Ethics Final

chap 8 interventions for improving ethical behavior

Changing yourself changing organizations changing society

Right vs. Right Decisions

Choosing between competing values - including professional and personal

internal dangers for ethics

Denial of responsibility Denial of injury Denial of the victim Condemnation of the condemners Appeal to higher loyalties Moral ledger defense of necessity Claim of normalcy Denial of negative intent Claims of relative acceptability Postponement Use of euphemism

Decision Process

Identify the important facts Identify the ethical issue(s) Identify the stakeholders Identify potential solutions Assess the solutions using ethical perspectives Assess any new potential solutions Act in accordance with your ethical analysis Assess your actions and the outcomes

integrated ethical strategy model

Operate from the recognition that all business conduct has moral implications Stakeholder recognition and responsibilities, thoughtful prioritization

key points from blind spots

People often insist they are more ethical than their (alleged) actions suggest biases occur in 3 spots of decision making - prediction, action and reflection culminating set of biases leads to erroneously positive perceptions of our ethicality

planning ahead for intervention dilemma

Practice leadership Rely on relationships Be prepared to sacrifice Live your values now Practice Dilemma: Andrea and the client questionnaire - she thinks that her boss has altered with the answers of the survey

pitfalls for intervention dilemma

Signaling Acceptance Acting without Information Communicating Harshly Demonizing Wrongdoers Discounting Culture Ignoring Expertise Bills experience - a leader has license to intervene

pitfalls to skirting the rules

Signaling disregard Leaning on loopholes Skirting the punishment Letting rules define your ethics

intervention dilemma

you see something wrong but you are not sure how to proceed MR Bell notices that MRI for a patient is very broken but Jason (PT) wants to use all of patient's sessions before telling him he needs surgery - Not acting is also an act - withholding resources, influence, knowledge is as much a choice as intervening is - Is restraint or intervention the morally superior choice? - If intervention - how?

HBR "cultivating everyday courage"

"Competently courageous behaviors can be learned. They're dependent on effort and practice, rather than on some heroic personality trait limited to the few. (So don't use that as an excuse to let yourself off the hook if you find yourself in a situation that calls for courage!).... Keep your values and purpose front and center."

Frankl on freedom

"Freedom is but the negative aspect of the whole phenomenon whose positive aspect is responsibleness..... Freedom is in danger of degenerating into mere arbitrariness unless it is lived in terms of responsibleness." After all, man is that being who invented the gas chambers of Auschwitz; however, he is also that being who entered those gas chambers upright, with the Lord's Prayer or the Shema Yisrael on his lips

how to build a social structure that facilitates ethical behavior

"Hike with people you trust, stay far away from natural hazards, and pack appropriately." The decisions we make are as much a subconscious product of our environment as they are a conscious result of our cognitive thinking Create an environment that reinforces your values and objectives - minimize number of difficult decisions you'll have to make ● Join organizations that share your values - tools ● Connect with honorable people ● Create financial independence - a "go to hell" fund

Frankl and the meaning of life

"Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." "A man who becomes conscious of the responsibility he bears toward a human being who affectionately waits for him, or to an unfinished work, will never be able to throw away his life. He knows the "why" for his existence, and will be able to bear almost any "how". "What matters is not the meaning of life in general but rather the specific meaning of a person's life at a given moment."

Frankl on responsibility

"One should not search for an abstract meaning of life. Everyone has his own specific vocation or mission in life to carry out a concrete assignment which demands fulfillment. Therein he cannot be replaced, nor can his life be repeated. Thus, everyone's task is as unique as is his specific opportunity to implement it." Each man is questioned by life.... He can only answer by answering for his own life; to life he can only respond by being responsible. Responsibleness = the very essence of human existence

Ethical Fading

"The process by which the moral colors of an ethical decision fade into bleached hues that are void of moral implications." a form of self-deception. It occurs when we subconsciously avoid or disguise the moral implications of a decision. It allows us to behave in immoral ways while maintaining the conviction that we are good, moral people

how to create a habit of ethical skill building/reflection

"We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle Virtue ethics Routines and habits Continue learning Make time to think Develop skills Write it out

NDDCEL power of moral muscle memory are your ethics above average

- practice and coaching is very important for building the habit of good decisions - The better-than-average effect names our tendency to see ourselves as above average for most positive traits (find role models, get help and moral accountability, look ahead and plan)

key considerations for individual integrity

1) Identifying your values and committing to living them 2) Developing the right social structure 3) Earning a reputation as an honest and ethical person 4) Creating habits of ethical reflection and skill building

according to Frankl, how can we discover the meaning of life?

1. by creating a work or doing a deed 2. by loving another unconditionally 3. by attitude we take towards unavoidable suffering

social contracts

Actions should create a harmonious or better society Duties to others primary consideration - am i fulfilling societal duties, hard to balance conflicting duties and lack of agreement, what do we owe stakeholders and how might this affect the environment?

questions to ask for intervention dilemma

Are you the right person to intervene?Can you recruit help?Do urgency and potential impact require you to act now?Does your intervention plan require you to act unethically?Does your intervention create a permanent solution or temporary fix? What are your own motives?Is the problem the result of one person's behavior or a systematic failure? Does your intervention require one act or sustained, regular effort?How can you create the least harm to everyone involved?

how to plan ahead for power dilemma?

Build friendships - social capital Be ethical in the little things - incrementalism, moral muscle Work on creating an ethical culture

pitfalls to standing up to power

Charging the hill - a common mistake, but generally a last resort! What works? Acquiescing Too Quickly - long-term consequences, including your own reputation Gossiping - navigate recruiting help from others carefullyNot Protecting Yourself - document, document, document Assuming Too Much - use time and research to respond

post-decision reflection bias

Dissonance between our beliefs about ourselves as ethical people and our unethical actions Desire to restore self-image - physical, psychological cleansing Moral disengagement Relative memory, rationalizations, change our definition of ethical behavior, become desensitized to our own unethical behavior Revisionist historians, self-serving biases, deflecting blame Role of hierarchies in business "I'm just doing my job" Ethical spinning - "everybody's doing it" Shifting ethical standards - happens incrementally - slippery slope

blind spots chapter 8

Does ethical behavior require agreement on ethical standards? Goal - make the ethical decisions you (others, organizations) would make upon thoughtful, reasoned reflection Use what we know (from research and experience) to bring your decisions in line with your ethical views - and help your organizations - and society - do the same

standing up to power - questions to ask

Does the powerful party have the right to ask me to do what they are asking? Legal, contractual, moral rights Are there others in my organization who will agree with me? Allies and social capital Is what is being requested of me in accordance with the stated values, or ethics policies, of the organization? Alignment with stated values Does my company have ethics resources? Consider existing resources What is this person attempting to accomplish through what he/she is asking you to do? Is there a different way to accomplish it? What's at stake for the key parties? How can I help my boss save face? What's at stake?

explain Blind spots chap 6, placing false hope in ethical organization

Even the most well-intentioned oaths and ethics programs will fail if bounded ethicality and ethical fading are not acknowledged examples of sometimes bad system = reward systems gone awry, unintended effects of sanctions, when doing good becomes a license to misbehave, domination of informal cultures

Pope Francis on Fraternity and Social friendship

Fraternity necessarily calls for something greater, which in turn enhances freedom and equality. Individualism does not make us more free, more equal, more fraternal. The mere sum of individual interests is not capable of generating a better world for the whole human family.

skirting the rules dilemma

Keep a rule for a worse outcome, or bend it to achieve some good?

steps for cultivating everyday courage

Lay the groundwork - establish that you excel at your work, that you are invested in the organization, and that you are evenhanded Persuade in the moment - frame appropriately, make good use of data, and manage the emotions in the room Follow up - no matter how things turn out - manage your relationships with those involved

conflicts of interest case

Multiple roles put you (or your company) at cross purposes. Most frequently excused dilemma in the business world - "that's just how business is done." May be true, but doesn't stand on principle. Priority and balance are key - recognize the most important obligations and prioritize them accordingly

Civil Disobedience

Nonviolent, not deliberately harming others, even those asserting power immorally - Disobeyed as a last resort, when legal channels were unavailable or exhausted - Disobedience was particular and proportional - Submissive to the penalties of breaking the law, recognizing the importance of the rule of law

communicating persuasively

Practicing and rehearsing - pre-scripting - are key!

why do we have prediction errors?

Prediction phase - ethical aspect is clear - moral values are evoked Philosophical approach - does moral awareness prompt moral behavior? Pinto example What causes it? Visceral responses, "survival instinct", reasoning is abandoned

behavioral ethics

Psychological, social and organizational issues that influence individual decision-making

Bill O'Rourke's experience in standing up to power

Refusing to "spin" insisting on severance a quitting decision

standing up to power dilemma considerations

Role and level matter - and standing up to power is one of the most common dilemmas Competing values and the role of pressure Time pressures - what does research tell us?

why is being amoral person not sufficient for ethical leadership?

Role modeling 2) Consistent communication 3) Consistent accountability

inside the mind of a whistleblower article NDDCEL

Scott Noble stressed the importance of being proactive, finding moral clarity, and seeking allies to support your effort to do the right thing.

Primary Embedding Mechanisms

Specific leadership actions that signal organizational priorities: What leaders pay attention to, measure, and control regularly How leaders react to critical incidents and organizational crises How leaders allocate resources Deliberate role modeling, teaching and coaching How leaders allocate rewards and status How leaders recruit, select, promote and excommunicate

Secondary Embedding Mechanisms

Structures, systems and processes; physical space; organizational communications (formal and informal) that signal culture (rites, physical space, stories, formal statements)

why should we be ethical?

The cost of doing (unethical) business Personal harmony Ethical self-defense Sometimes you lose (but so does everyone)

Virtues

Universally admired, valued character traits

questions to ask yourself in every ethical dilemma

What are the core principles at stake? Am I protecting others' rights? Does my decision preserve others' dignity and ability to choose? Would I be willing to be the other party to the transaction? Will this decision be fair to all involved? Who will be affected by my decision? Who will benefit? Who will be harmed? Who am I? What kind of person would this action make me? How would I feel if my reasoning and decision making appeared on the news?

questions to ask for skirting the rules

Why does this rule matter? Can someone give you proper permission to break the rule? Would those with authority over the rule want you to break it? Does breaking this rule encourage inappropriate rule breaking by others? Whom is the rule intended to benefit? Does breaking the rule reduce that benefit? Does breaking the rule achieve fairness? Can you accept the punishment and still achieve the better outcome?

how to develop a reputation as an ethical person

Work diligently Act to benefit others Use inspiring stories Avoid judging others

importance of reputation and strong social capital

Working for a Shamed Company Can Hurt Your Future Compensation (Harvard Business Review, 2019) People who work for a company guilty of malfeasance may see their future compensation curtailed, even if they are guilty of nothing "You have this great name on your CV, and suddenly it goes from being an asset to a liability"

suspicions with out evidence dilemma

You believe something wrong is going on, but you're not sure Example: Marco's internship - Cindy paid a fine to have a shipment delivered, but Marco suspects that this is actually a bribe Distinction from Intervention dilemma - not how you stop something, but how you find out if there is something to stop - The way you investigate matters

show mercy dilemma

You could grant forgiveness or forbearance, but don't know if you should. Example - client information mistakenly sent by text How do we respond when someone needs help, forgiveness, or forbearance?

pitfalls of intervention dilemma

act hastily delaying action appearing overly biased not gathering sufficient information not reporting appropriately Bill's experiences - investigate fast and when facts are gathered, act fast

rights

act in a way to preserve everyone's rights am i protecting others rights'/their ability to choose? difficult to balance conflicting rights and lack of agreement will our decision make some people feel used?

questions to ask for conflicts of interest

are there any clear rules would your actions cause others to question your motives who has the right to know details is there a way to remove yourself from conflicts have other parties done anything to free you any way to uphold both obligations?

loyalty dilemmas

arise from unwritten obligations we have for others, usually because of a special connection we have Often relationships where you have benefitted from generosity, or where you share an identity

Consequentialism

assumes rightness of an action can be judged by outcomes - egoism - utilitarianism

prediction errors

behavioral forecasting dilemmas social dilemmas

UN Global Compact

calls business to: - Embed UNGC principles into strategy and operations - Take bold, innovative steps toward SDGs and Paris Agreement - Advocate and inspire others to join the movement Supports business by: - Providing principle-based, public platform for engagement, communication on progress and commitments - Access world-class tools, expertise and resources - Allow for global reach, multi-stakeholder connections - businesses can shape the sustainability agenda and be a force for good

Frankl - suffering

ceases to be suffering at the moment it finds its meaning, such as the meaning of the sacrifice

what was the role of the company's mission in the carcinogen in water near Alcoa plant?

company CEO lived by "do the right thing. we will sort out liabilities later" vision statement - "we aspire to be the best company in the world"

describe costco's corporate best practices

costco used profits to raise minimum wage and also increase health insurance coverage

Reversibility

do unto others as you would have them do unto you would i be willing to be other party in transaction? multiple parties and difficult to know how others really feel are we treated stakeholders like we would like to be treated?

moral courage

doing what is right and taking a stand for what is right in the face of fear and no matter the consequences, habitually

HBR - the comprehensive business case for sustainability

driving competitive advantage through stakeholder engagement Improving risk management Fostering innovation Improving Financial Performance Building Customer Loyalty Attracting and Engaging Employee "The preponderance of evidence shows that sustainability is going mainstream. Executives can no longer afford to approach sustainability as a "nice to have" or as solid function separated from the "real" business. Those companies that proactively make sustainability core to business strategy will drive innovation and engender enthusiasm and loyalty from employees, customers, suppliers, communities and investors"

Ethics of Care

duties to every person are not equal - we have a special obligation to those closest to us Special obligations to the most vulnerable (alignment with CST) - am i taking care of people closest to me or most vulnerable?, danger of favoritism/nepotism, competing relationships, how does decision affect people who trust us most?

planning ahead for intervention

establish reporting channels build a culture of fairness anticipate allegations practice dilemma - craig and the teacher accused of sexual harassment

why should business leader study ethics?

ethics is everything you do - as a leader, your every action and non action defines the character of your organization

how to clarify and commit to your goals

evaluate your priorities in advance helps you align choices with things that matter most - identify and commit to living value, avoid prioritizing short term actions that conflict with long term goals

Ethics is about

everything you do

philosophical ethics

explore terms, concepts, philosophical approaches

Justice

fairness of opportunity, of a process, of some set of outcomes (equality and merit) will decision be fair to all involved? difficult to measure costs and benefits, lack of agreement on fair shares will any stakeholder feel that this is unfair to them?

why don't we have a speak up culture?

fear and futility

sacrificing personal values pitfalls

forgetting to see your family seeing only yourself

risk factors of unethical leadership

fraud triangle = perceived pressure, perceived opportunity, rationalization

the emotion that makes ethical leadership contagious

harnessing the power of "elevation" - find people who elevate you and others - tell and story - make it positive - spread it

ethical sensitivity

helps us recognize when there is an ethical problem or dilemma - The nature of the dilemma determines the skills and strategies you need to manage it

ethics as a skill

honing intention and ability Good intentions are not enough

Virtue Ethics

how decision might effect who you are - mirror test (who am i, relies on individual feelings, what org identity do we want to portray?) - pillow test - sunshine/disclosure test (what if this appeared in news?, but public isn't always right, how will decision affect reputation if it becomes public?)

social impact questions

how do our decisions affect others?Who are the stakeholders?What does our business do?In what kind of society do we want to live?

Deontology

idea that ethics should be based on unwavering adherence to a set of rules - universal principles - rights - reversibility - justice

3 components of business ethics

individual integrity, effective organizations and greater good

planning ahead for skirting the rules

know the rules know your purposes seek professional help care how you look make good rules

Embedding Mechanisms

levers by which one creates and changes org culture

egoism

make a decision best for yourself or organization

pitfalls for conflicts of interest

not recognizing conflict running from or hiding the conflict assuming disclosure is enough pretending objectivity

external dangers for ethics

obedience to authority role taking diffusion of responsibility group norms psychological distance societal culture

motivated reasoning

one of the main reasons people make unethical decisions because we are reasoning not to discover what is really true but to justify the conclusion we prefer - can be managed by imagining our decisions will be made public or by bringing others into your decision process - can run wild when rules are fuzzy

Utilitarianism

people should attempt to maximize social welfare (ends justify means) who will benefit/be harmed by my decision? difficult to measure costs/benefits, majority might disregard minority what decision would add most value to us and shareholders?

3 strategies for ethical influence

pro sociality - human beings are not only selfish (pro-self) positive emotion principles - recognizing the moral basis for an action makes us more committed and consistent in performing that action and less susceptible to arguments against it.

jessica rose - using business to address income inequality

proponent for employee ownership - business a tool to create better opportunities

planning ahead for conflicts of interest

reporting obligations give yourself some credit watch out for nepotism acknowledge trade offs develop a system of training and reporting

how to create a speak up culture

speaking up across and down - roles matter! - ask employees to speak up - set an example by talking openly - check in more often by making reviews ongoing - never tolerate retaliation against anyone who speaks up

Logotherapy

striving to find a meaning in one's life is the primary, most powerful motivating and driving force in human beings

Universality

the ethical thing to do is to follow the moral principle that should apply in any situation what is core principle at stake? it is difficult to manage principles and bound conditions "would we be content if others did what we plan to do?"

organizational culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

defining moments

those decisions we make in right vs right dilemmas - they test our values and shape our future behavior

HBR innovation and value

upside - revenues (making more $ through product innovation, increased market share, higher prices) and intangible (ensuring future $ through product differentiation, customer loyalty, and talent attraction and retention) downside - costs (spending less $ by being eco efficient, asset efficient and insurance costs) and risks (more reliable $ through supply chain reliability, lower volatility in input prices, business continuity and resilience

decision time errors

want self vs. should self should self dominates before and after we make a decision decision time - our thoughts are dominated by want self motivations are different Ethical fading

tools for committing to living your values

what do you admire? examine dilemmas - what values are honored by my choices read books - how will you measure your life write them down, keep them current, learn about yourself, share them and ask for feedback

questions to ask in suspicions without evidence dilemma

who is responsible for solving the problem and how do you best inform them> what will happen if you act on allegations and they are false? what if suspicions are true and you do nothing? does quality of info justify actions does your bias push you to believe or dismiss too early? who deserves most protection?