ethics quiz 1

psychological distance

the degree to which one can disassociate oneself from the consequences of his/her actions most people would rather pull the lever than push the guy in front of the train. more distance from victim = more likely to do unethical thing. drone warfare (what is acceptable collateral damage?) also more distance from cash = more likely to do unethical thing. moving numbers on a spreadsheet at work is distant. easy to consider our duties towards people who are similar to us as more important than our duties toward people we view as different from us.

decision time

thoughts dominated by want self ethical fading motivations are different bazerman & tenbrunsel (blind spots)

individual integrity

to whom do we look as models for behavior and for effective, ethical decision-making? why? what traits do they have? are values universal? (usually no) VIRTUES

virtue ethics

trying to get people to be their best self character ethics what kind of person do you want to be and how will this action affect that mirror test (can you look at yourself in the mirror and like that person), pillow test (can you sleep at night), sunshine/disclosure/newspaper test ( transparency is a great motivator for ethical behavior) challenges: assumes human beings are inherently good, very subjective, hard to get guidance from. sometimes public values support unethical behavior benefits: it's a good check on ourselves - encourages us to hold ourselves to higher standards like alcoa - what would the best company do? do our actions adhere to our company values?

virtues

universally admired, valued character traits honesty is the most popular

jessica rose

using business to address the root causes of income inequality

course objectives

1. *raise ethical awareness* (enhance awareness and sensitivity to ethical issues in business) 2. *improve ethical knowledge* (understand major theoretical foundations of ethics, moral reasoning, and decision making, enhance our capacity to engage in fruitful ethical dialogue and consideration) 3. *improve ethical judgment* (improve ethical decision making skills, move beyond identifying problems and truly orient ourselves toward ethical decision making and action)

social contracts (duties)

actions should create a harmonious or better society (deontological) duties to others primary consideration

MENDOZA

advocate for business to address human and societal concerns to advance the common good; envision how business can become the solution to issues as big as poverty and peace master the theory and techniques for assessing economic value, while also wrestling with agency issues that arise when managers don'y serve the best interests of their companies consider the human community before the business community. economic enterprises must serve people, not the other way around as citizens of the world community, balance what we take and what we give back; what we use and how we replenish our resources

key distinctions of theoretical approaches

all approaches differ in how an ethical action is defined each prompt key questions all have limitations discussion starters (in the book) toolkit pp. 244-245 (uses less philosophical language)

ethics as a skill - honing intention and ability

good intentions are not enough - difficult ethical situations require the thoughtful application of particular skills (ability to recognize ethical dilemmas, balance competing values, and communicate ethical ideas persuasively)

shifting ethical standards

happens incrementally, slippery slope

greater good (societal impact)

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?

pinto example

in crash tests, the ford pinto's gas tank showed a tendency to explode. but after an analysis suggested it would be cheaper to pay off lawsuits than make the $11-per-vehicle fix, ford decided not to repair the flaw. by making what appeared to be the smart "business decision," ford's leaders made an unethical choice and put many customers in harm's way

motivated reasoning

is one of the main reasons good people make unethical choices occurs when we use reasoning not to discover what's really true, but to justify the conclusion we prefer (like confirmation bias) can run wild when the rules are fuzzy or vague, often motivated by incentives when recognized, can help us become more humble and make us more open to receiving feedback ways to control: use the "front page" test, don't go it alone, avoid ambiguity, stay humble

the field guide to business ethics

legal, business, practical, elements because authors are in all sorts of different fields, provide different perspectives

podcast review

!

ethical spinning

"everybody's doing it"

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 fo 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 we are influenced by our environment, values, and decisions create a "go to hell" financial independence fund

role of hierarchies in business

"i'm just doing my job"

ethical fading

"the process by which the oral colors of an ethical decision fade into bleached hues that are void of moral implications" before we are faced with a temptation, we predict that we will act in accordance with our values. however, at the time of the decision, the ethical considerations may fade away and the "want" self often prevails. afterwards, when we analyze the decision in hindsight, we have a tendency to rationalize actions and believe we acted ethically even though the reality may have been different. rethink euphemisms, remind yourself of your moral compass, reframe tough decisions (ethical, then financial. not the other way around).

create habits of ethical reflection and skill building

"we are what we repeatedly do. excellence, then, is not an act, but a habit." - aristotle virtue ethics routines and habits ethical priming (ariely) continue learning, make time to think, develop skills, write it out you can more easily handle the big dilemmas by doing some of the work now

the emotion that makes ethical leadership contagious

*ELEVATION* term akin to awe or admiration. good feeling after reading heartwarming story (power of moral acts to promote virtue, witnesses of these acts are more likely to pay it forward) find exemplars (that reflect virtuous character trait) who elevate you and others tell a story (much better way to communicate than read a script) make it positive let it spread publicize stories of ethical events within and outside of company, like father ted's legacy for notre dame

clarify your values and commit living to them

*defining moments* - those decisions we make in right vs. right dilemmas; they test our values and shape our future behavior evaluating your priorities - in advance - helps you align choices with those things that matter most to you identify and commit to living values - avoid prioritizing short-term actions that conflict with your long-term goals don't climb a ladder only to find that it is leaning against the wrong wall

deontology

*universal principles - universalizability* determine a set of rules (basic human rights: dignity, respect, autonomy) and stick to them regardless the situation (universal principles apply in any situation). says that the ethical thing to do is to follow the moral principle that should apply in any situation. immanuel kant *rights* *reversibility* (the golden rule) *justice* (veil of ignorance) fairness of opportunity vs. fairness of outcomes fairness achieved through equality vs. merit challenges: people have different ideas of how to prioritize rights (very few truly universal principles), different groups rights sometimes conflict/come up against each other, ends justifying means = consequences DO need to be considered (there are certain situations where lying might be the ethical thing to do), people often don't accurately perceive the experiences of others and thus misjudge how others would like to be treated, multiple parties means that in any tough situation you probably will have to act toward a party in a way that you wold not want to be treated, what does "fair" mean?

planning ahead: anticipating and pre-scripting

1. build friendships (social capital) have the space to be frank with the unethical person/go to others for advice/witnesses 2. be ethical in the little things (incrementalism, moral muscle) if you're known as ethical, people might not even ask you to do unethical things 3. work on creating an ethical culture

what to do (ethics pays)

1. draw a distinction (don't merely ask people to follow the rules, as doing so can encourage people to find ways to do whatever they can get away with, not what is truly right) 2. promote a long-term perspective (short-term thinking yields only short-term results. emphasis on results damages the firm's less tangible resources, such as its goodwill from customers and its employees. also results in declines in customer focus, integrity, and collaboration among employees) 3. show your work (burnishes the organizations reputation and reinforces the sense that ethics is a priority for your firm, which helps employees aspire to the ethical behavior your organization values 4. make a move (look beyond regulatory compliance, influence your company's culture, dedicated ethics team that is independent and well-resourced with access to all areas of your organization)

ethical decision-making: from reaction fo decision to action (decision process)

1. identify the important facts 2. identify the ethical issue(s) (competing values?) 3. identify the stakeholders 4. identify potential solutions 5. assess the solutions using ethical perspectives 6. assess any new potential solutions 7. act in accordance with your ethical analysis 8. asses your actions and the outcomes

being ethically proactive

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

ask more of business

1. individual integrity 2. effective organizations 3. greater good (societal impact)

stages of the decision making process

1. prediction (before) 2. action (during) 3. reflection (after) culminating set of biases leads to erroneously positive perceptions of our ethicality bazerman & tenbrunsel (blind spots)

questions i should ask myself with every ethical challenge

1. what are the core principles at stake? 2. am i protecting others' rights? does my decision preserve others' dignity and ability to choose? 3. would i be willing to be the other party in the transaction? 4. will this decision be fair to all involved? 5. who will be affected by my decision? who will benefit/be harmed? 6. who am i? what kind of person would this action make me? 7. how would i feel if my reasoning and decision making appeared on the news?

consequentialism

assumes that the rightness of an action can be judged by its outcomes like guy pulling lever on train tracks egoism (good for me = good, not a valid/supported ethical philosophy, but it is a philosophy) utilitarianism (what action is best for the community. maximize social welfare. challenges: some things are hard to assign objective value to, impossible to predict all outcomes of our actions, could sacrifice a minority value/right for the "greater good." stealing bread to feed family. military/public policy decision making (dropping atomic bomb). immigration issue- could we move away from two extremes and find a compromise that satisfies the needs of multiple parties?) psychological distance has an effect act vs rule utilitarianism

prediction errors

before behavioral forecasting errors social dilemmas bazerman & tenbrunsel (blind spots)

ethical fading allows us to

behave in immoral ways while maintaining the conviction that we are good, moral people

what makes illusions about our ethicality possible?

biases in our thought processes, which occur at several stages of the decision-making process bazerman & tenbrunsel (blind spots)

ann tenbrunsel video

business vs. ethical context/frame people think they're acting according to their values, but they are not. we are all subject to situational influences and psychological processes ADD MORE REWATCH THE VIDEO

challenge 1: pitfalls

charging the hill (vocally and stridently opposing the request) - a common mistake, but generally should be a last resort! acquiescing too quickly (giving in, maybe assuming the blame will fall on boss if discovered) - long-term consequences, including your own reputation. boss might come back to you for other requests gossiping - navigate recruiting help from others carefully not protecting yourself - document, document, document don't be caught in a situation where it's your word against your boss's word use coworkers/social capital as witnesses assuming too much - use time and research to respond if you're wrong you'll look incompetent and you may lose moral authority needed to convince others to do the right thing

right vs. right

choosing between competing values - including professional and personal most common example is loyalty vs. truth

ethical leadership

communicating persuasively rarely are we in situations where we can act on our own to resolve a moral dilemma. need to convince others to help prescripting (practicing and rehearsing) is key!

broad categories of moral philosophies

competing frameworks to determine what is "right" or "good" each approach has strengths and challenges robust decision-making requires fluency in each considering the frameworks helps with thoughtful decision-making, and with persuasively communicating your decision to stakeholders (appealing to others) alignment with our decision model

from the field: corporate best practices

costco! how can we define moral courage? why is it so important? what were the elements of Costco's approach to administering a significant change for their employees - a healthcare cost increase - that helped ensure it was successful? how do these elements relate to the stakeholder concept in ethics? what is the "business case" for going above what is required of you as an employer? in the example of the employee 401K bonuses, could you argue that it was a smart financial decision for the company? how does sinegal define "obligation" in terms of the relationship between employer and employee?

organizational effectiveness

creating culture - how do we define ethical leadership? effective, ethical cultures? successful organizations? dysfunctional culture - unethical behavior ex. ENRON. performance reviews were all peer review rankings, bottom 5-10% get fired. competitive culture leads to sabotage. good culture ex. business ethics department chair gives amazon gift cards as a thank you to faculty. motivates people to work hard another negative example: mendoza curve another positive example: wellness incentives at work

communicating values from the top: cathy engelbert (organizational effectiveness)

culture of integrity needs to be present in top management to be effective in the rest of the company

our buggy moral code

dan ariely, behavioral economist (dis)honesty - the truth about lies, feature film ted talk: when removing bandages from patients, they were doing it as fast as possible but they should have been doing it starting on face and slower to minimize pain. nurse said she didn't want to question what she had been told and also that it caused her pain to have to remove his bandages. did lots of studies on cheating. things that caused people to cheat more (NOT more money, yes in-group bias, yes when it was easier to get away with, NOT when made to recite honor code or swear on the bible)

ethical fading happens during

decision time bazerman & tenbrunsel (blind spots)

post-decision (recollection biases)

dissonance between our beliefs about ourselves as ethical people and our unethical actions desire to restore self-image (physical and 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 ("everyone's doing it") shifting ethical standards - happens incrementally - slippery slope bazerman & tenbrunsel (blind spots)

challenge 1: questions to ask

does the powerful party have the right to ask me to do what they are asking? *legal, contractual, moral* legal - request may be legal but still immoral. knowing the law means you understand if your boss's request puts you at any legal risk. contractual - employment contact, maybe boss is violating that through request moral - evaluate your boss's competing interest to be sure that the harm done isn't actually necessary are there others in my organization who will agree with me? *allies and social capital* best protection is often someone else/other relationships to help is what is being requested of me in accordance with the stated values, or ethics policies, of the organization? *alignment with stated values* professional codes of conduct, like CPA. how would this reflect ton the company if it became public? look to unwritten values in the company that can help you if there are no written ones. does my company have ethics resources? *consider existing resources* ombudsman program: empowered to hear your concerns in confidence and advise you on the best course of action. some ethics resources require the company to investigate and act on the information you provide. make sure you are not overreacting. 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?* use creativity and hard work. ask questions to figure out what your boss is trying to accomplish and how to fix it without sounding accusatory how can i help my boss save face? *what's at stake?* don't want to sound like you are questioning boss's authority/character. come up with a solution and see boss's feedback, give them credit to reaffirm confidence. don't use words like "wrong" or "unethical"

prediction phase

ethical aspect is clear, moral values are evoked philosophical approach: does moral awareness prompt moral behavior? pinto example what causes it to change? visceral responses, "survival instinct," reasoning is abandoned bazerman & tenbrunsel (blind spots)

ethics pays

ethical companies (avoid fines, enforcement actions, and negative headlines) cultivate a culture based on doing the right thing because it is the right thing benefits: enhanced reputation, increased ability to attract and retain the best talents, stable and steady growth from avoiding ethical pitfalls illegal conduct can be costly (in terms of falls and long-term reputation) an investment in ethics creates a long-term value-add for shareholders and other stakeholders growing investor preference for ethical and socially responsible companies and products (the returns of the 100 best companies to work for in america beat their peers y 2.3 - 3.8% a year from 1984 - 2011 on industry benchmarks for employee satisfaction and long-run stock returns employee benefits: high-trust environment, leaders model the behaviors they expect, attracting ethical employees (94% MBA students willing to forego financial gains to work for an organization with a better ethical reputation)

blind spots and (dis)honesty

methodology - students, executives studying negotiations people often insist they are more ethical than their (alleged) actions suggest do we inherently believe in our ethicality despite evidence to the contrary? --> yes!

philosophical ethics

more theoretical does "knowing" always lead to "doing"? we can explore terms, concepts, philosophical approaches

the "better-than-average" effect

most people think they are more ethical than their classmates, co workers, etc., when this is not statistically possible moral superiority, more likely to dig in and escalate the conflict, focus only on how ethical my point of view is, may demonize the other person/group/perspective. moral superiority is more extreme and more resistant to facts students with the lowest intellectual skills who were most likely to have an inflated view of their performance to fight it: find moral role models, look outside yourself for moral help/accountability, look ahead and plan for moral dangers

what can be done? (ethical fading)

motivated reasoning can be managed by imagining your decision swill be made public of by bringing others into your decision-making process

moral muscle memory

practice being ethical/acting on your values

prescripting

practicing and rehearsing

bill's experiences - responsibility to report

professional responsibility few actions build your reputation as an ethical person faster than being the one who is willing to report

behavioral ethics

psychological, social, and organizational issues that influence individual decision-making blind spots: why we fail to do what's right and what to do about it (bazerman & tenbrunsel) human psychosocial/behavioral dynamics

ethical sensitivity

recognizing ethical dilemmas the nature of the dilemma determines the skills and strategies you need to manage see to the heart of the problem and understand what values are in competition

challenge 1: bill's experiences

refusing to "spin" information insisting on severance (the employees who were unfairly deprived of $50,000 because of a conveniently timed severance policy) a quitting decision (situation so wrong it has to be corrected or you have to quit)

challenge 1: dilemma

role and level matter - and standing up to power is one of the most common dilemmas to act unethically put you at risk for that person's benefit competing values and the role of pressure. vague dangers are common because specific threats can be used as evidence against them. time pressures (quicker decisions tend to be less ethical. you should ask for more time to think it through) those in power can take criticism poorly pointing out people's ethical missteps will almost always make them feel like you are questioning their character. education without scolding.

ethical fading is a form of

self-deception

want self vs. should self

should self dominates before and after we make a decision during decision time, our thoughts are dominated by our want self bazerman & tenbrunsel (blind spots)

ethics of care

special obligations (duties) to those closest to us (personally, professionally) special obligations to the most vulnerable (alignment to CST- preferential option to the poor) danger: nepotism/only acknowledging their values. lots of people do unethical things and reason that they're taking care of their family financially

challenge 1:

standing up to power

challenger space launch example

weather complications, should have signaled a delay in launch pressure from competition with russia and financial pressure, the focus was on those two things instead of the ethical: the safety of the people inside led to an unethical and unsuccessful decision

practice dilemma: what should nisha do?

what tools do we have at our disposal to consider these dilemmas? don't tell supplier that they won't be doing business w them anymore. supplier has been loyal and is small, family business in brazil that generates the majority of the wealth for its town. they will go out of business if they suddenly stop doing business w them but if she tells them then it could start finding new business right away. if tell them, they would immediately stop production and tip off the market to the change. she has a non-disclosure agreement. CEO is rejecting ways to help the supplier. bring up how this doesn't align w company values. other suppliers will see this and not want to work w them. bad public image.

when does ethical fading occur

when we subconsciously avoid or disguise the moral implications of a decision

identify your values and commit to living them

who do you admire? examine dilemmas: "what values are honored by my choices?" read thoughtful books consider these exercises with help from people who care about you commit to them - write them down, keep them current and meaningful, learn about yourself, share them, ask for feedback and support

develop a reputation as an ethical person

work diligently, act to benefit others, use inspiring stories, avoid judging others