixation on individual survival and moves into community and relationship. Secondary ethics deals with fear through strengthening relationships and community governance. Here the focus is on long-term solutions and sees the needs of the community as paramount. This is the reason for the tension around this ruling.

It is clear to most people that the rule of law comes under threat when we regress into fears about individual survival.In doing so we negate our faith in law, community, relationships and principled discussion and instead put our faith in force and might.

This is an underlying tension in many organizations as well. The more secretive and heavy handed the leadership, the more primary ethics holds sway. Authoritarian leadership styles give permission for “me first” behavior – often at the expense of the company. It opens up the company to ethical issues and violations. In fact the justification for much of the illegal and unethical behavior that companies confront is the “They deserved it” logic that stems from disgruntled employees who have felt they have been dealt with unfairly. Unfair treatment often results in feeling of powerlessness which activates fear and acts of vengeance.

Justice Anthony Scalia made it very clear that control and regulation of hand guns ownership is still possible. We as a people and as a Nation, need to decide if we will move toward a more civil Union or devolve into every person for him or her self. Freedom requires responsibility to ensure people understand and accept their individual responsibility they need: information to be freely and easily accessible; to be educated to be able to think critically and effectively; to be supported in their personal growth, development and understanding so they can manage their own emotions and personal hurt effectively; and to be nurtured and cared for a children so that normal growth and development IS a norm. This is a tall order, but isn’t this one of underlying drivers of civilization? Isn’t our striving as a species, to create an environment where we are free enough from fear that we can develop, explore and express our true capabilities? If we want to reach a place where the true potential of humanity is developed and expressed is a hand gun in every home the way to go?

This is the path that business is on as well. The volatility of the marketplace, the rapid advances of technology and the shrinking of the globe all call for new ways of working together. To address these issues and if business answers the call, then, as employees and leaders rise to the occasion, they will transform a fear-based environment into one of innovative collaboration – out of necessity.

This is my belief, hope and vision for business. I believe that the external pressures combined with the drive for success will create a crucible of transformation. At the heart of that transformation is a rock solid knowledge in the exquisite capacity of humans, the courage of an o9pen heart as we all come together, and the wisdom to use the collective intelligence of participation to create a world we WANT to live in.

Kathryn brings her serial entrepreneur, teaching and spiritual practice background to her work helping leaders and teams create and navigate the desired future. In her 22 years working with change in organizations she has learned the secret that effective organizations are ethical organizations. Working with leaders and teams to address the need to think differently about their problems, she has been instrumental in co-creating significant shifts in organizations. Her passion is creating communities that generate enlightened business practices.

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Tags: dilemma, ethics, corporate, issues, cases

“ Choosing one’s leaders is an affirmation that the person making the choice has inherent worth.”

Linda Chavez

As I glanced at the news, I was reminded of the ugliness of humanity. Do we really need another ethical scandal in America? Bernie Ebbers, WorldComm founder, started a 25-year sentence for an $11 billion account fraud. Likewise, HP had its own embarrassing moment with scandals. Recently, HP decided to keep Board Chairman Dunn after the chairman was discovered wiretapping her board. What are these executives thinking when they conducted these transgressions against their corporations?

Does character count in capitalism? Guinness, a religious authority, explains that contemporary society views character as something that distinguishes an individual; however, biblically, character is viewed as essentially moral. In many cases, character doesn’t count in secularism.

Most corporations preach high ethical behavior but are sidetracked morally by the bottom-line. Joyner, author of Leadership Management, argues that outstanding leaders fail unless their lives are underpinned with honor, morality, and character. Under the current model, anything goes. Don’t get caught! Any path will do. However, Jesus disagreed in Luke 13: 24 “Do all you can to go in by the narrow door! A lot of people will try to get in, but will not be able to.”

Don’t expect companies to clean themselves up. However, a wave of moral conduct is coming. Maynard and Mehrten, renowned futurists, maintain outside forces will demand high ethics and a moving away of a focus solely on material gain.

Therefore, leader get ready. We are entering this moral revolution.

References:

Guinness, O. (2000). When No One Sees. Colorado Springs, CO: The Trinity Forum.

Joyner, R. (1994). Leadership Management. Charlotte, NC: MorningStar Publication.

Maynard, H. & Mehrten, S. (1996). The Fourth Wave: Business in the 21st Century. San Francisco: Berrett-Koehlers.

USA Today.com (September 13, 2006). New HP chief makes the best of a bad situation. Received on September 26, 2006

USA Today.com (September 26, 2006). Ebbers winds up at federal prison in Louisiana. Received on September 26, 2006

© 2006 by Daryl D. Green

Daryl D. Green has published over 100 articles in the field of decision-making (personal and organizational), leadership, and organizational behavior. Mr. Green is also the author of two acclaimed books, Awakening the Talents Within and My Cup Runneth Over. He is a columnist, lecturer, professor, and management consultant. Mr. Green has a BS in engineering and a MA in organizational management. Currently, he is a doctoral candidate in strategic leadership. For more information,visit his website

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Tags: ethical, problems, leadership, dilemma, relationship

Ethics is defined in the dictionary as, “moral principles that governs a person’s or group’s behavior.” Everyone has his or her own set code of ethics different from everyone else. For example, one may think that if a corporate executive steals company money to give to the poor or less fortunate it is considered stealing and others may think that he is being good to his society. Therefore making ethics in society not so black and white, but rather creating a lot of gray areas.

In a situation where Lawrence a Branch Manager of a car dealership is stuck in a position where two of his employees who are twin brothers cannot tolerate each other due to an out of office conflict. William, a high commissioning sales man with a lower paid salary who makes a lot of money for the company, pretends to be his brother Dan and sleeps with Dan’s wife. Dan, who is a hard working sales man with a higher paid salary but a lower sales percentage, starts a fight with his brother during a sales meeting. Lawrence the Branch Manager, is then forced to fire one of them because they can no longer work together. It is company policy to terminate anyone creating a negative working environment.

From an experientialist’s point of view William would be the most affect for deceiving his brother’s wife because he would be the one fired. A boss who thinks as a experientialist decision maker would immediately fire William for his unethical behavior because experientialists would feel sympathy towards Dan by reacting as an emotional response to something.

From a systemicist’s opinion they would see the impact on other co-workers by firing William or Dan. William who has the lower paid salary but produces much more revenue for the company may be a better asset to the company. He also has a better relationship with his co-workers and clients than Dan. Dan who has a higher annual salary, but does produce as much revenue for the company, may not be as good of an asset to the company than William. A boss who is a systemicist decision maker would choose to fire Dan because he has considered the impact of terminating each employee on his business. Affecting Dan the most, even though he is the victim.

In a transcendentalist’s perspective their decisions are based on an inner sense of what is morally good by deciding what is right and wrong. If the boss made his decision from a transcendentalist point of view his inner sense of what is right and good would be to fire William for his act of deception, lack of integrity, and conflict with his brother. Affecting William because he is now without a job.

If Lawrence makes a decision from a conventionalist’s point of view, he would make his decision based on what others would do in this situation. Lawrence would make a few phone calls to other branch managers in the area, tell them of the predicament he is in and ask them what they would do in this situation. After asking several branch managers what they would do, he would then make his decision on whom to fire by tallying up the other mangers opinions. Lawrence’s decision would be affected by the other manager’s opinions.

From an individualist point of view, Lawrence should consider what would be best for himself rather than what is best for the company or his employees. The best benefit for Lawrence would be to keep William because he brings in more sales than Dan, making Lawrence as a manager look better by having larger sales percentage. If he were to keep Dan, it would make Lawrence look worse as a branch manger to his superiors. As an individualist, Lawrence would keep William despite his act of deception because he is thinking like an individualist. Affecting Dan because he has to seek a new job.

If Lawrence were to decide from a legitimist’s point of view, he would make his decision on what the company’s policy is on conflicts that happen outside of the work environment. Legitimist make their ethical decisions from formally written policies because they believe whatever is legal is ethical. Since it is company policy to terminate anyone who creates a negative working environment, the individualist would fire both Dan and William for distracting their co-workers.

As shown ethics is not so black and white, and with different people’s moral values there is a lot of gray areas. In relation to the experientialist and transcendentalist, I would make my authoritative decision based on my gut feeling and what I thought was morally good. Regardless of who made more money for the company or whose salary is higher. Being an experiential and transcendental decision maker I would fire William for deceiving his brother’s wife to think that he was his brother and then sleeping with her. Dan should not have to lose his job for being the victim; William who is the perpetrator should be punished for his consequences.

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Tags: ethical, dilemma, issues, corporate, business

Corporate Espionage is so great in America that competitors will go to lengths to find out what your company has that makes it so much better than everyone else’s. Often they will even go so far as to set up a dummy corporation or LLC and actually go thru the sales process to buy a franchise, sometimes even go thru the purchase process, just to get all the information they need to compete with you, using your proprietary methods.

This is why I came up with a clause in our franchise agreements which helped us in knowing who we are dealing with up front and what their interests really are. Below is one of the clauses we use;

7.16 Other Parties

If Franchisee is a partnership, joint venture, association, corporation, limited liability company or other legal entity, then all persons who have any beneficial interest in the Franchisee must execute this Franchise Agreement where indicated below and be bound jointly and severally by all the terms and provision hereof, and each such execution shall be a condition precedent to the grant by Franchisee of the Franchised Business.

- – - – - – - – - – -

This made it very tough for a competitor to risk giving themselves away or opening them up for unfair business practice criminal investigations or civil lawsuits from us. It is unfortunate that the weaker, underwelming competitors have to cheat and lie just to keep up, but they are sub human and simply unworthy of mention on the evolutionary food chain. I use to feel sorry for them, but then that 15-second period ended, now we play tough, check six and steamroller these losers. Consider this in 2006.

“Lance Winslow” – Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; WorldThinkTank. Lance is an online writer in retirement.

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Tags: ethical, problems, dilemma, concerns, organizations

Here we are and it is that time of year again when professors from top Universities and Colleges across the country are assigning projects to their Business Students. We get hundreds of calls each year from students just who are doing projects on franchising. They ask us all sorts of questions, order brochures and ask for various documents, but they have no intention on buying anything, nor can they afford it. Instead they want information for class projects they are doing. It takes up time to correspond with these posers at our company.

Why do colleges assign students projects to study the franchise industry?

Well you see Franchising accounts for a large percentage of our countries GNP (gross national product). And a huge chunk of the consumers spend able income. Many students who contact us pretend to be franchise buyers. At first we believed this to be burdensome and later realized, hey we were once in school too, and it really was not that long ago. I am not all that old myself and still feel young as if in college. I had to quit school in order to run my company back in those days. I would advise students that it is okay for you to tell us the truth; we will not hang up on you. But lying is about who you are and what you want sets a very bad ethical precedence and we as a nation are working towards stopping corporate corruption, not creating it. Think on this in 2006.

“Lance Winslow” – Online ThinkTank forum board. If you have innovative thoughts and unique perspectives, come think with Lance. Lance is an online writer in retirement.

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Tags: ethic, problems, ethical, dilemma, college

Nanotechnology, referred to commonly as molecular manufacturing, is making huge strides within scientific and government communities. Despite its growth and the potential impact it will have on society at large, too little emphasis has been placed on the ethical considerations of nanotechnology and the ever-rippling effects of its applications.

The control of molecular matter has led to amazing breakthroughs in medical treatments, which of course is a benefit to mankind. However, the military is hard at work creating powerful weapons that are no larger than any known bacteria. In addition, molecular level surveillance techniques for surreptitiously keeping track of other organizations and individuals are changing the face of military, law enforcement and humankind in general.

Just like with human genome capability and stem cell research breakthroughs, scientists, governments and individuals need to weigh the obvious advantages of nanotechnology against the residual disadvantages. Although the power of nanotechnology is indisputable, the possibilities of irreversible harm from its indiscriminate use must also be taken into consideration.

What are the Social and Ethical Implications of Nanotechnology?

This is where social and ethical dilemmas present themselves. As life saving tools, nanotechnology is unsurpassed in its promise of an absolute revolution for medical treatment of previously incurable or untreatable conditions.

Conversely, when this technology is used to manufacture miniature weapons or explosives the infinite possibilities of far-reaching repercussions is a very real prospect. Given that researchers fear that nano-machines can become self replicating, theories abound that their by-product, known in scientific circles as “the gray-goo scenario”, could result in unheard of havoc. In addition nanotechnology has the potential to erode our privacy and freedom by providing human rights violations via monitoring and tracking devices that can invade our everyday lives without our knowledge.

For this reason the social and ethical issues relevant to nanotechnology must be addressed before its many technological innovations are unleashed upon society.

Every action has a reaction and nanotechnology is no different. Whether the anticipated power of nanotechnology ever reaches fruition, as a society we must be prepared to deal with any fallout that may arise from its inception and universal acceptance.

There is no doubt that development of nanotechnology and its many proven advantages, is going to continue, yet as a responsible society we must prepare a social policy that will address the benefits in correlation with the ethical consequences of it effect on life as we know it.
Why should society be concerned with the Fallout?

When trying to incorporate nano-technological advances into society, there are a myriad of items that require intensive study, such as: issues regarding equity of disbursement, privacy rights of individuals and/or corporations, security considerations, the effect on the environment and the social and ethical impact on the human race.

As responsible humans who are concerned with passing a legacy of improvement down to upcoming generations, it is essential that we develop and create guidelines and working hypotheses that address the far reaching impact that nanotechnology can have on human lives and on the universe itself.

Tatiana is the owner of the Ecophagy site and runs Totally-Uselessy among many other sites.

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Tags: ethical, dilemma, issues, corporate, business

An ethical dilemma is when an incident arises that causes you to question how you should react based on your beliefs and deciding how to choose between right and wrong.

Sometimes, an ethical dilemma might be easily solved once you have had a bit of time to think about it but in other cases, it might not be as easy.

Perhaps you have been put into a bad position where you need to make a decision that will most likely have consequences regardless of what you decide.

An example of an ethical dilemma is when a salesperson is guaranteed to make a big sale if they offer a kickback (ie. an illegal payment) to someone.

If they agree to the kickback, they get the sale but risk getting caught and getting into big trouble.

If they don’t agree to the kickback, they don’t get the sale and might end up looking bad in the eyes of their employer.

Also, should they even tell their employer about the situation or should they simply make a decision and live with the consequences?

Clearly, this is an ethical dilemma and although it’s easy to say you would do the right thing, when you are actually in such a position and are feeling pressure to act, you might not always be able to think as clearly as you would otherwise like to think you would.

Depending on the situation, how you react to an ethical dilemma might differ but at the end of the day, here are some things to keep in mind:

* Use common sense. If it’s clearly wrong or illegal, you know the consequences of doing something that could cost you dearly.
* Don’t let your self-interest get in the way and allow it to cloud your judgment. A short-term gain could be a long-term pain if you make the wrong decision and get caught.
* Don’t assume that your employer will back you up if you do something wrong and get caught. Referring to the above example of the kickback, don’t assume that if you decide to pay the kickback that this is what your employer would approve of. If you acted alone and get caught, don’t expect your employer to defend you because they may distance themselves from you to avoid further embarrassment or legal trouble.
* Don’t risk your credibility. It can take many good deeds to build credibility but only one seemingly simple indiscretion for it to vanish.

Depending on the specific situation, when an ethical dilemma arises, use common sense and think things through clearly before making a decision you may later regret. Not every decision is cut and dry and sometimes the grey area – the area that is somewhere between right and wrong – may not be as clear as you’d like.

Where possible, try to speak with your manager or someone else you trust when in doubt especially if the decision you have to make affects the company. Don’t assume your employer will tolerate you doing something wrong even if it benefits them.

Remember to treat others as you’d expect to be treated and don’t do anything wrong in anticipation of a short-term gain that could end up costing you in the long-term.

Carl Mueller is an Internet entrepreneur and professional recruiter who wants to help you find your dream career.

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Most businesses have prepared, documented, and published their company policies derived from their basic beliefs and philosophies, and Business Ethics is usually one of them.

We must avoid even the appearance of unethical conduct.

How do Business Ethics apply in the workplace?

One perspective on Business Ethics is what each of us thinks about using the company equipment and information we have access to as we perform our duties:

* What we think about making copies of personal (non-business) documents on company provided equipment.
* What we think about faxing personal (non-business) documents on company provided equipment.
* What we think about making personal (non-business) telephone calls on company provided equipment.
* What we think about sending personal (non-business) electronic mail messages on company provided computers and Internet network connections.
* Etc.

These and other non-business usages and actions are a drag on company profitability.

Other applications of Business Ethics in the workplace might be:

* Do you copy software to take home for personal use?
* Do you properly dispose of classified information regardless of media type?
* Do you “shoulder-surf” when a colleague is entering his or her password or viewing sensitive data?
* Do you ask those who “tailgate” upon entrance to the controlled-access office building to see their ID?

You should always be ethical or the old motor oil commercial will eventually haunt you: “You can pay me now, or you will pay me later.”

Let’s be sure that our Business Ethics “dip-stick” always reads FULL.

For more information and guaranteed insight into this site in general.

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Tags: ethical, issue, dilemma, defined, business

It’s not just for business anymore. Our next Enron or WorldCom could come from within government. The fact government sets many of the ethical standards for business means they must have a high standard themselves. It appears those standards are slipping.

The Ethics Resource Center’s National Government Ethics Survey (NGES) shows that nearly two thirds (63%) of local government employees said they observed at least one type of misconduct during the reported year. Local government also had the highest rate of workers who witnessed misconduct but did not report it. The combined rate of state and federal workers who stated they had witnessed ethics violations was 57%. The 2007 study did not show improvement over the previous study. This should sound alarms for both government and business. Visit the web site of the Ethics Resource Center to download the the entire survey.

The greatest issues were at the local level, so here’s some grassroots, common sense knowledge for you that today’s society seems to be overlooking at great expense. Our society is losing its grasp on good old-fashioned values. And like society, business follows suit. Gone are the days where a man’s handshake was his promise, his word his commitment. But not gone forever. If you want to learn some methods to pump values back into your organization, and gain confidence back from your customers, you’ll want to stress these conditions during all training. Reinforce and remind them on a regular basis:

* The flow of information from top management
* Top management’s ability to keep promises and commitments
* The flow of information from supervisors to employees
* A supervisor’s ability to keep promises and commitments
* Increase confidence that coworkers will keep promises and commitments
* Use transparent means to reward employees, nothing unquestionable

There is an upward trend of pressure to compromise standards, where situations invite wrongdoing and/or employees’ personal values conflict with the values espoused at work. This increasing pressure builds like the wave of a tsunami until it reaches critical mass. Self interest, lying, abusive behavior and internet abuse top the list for misconduct in the workplace within government.

Businesses run the risk of loosing customer and employee trust that is essential for businesses to maintain. Government agencies strongly risk loosing the confidence and trust of the public. In both sectors, eroded trust hinders organizational effectiveness.

Download your free eBook copy of The Soldier’s Method: Leadership Tactics for Business by visiting this site – Wesley Ford is known as That Value Guy. He is a leadership, retention and technology expert, professional speaker and consultant who helps develop your leadership skills while getting employees to retain you.

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Tags: dilemma, dilemmas, ethical, examples, work

“I hope that is a rhetorical question,” Cheryl replied. “You know the answer. ” Cheryl had just invested in three cups of coffee while her mentoring partner described an agonizing issue at the office. As Michelle’s mentor for almost two years, she had witnessed her protégé’s impressive climb up the career ladder. Michelle began as a manager in a national fast food chain and worked her way to supervisor while still in college. Just after graduating, she was offered a corporate position in the franchising department. At age twenty-six, Michelle had reached a position of considerable influence, including an especially prestigious role on the franchise-approval committee.

Here’s how that committee operates: In order to secure the right to own and operate one of the company’s restaurants, prospective franchisees must win the approval of representatives from finance, real estate, and operations. Each member has veto power over the applicant’s fate. As the operational link, Michele held significant responsibility and this assignment was a real jewel in her career crown. But it now held the potential for stopping her career in its tracks. Thus, Michelle had called her mentor for this midnight, Waffle House rendezvous.

“So let me make sure I’ve got this straight. Your boss sent word to you—he didn’t talk to you directly, he just had his assistant tell you? Is that right?” Cheryl was as incredulous over the boss’s cowardice as she was his blatant bigotry.

Michelle nodded. “Of course he wasn’t going to tell me directly. He is a corporate officer. He needs to maintain deniability.”

Cheryl could understand why he wanted to keep some distance from the message. He had ordered Michelle to veto the application of a franchise candidate named Sadid Patel. “Yep, that’s exactly right. Mr. Senior Vice President had his assistant order me to veto him, because he feels we have too many foreigners in the system as it is,”"Michelle summarized.

“Any chance that finance or real estate will do the dirty work before you have to meet with him?” Cheryl was fishing here, hoping to find a way Michelle could sidestep the conflict.

“Not a chance. His finances are impeccable and he has picked a prime site to build on. Besides, they’ve both already signed off on him.” Michelle continued to stare at the wall just behind Cheryl’s seat, as if the answer might be written somewhere within the wallpaper. “There’s no way around it. Tomorrow at 10:30, I can either perform a reprehensible act or I can see my career come to slithering stagnation at the age of twenty-six.”

Michelle picked up her napkin and wiped at a small water spot on the table. Maybe just this once I can compromise a principle, she thought. Just this one time. Finally making direct eye contact, she quietly added, “You’ve always told me that I have to pick my battles.”

Cheryl returned the eye contact and firmly replied, “And you know this is one you’ve got to pick, Michelle.”

****** ****** ****** ******

It was eight o’clock the next evening. Cheryl and Michelle were occupying the same seats in the same coffee shop. “”Well, let it out,” Cheryl said. “You have that distant look on your face. What did you decide to do?”

“The only thing I could do,”" Cheryl replied. “I couldn’t be a part of any racist act.” Michelle took a deep breath and slowly let it out. “So, I approved Mr. Patel. He has his franchise.” Michelle leaned back in her seat, continued stirring the coffee but never drinking from the cup.

“Good for you. I know it was tough, but you did the right thing.” Cheryl was relieved to know that Michelle had valued integrity and character over developing a plastic career. But, Michelle was looking even more distraught than she did last night. Cheryl figured the VP must have come down hard. She decided to reassure Michelle that her career was not over. “Hey kid,”" she said with a kind smile. “There are other companies.”

“Oh, no, that’s not it. I’m not worried about my job anymore.” Michelle allowed a slight smile to interrupt her malaise. “Before meeting with Patel, I had a short meeting with my boss. I let him know that if I ever even sensed him blocking my career, I would make a beeline to the president and maybe even the Justice Department. He got my message loud and clear. He won’t be an issue.”

“Well, now. I’ll bet that knocked him on his keister.” Cheryl was impressed with Michelle’s preemptive strike. “”But why are you upset? You should be ecstatic. It was an incredible day!”

“I’m not so sure about that, Cheryl.” Michelle paused to press a napkin to her glistening eyes. “I really don’t think I did the right thing.”

Cheryl was stunned. “How can you possibly say that? How could you possibly doubt your actions?”

Michelle spoke slowly and with an intensity Cheryl had never before heard from her. “Because Mr. Patel is, without question, the most unqualified person I have ever interviewed for a franchise approval. He has no understanding of customer service, looks down his nose at foodservice workers, and had no concept of quality standards.” Michelle leaned forward, “Cheryl, I approved a compete incompetent as a franchisee of the very company that entrusted me to select its business partners. I violated that trust.”

Michelle paused and then quietly added: “Now, where is the integrity in that?

Ken Tanner operates an Atlanta-based consulting firm specializing in employee retention and teambuilding. Ken is the author of three books: Recruiting Excellence, Retaining Employees, and the newly-published major release from Thomas Nelson Publishers, Never Order Barbecue in Maine, a lifetime career guide. Ken’s next book, to be published by Preager in 2007, will be The Entrepreneur’s Guide to Teambuilding. Ken invites you to visit his website

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