For Video - MGMT Part 1

Okay. Welcome back, everybody.

This is part five per one.

Volume five.

Um, just was finishing up section on culture we were

looking at was It's not Establishing a culture is not

just for your own health.

This stuff has some real world consequences.

Positive consequences if it's done well, right?

So organizations and establish and sustain a strong culture do

typically realize certain benefits.

And when they do, when?

When? When economists do research.

And they look at what companies have the strongest culture.

Those companies have higher sales growth.

They have more return on their assets.

So that means when they buy, when they when they

buy a piece of equipment or they invest in something,

they get more money for that equipment or more money

on that investment than their competition.

They show higher profits.

The quality of their products are better because the employees

give a shit and employee satisfaction is much higher than

places that do not have strong culture give you a

hint. Part of building a strong culture is like I

said earlier involving employees.

So it from please air helping you build the culture

that they want to see.

And then if you can implement that, then, yeah, they're

gonna be more satisfied, right?

There you go.

It's all it sounds easy.

I don't know if you guys saw 11.

I'm pretty proud of this image, so this all sounds

great, but it's kind of like chasing the Unicorn Rainbow

Unicorn. Um, if you can write this, this is a

lot easier said than done.

There are a lot of big, big companies there are.

A lot of companies have been around for a very,

very long time with a bad culture, and they've been

trying to change that for years.

And it's elusive.

Boy, let's talk about ethics and social responsibility.

This is something I was typically take a whole week

on in any class.

I'd like to even teach us as a whole quarter.

Sometimes let's talk about and I do talk about this

all my classes.

But let's talk about ethics and social responsibility from managerial

standpoint. Um, who is different than like if you've taken

a sales class or a marketing class for me, it's

different management.

So let's first define what ethics and social responsibility are

is really different, So ethics is the moral principles or

the values that decide or defined for you what's right

and wrong.

That might be for you as a person, your ethical

code, or might be the company's ethical.

What do we say is right and wrong and how

we decide so ethical behavior is that behavior that follows

those accepted principles of right you being happened?

They showing ethical behavior is following the path of doing

what's right.

Um, social responsibility, on the other hand, is saying, What

what? Um what responsibility do organizations have to society?

Okay, now the old school model is the shareholder model,

and I can remember going to business school, um, and

and everything being about the shareholder.

Which was this saying, You know what?

No matter what, the organization's overriding goal should always be

profit, profit, profit.

How do we make the most amount of money possible

for the shareholders?

People who owned this company, That's the only thing that

matters, and every decision you make should be with that

in mind that we're trying to make a much money

as possible for the owner.

I like the shift that we're going through in society

that says, Hold the phone.

Maybe this needs will be a little bit more along

the line with stakeholders.

Now a shareholder or owner is still a stakeholder.

Okay, I want to make sure you understand the difference.

Street shareholder and stakeholder shareholders are owners.

Stakeholders can include.

Shareholders can include owners.

But if it's a stakeholder, is anybody who's affected by

the company anybody who's affected by the performance of the

company. Okay, so in the stakeholder model, the manager's responsibility

is not too short term.

Profits toe to maximize profit for the for the manager

or for the owners, it's the look at long term

survival. What can we do so that we're here in

10 years?

20 years?

How can we?

You know, how can we be a pillar of the

community? And how can we support employees and jobs and

right, How can we make sure that we don't destroy

the environment?

Resource is and stuff like that, right?

So you, um mm Page 81 talks about primary and

secondary stakeholders like primary stakeholders would be employees, people that

are directly affected by your company.

But there's also a lot of secondary stakeholders we don't

think about, um, let's just say, like for P e

N N L is the largest lab out near Hanford

is is a piano.

Nell is the largest employer in the tri Cities.

If they were to go out of business, yes, those

employees, um, would be primary stakeholders of loser jobs will

be affected by the company, but we'd all be effected.

Were all secondary stakeholders to because the House housing prices

would go down, restaurants would close.

All sorts of bad stuff would happen, right?

So there's a lot.

There's a like, a domino effect, and those are the

secondary stakeholders, so I don't know how well this slide

is gonna come up.

But ethical deviants if if ethics is making the right

decision, why does ethical deviants happen?

Why do people make unethical decisions?

Um, it happens all the time.

But why?

And so let's look at it.

There are some.

There's some decisions that we make that are ethical and

legal right.

This is the Dogus, something that's ethical so so easily

you know, we can define as being right.

And it's also abides by the law, right?

There's tons of examples there.

I don't need to go that route, but what about

something that is ethical, it feels right but is illegal.

This would be like the Robin Hood approach, stealing, uh,

from the rich and giving to the poor.

That might seem ethical, but it's stealing, and that's illegal,

right? But you're you know you're but you're helping somebody

in need, which seems ethical.

Um, there's a lot more business type examples I could

give there.

What about something that is unethical then and legal?

So something that we might say is wrong seems wrong

but is perfectly legal, Right?

Um, that there's a lot of good examples on this.

I usually like to challenge my students.

Come up with these.

I think I ask a quiz question or a test

question on this toe.

Have you guys come up with these on your own?

So I don't want to spoil it too much?

Um, but what's something that's unethical but completely legal?

Um, boy, that's it's not that difficult.

I'm just trying not to take some of the obvious

answer is that you guys might use in your test.

So let me just put it this way, something that

is is wrong.

That's against your moral code or against the company's ethics.

code but is legal, Okay, and then there's unethical and

illegal. There's a lot off so so in the wrong

and you're going to jail for it, right?

There's a lot that goes in that sexual harassment, um,

would be an easy one in there.

So different types of deviants, production deviants is the unethical

behavior that hurts the quality and the quantity of the

work that's produced.

So it's you, it's it's the worker making an unethical

decision that's gonna make the product worse.

Property deviants is the unethical decision to hurt the property

or hurt the products that the company makes political deviance.

This one is a little bit more common where it's

like you're going to use your influence, or or somebody

who's making an unethical decision is going to make use

their political influence to hurt somebody else in the company.

Like, Hey, I you know, maybe you have an extra

grand against somebody else.

And so you decide to, um, you know, say something

to their superior about what you saw with the purpose

of harming the other person and then personal aggression is

just where unethical decisions happen where you get hostile or

aggressive towards another person.

That one's a little bit more, um, obvious to So

what can you do about a company If if your

company and you want to be unethical company, it all

starts with selecting, selecting and hiring ethical employees.

Um, this is tough.

How do you decide in a one hour interview, whether

or not they're ethical?

A lot of times we were assessing his managers.

When we're hiring somebody is, do they have the technical

skills? Do they have the human skills like, you know,

what is their experience look like?

Was their education look like?

Did they interview?

Well, but we failed toe looking like, Well, would they

make the ethical decision?

So now you're starting to see a lot of companies

do personality tests, Integrity tests.

Teoh. Ask them questions.

Try to get out whether or not this person might

be ethical or unethical.

It's It is a tough one, like, it seems like

a lot of these air easy to kind of trick

if you are an unethical person, so I don't, um,

you have to Then also make sure that you establish

a code of ethics.

It's not good enough just to establish a code of

ethics and put it on the website.

It needs to be front and center needs to be

celebrated when it's followed.

It needs to be.

People need to be punished when it's not followed.

Has to be serious.

Um, you have to create some training that goes along

lines like you can't just say, Here's our ethical code

and a You know, guys, we just want everybody to

do this.

You gotta train people on it, give them scenarios like

give them like a scenario that they might face at

work and say Tell us what decision you would make

and see if they're making the right decision and don't

punish them for making the wrong decision.

But show them the error in their ways and figure

out how to make people give people more experience in

making ethical decisions.

Um, creating an ethical climate.

So if the managers aren't ethical, neither the employees gonna

be ethical.

The top managers not only are they gonna have to

act ethical, but they're gonna have to stay committed to

the ethics program.

They're gonna have to talk about it and newsletters.

They're gonna have toe Prezi people when they follow it,

and then you have to establish a reporting system.

This usually means that you need to put something together

that's anonymous.

Where's when you whistle Blowers can that they see something

happening that's unethical?

They can import it without them getting in trouble.

Quick decision making guy A lot of books out there

Talk. That would be like, Hey, you're you're You're faced

with a tough ethical decision here, The seven steps or

here's the 12 steps to follow to Make unethical decision.

And I know what you guys.

I'm not whipping out of no card every time I

come up with a, ah, tough decision on me.

So the quick decision making guy that I've come up

with that I heard in college years ago, and I

still try to use to today's um, if if you're

faced with the tough ethical decision and if you wouldn't

want your sweet little old grandmother read about it in

tomorrow's newspaper, then don't do it right and why does

that work?

One is, I hope you know, if your grandmother criminal

than this doesn't work out all right.

But hopefully of this sweet little grandmother who you want

to him.

Um, you know, stay in her good graces and you

want her to think highly of you and you wouldn't

want the information public.

So if it was in tomorrow's newspaper, it's public, and

your grandmother is going to read it.

And if it's something you don't want to reading, it's

not something you'd be proud of.

And so, if you could be when you're faced with

a tough ethical decision, you can say, You know what?

I wouldn't want my sweet little grandmother to read about

this in a public newspaper tomorrow.

Then you say no, Right.

That's just a quick, easy for me decision making guide.

Don't guide me When There you go, there's your sweet

little grandmother and there's the newspaper.

She's really excuse me.

Um, let's talk.

Let's let's get into social responsibility.

I mean, we're already into social responsibility, but let's talk

about the economic responsible, the economic side.

So I just said earlier than in the stakeholder model.

Profits aren't everything, but if you're not making a profit,

you're not in business.

Okay, so you do still have some economic responsibility to

make a profit.

Okay? You also have the responsibility to obey the law.

Legal responsibility to stay ethical right to, you know, come,

you know, to abide by the generally accepted principles of

what's right and what's wrong.

And then discretionary responsibilities like, um, the things that are

beyond just the basics.

Right that, like, um, were gonna go above and beyond

the example that I have was a video that I

can't show in this video format.

Comment skateboards.

Um, and it just shows like how involved they get

in their community and that's socially responsible.

That's beyond that's one of those discretionary responsibilities like they

don't have to be out there doing this extra stuff,

but they just do it.

It's beyond economic beyond legal.

It's beyond ethical responsibilities, just something extra that they feel

it's necessary to dio.

So, like I said, the video won't show up there.

You can go look at the video.

Um, I do apologize.

I am gonna have to go into volume six.

It'll be priced half of a video here, so I'm

gonna shut this video down here and they'll finish up

For Video - MGMT Part 1 - vol 5

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