BA300 SDSU

What two characteristic groups affect how you make ethical decisions?

1. Characteristics of individuals (cognitive biases, individual differences) 2.Characteristics of Organizations (group and organizational pressures and organizational culture.)

Cognitive Biases 1. Fact gathering 2. Consequences 3. Integrity

1. Fact gathering. people are Overconfident about their knowledge of the facts. Falling into the confirmation trap (gathering data that supports your decision). So... Think about ways that you could be wrong 2. Looking at consequences: Problems -Not looking at all the consequences. -Bias for Consequences for self vs. others. Think more about how it affects only you. -Consequences as risk. Illusion of optimism and illusion of control -Escalation of commitment. You have made a decision and no-one can dis-way you from that decision. (Bidding to high on prop cause committed to buying) So... Invite input, especially from those who disagree with you 3. Thinking about integrity -Illusion of superiority. Think that you are above average but may need to work on it. -Ethics of your profession: your business code or ethics can differ from your personal ethics.

Robert Nozick's Rights Theory 1. Decision rule 2. Biggest pro 3. Biggest con 4. Example

1. Freedom from force and fraud. Focuses on duty rather than consequences. Duty to respect the right of free action. 2. Virtually complete freedom of action with minimal government intrusion. 3. Almost complete disregard of interests of others with a stake in behavior. Disregards other stakeholders interests. 4. Certain "payday loan" providers, The rationale of payday lenders says the rules are clearly laid out ad people are free to make a decision.

John Rawls' Theory of Justice 1. Decision rule 2. Biggest pro 3. Biggest con 4. Example

1. Greatest benefit to the least advantaged. Want to bring that bottom person up. 2. "Unbiased" approach to social justice 3. Denies free will, meritocracy=those who put out the most deserve the most. Thinks you as a human being should focus on the people without the advantage you have had. Social Justice. \ 4. Ben and Jerry's Ice Cream. social image of company, they would not pay top earner more than 7xs than the bottom worker. This is a Rawls ideal.

Desired moral Approbation Desire for moral approval from oneself or others" 1. Level of desired moral approbation (DMA) is an individual difference 2. Study discovered three types of DMA

1. I took quiz on it 2. DMA from Others—Praise DMA from Others—Blame DMA from the Self Highest was desire from self.

Individual differences. 1. Level of moral development 2. Locus of control 3. Ego strength

1. Level 1: Rewards/punishments, exchanges Level 2: Shared norms, societal obligations Level 3: Principled, autonomous 2. Internal locus of control= you take responsibility for your actions and understand when it was your fault. External locus of control= you blame it on external factors. Don't take responsibility. 3. someone with a healthy ego (confident, trust themselves) will act in a moral manner and will actually use there own judgment.

Ethics and Organizational culture. 1. Who shapes your ethical decisions? 2. Explain The Pygmalion effect 3. Rewards and punishments 4. Goals 5. Diffusion of responsibility 6. Roles and deindividuation

1. Look to piers and superiors. Most people will follow organizational norm. 2. The way to respond to ethical decision depends on what superiors expect of individual. High expectations lead to more ethical decisions. 3. The rewards and punishments given to people for ethical conduct determine how people will behave. If rewarded then ethical conduct is promoted. Punishment will show its unacceptable. 4. Goals are good although they shouldn't't be reached no matter what the people have to do. (unethical) 5. Spreading the responsibility lets people off the hook. 1. Responsibility is taken away, 2. shared with others. 3. obscured by organizational hierarchy. Makes passing the puck easy 4. diluted by psychological distance from potential victims. Out of sight, out of mind. 6. Firm roles. Can justify an action by saying I was only doing my role.

Utilitarianism 1. Decision rule 2. Biggest pro 3. Biggest con 4. Example

1. Maximize the common good. Only care about the consequences and decide on which choice has greater level of common good. 2.Replaces partiality with science. Basically make it more rational and make it so the leaders can hurt the little people just because they can 3. The means don't matter. Ex: if it benefits society to enslave people to get things done this rational would except that. Because doesn't take into account the means. 4. "The Ones who Walk Away from Omelas" Place is perfect. But consequence is that one little girl has to be locked away in a dungeon for her whole life. Because she was there everyone else could be happy. True utilitarian would live there happily and have no qualms, even if they had to be locked away for greater good. But some people walked away because it was unethical and that means do matter. This is argument about it.

What are the 3 steps in the ethical decision making process?

1. Moral Awareness 2. Ethical judgement 3. Ethical behavior

3 decision making approaches discussed

1. Utilitarianism 2. Rights 3. Justice You will align with one (of the 6) but cant align with all of them. They contradict each other in the process.

what are the 8 steps to sound ethical decision making?

1.Gather the facts 2.Define the ethical issues 3. Identify the affected parties 4. Identify the consequences 5. Identify the obligations 6. Consider your character and integrity 7. Think creatively about potential actions 8. Check your gut

Which of the following individuals is most likely to refuse to carry out a supervisor's order that she considers unethical? A person with a high internal locus of control and high ego strength. A person with a high external locus of control and high ego strength. A person with a high external locus of control and low ego strength. A person with a low internal locus of control and low ego strength.

A person with a high internal locus of control and high ego strength.

Identify two of the ways identified in the video segments that your superior in a business setting can influence the degree of your ethical behavior in business: By increasing your salary based on merit; by punishing unethical behavior. By setting high or low expectations of your ethical behavior; by contributing to the overall organizational ethical norm. By assigning you to a low-performing team of fellow employees; by micromanaging your work to indicate a lack of trust. By routinely accepting your hiring recommendations; by routinely including you in high-level operational decision.

By setting high or low expectations of your ethical behavior; by contributing to the overall organizational ethical norm.

4. John Walker, the Chief Executive Officer of Consolidated Industries, had a tough decision to make. He had to decide which of four possible plants to close to save money and boost the value of Consolidated's shares. He decided to close a subsidiary in a poor third-world nation located 6,000 miles away from the company headquarters where he was located. He reached that decision after realizing that it was the only one of the four plants at which he had met none of the workers. He also was unwilling to believe that all of the money he had put into a London subsidiary would not soon pay off if he diverted some of the money saved by closing the third world plant to the London operations. Which of the following two concepts is illustrated by the process by which John Walker decided which plant to close: Diffusion of responsibility; escalation of commitment. Pygmalion Effect; confirmation trap. Locus of control; Kohlberg's first stage of moral development. A high level need for moral approbation; low ego strength.

Diffusion of responsibility; escalation of commitment.

Ethics and the Law. The relationship between ethics and the law Corporate rules as "law" 1. Discrimination laws 2. Whistleblower laws Federal Organizational Sentencing Guidelines

Discrimination laws= prohibit discrimination in employment based on race, religion etc. CA is fair employment and housing act. The Fed Version is Title 7. Does discriminating based on good looks make it unethical? Whistelblower= Prohibit an employer to fire or taking action against an employee in retaliation to employee complaining about companies misconduct to government officials. Some are rewarded with recovered funds.

The federal organizational sentencing guidelines influence the ethical behavior of companies in all of the following ways except: Encouraging the establishment of ethics officers and other effective ethical compliance measures. Reducing a potential fine from criminal misconduct if the company cooperates in a government investigation of alleged crimes the company committed. Increasing the potential culpability score of a corporate officer accused of illegal conduct. Punishing companies that obstruct government investigation into corporate wrongdoing.

Increasing the potential culpability score of a corporate officer accused of illegal conduct.

Which of the following is not one of the steps in the moral decision-making process, according to the text? Moral awareness Ethical behavior Moral development Moral judgment

Moral development

1. Moral Awareness. You are more likely to recognize moral issues when?

Peers consider it morally problematic Moral language is used when problem is presented Decision could cause serious harm to others