State of Business Magazine, Spring 2007, Ethics in the Balance
  vol. XIX no. 1

Spring 2007 contents
Dean's Letter
Rajeev Reports
Media watch
In Brief
To The Point
State of Business 
				    Information








Ethics Balance

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"The subject of ethics is all-pervasive," said Knapp, who received his undergraduate degree from Georgia State and a doctorate from the University of Wales. "In fact, what we are really dealing with is how people work together. Ethics is a dimension of all relationships – employee to employee, employees with their supervisors, the CFO to the company’s investors, just to name a few."

TALKING EFFECTIVENESS
Many believe ethical discourse became popular only in the late '90s when the Enron scandal rocked American business. "But," said the Institute director, "ethical issues in business are not new. What is different now is that we are no longer just talking about training, communications, and a code of ethics. Now we are talking about effectiveness."

"For example," said Knapp, "Enron had model ethical processes. They had a code of conduct, hotlines, and training in place, most of it geared to rogue employees. What was not considered," he noted, "was what would happen if those rogue employees were at the top of the organization."

It is one reason why today’s conversations on ethics have turned to leadership and the creation of an ethical culture. "It’s now all about setting the right tone at the top," said Knapp. "Enron had the right program, but a toxic culture."

LEADING INDICATOR
Indicators of how wide ranging the subject of ethics can be are the topics covered at the Southern Institute’s Leading with Integrity luncheon series and its Executive Breakfast Forums.

In December 2006, for example, the Leading with Integrity luncheon featured "Excellence without a Soul? Higher Education and the Shaping of Moral Character." The speaker was Harry R. Lewis, a former Harvard dean, who argued that higher education has lost its way in terms of teaching and setting an example for good moral character. Lewis said university faculty are typically hired without a character evaluation. "Smart is not enough," he proclaimed. Needless to say, his remarks stirred the juices of a panel of university presidents who, while recognizing some of Lewis’s arguments, responded vigorously in defense of today’s faculty and system of higher education.

Another speaker, Karen Katen, vice chairman of Pfizer Inc. and president of Pfizer Human Health, spoke on a variety of ethical issues facing her industry, such as direct-to-consumer advertising, clinical trials, drug costs in developing countries, patent protection, reimbursement, product liability, and bioethics.

Then there was the presentation and discussion on sexually explicit advertising. Deborah Waller, chairperson of Jockey Apparel, talked about how some companies in her industry use the exploitation of women as a means to sell products. Jockey will have none of that, said Waller, making sure all its ads are tasteful and adhere to strict standards.

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