Business Ethics Final ND - Class 1-3

Categorial Imperative

"Act as if the maxim of thy action were to become by thy will a universal law of nature"

Dean Carolyn Woo's vision for Mendoza College of Business

"Ask More of Business, ask More Of Yourself" Individual Integrity, Effective Organizations, Greater Good

Dean Martijn Cremer's vision for Mendoza College of Business

"Grow the Good in Business" Contribute, Cooperate, Compete

Moral Philosophy

- Specific principles or values - People use to decide what is wrong and right

Opportunity in Ethical Decision Making in Business

- describes the conditions in an organization that limit or permit ethical or unethical behavior - results from the conditions that provide rewards, whether internal or external, or fail to erect barriers against unethical behavior

Realism Characteristics

- each person is ultimately guided by his or her own self-interest - research shows a negative correlation between realistic thinking and ethical decision making

Why Employees Think it is Okay to Steal

1. Company won't notice anything missing --> rationalizing + low risk of getting caught/punishment 2. Not paid enough 3. Can't afford to buy the item 4. Boss is rude

Mendoza Ethical Decision Making Model

1. Determine the Facts (What, Who, Where, When, Why) 2. Define the Ethical Issue 3. Identify the Major Principles, Rules, Values 4. Specify the Alternatives 5. Assess the Consequences 6. Make your Decision

Characteristics of a Calling

1. unique to each individual 2. require certain preconditions like talent 3. demand hard work (but lead to a sense of enjoyment) 4. reveal themselves over time

Economic Freedom

A concept based on self-ownership, the right to choose, voluntary exchange, open markets, and clearly defined and enforced property rights.

Economic Value Orientation

Associated with values quantified by monetary means; according to this theory, if an act produces more economic value for its effort, then it should be accepted as ethical

Virtue Ethics

Assumes what is moral in a given situation is not only what conventional morality requires but also what the mature person with a "good" moral character deems appropriate

Self-Serving Bias

Causes us to see things in ways that support our best interests and our pre-existing points of view.

According to Jeremy Bentham, _______ must be performed to determine the impact of competing alternatives on the persons affected (stakeholders).

Cost-Benefit Analysis

Egoism

Defines right or acceptable actions as those that maximize a particular person's self-interest as defined by the individual.

Utilitarianism

Defines right or acceptable actions as those that maximize total utility, or the greatest good for the greatest number of people.

Ethical Action

Enhance your ability to act with integrity. "Use Tools in Real Life"

Justice

Evaluates ethicalness on basis of fairness: distributive, procedural, and interactional

Relativist

Evaluates ethicalness subjectively on the basis of individual and group experiences

Deontology

Focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences.

External Control

Going with the flow. Life events are due to uncontrollable forces.

Deontology fundamental idea ......

Golden Rule: "idea that equal respect must be given to all persons"

Moral Philosophy (or school of thought or ethical paradigms)

Guidelines for "determining how conflicts in human interests are to be settled and for optimizing mutual benefit of people living together in groups

Realism Assumptions

Humankind is not naturally benevolent and kind, but instead is inherently self-centered and competitive

Fr. Sorin Personal Mission Statement

I want to be a force for good in the world by ...

Individual Factors in Ethical Decision Making in Business: NATIONALITY

Impossible to state that ethical decision making in an organizational context will differ significantly among individuals of different nationalities.

Ethical Judgement

Improve your moral reasoning and ethical decision making skills with objectivity, especially with regard to issues encountered in business. "Take Tools for a Test Drive"

Ethical Knowledge

Increase your ability to identify key concepts and understand different ethical approaches and theories. "Give you Tools"

Ethical Awareness

Increase your ability to recognize ethical issues, especially those that arise in business. "Raise Awareness"

Veil of Ignorance two primary principles

Liberty and Difference Principle

Idealism

Moral philosophy that places special value on ideas and ideals as products of mind.

"Carrots and Sticks"

Motivational superiors use this to influence employee behavior.

"Sticks"

Negative Reinforcements such as demotions, firings, reprimands, and pay penalties

Ethical Fading

Occurs when the ethical aspects of a decision disappear from view

Moral Disengagement

People restructure reality in order to make their own actions seem less harmful than they actually are.

Virtue Ethics: when it comes to the basis for ethical decision-making, concerned with the:

Personal core values, positive and useful mental habits or cultivated character traits/"virtues", and motivation

"Carrots"

Positive reinforcements such as pay raises, bonuses, and public recognition

Personal Mission Statement

Statement that defines your values, who you are, and how you define success.

Teleology/Consequentialism

Stipulates acts are morally right or acceptable if they produce some desired result, such as realization of self-interest or utility

Business Ethics

Study of right and wrong behavior; whether an action is fair, right or just, focuses morality and application of moral principles in everyday life.

According to the Framework for Ethical Decision Making in Business, the absence of punishment provides an opportunity for unethical behavior: True or False

TRUE

Virtue Ethics

The quest to understand and live a life of moral character, assuming that we acquire virtue through practice.

Behavioral Ethics

The study of why people make the ethical and unethical decisions that they do.

Realism

The view that an external world exists independent of our perceptions

Moral Philosophy Problems

There is no SINGLE moral philosophy everyone accepts, and they often yield differing answers to the same dilemma.

Internal Control

They control the events in their lives by their own effort and skill.

Individual Factors in Ethical Decision Making in Business: EDUCATION

Those FAMILIARIZED with the ethical decision making process due to education or experience are likely to spend more time examining and selecting different alternatives to an ethics issue.

Tone at the Top

Top level support for ethical behavior is instrumental in helping employees engage in ethical decision making.

According to our authors, justice is the fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others. Accordingly, we'll refer to this ethical theory or paradigm as "Justice as Fairness": True or False

True

For example a problem with Deontology is that the categorial imperative does not provide clear guidelines for deciding what is right or wrong when two or more moral laws conflict and only one can be chosen. True or False

True

Veil of Ignorance

We should imagine we sit behind a veil of ignorance that keeps us from knowing who we are and identifying with our personal circumstances. By being ignorant of our circumstances, we can more objectively consider how societies should operate.

John Cardinal O'Hara's founding vision for Mendoza College of Business: a. The primary function of commerce is service to mankind. Business has a code of ethics based very largely on divine principles. When this code is followed, commerce can and does advance civilization. b. We "Ask More of Business" by teaching rigorous business skills within an ethical framework by focusing on: individual integrity, effective organizations, and the greater good. c. We are committed to our mission to Grow the Good in Business by developing leaders who contribute to human flourishing, cooperate with others in solidarity, and compete toward becoming the best version of themselves through service.

a

While he is normally against the idea of harming animals, Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind. However, Chidi would oppose similar research being performed on humans, even though a utilitarian might approve. Chidi's view in this case reflects a common criticism of utilitarianism, i.e., that it: a. encourages unethical behavior b. fosters conformance with society's standards c. mandates acting in an employer's best interest d. results in human costs many people find unacceptable

a

Behavioral Ethics --> WHO?

anthropologists, sociologists, psychiatrists, neuroscientists

Compared to your personal activities, your business activities at the shop may be more complex: a. and so they should involve more complex ethical standards. b. but they should still involve the same ethical standards. c. and so they should involve no ethical standards.

b

"Why people act as the do"

behavioral ethics

Immanuel Kant thoughts on Deontology and the _____: "Always act in such a way that your action should become a universal law"

categorical imperative

"Ethical business issues and dilemmas involve problem-solving situations where the rules governing decisions are often vague or in _____."

conflict

While considering various moral philosophies or ethical paradigms leads to well-rounded, well-reasoned decisions, they also suggest ______ .

conflicting answers

Organizational Factors in Ethical Decision Making in Business

corporate culture, ethical culture, significant others, obedience to authority

According to the Ethics Unwrapped reading and related on "Social Contract Theory": a. Social Contract Theory says that people live together in society in accordance with an agreement that establishes moral and political rules of behavior. b. Social contracts can be explicit, such as laws, or implicit, such as raising one's hand in class to speak. c. Regardless of whether social contracts are explicit or implicit, they provide a valuable framework for harmony in society. d. all of the above. e. a and b only.

d

According to the authors of Blind Spots: Why We Fail to Do What's Right and What to Do about it, Chapter 4, "Why You Aren't as Ethical as You Think You are,": a. Human tendency to make inaccurate predictions about our own behavior is well documented by behavioral ethics and other research. b. We firmly believe we will behave a certain way in a given situation; when actually faced with that situation, however, we behave differently. c. Examples of such "behavioral forecasting errors" abound, and include underestimating the extent to which we'll be influenced by pressure from a boss or a peer. d. all of the above e. a and b only

d

According to the authors of Business and Professional Ethics for Directors, Executives and Accountants, ethical corporate behavior is expected to lead to: a. Higher profitability in the short-term b. Higher profitability both in the short-term and long-term c. Lower profitability in the longer-term d. Higher profitability in the long-term e. Lower profitability both in the short-term and long-term

d

According to the authors of our textbook, historically speaking, which of the following is/are TRUE concerning the relationship between business ethics and age? a. It shows a negative correlation. b. Younger managers are far more influenced by organizational culture. c. Older employees with more experience have greater knowledge to deal with complex industry-specific ethical isues. d. b and c

d

According to the authors of our textbook, which of the following relates to individuals' perceptions of social pressure - organizational factors - and harm -consequences - they believe their decision will have on others? a. Ethical Issue Intensity b. Individual Factors c. Ethical Awareness d. Moral Intensity e. Social Awareness

d

For example, criticisms of virtue ethics include: a. Interpretation of a virtue may be culturally sensitive b. virtues sometimes conflict c. acting in accordance with virtues may lead to a "bad" outcome d. all of the above e. a and b only

d

Pyschological egoism is the idea that all men are selfish, and that we only do things for our own self-interests. Ethical egoism is the idea that people ought to only do things for their self-interests, and that we should only feel obligated to do things for ourselves, regardless of the effect it may have on others. What would an ethical egoist say about a situation in which self-interest and morality conflict? a. One should do what morality demands. b. One should do what self-interest demands. c. One should sometimes do what morality requires and sometimes pursue self-interest. d. Such a situation is impossible, according to ethical egoism.

d

While he is normally against the idea of harming animals, Eric views animal research in the pharmaceutical industry as a way to improve drugs that will benefit mankind. Which moral philosophy most closely represents his viewpoint? a. Egoism b. Relativism c. Humanitarianism d. Utilitarianism e. Individualism

d

Deontology and Teleology are applied _______ , vs. virtue ethics is applied _______.

deductively, inductively

For this reason, justice is more likely to be based on _____ deontological moral philosophies than on _____ or _____ philosophies.

deontological, teleological, utilitarian

Cognitive Dissonance

discrepancy between beliefs and behaviors, something must change in order to eliminate or reduce the dissonance

For purposes of ethical decision making in this course, the following ethical paradigms will be most helpful to you: a. Egoism b. Utilitarianism c. Deontology d. Virtue Ethics e. Justices as Fairness f. All of the above

f

Organizational Factors in Ethical Decision Making in Business: ETHICAL CULTURE

function of many factors, including corporate policies on ethics, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior

Individual Factors in Ethical Decision Making in Business

gender, education, nationality

Individual Factors in Ethical Decision Making in Business: GENDER

generally no difference, but where there are, women are generally more ethical

Business is intrinsically _______________ according to Business as a Calling.

good

Organizational Factors in Ethical Decision Making in Business: OBEDIENCE TO AUTHORITY

helps to explain why many employees resolve business ethics by simply following the directives of a superior

Locus of Control

how people view themselves in relation to power

Sniff Tests

laws, business rules and procedures, social values, your conscience, promises to others, heroes

Behavioral Ethics and Normative Ethics are ...

parallel, integrated

Normative Ethics --> WHO?

philosophers, theologians, lawyers

Organizational Factors in Ethical Decision Making in Business: CORPORATE CULTURE

set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share

"Guard against thinking you are not capable of making bad decisions"- Cynthia Cooper

sniff test/newspaper test/social media test

When confronted with an ethical issue, workplace, family, religion, legal system, community, and profession are known as an individual's six _____.

spheres of influence

"The road to success depends on how the businessperson defines _____"

success

Moral Relativism

the idea that there is no universal or absolute set of moral principles

Ethical Issue Intensity

the relevance or importance of an event or decision to the individual decision maker, as well as the work group, and/or organization

Organizational Factors in Ethical Decision Making in Business: SIGNIFICANT OTHERS

those who have influence in a work group, including peers, managers, coworkers, and subordinates

According to John Rawls, "a just society is a society that if you knew everything about it you would be willing to enter it at a random place."

veil of ignorance

Good corporate ethics programs encourage individual virtue and integrity acting on:

your own core values and an organization's core values