Business Ethics Chapter 1
Solomon's three arguments why business is not amoral
1. Business is not survival of the fittest 2. Business is not cold and impersonal 3. Corporate America and professionals do need to worry about ethics
Solomon's three c's of business
1. Compliance 2. Contribution 3. Consequences
example of ethical activity
Teachers educating children in math
culpable ignorance
a person's claim that they cannot be held responsible because they didn't know better
virtue
a practice that sustains and improves a practice
ordinances
a type of law defined as laws enacted by local governing bodies such as city councils
amoral
lacking a moral sense; unconcerned with the rightness or wrongness of something
business law
laws that dictate how to form and run a business
CEO disease
concept developed by Daniel Goleman
places
examples of values described as factories, office, real estate
things
examples of values described as money, stock, supplies, products
activities
examples of values described as research/design, communicting
responsibility
has two types; expectation that one accepts the consequences of one's moral decisions and actions
virtue
identified as the one that emphasizes the moral character, in contrast to the approach which emphasizes duties or rules (deontology) or that which emphasizes the consequences of actions (consequentialism)
ethics
investigates questions of right and wrong, duty and obligation, and moral responsibility
Mission Statement
level of moral code defined as a formal articulation of a person's or organization's values, often expressing the values the entity operates by and the values/goals it wishes to acheive
codes of etiquette
level of moral code defined as the socially accepted moral codes of behavior for a group
laws
level or moral code defined as binding and established moral codes governing a community
professional ethics
may be formally written or understood as common practice; professionals are expected to abide by these standards
bystander apathy
refers to the situation where a person refuses to take personal responsibility for their choice
5. precaution
the fifth of the five proposed solutions for doing evil and being unaware and is defined as: -knowing beforehand what you are getting into
1. investigation
the first of the five proposed solutions for doing evil and being unaware and is defined as: -act of doing this for your project and that of others
the four knowledge conditions that Luban requires for making a moral decision
the four requirements Luban proposed are: 1. The decision maker knows that a decision must be made 2. The decision maker recognizes that they must make the choice in a fairly short, distinct period of time 3. The decision maker confronts a small number of well-defined options (knows what choices are available) 4. The decision maker has the information needed to make the decision (knows what is needed to make the choice)
4. prevention
the fourth of the five proposed solutions for doing evil and being unaware and is defined as: -taking specific steps to prevent evil
business ethics
the study of what constitutes right and wrong, good and bad, human conduct in a business context; the foundation of business
3. protection
the third of the five proposed solutions for doing evil and being unaware and is defined as: -doing this for subordinates/whistleblowers
1. rise of collectivism/bureaucracy 2. destructive obedience
the two reasons why Luban believes the organization of the workplace has led to a decreased sense of moral responsibility
prostitution and child labor
things that may be considered legal but are immoral
smoking marijuana and polygamy
things that may be considered moral or morally neutral but are illegal
games by Solomon
this person applies requirements to these as -like business, these require fairness
rules by Solomon
this person applies requirements to these as -most are explicitly or implicitly understood by players in the game -some exceptions occur but certain actions should never occur
Daniel Goleman's definition of emotional intelligence
this person claimed that empathy, intuition, and self and social awareness define this; being in touch with your own feelings and feelings of others
game by Solomon
this person defines these as skills of the players, how they play the game and interact with each other, good, sportsman-like conduct
rules by Solomon
this person defines these as things that frame the competition, limit and regulate the extent and type of competition
statues
type of law defined as enacted by legislative bodies such as Congress or state legislatures
example of a statue
example of a type of law: posted speed limit signs
example of a constitutional law
example of a type of law: right to a fair trial
persons
example of values described as employees, investors, clients
Solomon's three arguments that show why business needs ethics
1. Ethical errors end careers faster than any other mistake in judgement or accounting 2. Ethics provides the broader framework within which business life must be understood 3. Nothing is more dangerous to a business or to business in general, than a tarnished public image
Solomon's ethical mistakes that impact the practice of business
1. Ethics is broader than business 2. Will usually end a career faster than work-related mistakes 3. Character counts 4. Greatest danger to a business are these mistakes because they tarnish the public image
fragmentation of knowledge
1. They believe they don't have all the facts but the authority does
Luban's use of Miligram experiment to explain people doing evil things
1. They believe they don't have all the facts but the authority does 2. They were unable to see the victims 3. lack of a definite moment when a decision is to be made (gradual escalation) 4. they feel peer pressure
the four factors Luban claims cause irresponsible conduct
1. fragmentation of knowledge 2. divided responsibilities 3. ambiguous orders 4. unknown consequences
the two principles of conscience
1. not a matter of feeling 2. what we do with feelings matters (choice)
4 types of laws
1. ordinances 2. statues 3. constitutional law 4. administrative regulations
the four levels of moral codes
1.etiquette 2. Mission Statement 3. laws 4. professional ethical codes of conduct
the two types of responsibility
1.legal 2.moral
divided responsibilities
2. They were unable to see the victims
ambiguous orders
3. lack of a definite moment when a decision is to be made (gradual escalation)
unknown consequences
4. they feel peer pressure
impact of softer skills in the workplace
Goleman says the impact of these are what distinguish great leaders and successful companies, and if they cannot provide these skills, they fail to do their job and it impacts the bottom line and morale in company
ethos
Greek; character or custom
mores
Latin; character or custom
Luban's four factors that lead to moral apathy in the workplace
Luban identified these four factors that lead to this in the workplace: 1. Fragmented knowledge 2. divided responsibility 3. ambiguous orders 4. unknown consequences
Luban's five obligations of employee responsibility
Luban identifies these as obligations of employee _________ 1. Investigation 2. Communication 3. Protection 4. Prevention 5. Precaution
Marx's theory of the state (individuals become anonymous)
Luban referenced this "real mindlessness of the state" and it is described as ideas about the state being divided into three subject areas: pre-capitalist states, states in the capitalist (i.e. present) era, and the state (or absence of one) in post-capitalist society. -Provides beginning stages of destruction of individual responsibility and supports the dangers of bureaucracy (state official control over representatives)
Arendt's statement that it becomes easier not to be held personally responsible
Luban referenced this description of bureaucracy's demise of social responsibility is explained by no men can be held responsible, no matter how high or low they are ranked, leaving no one to be asked to answer for what is being done, making it impossible to localize responsibility and identify someone to blame
Nieburhr's statement that it is easier for people to become unaware of what others are doing
Luban referenced this statement that individual men may be moral but morality is difficult to achieve for social groups and is described as saying there is not much reason to guide and check impulse, less capacity for self-existence and less ability to understand needs of others, creating unrestricted egoism in comparison to the group members individually
1. rise of collectivism.bureaucracy
Luban's first reason to believe that organization of workplace leads to decreased sense of moral responsibility and states: -collections of people dilute a sense of individuality -group becomes more important than the single individual -the larger the structure, the easier it is to: *become anonymous *become unaware of what others are doing *easier not to be held personally responsible
2. destructive obedience
Luban's second reason to believe that organization of workplace leads to decreased sense of moral responsibility and states: -Complying with instructions that causes harm to others or leads to a negative outcome (irresponsible conduct)
preemptive obligations
Luban's term for obligations of investigation, communication, protection, prevention, and precaution of detecting troublesome knowledge about their workplace before being employed is their duty
Solomon's response to Richard De George's myth of amoral business
Response to myth of amoral business is that it is an already proved idea that has a macho, mock-heroic, tone that creates an inevitable paralysis of ethics and disproves its corollary to Darwinism
Solomon's application of virtues in business
Solomon applies these to business by applying them to situations such as respects for contracts and concern for product quality, consumer satisfaction, and the bottom line
Solomon's idea that business occurring in the wider framework of ethics
Solomon claims that ethics is not applied to business, it is the foundation of business, and survives upon it
Solomon's idea that business is practice
Solomon says it is an established and proven practice whose prosperity and survival depend on the participation of its practitioners (people engaged in the profession) (relates to seeing business as a game)
1. compliance
Solomon's first "C" of business that states: -they will do this with rules/laws of the country, principles of morality and expectations of the community within which the business operates
1. business is not survival of the fittest
Solomon's first argument as to why business is not amoral and states: -Business is not a Darwinian "survival of the fittest" way of life because the anxiety of switching jobs, not getting hired, or going bankrupt is not often a matter of life and death -Most companies survive without being the fittest, and the "dog eat dog" business world is a false impression, as no one goes into a meeting with a one-in-four chance of survival -Business is a part of life
1. Ethical errors end careers faster than any other mistake in judgement or accounting
Solomon's first argument that business needs ethics and states that being caught lying, cheating, stealing ,or reneging (going back on promise) on contracts is not easily forgiven or forgotten in the business world
1. Ethical errors end careers faster than any other mistake in judgement or accounting
Solomon's first argument that business needs ethics and states that immoral actions undermine (damage) the ethical foundation on which the business world operates by, causing the career to go nowhere
2. contribution
Solomon's second "C" of business that states: -they will contribute to society through the value and quality of one's product/profession in the community
2. Business is not cold and impersonal
Solomon's second argument as to why business is not amoral and states: -Business is not impersonal, it is very personal -Half of American business is family-operated and owned -Business depends upon human relationships!
2. Ethics provides the broader framework within which business life must be understood
Solomon's second argument that business needs ethics and states that most successful executives understand that business is a part of life
2. Ethics provides the broader framework within which business life must be understood
Solomon's second argument that business needs ethics because most successful executives understand that business is a part of life because: -Corporations are a part of a society that consists of something more than a market -Executives and employees cannot abandon their real life while working and return to it at the end of the day -Executives are most effective and successful when they retain the "real life" view of themselves, position, and human world inside and outside their corporation -Business success such as happiness comes better to those that value things over money -Business ethics is just business in its larger human context
3. consequences
Solomon's third "C" of business that states: -they accept the results of business activity, both within and outside the organization, both intended and not intended
3. Corporate America and professionals do need to worry about ethics
Solomon's third argument as to why business is not amoral and states: -The idea of "amoral business" increases suspicion of business which has consequences on the business' functioning -Amoral business ultimately ruins reputation -Regulations increase when business acts immorally
3. Nothing is more dangerous to a business or to business in general, than a tarnished public image
Solomon's third argument that business needs ethics and states that ethical violations hurt the bottom line and a tarnished image has direct consequences -sales -profits -morale -day-to-day running of the business
1. recognition programs 2. tailoring thank-you cards or award ceremonies to suit personal goals and preferences 3. asking employees what they want to get feedback 4. stopping by office weekly and recognizing accomplishments
What are the four suggested ways to show gratitude in the workplace for managers?
He thanked employees on every plant tour and facility visit and thought it created a corporate culture
What did Jack Welsh (former General Electric CEO) do for his employees? How did it influence corporate culture?
morality; the law
_______ is always greater than _________
moral maturity
ability of a person to accept responsibility for his or her actions
the myth of amoral business
according to this myth, businesses and ethics don't mix because: 1. People in business are concerned with profits, producing goods and services, and buying and selling 2.Even good acts are to be praised not in moral terms but only in the cost/benefit language of "good business"
business practices according to Solomon
according to this person, practices involve: -competition -planning and strategy -risk and uncertainty -defined by rules -own language -defined goals -skills of players
ethical activities
actions or activities that are considered morally good or morally correct and they are things that do nothing to harm others
administrative regulations
agencies in place to control the application of the law
administrative regulations
aka regulatory law; boards of agencies set up by legislatures/executive branch that issue regulations (enforce statues) of certain kinds of conduct
individual ethics
also known as moral agents
business virtue
an ethical trait that makes business in general possible
moral agency
an individual's ability to make moral judgments based on some notion of right and wrong and to be held accountable for these actions
business
any organization whose objective is to provide goods or services for profit
values
anything that is important to me/group
laws
are "set up" and applicable to everyone under jurisdiction
Robert C. Solomon
argues for the immediate, practical relevance of ethics for our business lives and debunks the theory that businesses are amoral or immoral
Peter Drucker's argument of the relationship between ethics and the practice of business
argues that ethics remains in the individual, and corporations and institutions should not have any exceptions of responsibilities to upholding the single code of ethics , there should not be a dual-standard of ethics
Indivisibility of Ethics article
article that discusses the debate over business ethics differing from ethics in general, and supports the idea that whether corporate or personal, there should only be one code, one set of rules that should remain unchanged, regardless of setting they are being applied in
Luban
author of "Moral Responsibility in Age of Bureaucracy" and believes that the organization of the workplace has led to a decreased sense of moral responsibility
Peter Drucker
author of article "What is 'Business Ethics?' and claims there is only one code of ethics, one set of rules of morality, one code: that of individual behavior in which same rules apply to everyone alike
Luban's reference to Marx, Niebuhr, and Arendt to explain why organization of the workplace has led to a decreased sense of moral responsibility
author references claims supporting that when a structure becomes larger: -Marx: individuals become anonymous -Niebuhr: we become unaware of what others are doing -Arendt: becomes easier to not be held responsible
Solomon's practices of business
belief that it is a way of life and those whose prosperity and survival depend on participation of its practitioners
ethics
branch of philosophy/ general study of right/wrong; characteristics that lead to happiness
ethics
broader than law; more information in life has to do with these matters rather than legal matters
bystander apathy
can refer to a situation where a person sees something illegal or immoral happening and does nothing about it
the 7 rules Solomon identifies that frame the "game of business"
concepts defined by this person being: 1. consider the well-being of others and weigh one's personal gains against the losses to others 2. think as a member of the business community (the team) 3. obey the law but know that ethics is more important than compliance of the law 4. think of yourself and your company as a part of society 5. think objectively, do not become too emotional 6. ask what sort of person would do such a thing? 7. respect customs of others but not at the expense of your own ethics
moral standards
concern behavior that seriously affects human well-being
concepts that help us become ethical professionals
conscience, will power, responsibility, moral maturity
moral principles
constitute the basis for civil law
constitutional law
court rulings on the Constitutionality of certain laws
constitutional law
court rulings on the requirements of the constitution and the constitutionality of legislation
virtue
currently one of three major approaches in normative ethics; aka moral character
ethics
deals with individual character and the moral rules that govern and limit our conduct
Solomon's three c's of business
describes ethics in business in acknowledging and taking into account, and willingness to follow three concepts
law
establishes the minimum codes of right conduct
moral principles
evaluate the morality of civil laws
moral codes
every person, culture, religion, and organization has these
example of an ordinance
example of a type of law: A law about parking enacted by Town of Chesterfield
example of an administrative regulation
example of a type of law: U.S. environmental protection agency
codes of etiquette
not always written and subject to change
immoral
not conforming to accepted standards of morality
customs
not necessarily questions of morality in code of etiquette but are culturally significant
moral codes
organization of values according to their levels of importance
will power
personal power to follow and fulfill the dictates (suggestions) of one's conscience
examples of values
persons, places, things, activities
professional ethics
rules that govern members of a given profession
conscience
the human ability to understand the nature of good and evil and to apply this knowledge to ethical decisions about right and wrong
etiquette
the norms of correct conduct in polite society or any special code of social behavior or courtesy
professional ethics
the rules that are supposed to govern the conduct of members of a given profession
2. communication
the second of the five proposed solutions for doing evil and being unaware and is defined as: - doing this about troublesome information
Luban's drunk driving analogy to explain culpable ignorance
uses drunk driving to explain this when knowledge conditions fail because: -By the time the driver has 6 drinks, he may no longer have the reflexes or judgement to avoid an accident, and in one sense he is not responsible for what he does behind the wheel -However, we still hold him responsible because although he lost control of his actions when he became drunk, we blame him for becoming drunk in the first place (it was his own fault he could not be responsible)
1. afraid employees will take advantage of them (demand raise) 2. nervous about appearing awkward or insincere 3. afraid of embarrassing the employee
what are the three reasons that explain why are some bosses reluctant to practice gratitude in the workplace?
they are more productive and loyal
what does research indicate about workers who are thanked or shown appreciation by their managers?
ethics
what is right/wrong, good/bad; can be in terms of individuals or community (common good and/or collective)
conscience
what values are understood and determined by
CEO disease
when people have no sense of how their moods affect their organization
