A634.9.5.RB - A Reflection of Our Learning

There are three key lessons I take away from this course MSLD 634 Leadership Ethics and Corporate Social Responsibility: virtues values, corporate social responsibility and the golden rule. 

Some philosophers believe that the ancient Greeks, specifically Plato and Aristotle, developed the first ethical theory, which was based on values and personal character. Continuously referred to as virtue ethics, it focuses on character traits that a good person should possess, theorizing that moral values will direct the person toward good behavior. Virtue ethics is based on a way of being and on valuable  characteristics rather than on rules for correct behavior. Moral virtues are habits that enable a person to live according to reason, and this reason helps the person  avoid extremes. Aristotle argued, "Moral virtue is a mean between two vices, one of excess and the other of deficiency, and it aims at hitting the mean in feelings, desires and actions." (Lawrence and Weber, 2014) 

I have learned values during my life at home from parents, church, Boy Scouts and also from sports leaders and role models: Tom Landry, Roger Staubach, John Wooden and Larry Bird. Tom Landry "The Man of Character" was a man who by his very character inspired those who knew him to be better people in every facet of their lives. Roger Staubach "Captain America" and Heisman Trophy winner led the US Naval Academy and Dallas Cowboys football teams. John Wooden, the legendary basketball coach from Indiana State and UCLA, created the "Pyramid of Success" for his players, education and business. And Larry Bird "Mr Basketball" from Indiana State and the Boston Celtics led by example. They all were values-based and lived them.       

The Golden Rule states, "Do unto others as you would have them do unto you" or "treat others as you would like to be treated." Many people have claimed that many of the world's religious and cultural systems includes something like the Golden Rule. John Hick argues that, "all great traditions teach the moral ideal of generous goodwill, love, compassion, epitomized in the Golden Rule. Every religion emphasizes human improvement, love, respect for others, sharing other people's suffering. On these lines, every religion has more or less the same viewpoint and the same goal." Mohandas Gandhi even made a similar point. (MacKinnon and Fiala, 2015)

I learned the Golden Rule early in life at home from parents, church, Boy Scouts and also at my employers. The learning lesson is: always help others (not expecting anything in return). The Boy Scout saying "do a good deed daily" is powerful to live by and to apply too.   

Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. This concept is based in the root of the term responsibility, meaning "to pledge back," creating a commitment to give back to society and the organization's stakeholders to have a positive social impact. In a worldwide survey of CEO's, for example, 72 percent of executives polled said they sought to embed social and environmental issues into the organization's core strategies and operations. (Lawrence and Weber, 2014) 

 

For example, some of the wealthiest business leaders became great philanthropists who gave much of their wealth to education and charitable institutions. For example, the steelmaker Andrew Carnegie founded Carnegie-Mellon University in Pittsburg with the motto "My heart is in the work" and donated much of his fortune to charity. Other examples are the "Giving Pledge" made by 16 billionaires, including Facebook's Mark Zuckerberg and Oracle's Larry Ellison, who publicly pledged to give away a majority of their wealth to charitable causes or organizations. And promoting well-being and health, automaker Henry Ford developed paternalistic programs to support the recreational and health needs of their employees. These business leaders believed that business had a responsibility to society that went beyond or worked along with their efforts to make profits. (Lawrence and Weber, 2014) 

 

Several charities that I am involved active with at work and in Washington state include Northwest Harvest (hunger relief and food bank), World Vision (Books & Backpacks) and Goodwill. The learning lesson is: become active and involved in your organization,  the community and make yourself and the world a better place.   

 

References

Lawrence, Anne T. and Weber, James (2014). Business and Society: Stakeholders, Ethics, Public             Policy (14th ed.). New York, NY: McGraw-Hill.

MacKinnon, Barbara and Fiala, Andrew (2015). Ethics: Theory and Contemporary Issues (8th ed.). Stamford, CT: Cengage Learning.

A634.8.3.RB - Gun Control What is the Answer?

Yes, citizens have a right to bear arms to a certain extent and not the extreme.

The US Constitution and specifically the Second Amendment states, “A well-regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.” No other passage of the US Constitution is as intensely debated and scrutinized as the Second Amendment. (Morris, April 21, 2013)

Most debates, arguments and discussion focus on the "bear arms" part, however, the most important and key word is "militia." In 1791, no one knew if the whole "Union" thing was going to work out. Most people distrusted the government and many of the States distrusted one another. Many feared an invasion from Europe and the Second Amendment was enacted to make sure that a citizen's militia could defend the principles of the constitution. (Morris, April 21, 2013)

However, what the Second Amendment didn't do was allow any person on drugs, with medical conditions, a criminal convicted felon, etc. the right to walk into a store or gun shop and purchase arms without a background check. In 1939, the Supreme Court ruled:  

“The Second Amendment must be interpreted and applied with the view of its purpose of rendering effective Militia.” (Morris, April 21, 2013)

By 2008, the Supreme Court extended that to cover self-defense in the home—something else that doesn’t require a high-capacity magazine along with the right and the ability to kill everything within a three block radius. However, that's all they extended it to. There’s no constitutional “right” to carry a concealed weapon, no “right” to use armor-piercing bullets—just the right to defend yourself against intruders. Stephen King famously said: “if you can’t kill an intruder with ten rounds, you need to go back to the shooting range.” (Morris, April 21, 2013)  

And honestly, a very small number of those supporting gun control guys want a complete ban on weapons. From my own point of view and thought (critical thinking), if someone wants to buy rifle and go sport hunting, it's their business and has nothing to do with me. And if you feel safer knowing that you have a shotgun in your home to defend yourself and family, fair enough.

For a fact, at least 54% of Americans support strict gun laws with this percentage rising to an incredible 91% including common sense stuff like background checks. Unfortunately, Congress recently shot this down in what could be assumed as an effort by political lobbyists, e.g., the National Rifle Association (NRA) and an effort by Congress to become even more unpopular. This support for gun control, by the way, is pretty bipartisan: even with controversial stuff like reinstating the assault weapons ban, roughly half of Republicans are in favor, along with a majority of Democrats and Independents. In summary, people are largely pro-gun control—it’s the politicians who aren’t. (Morris, April 21, 2013)

Gun control critics argue if the government is to start monitoring citizens at this level, then what would stop them from monitoring other aspects while further intruding and violating civil liberties? Political lobbying including from the NRA and gun manufacturers, e.g., Smith & Wesson, Remington etc., to Congress provides a foundation that weapons will be available to anyone who wants one. And then there is the American Civil Liberties Union (ACLU) too whose mission is "to defend and preserve the individual rights and liberties guaranteed to every person in this country by the Constitution  and laws of the United States (Wikipedia, 2015)." And most of their staff is made up of attorneys too. So, based on strong lobbying efforts, gun control will be split for years in Congress.

 

References

Gun Laws: Make Sure You Know Your Gun Control Arguments For and Against. Retrieved http://listverse.com/2013/04/21/10-arguments-for-gun-control/

LaFollette, Hugh (2007). The Practice of Ethics. Malden, MA: Blackwell Publishing.

Morris, M. (April 21, 2013). 10 Arguments for Gun Control. Retrieved http://listverse.com/2013/04/21/10-arguments-for-gun-control/

Wikipedia (2015). Retrieved http://en.wikipedia.org/wiki/American_Civil_Liberties_Union

A634.7.4.RB - Ethics and Behaviors

Boeing is a company of incredible, fascinating and amazing people working in one of the most exciting industries in the world - aerospace. Considering the many accomplishments, creativity and building a foundation of innovation, from designing and building the earliest biplanes to creating and supporting today's supersonic aircraft and spacecraft, one might think Boeing would be content with how far the company has come. But a company of  Boeing's size (166, 000 employees worldwide) and scope ($95 billion 2014 revenue) doesn't succeed by resting on its laurels and being complacent; Boeing is constantly re-examining capabilities and processes to ensure that the company is as strong and vital as heritage. In fact, the culture mirrors the heritage of aviation itself, built on a foundation of innovation, aspiration and imagination. (Boeing, 2015)

The Boeing Vision is: People working together as a global enterprise for aerospace industry leadership. How will we get there?

• Operate as One Boeing
• Deliver customer value
• Lead with innovation
• Fuel growth through productivity
• Leverage global strength

In order to realize our vision, Boeing considers where it is today and where it would like to be tomorrow. There are certain business imperatives on which Boeing places a very strong emphasis.

• Detailed customer knowledge and focus
• Technical and functional excellence
• Large-scale systems integration
• Lifecycle solutions
• Lean global enterprise

Boeing Values

Boeing is committed to a set of core values that not only define who it is, but also serve as guideposts to help the company become what it would like to be. Boeing aspires to live these values every day.

Integrity

We take the high road by practicing the highest ethical standards and honoring our commitments. We take personal responsibility for our own actions.

Quality

We strive for first-time quality and continuous improvement in all that we do to meet or exceed the standards of excellence stakeholders expect of us.

Safety

We value human life and health above all else and take action accordingly to maintain the safety of our workplaces, products and services. We are personally accountable for our own safety and collectively responsible for each other's safety. In meeting our goals for quality, cost and schedule, we do not compromise safety.

Diversity & Inclusion

We value the skills, strengths and perspectives of our diverse team. We foster a collaborative workplace that engages all employees in finding solutions for our customers that advance our common business objectives.

Trust & Respect

We act with integrity, consistency, and honesty in all that we do. We value a culture of openness and inclusion in which everyone is treated fairly and where everyone has an opportunity to contribute.

Corporate Citizenship

We are a responsible partner, neighbor and citizen to the diverse communities and customers we serve. We promote the health and wellbeing of Boeing people, their families and our communities. We protect the environment. We volunteer and financially support education and other worthy causes.

Stakeholder Success

By operating profitably and with integrity, we provide customers with best-value innovation and a competitive edge in their own markets; enable employees to work in a safe, ethical environment, with a highly attractive and competitive mix of pay and benefits, and the ability to further share in the company's success; reward investors with increasing shareholder value; conduct business lawfully and ethically with our suppliers; and help to strengthen communities around the world.

(Boeing, 2015)

Boeing believes that the same behaviors that drive strong performance – leadership, openness, accountability and inclusion – also enable a robust and effective ethics and compliance program. Ensuring that the Boeing values remain foundational to our work reflects a daily commitment from every employee who wears a Boeing badge. This message is delivered by the chairman each year with a videotaped message to every employee, and in numerous external remarks given by senior leaders in various forums.

While each employee is accountable for upholding our Code of Conduct and following all applicable laws, regulations and company policies, Boeing advances its unified approach to ethics and compliance through the integration of four key functions: Ethics and Business Conduct, Global Trade Controls, Corporate Audit and Compliance Risk Management. These organizations constitute the Boeing Office of Internal Governance (OIG).

This integrated group creates a sustainable advantage for Boeing by enabling compliant company performance while building on its legacy of integrity. The nearly 500-person team of professionals focuses on:

• Advancing an open, accountable and transparent culture;
• Independently and objectively evaluating processes and controls;
• Leveraging One Boeing through strong integration and collaboration;
• Applying expertise, business acumen and strong functional discipline; and
• Educating, training and informing Boeing employees worldwide.

(Boeing, 2015)

Speaking up is a cornerstone for building an open and accountable workplace culture. Boeing believes that creating an environment where employees are comfortable raising issues and concerns without fear of retaliation enables openness which can lead to improved business performance and inspire greater innovation. Boeing maintains policies and procedures to encourage employees to report concerns and seek guidance, using confidential and, when preferred, anonymous methods, including contacting local ethics advisors, using toll-free phone numbers and accessing web-based portals. Retaliation against employees who raise concerns is not tolerated and is cause for appropriate corrective action, up to and including dismissal.

(Boeing, 2015)

Unfortunately, there are several examples of unethical leadership.

 

In 2003, Mike Sears, CFO, and Darlene Druyun, Vice-President and Deputy General Manager of the Missile Defense Systems unit, were fired and both received prison terms – he for four months and she for nine. She sought and received a $250,000 a year job at Boeing while she was working as an Air Force procurement officer at the Pentagon. She and Mike Sears negotiated her position along with a $22 billion contract to supply the US Air Force with (100) 767 refueling tankers. Congress later cancelled the contract after the scandal was disclosed and went public. (Boeing, 2015)

 

In December 2003, the board of Boeing announced that it had accepted the resignation of Chairman and CEO, Philip Condit. Condit stated, “Accountability begins at the top”. (Boeing, 2015)   

 

The tanker program competition was reopened for re-evaluation and proposals to all airframe manufacturers including European Airbus. After an intense review and evaluation for several years, the 767 was selected as the winner. 

         

Harry Stonecipher, former Boeing vice chairman and COO, who also headed McDonnell Douglas when it merged with Boeing in 1997, was brought out of retirement to run Boeing. Stonecipher soon restored credibility to the aerospace giant along with increasing market valuation by over 50%. He also promoted corporate ethics as a top priority. However, it was then disclosed that Stonecipher was having an extramarital affair with a female company executive. The board ordered him to stop but he refused. He was then asked by the board to resign. The relationship violated Boeing’s code of conduct which ironically Stonecipher implemented and all employees must sign once a year. His “poor judgment… impaired his ability to lead.” "His downfall was that he failed to practice what he preached. ” (Boeing, 2015)           

So, what is the root cause of all these examples? It is entitlement, greed, self-interest and focus on oneself along with human nature and ego. And these examples do not demonstrate leadership in fact just the opposite. This is white-collar crime (WCC) and fraud. What is the fix? Ethics training, ethics curriculum and code of conduct and most importantly leadership by example. And regulation monitoring too, e.g., Sarbanes-Oxley Act.      

References

Boeing (2015). Available http://www.boeing.com/

YouTube (Poster, The Ethics Guy; Uploaded August 24, 2012)

https://www.youtube.com/watch?v=eLxbHBpilJQ

 

YouTube (Poster, Chuck Gallagher; Uploaded January 27, 2013)

https://www.youtube.com/watch?v=gUJ00vNGCPE