Ethics Final

Elements of a Culture

Created Learned Shared Dynamic

Masculinity vs. Femininity

Masculine- the culture values stereotypical male traits such as assertiveness and acquisition of money and things. (U.S, Japan, Germany) Feminine- the culture values stereotypically female traits such as caring for others and caring about the quality of life. (Netherlands, Russia, France)

Types of Crisis

Public perception Natural disaster Product or service Terrorist attack Economic Human resource Industrial Oil + chemical Transportation Outside environment

Josephson Institute Ethical Decision-Making Model

Stop and think Clarify goals Determine facts Develop options Consider consequences Choose Monitor and modify

Practice Transparency

Like responsibility, transparency is another requirement placed on groups and organizations operating freely in society. Failure to disclose information spawns abuses of power and privilege and makes it impossible for individuals to act as informed members of the community. Transparency begins with openness. Transparency also involves symmetry.

Power Distance

Low- powers are distributed equally (United States, Germany) (egalitarian fashion) High- the culture accepts that there is unequal power distribution (China, Russia)

Uncertainty Avoidance

Low- the culture tolerates uncertainty and ambiguous situations and values and unusual ideas and behaviors. (U.S, Indonesia, Netherlands) High- the culture feels threatened by uncertain and ambiguous situations and relies on formal rules to create stability. (Japan, Russia, France)

Pre-Crisis

Period of normalcy Longest phase- the organization typically believes that it understands the risk it faces and can handle any contingency that arises Barriers to crisis prevention Human biases Institutional failures special - interest groups

Global Shadows

Power Privilege Mismanaged information Inconsistency Misplaced and broken loyalty

Engage the Head as well as the heart

Rational thought, problem solving, and other cognitive skills and strategies are important complements to care and compassion in ethical crisis management. Moral leaders respond with their heads as well as their hearts. Ethical crisis leaders, in addition to paying heedful attention themselves, create mindful cultures.

The Caux Principles

The Caux Round Table is made up of business executives from the United States, Japan, and Europe who meet every year in Caux, Switzerland. Their principles: -Principle 1. The responsibilities of corporations -Principle 2. The economic and social impact of corporations -Principle 3. Corporate behavior -Principle 4. Respect for rules -Principle 5. Support for multilateral trade -Principle 6. Respect for the environment -Principle 7. Avoidance of illicit operations

Improvise from a strong moral foundation

The ability to ethically improvise is critical in a crisis because no amount of planning and practice can totally equip individuals for the specific challenges they will face during the crisis event. Successful improvisation requires that employees be empowered to act on their own initiative.

Common Morality

The core idea of a common morality is that all humans at least all morally serious humans have a pre theoretical awareness of certain moral norms.

Cosmopolitanism

Universal ethic, consider ourselves citizens of the world rather than one specific nation "wordly"

Jennings seven signs of ethical danger

Pressure to maintain numbers Fear and silence Young 'uns and a bigger-than-life CEO Weak board Conflicts of interest Innovation like no other Goodness in some areas atones for evil in others

Ethical Relativism

is the theory that holds that morality is relative to the norms of one's culture. That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. The same action may be morally right in one society but be morally wrong in another.

The distinction between ethical leaders

unethical leaders: falls short of being both a moral person and a moral influence agent hypocritical leaders: talks a lot about ethical values but doesn't live up to the rhetoric ethically neutral leaders: clearly seen as an ethical or unethical

Carol Gilligan's Theory of Morality of Care and Responsibility

(L) Focuses on the importance of noting and meeting the needs of those we are responsible for. (L) Values emotions. (T) Specific needs and relationships take priority above universal principles. (T) Breaks down the barriers between the public and private spheres. (L) Views persons as both relational and interdependent.

Defining Culture

Are comprehensive, incorporating both the visible (architecture, physical objects, and nonverbal behavior) and the invisible (thoughts, attitudes, and values)

Lonergan/Baird Method

Be attentive - consider what works and what doesn't. Be intelligent - sort through the data Be reasonable - evaluate the options Be responsible - act with courage

Common ethical problems that are impacted by cultural diversity

Bribery (common in collectivist cultures) False information (Deception) (individualist lie to protect privacy while collectivists lie to protect the group or family) Intellectual property rights (western idea to reward individuals for their efforts) Gender equality (resistance to gender equality is strongest in collectivist nations such a Saudi Arabia)

Crisis Event

Commences with a trigger event Ends with crisis being resolved Ethical leaders play a critical role in the stage Leaders should speak on behalf of the organization People impacted by the crisis should be top priority

James Rest's Four Components of Moral Action

Component 1 - Moral Sensitivity (Recognition): We can't solve a moral problem unless we first know that one exists Component 2 - Moral Judgment/Reasoning: Making judgements about what is right or wrong to do Component 3 - Moral Motivation: After concluding what course of action is best, decision makers must be focused on their choices Component 4 - Moral Character (Action): executing the plan of action takes character

Standing on Moral Ground (Universal Ethical Values/Principles)

Cross-cultural research suggests that there might be moral commonalties when making ethical decisions. Research into the neurological basis of moral judgments is in the initial stages but suggests that, when it comes to ethics, there might be some cultural unity to go along with cultural diversity. Two approaches to uncovering ethical commonalities: Common morality Cosmopolitan

Demonstrate Care

Demonstrating concern has practical as well as ethical benefits. While it is in the interest of leaders and organizations to act in a compassionate manner for image and financial reasons, it is even more important to do so for ethical reasons. i.e., altruism Showing concern during a crisis goes well beyond addressing the physical and financial needs of victims. Emotional and spiritual needs as well

Foursquare Protocol

Element 1 - Close description of the situation (Dig into the facts) Element 2 - Gather accumulated experiences in similar situations ( examine individual reactions to past solutions) Element 3 Recognize the significant distinctions between the current problem and past ones (Gauge similarities with past situations) Element 4 - Situate yourself to decide (analyze your decision-making process)

Problems connected to ethical relativism

Everyone's opinion is relative Some acts are morally right in one place and not in another

United Nations Universal Declaration of Human Rights

Following World War II, a conflict fought in large part to protect human freedoms, the United Nations adopted the Universal Declaration of Human Rights. Rights protect the inherent dignity of every person regardless of race, ethnic background, place of residence, age, income, physical ability, or social status. More recently, the United Nations launched the Global Compact to encourage multinational corporations to honor human rights, labor rights, and the environment while at the same time fighting corruption.

Dark side of globalization

Global capitalism increases greed Ethical and spiritual values have been overshadowed by profit motive As leaders we need to be aware of the dark side of globalization in order to help prevent ethical abuse

Global Business Standards of Codex

Harvard business professor Lynn Paine and her colleagues argue that world-class corporations base their codes of ethics on a set of eight universal, overarching ethical principles. -1. Fiduciary principle -2. Property principle -3. Reliability principle -4. Transparency principle -5. Dignity principle -6. Fairness principle -7. Citizenship principle -8. Responsiveness principle

Nash's 12 questions

Have you defined the problem accurately? How would you define the problem if you stood on the other side of the fence? How did this situation occur in the first place? To whom and to what do you give your loyalties as a person or group and as a member of the organization? What is your intention in making this decision? How does this intention compare with the likely results? Whom could your decision or action injure? Can you engage the affected parties in a discussion of the problem before you make your decision? Are you confident that your position will be as valid over a long period of time as it seems now? Could you disclose, without qualms, your decision or action to your boss, your CEO, the board of directors, your family, or society as a whole? What is the symbolic potential of your action if understood? Misunderstood? Under what conditions would you allow exceptions to your stand?

Kohlberg's Theory of Moral Development (Moral Reasoning)

I - Pre-conventional: Focus on consequences. Stage 1 is obeying to avoid consequences. Stage 2 follow rules to meet their interests II - Conventional: Stage 3 living up to the expectations of people they respect. Stage 4 is looking up to society as a whole for direction. III - Post-conventional: Stage 5 is greatest good for greatest number. (Fewer than 20% of Americans) Stage 6 is operating according to internalized, universal principles such as justice, equality and human dignity. (Almost nobody)

Individualism vs. Collectivism

Individualistic- culture is loosely knit social framework which people take care of themselves and their immediate family. (U.S, Netherlands, France) Collectivistic- tight social framework in which people take care of the members of a broader ingroup and act loyal to it. (Indonesia, China ,West Africa)

Ethical Climates

Instrumental - follows ethical egoism, make decisions based on selfish interests that serve the individual and their immediate group and organization. Caring - emphasize concern or care for others. Law and order - driven by external criteria such as professional codes of conduct. Rules - governed by the policies, rules and procedures developed in the organization. Independent - give members wide latitude to make their own decisions

Project Globe Study

International effort involving 170 researchers who have gathered data from more than 17,000 managers in 62,000 countries The expanded Hofstede's list In-Group Collectivism Assertiveness Future Oriented Performance Orientation Humane Orientation

Post Crisis

Investigation and analysis take place during the third and final stage Period of recovery during which ethical leaders try and salvage the legitimacy of the group and organization They help group members learn from the crisis Experience and promote healing

Crisis

Is any major unanticipated event that poses a significant threat Such events are rare (making them difficult to prepare for) Generates uncertainty Hard to resolve No set formula on how to act (each crisis is different)

Signs of healthy ethical climates

Recognition of Risk: acknowledging the reality that organizations have "dark sides" Zero Tolerance for Destructive Behaviors: Common categories of misbehaviors include: incivility (rude behaviors that are disrespectful), aggression, sexual harassment, and discrimination Justice: takes three forms- distributive, procedural, and interactional Integrity: (ethical soundness, wholeness, and consistency) according to Paine, for leaders improve their organizational integrity efforts they need to include: clearly communicated values and commitments, leaders who are committed to and act on the values of the organization, values being apart of the everyday decisions as well as all organizational activities, the structure and processes supporting the organization's values and commitments, have the skills and knowledge to make ethical decisions Trust Focus on Process: concern for means and ends Structural Reinforcement: reward systems, performance and evaluation processes, decision-making rights and responsibilities, corporate governance Organizational Citizenship: Recognition of risk - organizations, like individuals, have their "dark sides"

Kidder's Ethical Checkpoints

Recognize that there is a problem Determine the actor Gather the relevant facts Test for right-versus-right issues Test for right-versus-right values Apply the ethical standards and perspectives Look for a third way Make the right decision Revisit and reflect on the decision

Ethical Crisis Management Components Assume Broad Responsibility

Responsibility is the foundation of ethical crisis leadership preventing , managing, and recovering from crises all depends on the willingness In addition to engaging in, and fostering, ethical behavior, the responsible crisis leader fights against complacency, human biases, institutional weaknesses, special-interest groups, and other obstacles to crisis prevention.