Probably every religion stresses our need to give to the poor. While it is certainly true that the poor do need help, the reason we need to do so goes beyond that. When we do something for another, without any self-interest involved, our personal gain is often much higher than any gain realized by others. The true giver helps others quietly. To help others, and then loudly proclaim your deed, is likely a selfish act with a personal gain sought, rather than true giving.
What does this have to do with ethical behavior? Ethics is not entirely about yourself; it is also about others. It is not so much what one knows that makes an individual ethical, but rather what he or she understands. A truly ethical person realizes that their behavior is their loudest statement about themselves and those they associate with.
Making ethical decisions addresses four basic issues:
1) Is it possible to teach ethical behavior?
2) What is the scope of ethics?
3) What does it take to be a moral person?
4) What is a person's responsibilities to other moral persons?
There is no doubt that each of us, regardless of our occupation, faces ethical issues on a daily basis. However, anyone in an occupation that has a
"public interest" is especially faced with ethical issues. Because insurance and financial planning certainly have a public interest, ethical codes of conduct are especially important.
Ethics are standards to which an insurance agent or broker must aspire to;
it is feeling a commitment to each client. Every type of profession tends to have an informal code of ethics which may sometimes be more understood
Character is more a matter of adding and subtracting our actions and thoughts.
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than written. Ethics are a means of creating standards within any given profession to upgrade it and give it honor. It is a means of measuring performance and acknowledging outstanding individuals. Ethics are often a means of providing priorities and building traditions based on integrity.
It would be hard to imagine doing business with anyone that we knew to be unethical. Can you imagine turning over the control of your financial affairs to an attorney that had been convicted of stealing from his clients?
Would you buy a car from a person who had knowingly lied to others about the cars he represented? Would you deal with an insurance agent who had repeatedly misrepresented the products he or she sold? Ethics are the only element, other than legal mandates, that add an element of trust to many industries. It is very difficult to mandate ethics. Only behavior, as we previously stated, may actually be mandated. If a person is ethical, that is something within themselves that simply adds to their trustworthiness.
No matter what our profession may be, as individuals, each of us faces ethical issues each day. Some are very simplistic in nature while others are complex and may have many sides (and many correct answers) to them.
We face issues that are personal, such as How much should I give to the poor? Is it wrong for me to take drugs? Should I report someone who is cheating? These types of ethical questions are all around us.
Some types of ethical or moral questions can be directed to our religious institutions for support in determining the right answer. Sometimes the answers can be found in our legal system. If our state or federal government says commingling funds is illegal, for example, then we could also state that it must be unethical as well. Sometimes, determining what is ethical is simply a matter of what feels right emotionally. We have all said or heard someone else say "It just doesn't feel right." That feeling of right and wrong is probably the result of our childhood upbringing. Even if we do not distinctly remember being taught that a particular action is either right or wrong, somewhere in our upbringing or past experiences, we have received such teachings.
While this course cannot instill ethics into anyone who has none, it may provide the tools for determining the more complex issues. By using basic concepts and theories and by having an appreciation of what constitutes an ethical solution, decisions may be made on the basis of reason.
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It should be noted that different conclusions may be reached to the same ethical question. It does not mean that one solution is right and another wrong. Ethical questions often have multiple answers, all of which may be correct. Many ethical questions involve multiple hues; some decisions may be based solely on facts, while others may be based less on facts and more on emotional factors (or what simply feels right).
We asked the question: Is it possible to teach ethical behavior? This, of course, depends upon multiple factors. First of all, does the person desire to be ethical? As with all things, the person must want to achieve the goal at hand. If other goals are more important to the individual, then it will perhaps not be possible to teach ethical behavior. If, however, ethical behavior is important to the individual, even if other goals are also sought, ethics may be taught.
One of the first lessons taught to children by their parents is sharing.
Probably few parents think of this as "ethics", but it is. Sharing is the opposite of greed. As adults, we learn to share in numerous ways, but sharing begins as children. The shift from securing our own interests to sacrificing on behalf of others is an essential part of what is meant by
"ethical decision making." This may especially come into play for insurance agents. The choice to make a sale and earn a commission in any way necessary rather than sacrificing the sale on behalf of honesty is an ethical decision. The selfish person cannot routinely make such moral decisions, or perhaps more correctly will not make such decisions.
It is necessary to understand that one of the general features of taking an ethical point of view is a willingness to take into account the interests, desires and needs of others. A person may argue that it is necessary to look out for one's own interests, desires and needs. While this is certainly true to a point (we must cloth, feed and house ourselves and our families), taking our own interests into account need not mean making unethical or immoral decisions regarding others. Even commission salespeople are able to make a very good living while still maintaining ethical behavior. In fact, the best salespeople do not need to behave unethically because they have mastered their trade through the development of communication skills and professional training.
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Egoists
Not everyone believes it is in their own self-interest to be ethical in their behavior. Some who reject the idea of other's interests and desires are termed egoists. Do not confuse this with egotism. An egotist is a person who is self-absorbed or stuck on themselves. These people make poor egoists. Webster's dictionary defines egoism as the doctrine that self-interest is the basis of all behavior whereas egotism is the habit of being too self-absorbed, talking too much about oneself or conceit.
Psychological egoism maintains that people are always motivated to act in their own perceived best interest. Psychological egoism is not an ethical theory since it does not tell people outright how to behave. Rather it attempts to explain why people behave in certain ways. Ethical theorists consider this theory, however, since it does have a bearing on their theories of ethical behavior.
Another version of egoism is a genuine ethical theory. Traditionally named
"ethical egoism," it maintains that people ought to act in their perceived best interest. An ethical egoist argues that people should act in their best interest at all times because it is good for the general economy (providing industry and jobs, for instance).
Although ethical egoism and psychological egoism are separate and distinct, they are often meshed together by writers and speakers.
Psychological egoism is an explanation of behavior, not a theory whereas ethical egoism is a theory of behavior. In many ways, ethical egoism can be substantiated by those who prescribe to it. The English philosopher, Thomas Hobbes, was a well-known believer in ethical egoism. Of course, the interests of individuals come into conflict with others whose interests are different. This is where the greater interest comes into play. Even while pursuing our own personal interests, it is possible for those interests to be swayed or checked by the interests of others because of possible consequences which one may wish to avoid. That is how laws manage to control behavior even if they are unable to control ethics. Under the theories of ethical egoism, it is in the individual's best interest to follow the established laws because the fines or penalties imposed are not desired.
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In the marketplace we all try to buy low and sell high. That is certainly an attempt to pursue our own self-interest. It is unlikely that the buyer worries about the seller when buying low, nor does the seller worry about the buyer when selling high. Individual self-interest is at work. Even though this may be an excellent example of ethical egoism, it tends to be both orderly and productive to our society. This points out that this theory has positive dimensions to it despite the selfish basis.
A political economist, Adam Smith, believed in ethical egoism. He felt that people, while being interested in their own needs and desires, created good for society as a whole. Smith felt that economic conditions were created and expanded when people acted in their own behalf.
There is more day-to-day heroism than one might realize. Such simple things as the child who shares his lunch with another student, the woman who gives her last dollars to a homeless person, the man who donates his only day off for a food drive are all acts of kindness that consider the needs and desires of others.
This still brings us back to the basic question: Is it possible to teach ethical behavior to others? There is no clear answer. An agent who has never considered ethical behavior might suddenly begin to do so if the agency where he or she works begins a strong ethics campaign. On the other hand, an agent might continue to act unethically even if threats are made to recall his or her license to sell insurance. One thing is certain: the effort must be made to emphasize ethical behavior because there will always be those agents who will respond favorably to such efforts.
Question number two asked: What is the scope of ethics? This is a massive question that could be carried to great depths if we chose to. In many industries, including the insurance industry, the professionals have knowledge that the general population does not have. As a result, those individuals who seek out the professionals must rely upon their honesty and integrity. Therefore, a feeling of ethical standards must exist. It was the potential for abuse of power that provided a set of rules for what is commonly called "ethical behavior." Sometimes, ethics are written standards which may be mandated by law on either a local or federal level.
The premise, upon which practical ethics must be based, according to Stephan R. Leimber of the American College where he is a professor of taxation and estate planning, is that power must be exercised in the best interest of the clients who seek the professionals out and may not be exercised solely in the best interest of the professionals themselves.
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Parts of the insurance industry have been labeled (often unfairly) as lacking ethical standards. Usually what we find is not an industry as a whole without ethics, but rather some individuals who have received much publicity. The insurance industry which deals with senior products is one section which has received bad publicity off and on. Part of this has to do with the age of the victims. If a 25 year old is taken advantage of, many would think he was simply stupid or uneducated to have allowed it. If a 75 year old is taken advantage of, however, publicity is sure to follow. This is not surprising since a 25 year old is more likely to have the ability to make sound judgments in comparison to a 75 year old person. Also, our older population controls most of the nation's wealth. If a salesperson (in whatever industry) is greedy and unethical, he or she is most likely to hit those with money. That would typically be older people.
When we look at what the scope of ethics is or could be, one might be surprised at the extent to which it could be taken. Amy L. Domini and Peter K. Kinder have jointly written a book called "Ethical Investing" which looks at how our standards may even be brought into the field of investing. For example, if an agent were an animal activist, would it be ethical for them to represent companies that use animals in the laboratory or for testing? If a client is an environmentalist, should he or she invest in any type of investment that is detrimental to the environment? The aspect of ethical investing will be discussed towards the end of this course, but these questions do illustrate how wide the scope of ethics can be.
Sometimes, people or cultures do not agree on what is ethical behavior.
What one culture or society may consider ethical another may not. Even within the same culture or society, people may disagree on what is and is not ethical. We often see these differences between religions as well.
Power must be exercised in the best interest of the clients who seek the professionals out and may not be exercised solely in the best interest of the professionals themselves.
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Every person probably has some degree of greed or selfishness within them. The ethical person realizes this possibility. Since ethics is a code of values to guide man's choices and actions, the ethical person will bypass their own greed and do what is perceived as best for the majority of people or best for the person they are dealing with. In choosing his or her actions and goals, constant alternatives are faced. It is not always easy to decide which choice is best and ethical. Without a standard of values, ethical choices would be very hard to make. At some level, our religious background may set the standard of values by which we make our choices.
However we arrive at it, at some point, understanding of how others feel determines many of our ethical decisions.
It is unfortunate that so many people perceive insurance with disdain.
Insurance is something that people really do need for the security of themselves and their families. There is a remarkable story about an insurance salesman named Martin England, who was white and from the South. He learned that Martin Luther King, Jr. was not adequately covered by life insurance. Realizing the dangerous job Mr. King was performing, he was understandably alarmed. In fact, he was so concerned that Mr. England began to try to contact Martin Luther King. As you can imagine, that was not an easy task. Finally Mr. England did succeed in getting Mr. King to sit down with him and allow him to present the situation as he saw it. Martin Luther King, Jr. did buy life insurance from Mr. England. Only a short time later, Mr. King was killed by an assassin. Of course, his death was difficult on his family, but think how much worse it would have been had they also been left destitute. An ordinary insurance man went to unordinary lengths to help another. In the process, he earned a commission, but what he gave the King family was much more valuable than what he earned.
The "ethical" person simply believes in right and wrong and chooses to do right. The ethical insurance agent does not believe it is necessary to trample their potential clients in order to get the sale, they do not believe it is necessary to tell half-truths or leave out needed information. Of course, it is necessary to be well prepared and to understand good communication techniques, but any job requires some type of skills. In fact, it could be said that obtaining the necessary skills to do the job of insurance sales or financial planning is a moral obligation.
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It is common for ethical people to have some form of religion in their lives.
They make no apology for accepting God and religion into their lives and work. Ethical people tend to be warm and caring by nature, it is said.
Whether or not this is true, we cannot say, but ethical people do certainly seem to place a value on others. In fact, valuing others is an aspect of ethical behavior. Perhaps you cannot have one without the other.
It is not possible to be one person off work and another person on work.
Who we are is defined everywhere we go and in everything we do. Three questions must be addressed:
1. What kind of person am I?
2. What kind of work do I want to do?
3. What do I want my legacy to be?
Just as a man is defined by the lies he tells, and a thief is defined by his activities, we are defined by our everyday activities. We do not necessarily have to be a liar or a thief to define ourselves as less than honest. Many of our political figures are not actually dishonest and yet they are not perceived to be honest either. How do we want ourselves defined?
Answering such questions cannot be avoided. Even when we try to ignore them, we are still answering the questions by our actions. It must be realized that the questions are asked in the minds of every person we come in contact with. They look at us and they form opinions to these questions.
Coming to terms with the basic philosophical questions about what we are doing with our lives may be the most practical of all possible ventures.
The "ethical" person simply believes in right and wrong and chooses to do right.
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Professional Ethics