Walmart unethical business practices ppt

Managemet Function Of Public Relations

Learning Objectives

To discuss the one aspect that should differentiate public relations from the law and other business pursuits—ethics.
To explore ethics—or the lack thereof—in today’s business, government, media, and public relations cultures.
To discuss the concept of corporate social responsibility.
To underscore the bedrock importance of public relations professionals “doing the right thing.”
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Learning Objective 1

To discuss the one aspect that should differentiate public relations from the law and other business pursuits—ethics.
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Ethics = Great Differentiator

The practice of public relations is all about earning credibility
Credibility begins with telling the truth
Public relations must be based on doing the right thing
Ethics should be the great differentiator that separates public relations professionals from other professions
Public relations must be based on “doing the right thing” – acting ethically, never lying

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2010 FTC complaint against Reverb Communications
2011 Lanny Davis resigned as public relations representative for Ivory Coast leader Laurent Gbagbo
2012 Walmart fired Mercury Public Relations for ruse
Earn credibility by telling the truth and doing the right thing
Some Unethical Public Relations Professionals

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What are ethics?

Right vs. wrong?
Religious beliefs?
What the law requires?
Acceptable standards of behavior?
Utilitarianism - greatest good for greatest number?
Deontology (do what is right though the world should perish)
Do the right thing
Cardinal rule of public relations: Never, ever lie
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Unethical Behavior

Government seems perpetually rocked by ethical scandals
In business, insider trading scandals have dominated the news in recent years
In sports, reputations of legendary baseball players were tarnished by steroid use
In entertainment, Bill Cosby was accused of sexual assault by more than 40 women
In education, the president of Penn State was asked to leave following the cover up of the Jerry Sandusky scandal
The Catholic Church and nonprofit organizations have also had ethical scandals
https://www.cbsnews.com/news/me-too-twitter-trend-sexual-assault-awareness-alyssa-milano/

Unethical behavior is all around us. Public relations professionals are expected to do the right thing. Although the rule is to never lie, a survey of 1700 public relations professionals revealed that 25% had lied on the job, 39% had exaggerated the truth, and 44% felt uncertain about the ethics of it.

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Learning Objective 2

To explore ethics—or the lack thereof—in today’s business, government, media, and public relations cultures.
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PRSA Member Code of Ethics 2000

Advocacy
Honesty
Expertise
Independence
Loyalty
Fairness
Figure 6-3 PRSA’s six values

Ethics are standards of conduct that indicate how one should behave based on moral duties and virtues. An individual’s conduct is measured not only against his or her conscience but also against some norm of acceptability that society or an organization has determined.

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Doing the Right Thing

Josephson Institute: ethics are “standards of conduct that indicate how one should behave based on moral duties and virtues”
Right vs. wrong
Fairness vs. unfairness
Honesty vs. dishonesty
Ethics depend on culture, religion, education
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Perspectives on Ethics

Utilitarianism – “greater good”
Golden mean of moral virtue – between two extremes
Categorical imperative – act on maxim you will to become universal law
Principle of utility – greatest happiness for greatest number
Judeo-Christian ethic – love neighbor as thyself
Classical ethical distinctions exist. Philosophers throughout the ages have debated the essence of ethics.

Utilitarianism suggests considering the greater good rather than what may be best for the individual

To Aristotle, the golden mean of moral virtue could be found between two extreme points of view.

Kant’s categorical imperative recommended acting “on that maxim which you will to become a universal law”

Mill’s principle of utility recommended “seeking the greatest happiness for the greatest number”

The traditional Judeo-Christian ethic prescribes “loving your neighbor as yourself”

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Applied Ethics – Professional Ethics

Public relations people must always tell the truth
Honesty and fairness are at the heart of public relations
Are we doing the right thing?
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Ethics in Business

Why do people think business ethics is an oxymoron?
Investments in ethics and compliance programs
Corporate Codes of Conduct
Increase public confidence
Stem the tide of regulation
Improve internal operations
Respond to transgressions
“Among the more than 14,000 publicly registered companies in the U.S. and the even larger number of privately held companies there is a class of people who will lie to the public, the regulators, their employees, and anyone else in order to increase personal wealth and power.”

(Describes CEOs)

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Sorry for Your Loss but…Nice Bag

How would you assess Valentino’s reaction to the publicity surrounding its promotional email?

What might the company do to avoid a similar ethical public relations lapse in the future?

Figure 6-4 Bereavement bag.

Actress Amy Adams was unaware that the Valentino bag she carried to Philip Seymour Hoffman’s funeral would be at the heart of a public relations firestorm.

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Learning Objective 3

To discuss the concept of corporate social responsibility.
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Corporate Social Responsibility

How companies manage business processes for a positive societal impact
SCR areas/categories:
Product lines
Marketing practices
Corporate philanthropy
Environmental activities
External relations
Employment diversity in retaining and promoting minorities and women
Employee safety and health
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Ethics in Government

24-hour cable news, 24/7 Internet blogosphere increase scrutiny
The “sleaze factor” continued to poison politics
The public is less willing to tolerate such ethical violations from their elected officials
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Ethics in Journalism

Respect dignity, privacy, rights and well-being of people when gathering and presenting news
Should not communicate unofficial charges affecting reputation or moral character without giving accused chance to reply
Guard against invading a person’s right to privacy
Should not pander to morbid curiosity about details of vice and crime
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Ethics in Journalism

Judgments against ethical standards
Plagiarism in The New York Times, Washington Post, Boston Globe
Refusal to reveal sources/suppressing news
Get stories at any cost/pay for stories
NBC Nightly News anchor Brian Williams made up facts
Screamers
Unfortunately, what is in the code often doesn’t reflect what appears in print or on the air. Journalists judgments can run into ethical principles, especially when every citizen is a publisher on the Internet.

Lack of credibility hurts journalists. News has been broadened to include adversarial screaming. Ratings suffered for networks that opted out/remained neutral.

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Journalists’ Code of Ethics

Figure 6-6 Journalists’ code.

The Society of Professional Journalists has elaborated in some detail on the ethical guidelines that should govern all journalists. Reprinted by permission of the Society of Professional Journalists.

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Learning Objective 4

To underscore the bedrock importance of public relations professionals “doing the right thing.”
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Ethics in Public Relations

Differentiates public relations from other professions
Figure 6-7 Doing the right thing.

It is imperative that practitioners emulate the highest standards of personal and professional ethics. Public relations professionals should also counsel their clients in an ethical direction.

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Ethics in Public Relations

Relevant ethical theories
Attorney/adversary model (Barney & Black)
Lawyers and public relations are advocates in an adversarial climate
Both assume counterbalancing messages will be provided by adversaries
Practitioners have no obligation to consider the public interest of any other outside view beyond that of their client
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Ethics in Public Relations

Relevant ethical theories
Two-way communication model (Grunig)
Collaborate, work jointly with people, listen and give-and-take
Practitioners should balance his/her role as a client advocate with one as social conscience
Enlightened self-interest model (Baker)
Business do well by doing good
Companies gain a competitive edge and are more respected in the industry
Responsible advocacy model (Fitzpatrick & Gauthier)
Professional responsibility: first loyalty to clients
Responsibility to voice opinions of organizational stakeholders
Practitioner: both a professional advocate and a social conscience
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Six Core Values

Advocacy – act as responsible advocates; never reveal confidential or private client information
Honesty – don’t embellish or lie
Expertise – guide client decision-making
Independence – strike an independent tone
Loyalty – loyalties must remain constant
Fairness – treat even obnoxious reporters with fairness
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Defending a Dictator

Middle East dictators sought help from U.S. PR firms and scholars
Many accepted blood money and attempted to portray dictators in a positive light
What are the ethical implications associated with representing someone who does not “do the right thing?”
Figure 6-8 (Photo: Donatella Giagnori/ZUMA Press/Newscom)

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Case Study: Doing the Right Thing by Making a “Hurd” Decision

Page 122
What other options did Hewlett-Packard have in dealing with Mark Hurd?
Do you think the board did the right thing?
Had HP decided to slap its CEO on the wrists for his infraction, what might have been the outcome for the company?
Figure 6-9 (Photo: MANDEL NGAN/AFP/Getty Images/Newscom)

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Public relations must be based on “doing the right thing” – acting ethically, never lying

*

*

*

Unethical behavior is all around us. Public relations professionals are expected to do the right thing. Although the rule is to never lie, a survey of 1700 public relations professionals revealed that 25% had lied on the job, 39% had exaggerated the truth, and 44% felt uncertain about the ethics of it.

*

*

Ethics are standards of conduct that indicate how one should behave based on moral duties and virtues. An individual’s conduct is measured not only against his or her conscience but also against some norm of acceptability that society or an organization has determined.

*

*

Classical ethical distinctions exist. Philosophers throughout the ages have debated the essence of ethics.

Utilitarianism suggests considering the greater good rather than what may be best for the individual

To Aristotle, the golden mean of moral virtue could be found between two extreme points of view.

Kant’s categorical imperative recommended acting “on that maxim which you will to become a universal law”

Mill’s principle of utility recommended “seeking the greatest happiness for the greatest number”

The traditional Judeo-Christian ethic prescribes “loving your neighbor as yourself”

*

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Actress Amy Adams was unaware that the Valentino bag she carried to Philip Seymour Hoffman’s funeral would be at the heart of a public relations firestorm.

*

*

*

*

*

Unfortunately, what is in the code often doesn’t reflect what appears in print or on the air. Journalists judgments can run into ethical principles, especially when every citizen is a publisher on the Internet.

Lack of credibility hurts journalists. News has been broadened to include adversarial screaming. Ratings suffered for networks that opted out/remained neutral.

*

The Society of Professional Journalists has elaborated in some detail on the ethical guidelines that should govern all journalists. Reprinted by permission of the Society of Professional Journalists.

*

*

It is imperative that practitioners emulate the highest standards of personal and professional ethics. Public relations professionals should also counsel their clients in an ethical direction.

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