Doing the Right Thing Ethical Challenges in Your

Doing the Right Thing: Ethical Challenges in Your Personal and Professional Lives Gregory Young, The College of Saint Rose

An Overview • Philosophical Foundations of Ethics • Applying Ethical Concerns in the Meeting Planning Industry • Establishing Ethical Best Practices • Case Studies: Ethics in Action

Philosophical Foundations of Ethics

A Quick Summary • Utilitarianism – Greatest Happiness Principle, maximize pleasure and minimize pain for the greatest number of people • Deontological Ethics – Actions are justified if they are in accordance with a moral norm, something is intrinsically good or bad regardless of consequences • Virtue Ethics – Act reasonably, choose the mean between excess and deficiency, people should generally act in a way that contributes to a virtuous character

Classic Utilitarianism • Jeremy Bentham & John Stuart Mill used this philosophy to inspire legal and social reform in 18 th and 19 th century England (e. g. prison system and disenfranchisement of women) • “By the principle of utility is meant that principle which approves or disapproves to have augment or diminish the happiness of the party whose interest is in question: or, what is that same thing in other words, to promote or to oppose that happiness” - Jeremy Bentham

Kant’s Ethics: Nonconsequentialism • German Philosopher Immanuel Kant sought moral principles that did not rest on contingencies, but rather on reason • Nothing is inherently good except for good will, the human ability to act according to principle • Acts have moral worth when we act from duty, not feeling, inclination, or self-interest

Kant and Ethics • Categorical imperative gives us firm rules to follow in moral decision making • Human dimension is crucial; must consider inherent worth and dignity of humanity • We must be motivated and act according to principle, do the right thing for its own sake

Prima Facie Obligation • What one ought to do depends on the circumstances and relative importance of the conflicting obligations • Most of our moral obligations can be overridden by a more serious obligation • We promise to meet our friend having a crisis, but, on the way, see an injured motorist • You tell the truth, but when a murderer asks where your friend is, you lie out of the obligation of your friendship (Kant disagreed)

Rights • An entitlement to act or have others act in a certain way • Legal rights are derived from legal system • Moral rights come from relationships, roles, and circumstances (e. g. borrowing something), • Life, free speech, medical care, housing, education, and work are viewed as moral rights without any special relationships, they are human rights

Virtue Ethics • Aristotle’s Nicomachean Ethics - Moral character, rather than right actions are fundamental • Ethics allow us to live “the good life” • Virtue is a character trait that is visible in habits • Benevolence, compassion, courage, courtesy, honesty, loyalty, moderation, toleration, justice • Virtues are not the path to a good life, they are the good life • Business virtues is working together for a common good

Ethics at Work: Applications and Considerations • • • Privacy and Confidentiality Ethical Selling and Negotiating Gifts, Commissions, & Conflicts of Interest Human Dignity Environmental Considerations Corporate Social Responsibility

Privacy & Confidentiality • Using information learned in confidence for personal gain (e. g. Insider trading) • Providing client lists from a prior employer to a future employer • Sharing attendee list with vendors or other attendees without consent

The Best Price in Town? • While you are planning a meeting, the sales manager of the Elmgrove Inn tells you that she will beat any competitors rate • In order to obtain this rate, you will have to divulge confidential information (i. e. competitor’s rate) • Raises ethical concerns and economic concerns

Trade Secrets • A supplier for Company X had a really creative idea for a speed networking event in their proposal that the client loved, but we went with a different vendor. • Can Company X still use the idea? • What if they do not use the supplier’s specific plan for the event?

Ethical Selling and Negotiating • Sales people may be tempted to conceal info, make unrealistic promises, due to pressure to meet goals • Moral obligation to facilitate a fair transaction − Deception – False information about a product, taking a FAM trip to a city outside your region − Manipulation – No misleading info, but taking advantage of consumer psychology to make a sale (e. g. bait and switch, high pressure sales) − Disclosure – Reveal commissions, surcharges, or other benefits received to your firm and client

Conflicts of Interest • When a personal interest comes into conflict with an obligation to serve the interests of another • If a person agrees to act on another’s behalf, she must act in their benefit for all matters • If a hotel or other supplier offers rewards points, upgrades, or a commission, this can create a potential conflict of interest

Biased Judgment • Taking into account something other than the best interests of clients or the specialized knowledge of a profession − E. g. A purchasing agent accepting a reward or an employee with investments with a competitor or supplier − Can you accept a gift from a potential vendor?

Direct Competition • When an employee competes against her employer − Quality of work performed may decline − Judgment may be impaired by outside work − E. g. Steve works for C&S Events, but agrees to plan high school reunion as a favor to a friend

Misuse of Position/Unfair Advantage • Using powers or opportunities made available by holding a position that they wouldn’t have otherwise • Employees have obligations not to use these for personal gain (e. g. demanding a kickback such as a free room or upgrade as a result of making a favorable decision) • Bribery: Offering improper inducements to encourage a favorable decision

How can professional societies and firms manage conflicts of interest? • Objectivity – avoiding both actual conflicts of interest and remaining independent from relations that would impair objectivity • Avoidance – Not acquiring interests that would bias one’s judgment

How else? • Disclosure - Being aware allows a client to disengage or be on guard − Lawyers can accept a conflict of interest if they disclose, are confident they can provide adequate representation, & the client accepts − Greater transparency means less opportunity for conflicts of interest • Rules and Policies – Banning gifts, controlling information access

Support Human Dignity • Treat colleagues, suppliers, clients, and front-line staff with respect • Value workers with just working conditions and compensation • Work with suppliers who support human dignity

Discrimination • Wrongful acts related to employment, housing, education, healthcare, or some other area of public accommodation • A person is deprived of a benefit or opportunity because of membership in a prejudiced group • New York State established first nondiscrimination laws in US in 1948

Ethical Theories Against Discrimination • Utilitarianism: Productivity of a business and of society is best when choosing the most qualified applicant and productivity suffers when applicants are evaluated on the basis of other characteristics • Kant: Discrimination is a violation of human dignity and respect for persons • Virtue: Aristotle would say that treating people differently requires a good reason to do so

Support Fairness & Human Dignity • Require suppliers who wish to solicit business to become a sponsor or purchase a booth • Take reasonable efforts to make sure all attendees are registered, but also work to make sure a conference is reasonably accessible to those of more limited means

Environmental Responsibility • Balance the environmental and economic dimensions of meetings • Envt’l problems involve allocation and distribution of limited resources • There is an optimal level of pollution/land use that is not zero • Human ingenuity has found substitutes when the supply of a resource decreases and its price increases

Sustainable Business Principles • 1. Eco-Efficiency: doing more with less, firms should become more efficient in using resources (e. g. Mc. Donalds brews coffee hot to get most flavor out of beans) • 2. Biomimicry – Firms should model production process on biological processes − What is created as waste in one process is reused in another (e. g. photosynthesis creates oxygen) − Shifting from “take-make-waste” to “cradle-to -grave” life-cycle responsibility of products

Corporate Social Responsibility • Often profit and integrity/social responsibilities (loyalty, patriotism, consequences of a business deal) will come into conflict • Personally: you want a good job, but you don’t want to break the law or your religion or turn on friends − What your social responsibilities? How do they relate to your personality identity, worth, and morality? • How much social responsibility should a business bear? How can organizations contribute positively to their communities and cultures?

Archie Carroll: 4 Stages of Social Responsibility

Avoid Appearances of Impropriety to Protect Your/Client’s Reputation

Establishing Ethical Best Practices

Best Practices Overview • Develop written policies and procedures that provide specific guidelines and responsibilities for your organization • Communicate policies clearly, disclose benefits, and respect privacy of confidential information • Promote economically and environmentally sustainable operations • Avoid the appearance of impropriety

Meeting Professionals International’s Principles of Professionalism • 1) Maintaining Professional Integrity: �Honestly represent and act within one's areas of professional competency and authority without exaggeration, misrepresentation or concealment. �Avoid actions which are or could be perceived as a conflict of interest or for individual gain. • �Offer or accept only appropriate incentives, goods and services in business transactions.

2) Utilizing Professional Business Practices • �Honor written and oral contracts �Ensure rights to privacy and protect confidentiality of privileged information received verbally, in writing, or electronically. �Refrain from misusing solicited information, proposals or concepts. �Commit to the protection of the environment by responsible use of resources in the production of meetings. �Actively pursue educational growth

3) Respecting Diversity • �Embrace and foster an inclusive business climate of respect for all peoples regardless of national origin, race, religion, sex, marital status, age, sexual orientation, physical or mental impairment.

8 Governing Principles • Based on Lynn Paine et al, 2005 Harvard Business Review study of codes of conduct • Fiduciary– Diligently work for interests of org, avoid conflicts of interest • Property- Respect assets, avoid theft • Reliability – Fulfill commitments • Transparency – Be truthful, avoid deception

Paine, Deshpandé, Margolis, & Bettcher’s 8 Governing Principles • Dignity – Respect dignity, health, safety, privacy, and human rights, promote learning and development • Fairness – Treat all parties justly and equitably • Citizenship – Obey laws, support sustainability & community • Responsiveness – Address concerns respectfully and in good faith

Specific Issues to Address in a Code of Conduct • Gift exchanges – what gifts values are allowed? What should be done with gifts that exceed this? When can gifts be excepted? Are there cultural exceptions? • Fam Trips – Under what circumstances can they be accepted? • Upgrades, Points, & Meals – Can travelers keep points or must they be remitted to the organization or the client?

Specific Issues to Address in a Code of Conduct • What factors are most important in selecting suppliers? How are commissions disclosed? • The organization’s role in the communities it serves • Protections for Intellectual Property and Confidential Information • Acceptable behavior while representing organization

Keeping a Code of Conduct Effective • Include code in new staff orientations and continuing education • Use the code when conducting staff evaluations • Reference the code frequently within organizational discussions (e. g. contract negotiations, gift giving or receiving) • Update the code as needed

Case Studies: Ethics in Action

Dissecting Dilemmas 1. What competing standards, values, and available alternatives exist in this scenario? Be creative. Are there compromises or less obvious options that will help you achieve your goals? 2. What are the likely and potential consequences of each possible course of action? Consider all of the stakeholders.

Dissecting Dilemmas 3. What legal or contractual obligations exist? 4. What outcome will minimize negative risks and/or maximize positive outcomes? 5. How could an organizational code of conduct or other policy help to define or clarify a course of action in this scenario?

Sample: Access vs. Environment • You are planning a meeting of the Coltville Citizens Coalition. • A segment of this audience has limited economic resources. These people are often unable to attend as a result, but their participation will improve the event’s outcome. • The president of the CCC tells you that they also want to minimize the environmental impact of the meeting.

Sample: Access vs. Environment • The Incandescent Lodge has a more affordable meeting and hotel room rates, but has a poor environmental record • The Tree Side Inn is LEED-certified and composts, but may be cost prohibitive to some attendees

1. Identify competing standards and available alternatives • Conflict between being affordable and inclusive or lessening environmental impact • Choose The Incandescent Lodge or The Tree Side Inn • Or: Negotiate a sliding scale for Tree Side or work with the Incandescent Lodge to incorporate sustainable practices

2. Identify consequences • Selecting Tree Side Inn will likely reduce overall attendance and diversity of attendance • Selecting Incandescent Lodge will have a negative environmental impact

3. Legal or Contractual Obligations • Does the Coltville Citizens Coalition have a policy on selecting “green venues? ” • Would they be willing to grant an exemption for the Incandescent Lodge?

4. Mitigate Negatives/ Maximize Positives • At Tree Side Inn, consider a reduced rate room block or scholarships and communicate environmental programs • At Incandescent Lodge, put local foods on the menu and reduce paper usage. Market the meeting to diverse audiences.

5. Develop Policies and Practices • Does your organization want to encourage accessibility or sustainability? • How can your organization support both of these? • What are your clients preferences?

Case Studies • What’s the Catch: The Catering Cost Overrun • Disputed Destinations: North Carolina’s House Bill 2 • A Point of Order: Who Do Points and Miles Belong To? • The Paper Caper: Employee Benefits and Responsibilities • The Marigold Plan: The Cost of Buying Direct