Ethics Final Quiz
What was the point of the "blue eyes-brown eyes" exercise described in class?
Show how discrimination feels, those with the superior eye color acted superior
What metaphor does Rawls use to explain the nature of morality?
"Justice as Fairness"
Why do Friedman's arguments not apply to individual proprietors?
-"If he acts to reduce the returns of his enterprise in order to exercise his "social responsibility", he is spending his own money, not someone else's" -No objection to how he is spending his money -He may impose costs on employees and customers, any such side effects tend to be minor
What is a whisper campaign?
- Gossiping - Negative Comment Fishing - Derogatory Names
What is the difference between Corporate Social Responsibility [CSR] and Creating Shared Value [CSV]? How does the fair trade coffee movement illustrate this difference?
-CSR: Value: doing good; Citizenship, philanthropy, sustainability, separate from profit maximization -CSV: Value: economic and societal benefits relative to cost; joint company and community value creation, integral to profit maximization, realigns entire company budget
Why does Friedman use the language of 'taxation without representation' to describe corporate executives who use corporate resources for other than maximizing profits?
-Corporate executive would be spending someone else's money for a general social interest, imposes taxes and decides on how proceeds shall be spent -System of checks and balances separates legislative function of imposing taxes and enacting expenditures from the executive function of collecting taxes and administering expenditure programs and from the judicial function of mediating disputes and interpreting the law -He decides whom to tax and by how much and for what purpose, he can spend the proceeds to restrain inflation, improve the environment, fight poverty, etc.
What are the three ways of creating shared value (and what is an example of each)?
-Enhancing the cluster, will enable more local procurement and less dispersed supply chains -New products and services that meet social needs or serve overlooked markets will require new value chain choices in areas such as production, marketing, and distribution -New value chain configurations will create demand for equipment and technology that save energy, conserve resources, and support employees
What are the letters of the Myers-Briggs and what do they stand for?
-Extravert -Introvert -Intuitive . -Sensing -Thinking . -Feeling -Judging . -Perceiving
What does it mean to say it is not consistent with basic ethics?
-If business is separated from ethics, there is no question of moral responsibility for business decisions -If we are not willing to accept the responsibility for our own actions, then ethics, (understood as how we reason together so we can all flourish), is likely an exercise in bad faith
What are the three spaces of design thinking, according to Brown & Wyatt, and how do they work? Why are they called 'spaces'?
-Inspiration, Ideation, and Implementation -
What does it mean to say that the shareholder model of business is resistant to change?
-It puts shareholders' interests over and above the interests of customers, suppliers, employees, and others, as if these interests must conflict with each other -Understands a business as an essentially hierarchical organization fastened together with authority to act in the shareholders' interests -Business now is global and multifaceted, shareholder value may not capture that dynamism, if it eventually does, it will be too late for executives to do anything about it
According to the readings assigned, what are some of the business effects of workplace bullying?
-More than one in three people leave their job -Workplace bullying makes even confident people less trusting of their own instincts -Bullying in the workplace will cause stress, damage self-esteem, impair cognitive functioning, and threaten emotional and physical health -Lower morale
What were some of the causes of the BP Deepwater Horizon oil spill? In particular, what were some of the major problems with: 1) financial/time pressures, 2) safety issues, 3)regulations/crisis management, and 4) workplace culture?
-Neither BP or any of its competitors had "proven equipment or technology" or any backup plan for a catastrophic failure at great depth -MMS routinely received cash bonuses for meeting federal deadlines for offshore leasing
What are the characteristics authentic leaders have?
-Not One Style!:Differing Skills, Traits -Leadership Emerges from Life Stories, Self Awareness: Know Thyself -Skill You can Develop
What are three examples of 3M innovations discovered through failure or accident?
-Post it notes -Scotchgard -Wetordry
What is Google's Project Oxygen? What is Project Aristotle? What did they find?
-Project Oxygen: shocked everyone by concluding that, among the eight most important qualities of Google's top employees, STEM expertise comes in dead last -Project Aristotle: a study released by Google, supports the importance of soft skills even in high-tech environments, analyzes data on inventive and productive teams, the best teams at Google demonstrate: empathy, curiosity toward teammates' ideas, and emotional safety (no bullying)
What are the elements of emotional intelligence? Why are they relevant to business leadership?
-Self-Awareness -Self-Regulation -Motivation -Empathy -Social Skill
What does it mean to say the dominant model is not consistent with the law?
-The clarity of putting shareholders' interests first, above that of customers, suppliers, employees, and communities, flies in the face of the reality the law -Law has evolved to put constraints on the kinds of trade-offs that can be made -Companies must take the interests of customers into account, by law -Law has evolved to try and protect the interests of local communities -"Laissez-faire capitalism" is simply a myth -Dominant model simply does not describe how business operates
What is the veil of ignorance?
-The principles of justice are chosen behind a veil of ignorance, ensures that no one is advantaged or disadvantaged
What does Freeman say is the primary responsibility of corporate executives?
-To create as much value for stakeholders as possible, and that no stakeholder interest is viable in isolation of the other stakeholders, to manage and shape the relationships -Where stakeholders interests conflict, the executive must find a way to rethink the problems so interests can go together and even more value can be created for each -Make trade-offs/figure out how to make trade-off -Managing for stakeholders=creating as much value without resorting to trade-offs
How do Tesla, Walmart, Unilever, and Danone create shared value?
-Toyota-Hybrid Invested heavily in R&D for hybrids Moved from niche to mainstream with hybrid cars projected as 25% of sales in 2010 - China Toyota surpassed GM as #1 automaker in 2008 -Tesla Reconceiving products & markets, sustainable transport Powerwall + Solar panels → reduce emissions significantly
In what ways does Rick Gibbs claim that values are important to great company culture?
-Values are crucial to the foundation of a great company culture -Organizations should pick values that resonate with people at all levels -Company values must be mirrored in daily activities and communication
What are the two ways of determining which kinds of pleasures or type of happiness is the best? What is the problem with each way?
-We should consult with someone with the experience of both, such experienced and competent judges are best for determining the highest happiness -An educated citizenry making decisions through a majority-rule democracy, allows individuals the freedom of choice to pursue their own ends
What are some ways to address abusive workplaces, according to Nagele-Piazza?
-Workplace anti-bullying bills -Employers can create policies and practices to prevent and prohibit bullying
What are the two principles of justice?
-first requires equality in the assignment of basic rights and duties -second holds that social and economic inequalities are just only if they result in compensating benefits for everyone, in particular, for the least advantaged members of society
What are the two main challenges to utilitarianism?
1. All utilitarians must find a defensible way to measure happiness; Bentham went to great lengths to develop a "hedonistic calculus" to help quantify pleasures, Mill left it to the judgement of a majority of well-informed, competent judges, there is no consensus among utilitarians on how to measure and determine the overall good 2. Differing versions of the good and the implications for human freedom; historically, utilitarians are social and political liberals, high value on individual freedom of choice 3. Goes directly to the core of utilitarianism, the essence of utilitarianism is its consequentialism, the end justifies the means, denies the earliest and most fundamental ethical principle that the ends don't justify the means
What are Schein's ten learning culture characteristics? Why they are especially important given today's business marketplace?
1. Proactivity 2. Learning to Learn 3. Positive Assumptions About Human Nature 4. Belief That Environment Can Be Managed 5. Commitment to Truth Through Pragmatism/ Inquiry 6. Positive Orientation Toward the Future 7. Commitment to Full/Open Communication 8. Commitment to Cultural Diversity 9. Commitment to Systemic Thinking 10. Belief That Cultural Analysis Is Valid Set of Lenses for Understanding and Improving the World
What are the four explanations that may have left employees at the bank susceptible to unethical behavior?
1. They feel pressured: overly aggressive goals and performance pressure 2. They think "meh, it's just business": which can eliminate personal feelings, values, and ethics from professional situations, may have seen their actions as justified by cost-benefit analyses 3. They separate their lives at work from their lives at home: identities, feelings of inauthenticity, leading to unethical behavior 4. Moral Muteness: people don't communicate their moral concerns or speak up about unethical behaviors in the workplace
What have Zappos, 3M, and Starbucks done to foster ethical and learning cultures in the workplace? How do these companies' decisions and cultures align with Utilitarianism, Respect for Persons, Virtue Ethics, and Schein's learning culture characteristics?
3M: -15 percent rule, 6 percent of sales goes into R&D, Diversity, International Discussions/Conferences, Use failing as learning experiences Starbucks: -Open and honest marketplace with customers and employees, Always allow room for creativity
What are stakeholders, and how has the make-up of stakeholders changed over time?
A set of relationships among groups which have a stake in the activities that make up the business, have a financial stake in the business in the form of stocks, bons, and so on, and they expect some kind of financial return from them, any group or individual that can affect or be affected by the realization of the organization's purpose
What does it mean to be an authentic leader?
Authentic leaders demonstrate a passion for their purpose, practice their values consistently, and lead with their hearts as well as their heads
What are the Myers-Briggs and the Big Five?
Big Five Personality Dimensions -Extraversion 65th percentile -Agreeableness 73rd percentile -Conscientiousness 79th percentile -Neuroticism 21st percentile -Openness 38th percentile
What are the different stakeholder approaches to corporate social responsibility that we discussed in class? What are examples of each?
CSR=Corporate policies and practices that focus on pressing social and environmental needs in addition to financial objective, which may involve a cost to the company. -Patagonia: CSR, minimizing sales, Revenue: $1 Billion -Toms: CSR, One for One
What leadership styles do authentic leaders have?
Charismatic: Confident, Dynamic, Outgoing Steady/Dependable: Committed, Loyal, "True Blue" Strategic: Analytical, Systems Thinker, Thoughtful Empowering: Growth, Compassionate, Nurturing
What would each of the three ethical theories discussed in this unit say about BP and their handling of the Deepwater Horizon?
Consequences=Utilitarianism How people are treated=Kant/Categorical Imperative Justice=Veil of Ignorance(Rawls)
What are consequentialist ethics? What is a hedonistic ethical view?
Consequentialist theories (Acts should be judged by results): -good and bad acts are determined by their consequences -no act is right or wrong in all cases in every situation -Lying is neither right nor wrong, lying in some situations will produce greater overall good than telling the truth, in this situation, it would be ethically right to tell a lie Hedonistic theories (Only experiences are morally relevant)
How does creating shared value relate to capitalist goals? What's the difference between shareholder capitalism and stakeholder capitalism?
Creating Shared Value: How do we make value for shareholders while also having a positive impact on society, policies and practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates
What's a deontological normative theory?
Deontological (Duty Based) Theories ←Kantianism
How do the stories about fetching water, mosquito nets in Africa, web development in Rwanda, and eyesight screening in India illustrate the need for and the nature of design thinking?
Design Thinking=finding ways to provide low-cost health care throughout the world
What does Friedman mean when he says corporate executives may have ethical responsibilities as individuals but not as agents?
Direct responsibility to his employers to conduct the business in accordance with their desires
What, according to Friedman, is the sole social responsibility of a corporate executive and why does Friedman think that is the case?
Direct responsibility to his employers to conduct the business in accordance with their desires
What are the five main stakeholders Starbucks addresses in its corporate social mission and what are examples of initiatives focused on advancing the interests of each?
Environment Communities Suppliers Customers Employees
What is ethical leadership, according to our class discussion?
Ethical leadership should be implemented by every person in a management position, Fosters an environment of trust and respect with workers and executives
What does it mean to have an integrated life?
Find a balance between desires for external validation and the intrinsic motivations that provide fulfillment in your work
What's the difference between an intrinsic and an extrinsic motivation?
Intrinsic motivations are congruent with your values and are more fulfilling than extrinsic motivations
According to John Kotter, what is the difference in focus between leaders and managers?
Management is focused on creating order through processes like deadlines whereas leadership is focused on creating change through a specific vision, management relies on rules, leadership relies on motivation
What is the relevance of one's life story to authentic leadership?
Motivation can come from a difficult experience in life, use these experiences to give meaning to their lives
How were these factors related?
Oil and gas leases are the federal government's second largest source of revenue
What is 'positive deviance'?
Positive deviance=looks for solutions among individuals and families in the community who are already doing well, relies on local expertise to uncover local solutions Designing consumer products→designing consumer experiences
What is the goal of an ethical culture?
Promotes ethical behavior which leads to a variety of benefits
What is the "Tale of Two Stories?"
Reframing the question from "whether to voice our values" to "how can we voice our values?", when your values conflicted with what you were expected to do regarding a particular, nontrivial management decision, and you spoke up and acted to try to resolve the conflict in a way that was consistent with your values
What is the connection between authentic leadership and emotional intelligence?
Self-awareness
What does Esimai say about the importance of self-awareness to leadership?
Self-awareness is the most important capability for leaders to develop
What's a teleological normative theory?
Teleological (Goal Based) Theories ←Utilitarianism; acts should be judged by their purposes
Why does Freeman think the dominant (shareholder) model of business is no longer workable?
The stability and predictability required by the shareholder approach can no longer be assured
Why does Friedman think corporate executives are incapable of discharging their alleged 'social responsibilities', even if it were the right thing to do?
There is no way to judge if the changes made by these executives actually made an impact or if other factors caused the change
Are leaders of workplace abuse high or low in social intelligence, according to Popp?
Those who will engage in bullying or abusing a fellow employee are found at the extreme lower end of this distribution, zero social intelligence, capable of extremely negative treatment of others
Which examples in these companies are examples of CSV and which are examples of CSR?
Toms & Patagonia (& Unilever?)=CSR Nike=CSV
What is the difference between the traditional ROE and the new ROE?
Traditional ROE: financial metric, stands for return on equity New ROE: can help businesses and their people recognize that stakeholders invest their trust before they invest their money, relationships account for far more than goodwill, and that ethical behavior can appreciate over time into lasting value
What is the relationship between organizational integrity, trust, and profitability, according to Allen?
Trust is a vital component in business relationships, if an organization's integrity is confirmed time and time again then people will want to become customers or clients to the brand
What is the ultimate goal of our moral decisions, according to utilitarianism? How do Mill and Bentham differently interpret that goal?
Utilitarian thinks hold that we should maximize the overall good, different interpretations of "good", happiness is the ultimate good. Bentham: Argued that only pleasure, or at least the absence of pain, was intrinsically valuable, happiness must be understood in terms of pleasure and the absence of pain, unhappiness is understood as pain, or the deprivation of pleasure, pleasure and pain are the two fundamental motivational factors of human nature Mill: Different understanding of happiness, there is a qualitative dimension to happiness that is missed by Bentham's focus on pleasure, Humans are capable of enjoying a variety of experiences that produce happiness, Humans also experience social and intellectual pleasures that are qualitatively different from and superior to mere feelings
What is the "Veil of Ignorance?" Who devised this thought experiment? How does the Veil of Ignorance apply to the topic of workplace culture and ethics?
Veil of Ignorance: -"A just society is a society that if you knew everything about it, you'd be willing to enter it in a random place." (John Rawls) -Equality of Opportunity
How do Zappos core values align with Schein's learning culture characteristics?
Zappos: 1. Deliver Wow Through Service 2. Embrace and Drive Change 3. Create Fun and a Little Weirdness 4. Be Adventurous, Creative and Open-Minded 5. Pursue Growth and Learning 6. Build Open and Honest Relationships with Communication 7. Build a Positive Team and Family Spirit 8. Do More with Less 9. Be Passionate and Determined 10. Be Humble
What was Wells Fargo's "Gr-eight Initiative" and why was it ethically problematic?
a push to increase the average number of financial products customers held from six to eight, people are likely to become morally disengaged, anxiety at work impacts employees' ethics, lost trust with customers
According to Goleman's research, how significant is emotional intelligence, compared to cognitive skills, technical skills, and IQ, for excellent leadership performance?
high degree of emotional intelligence, IQ and technical skills matter mainly as "threshold capabilities"
What is emotional intelligence?
the ability to perceive, understand, manage, and use emotions; Courage, Flexibility, Self-Awareness
