As an example of personal ethical understanding, Karl G. Maeser, first president of Brigham Young University was asked what was meant by ethics or honor. He stated: “I will tell you. Place me behind prison walls—walls of stone ever so high, ever so thick, reaching ever so far into the ground—there is …show more content…
People’s business and work activities and decisions are based upon their personal ethical understanding. Individuals must learn what ethical marketing and ethical accounting mean, what constitutes ethical business strategy, and so forth. Thus, the second level of the EDM is being able to translate one’s ethical understanding to the business world, or to other settings in which people earn a living (e.g. the medical profession, engineering profession, etc.) Such translation is not always easy. For example, individuals may be firmly committed to treating family and friends in a strongly ethical way, but not understand how closing a plant or how failure to submit tax withholdings to the government affects peoples’ lives or constitutes unethical or fraudulent …show more content…
Ethical courage is the strength and conviction to act appropriately in questionable situations. A person can have a personal ethical understanding and be able to translate that understanding to business or other work-related settings but may not have the courage to take a stand when necessary. For example, in one of the major financial statement frauds where I was retained as an expert witness, more than twenty people helped falsify financial statements. All testified they were aware their actions were unethical, but none had the courage to stand for his or her beliefs. Ethical courage is difficult to teach because its roots are formed through years of learning to be courageous in small things. Having ethical courage is sometimes very difficult because there are often perceived “costs” of taking an ethical (and sometimes lonely) stand.
Level 4 or ethical leadership, is instilling in others a desire to develop ethical awareness and courage. This higher form of ethical behavior requires a person to inspire others through labeling, modeling, persuasion, and good management. Anyone who accepts a partner or executive status in a firm should possess ethical leadership. Years ago, an executive of a large retail company told me that his employees can be characterized by the following