MORAL VACUUMS and ETHICAL FITNESS

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MORAL VACUUMS andETHICAL FITNESS

• EPFP
• Presentation
• January 28, 2002

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Critical World Changes

•    Power to create change is a global possession
• White nations bordering Atlantic no longer
  dominate world economies, political and military
  affairs
• Asia, Africa, Middle East and others now have
  the power to alter the course of the world
•  
•     

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Critical World Changes

•     Technology and science redefining reality
• Scientific knowledge is doubling at a rapid rate
• Causing a redefinition of core truthswhat is
  life and what is death
• Natural boundaries (mountains, oceans, desserts,
  etc.) no longer serve to isolate peoples from
  one another
• Within seconds, people can see what is occurring
  half a world away and then be there in hours
•  
•     

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Critical World Changes

•    Worldwide system of research, finance,
  production and trade
•  
• Change from local or national companies to
  global corporations
• Technology can link global locations together
  in seconds
•        
•  

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Critical World Changes

•    Population growth
• 18 of all people living in the last 2000 years
• are living today
• No longer is the concern to protect humans from
  the environment but protecting the environment
  from human excess
• Management of cities more difficult that of many
  countries

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Critical World Changes

•    Changing role of western women
• Women moving into leadership positions in
  corporations and government
• Causing a change in corporate cultures from
  male vertical step by step thinking to more
  female thinking of care and relationship
•  

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Impact of Changes

• Psychological and Spiritual Change
• Struggle with the psychological concept of now
  being a member of a global community and no
  longer a member of a homogenous group
• Collapse of long held foundation beliefs of what
  is reality and truth
• Turning to religion, cults, ethic and separatist
  groups for true answers

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Impact of Changes

• Countries Redefining Nationalism
• Populations of countries are diverse with ever
  increasing numbers of cultures, religions, and
  ethic backgrounds as people move and resettle

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Impact of Changes

• Worldwide Reach of Single Decisions
• A single act or decision can have immediate
  and far reaching implications involving millions
  of people, countries, and ecosystems

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Impact of Changes

• Imbalance between Information Rich and
  Information Poor
• The division between wealthy technology rich
  countries and technology poor countries is
  growing
• The division between wealthy technology rich
  and technology poor individuals within
  countries is also growing

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Unethical Decisions
Recent Right versus Wrong Decisions
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• 100 years ago an unethical decision by one
  individual had limited power and reach in
  affecting numbers of people and ecosystems.
• Given todays world, an individual or handful of
  individuals making an immoral or unethical
  decision can have far reaching and devastating
  effects for the world

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1984 - Union Carbide Bhopal, India

• Pesticide plant gas leak that killed 3,800
  people, permanently disabled 2,720 and injured
  over 200,000 more
• Union Carbide curtailed plant maintenance as a
  cost cutting measureAll safety systems off line
• Broken Refrigeration Unit hadnt been repaired
• Alarm Systems not set properlyso no warning
• Flare Tower to burn vapors not working
• Scrubber to neutralize vapors not activated
• No Union Carbide plan to notify and evacuate
  population in India even though the plant had 6
  prior leaks and warning on sister plant in US
  (which had 28 leaks) was never send to India
• Plant abandoned Company refused to clean up
  extensive water and soil pollution / Paid 490
  Million to date in civil settlements

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1986 - Challenger Explosion

•     Political Pressure to Launch
•          Presidents State of the Union
•    Vice President to view launch
• Congress concerned that promise of frequent
  launches was not being
  met      
•   European vehicle threatened to replace
  the shuttle
•          Management focused on proving action was
  unsafe vs. safe
•      Problems contained and resolved
  internally by management/ not forwarded to
  others needing to know
•      Overrode engineers opposition to the
  launch- belief that cold temperature and ice
  were not safe

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1986 - Chernobyl Nuclear Disaster

• Flawed reactor design operated by
  inadequately trained personnel
• Engineers disregarded safety, ran own test
  taking the core to melt down
• 30 deaths / 34 cases of radiation poisoning
  / 200,000 people exposed to large doses of
  radiation- Incidents of thyroid cancer and
  leukemia expected to increase
• 300,000 people resettled
•         
•   Belarus, Ukraine, Russia, and beyond
  contaminated

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1989 - Exxon Valdez Oil Spill

• Single hulled ship with Captain who had
  been drinking
•         
• 11,000,000 gallons of crude oil spilled /
  only 14 recovered rest continues to damage
  ecosystem
• Millions in fines assessed, Exxon has
  paid very little as they appeal each decision
• Valdez still at sea carrying oil, barred
  from Alaskan waters
• Captain is now a maritime insurance
  adjustor

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1995 - Collapse of Englands Barings Bank

• 28 year old trader made 10 of Barings
  total 1993 profit under a system of huge
  financial rewards
• Huge 1994 losses -- concealed in 2
  accounts by trader
• Requested more bank funds to trade,
  hoping recover -- greater losses occurred
• 1995-Losses discovered causing
  Englands oldest bank to collapse
• Trader now on the speaker circuit and a
  movie about him has been made The Rogue
  Trader

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1998 --- 14 Billion Moral Collapse of Cendant

• Merger of CUC International and Hospitality
  Franchise Systems (Ramada, Holiday Inn,
  Days Inn, Super 8 Motels, Century 21, Coldwell
  Banker, Travelodge) created Cendant
• 6 months after the merger
•         500 million in accounting deception
•       200 million in accounting errors
•         61 of CUCs income was nonexistent
  

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Other 1999 and 2000 Happenings

• Florida Governors wife returning from Paris
  fails to declare 19,000 in clothing and jewelry
•  Claims she did it to prevent husband from
  knowing how much she spent
• Reporters admit bias
• Reporters admit to biasing coverage to protect
  their corporate interests, according to new
  survey

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2001 Happenings

• Three Scientists Vow to Continue Efforts to
  Clone Humans
•    Failure rates, ethical stigma, criticism
  from colleagues fail to dissuade them
•  
• Selected Michigan Schools Accused of Testing
  Irregularities on the MEAP Test
•  
• Tyson Foods Indicted on Charges of Smuggling
  Illegal Workers
•      Tyson recruited and smuggled illegal
  workers, providing them with fake ID papers,
  government charges
• Love Bug Virus Crashes Computer Systems Around
  The World
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•  

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Ethics Defined

• Drawn from the traditions of moral philosophy
• Is a standard of conduct
• Goes beyond self interests
• Goes beyond personal points of views
• Based on principals that rest on a foundation of
  core values
• Based on knowing right from wrong and what is
  right
• Entails action

Source Kidder, How Good People Make Tough
Choices
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Core Values

• Love (Compassion
• Truth
• Freedom
• Fairness
• Unity (Valuing Diversity)
• Tolerance
• Responsibility Accountability
• Respect for Life (Includes Environment)

Source globalethics.com
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Importance of Ethics(Why Ethics are Needed)

• Business Evidence of Right vs. Wrong
  Decisions
• Technology Moving Faster Than Ethics
• Smart people working in large systems making
  amoral decisions. (Kidder)
• Education Incidences of Cheating
• Not Knowing How to Lose
• Violence/Values/Ethics

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OUR HOPE FOR THE FUTURE

• 1998 Random Survey of 10,069 U.S. Middle
  School Students and 10,760 U.S. High School
  Students 
•          Found that 70 of the High School
  Students admitted to cheating on an exam in the
  last 12 months
• 1998 Survey of 953 U.S. Parents indicated
  they believe their teenagers lie to them 
• A lot 7
• Some of the time 47 Hardly Ever 40
• Never 6
• Dont Know 1

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Self Interest vs. Universal Good

• There appears to be a breakdown in understanding
  the difference between
• This is right to do.
• And
• I have a right to do this.

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Do Todays and Future Leaders

• Have Ethical Commitment?
• Have Ethical Consciousness?
• Have Ethical Competency?

Source Josephson.institute.com
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Right vs. Right Paradigm

• Truth vs. Loyalty
• ex. Lying for a friend
• Individual vs. Community
• Short-term vs. Long-term
• Justice vs. Mercy

Source Kidder, How Good People Make Tough
Choices
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Right vs. Right Decision Rules

• Ends-Based
• Greatest good for the greatest number
• Ex. Cost benefit outlook, need to know future
• Rule-Based
• If everybody did this.
• Ex. I should only do what I would want everyone
  else in the world to do if faced with the same
  situation.
• Care-Based
• Put yourself in the other persons position.
• Ex. A universal principal across all religions

Source Kidder, How Good People Make Tough
Choices
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          In times of change it is the learners
who will inherit the earth while the learned will
find themselves beautifully equipped for a
world that no longer exists.   --Author Unknown