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I'm Donald Mayer. I teach at
the University of Denver.
This is lecture number 6:
Ethical Traps in
Business Organizations.
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Being ethical in everyday
life is difficult enough,
but the challenges are even
greater in business settings.
There are several
reasons for this.
One, people in
business tend to focus
on profits as the only
true measure of "success".
Two, the mistaken but
commonly repeated
mantra of maximizing
shareholder value at
all times has
inclined managers of
publicly held corporations to
focus far too much
on the short term.
Three, competition
for the best people,
the best suppliers,
for customers,
the best marketing campaigns,
and ultimately the
greatest market share
creates a mindset like that of
Ray Kroc mentioned
earlier to subdue
the competition wherever
and however possible.
Four, in business
and with capitalism
generally, growth is
presumed to be mandatory.
A manager that does not
grow the business
is soon replaced.
That is why many companies
in the 1990s resorted to
dubious accounting
methods to make
their financial numbers
look like there
was growth rather than decline.
Five, entrepreneurs as well
have a herculean task and
success in starting a
viable business for
staying power can only be
measured in profits
and market share.
The many obstacles to
that kind of success can
generate an attitude
of whatever it takes.
Some years ago, a columnist in
the Financial Times of
London claimed that
an entrepreneur could
not afford to be
ethical while still
growing the business.
Only an established business,
he said, could
afford the luxury.
That's a quote, the luxury
of thinking about ethics,
but starting out, you actually
can't afford not to
think about ethics.
There's a big problem
with thinking
