MGMT 5073
Leaders
maintain or change organizational culture
Friendship
long standing relationship that's well known in the community.
Locus of control can be thought of as a
stable individual characteristic that differentiates people from each other.
System 1 generates suggestions for System 2
such as impressions, intuitions, intentions and feelings.
Rights can be thought o as negative rights
such as the limits on government interference with citizens right to privacy or the pursuit of happiness.
Corporate Core Values ex:
sustainability, environmentally friendly, innovation and excellence.
Utilitarian ethical dilemma approach
systematically identifying the stakeholders in a particular situation as well as the alternative actions and their consequences (harms and/or benefits)
Positive Illusions
tendencies to perceive ourselves more favorably than others do
Fundamental attribution error (aka corrspondence bias or over attribution effect) is the
tendency for people to over emphasize idspositional, or personality based explanations for behavior observed in others while under emphasizing situational explanations.
self serving bias is the
tendency to attribute our successes to dispositional causes and blame our failures on situational causes. personal credit for positive events or outcomes, but blaiming outside factors for negative events.
Memories - Repitition
tendency to not recall "negatives"
Virtue ethics perspective assumes
that your identify as a moral actor is important to you and that you are devoted to continuously developing that aspect of yourself
ethical judgement
the ability to determine the morally right or best course of action
Priming
the activation, often unconsciously, of certain associations, thus predisposing one's perception, memory, or response
Sexual harassment
unwelcome sexually oriented behavior which makes someone feel uncomfortable at work.
"Natural Rights"
"Natural Law"
In Kohlberg's adherence to any principle qualifies as "principled" thinking
False
Nature vs Nurture
Genes vs Environment
System 1 + System 2 =
Integration
Bias blind spot
cognitive bias of failing to compensate for one's own cognitive biases.
Weak Culture
subgroup norms more influential.
Euphemistic/neutral language make decisions and actions seem less problematic
"Bad patient outcome" instead of " the patient died" Pre-texting instead of spying
Deontological
"duty"
difusion of responsibility
"golden rationalization". Everyone does it. It's always been done this way. based on the assumption that the ethical act is acceptable due to the number of others doing it as well.
Heuristics
"judgemental shortcuts"
Richard Feyman
'The first principle is that you must not fool yourself- and you are the easiest person to fool."
Deontology
(GOLDEN RULE) - leads you to the best decision ONLY if both parties are highly ethical.
Why is cognitive moral development important?
-Because most people reason at the conventional level and are looking outside themselves for guidance -That makes "leading" on ethics essential
Blowing the Whistle
-How strongly do you feel about this issue? -What are your intentions? -Think about power and influence -Weigh the risks and benefits -Consider the timing -Develop alternatives
Ethical conflict is almost exclusively influenced by individual differences
False
Veil of Ignorance (Rawls)
-temporary deprive self of knowledge about themselves that is likely to influence judgements -justice emerges when social differentiations are eliminated
How to Blow the Whistle
1) Approach Your Immediate Manager First If You Can (your manager isn't involved in the problem) 2) Discuss the issue with your family 3) Take it to the next level 4) Contact your company's ethics officer ombudsman 5) Consider going outside your chain of command 6) Go outside of the company 7) Leave the company
Barriers to Fact Gathering
1) overconfidence (we tend to be overconfident about ourself-esepecially w/ knowing all the facts of a situation) 2)"confirmation trap" aka "google trap"(we use the web to make diagnosis of your health/everyone is basically dying according to google. (confirm our suppression)
Federal and State laws define what is ethical. Therefore, if it is not illegal, it is not unethical
False
Calculated Risk Taking
1. Ask yourself how strongly you feel about the particular issue. 2. Ask yourself about your intentions. 3. Consider power and influence. 4. Weigh the risks and benefits of action. 5. Think about timing 6. Develop alternatives
Individual differences which affect ethical judgement
1. Cognitive Moral Development 2. Locus of Control 3. Machiavellianism 4. Moral Disengagement
Rationalization techniques
1. Denial of Responsibility: whenever someone is guilty of doing something immoral (or illegal) in a business, its often unclear who exactly (if anyone in particular) is responsible. "pass the buck". No one accepts responsibility. 2. Denial of Injury: It's not always clear who gets harmed by our decisions or to what extent they get harmed, and the consequences of our decision are often difficult to know about without scientific research. People are more permissive attitudes toward crime when the victim is unknown. 3. Denial of the Victim: Those who harm others often argue that the others "started it" or deserve punishment. 4. Condemnation of the Condemners - Sometimes people say that the law is unjust. 5. Appeal to higher loyalties: People excuse their immoral acts because they are done to help people they are loyal to, such as family, company or friends. 6. Everyone else is doing it: Corruption as a business practice. 7. Claim to entitlement: rationalizations are to the effect that we can realize that an action is illegal, but we might decide that the law should be broken out of some duty or that the law itself is illegitimate for violating certain rights we are entitled to.
The 6 most common categories of rationalizations:
1. Denial of responsibility ("I know I shouldn't do this, but my boss is making me, so it's not really my fault.") 2. Denial of injury ("I know that I shouldn't do this, but who's really being hurt?") 3. Denial of victim ("I know that I shouldn't do this, but this guy is so stupid that he deserves to get ripped off." 4. Social weighing ("I know that I shouldn't do this, but my competitors are doing even worse stuff.") 5. Appeal to higher loyalty ("I know that I shouldn't do this, but I have a family to feed.") 6. Metaphor of the ledger ("I know that I shouldn't do this, but I give a lot of money to charity.")2.
Organizational Justice types
1. Distributive- fairness of the outcomes that individuals receive in an organization. can be tangible (pay) or intangible (evaluations) (Adams, 1965) 2. Procedural- fairness of the process by which the outcomes are allocated in an organization. (consistency, accuracy) (Leventhal, 1980) 3. Interactional- fairness of the interpersonal treatment given in the course of explaining procedures and outcomes (includes both the information and treatment) 2 components: Inperpersonal (degree people are treated with dignity and respect). and infomrational justice (communication/explanations/justification). (Bies&Moag, 1986)
8 Steps to Sound Ethical Decision Making Process (a Linear Perspective)
1. Gather the Facts - do your homework. 2. Define the Ethical Issues - what are the points of values conflict in the dilemma. 3. Identify the Affect Parties (the stakeholders) 4. Identify the Consequences. Long term vs. short term consequences; symbolic consequences; consequences of secrecy 5. Identify the Obligations and the reasons for each. 6. Consider your character and integrity. Remember the disclosure rule. 7. think Creatively about Potential Actions. Don't force yourself into a corner. 8. Check your gut. remember Empathy and fairness. use rational decision making.
Steps in ethical decision making
1. How much time do you have? 2. Gather the Facts 3. Define the ethical issues - what values are in affect? 4. Identify the affected parties. 5. Identify the consequences (4&5 - which action will do the most good and the least harm?) 6. Identify the obligations - Which decision best serves other's rights? 7. Consider your character and integrity. What is consistent with my values? 8. Think creatively about potential actions.. 9. Check your gut.
Ethical Decision Making Process
1. Identify the ethical dilemma 2. Discover alternative actions 3. Decide who might be affected 4. List the probable effects of the alternatives 5. Select the best alternative
People are more likely to be ehically aware, to recognize the ethical nature of an issue or decision, if three (3) things happen:
1. if they believe that their peers will consider it to be ethically problematic 2. if ethical language is used to present the situation to the decision maker 3. if the decision is seen as having the potential to produce serious harm to others.
People are more likely to be ethically aware, to recognize the ethical nature of an issue or decision, if three (3) things happen
1. if they believe that their peers will consider it to be ethically problematic; 2. if ethical language is used to present the situation to the decision maker; 3. if the decision is seen as having the potential to produce serious harm to others.
Ethically Aware Factors
1. most people look to others in their social environment for guidance in ethical dilemma situations. 2. Situations can be "FRAMED" - using ethical language or more neutral language. Using ethical language (positive words such as integrity, honesty, fairness, and propriety, or negative words such as lying, cheating and stealing) will trigger ethical thinking because these terms are attached to existing cognitive categories that have ethical content. 3. an issue or sitaution that has the poetential to produce serious harm to others is more likely to be seen as an ethical issue.
3 qualities that differentiate great leaders from average ones
1. self awareness: knowing your own strengths and limits and strengthening your inner ethical radar. 2. self management: being able to manage your emotions in ways that allow you to effectively lead yourself 3. empathy: understanding the emotional reactions of others in order to lead them effectively.
Hippocratic Oath for Managers
1. service to Public/society - Recognize the manager's responsibility to serve the public interest by creating sustainable value for society in the long term. 2. balance multiple stakeholders' interests- Recognize that mangers must balance the often conflicting needs of many stakeholders to enhance enterprise value in a way that is consistent with societal well being. 3. act with integrity in enterprise's interest-Put the interests of the enterprise ahead of personal interests while behaving as a person of integrity, consistent with personal values, and leading other to do the same. Avoiding behavior which advances personal ambitions that harm either the business or society. Reporting ethical or legal violations of others. 4. adherence to law-Make a commitment to adhere to the spirit and the letter of the law and contracts in personal and enterprise action. 5. accurate and transparent reporting- Report enterprise performance accurately and transparently to all relevant stakeholders so that they can make informed decisions. 6. respectful and unbiased decision making-Make decisions in an unbiased and respectful manner without considering race, gender, sexual orientation, religion, nationality, politics, or social status. 7. professional development -Commit to continuous professional development for the self and others with the goal of always using the best and most current available knowledge to make informed decisions. 8. responsibility to protect the profession-Recognize that being considered a professional has privileges that come with responsibilities to uphold and protect the standards, and continue to develop them in a way that contributes to the trust, respect, and honor associated with them and with the profession.
Consequentialist theory problem
1. you may not have all the facts to list harms vs benefits. 2. the rights of a minority group can easily be sacrificed for the benefit of the majority.
liar loan
A fraudulent loan transaction in which the applicant inflates, enhances, or otherwise misrepresents qualifying information.
Fairness
A perception. Being impartial and honest. Free from bias, dishonesty, or injustice; a concept commonly related to everyday activities
off the record
A reporter cannot directly use information provided in an interview.
F. Neil Brady Two (2) Reasoning Styles
A rule based style (formalism): a backward looking or reflective perspective to determine whether the current issue is related to a similar case and/or the rules governing it. With this approach individuals subscribe to a set of rules or principles for guiding behavior. Actions are viewed as ethical to the extent that they conform to these rules. A cost/benefit based style (utilitarianism): a forward-looking perspective, comparing the alternatives and their consequences. Evaluates whether the outcomes and consequences of actions are ethical rather than just the actions themselves.
Categorical Imperative
Act as if the maxim of thy action were to become by thy will a universal law of nature. Is your action suitable to become universal law or principle for everyone to follow.
Kant's Categorical Imperative
Act only in accord with a maxim (principle) which you would at the the same time will that it should be universal law. Acting the way most would. We should act in accordance with our duty and obligations, not our feelings or emotions. Man is not a means to an end, man is an end unto himself. Ask: What kind of world would it be if everyone behaved this way?
Chapter 4
Addressing Individuals' Common Ethical Problems
unconscious bias
Also called implicit bias. An inclination to prefer one type of person, object, or idea over others without being consciously aware of that preference.
Locus of Control
An individual's perception of how much control he or she exerts over events in life. External------------Internal
Good character is the main factor determining whether an individual act ethically whtin an organization.
False
In Kohlberg's theory, adherence to any principle qualifies as "principled" thinking.
False
MBA Oath
As a business leader I recognize my role in society. * My purpose is to lead people and manage resources to create value that no single individual can create alone. * My decisions affect the well being of individuals inside and outside my enterprise, today and tomorrow. There I promise: * I will manage my enterprise with loyalty and care, and will not advance my personal interests at the expense of my enterprise or society. * I will understand and uphold, in letter and spirit, the laws and contracts governing my conduct and that of my enterprise. * I will refrain from corruption, unfair competition, or business practices harmful to society. * I will protect the human rights and dignity of all people affected by my enterprise, and I will oppose discrimination and exploitation. * I will protect the right of future generations to advance their standard of living and enjoy a healthy planet. * I will report the performance and risks of my enterprise accurately and honestly. * I will invest in developing myself and others, helping the management profession continue to advance and create sustainable and inclusive prosperity.. In exercising my professional duties according to these principles, I recognize that my behavior must set an example of integrity, eliciting trust and esteem from those I serve. I will remain accountable to my peers and to society for my actions and for upholding these standards. This oath I make freely, and upon my honor.
Core Values vs. Aspirational Values
Aspirational values don't guide actions. They are what we want to be.
System 1 thinking
Automatic, fast, little or no effort, no sense of voluntary control
Facilitators of and Barriers to Good Ethical Judgment
Cognitive Bias: Overconfident Confirmation trap - which facts to gather rather than all facts. Must think of how you would go wrong to overcome this trap.
Cognitive Bias
Can lead to poor decisions.
Interpersonal Behaviors
Care, concern and compassion supports and takes responsibility for others Values and maintains relationships hardworking and helpful accentuate the positive accepts others' failure - not unconditionally.
Carol Gilligan's critique of Kohlberg's theory
Carol Gilligan argued that Kohlberg's classification of moral judgment is centered on principles of justice and rights which are valued more by males than by females, rather than on values of caring and responsibility for others, which are more central to females. Contrary to Gilligan's theory, however, there is little evidence that males and females score differently on Kohlberg's stages of moral reasoning. Adolescent and adult females do focus somewhat more on issues of caring about other people in their moral judgments Lawrence kohlberg conducted many studies on moral reasoning. his research had a distinct male bias as not many of his subjects that he surveyed and interviewed were female. he seems to suggest that males often reason through moral issues at higher levels than females. gilligan pointed out the male bias in kohlberg's research and argued that females have different ways of reasoning through moral issues and this does not make them inferior to male reasoning but only points out that the females value different things when trying to reason through moral issues.
Moral Disengagement Categories (3)
Cat I: behavior which makes bad behavior seem more acceptable. JUSTIFICATION: unethical behavior is thought to be okay because it contributes to some socially valued outcome. ADVANTAGEOUS COMPARISON: people compare their own behavior to more reprehensible behavior and thus make their own behavior seem more okay. Cat II: Distorting consequences or reducing personal repsonsibility for bad outcomes. DISPLACEMENT OF RESPONSIBILITY: reduce personal accountability by thinking of their actions as resulting from an authority figure's dictates. "Boss made me do it" DIFFUSION OF RESPONSIBILITY: reduce personal accountability by looking to others or the group. "It's not my job". DISTORTING CONSEQUENCES: individuals will think of negative consequences as less serious than they are. "Its no big deal to fudge numbers on expenses". Cat III: reduces the person's identification with the victims of unethical behavior. DEHUMANIZATION: individuals make those who would be harmed less worthy of ethical consideration because they're thought to be different, stupid or not even human. ATTRIBUTION OF BLAME: lays blame on the victims of harm for a variety of reasons "it's their own fault".
Influences on individual decision making: ETHICAL DECISION-MAKING PROCESS
Characteristics of Individuals (individual differences and cognitive biases) Ethical Awareness Ethical Judgment Ethical Behavior (process of individual ethical decision making) Characteristics of Organizations (Group and organizational pressures and Organizational culture
Relativism
Circumstances should be weighed because there are no universal standards to dictate all situations (high relativism)
Ethical Aptitudes
Classifying how individuals address or interpret ethical situations has occupied ethical scholars for some time.
Common Sense is not
Common Only common if in fact it comes from the same group with the same experiences.
Tendency of attend to the information that endorses the decision we prefer
Confirmation Bias
Provide 3 primary approaches to ethical decision making/ethical decisions
Consequentialist - Utilitarian (maximizes the benefit to society while minimizing harms "the greatest good" - a cost benefit analysis. Reason vs. Emotion (mom on the train track vs 5 other people) "Veil of Ignorance" Deontological - Focus is on the decision or act itself not the consequences. Decisions based upon abstract universal principles: e.g., honesty, promise-keeping, fairness, rights, justice, respect, etc. Virtue Ethics Approach (Aristotle) - focus on integrity of moral actor rather than the act, or consequence of the action. Considers character, motivations, intentions, etc.
Virtue Ethics
Considers a person's character, motivations, intentions and what it is to be a good person. it's important that the person "intends" to be a good person and exerts effort to develop themselves a s amoral agent.
Procedural Justice
Consistency - treating people the same. Employees may be treated differently due to context. Change policies when they aren't working. Voice - Give employees a voice in decision making and ability to respond. Allow them to vent. Bias Suppression - decisions and processes need to be neutral and unbiased. Avoid appearance of favoritism. Correctiblity - mechanisms to correct unfair situations. formal/informal. Representativeness - consider needs of all employees. Accuracy - decisions based on accurate information.
Internal locus of control
Controlling boss - employee is uncomfortable with boss's request to do something inappropriate. Employee more likely to resist boss's influence and more likely to look for an opportunity to leave.
Most adults are at the _______ level of cognitive moral development and their action is _______ .
Conventional; based on what others think, say, and do.
The 6 most common categories of rationalizations:
Denial of Responsiblity Denial of Injury Denial of Victim Appeal to Higher Loyalties Metaphor of the Ledger Social Weighting
Prescriptive Approach
Derived from ethical theories in philosophy and offers decision making tools that help you decide what decision you should make as a conscientious moral agent.
Locus of Control
Develops over a long period of time through interactions with other people and the social environment.
Challenges to Consequentilist Approach
Difficult to have all the facts to evaluate all consequences. rights of minorities can be sacrificed. Weighing of harms/benefits can be subjective. Maximizes benefits to society - must step outside what you want.
US Congress legislation to rein in the most egregious practices in the financial industry
Dodd-Frank Financial Regulation Legislation
Equality vs fairness
Equality is the quality of being the same in status, quantity, and value while fairness is the quality of being unbiased and impartial. ... Equality is giving individuals who have the same task the same compensation while fairness is giving individuals the same choices or chances no matter their status in life.
4 Step process of ethical decisions
Ethical Awareness Ethical Judgement Ethical Intent Ethical Action
Ethical Decision Making Process
Ethical Awareness -> Ethical Judgement -> Ethical Action
4 categories of leaders
Ethical Leadership - Strong moral person & strong moral manager. Unethical Leadership - weak mora persons & weak moral managers. Hypocritical Leadership - talks about ethical values, but behaves unethically or encourages others to do so. Ethically Neutral or "Silent" Leadership - do not provide ethical leadership (are silent) so employees not sure what they think on the issues.
Individual indifference
Ethical decision making style Cognitive moral development Locus of Control Machiavellian Moral disengagement
Trickle Down Effect
Ethical leaders can influence employees througout the organization, not just those they come in contact with. Positive direct relationship between ethical leaders and ethical behavior of upper/middle management. Positive indirect affect on other employees through formal and informal systems/processes.
Chapter 2
Ethics and the Individual
Leadership
Executive Leaders create culture
If you are asked to make hastily a decision that you believe raises potential ethical issues you should be a good team player and proceed with the decision.
False
Organizational Culture
Expresses shared assumptions, values and beliefs and is the social glue that holds the organziation together. Can have Strong and Weak Culture.
Ethical Climates
Fairness - employees believe treated fairly in outcomes, processes and interactions. Benevolence - organization cares about multiple stakeholders. Self Interest - people protect their own interest above all. Rule Based - employees follow both laws and organizational rules when making a decision.
According to Kohlberg, as individuals move forward through the sequence of stages they are cognitively capable of comprehending all reasoning stages below and above their own
False
According to Lawrence Kohlberg, developer of a key theory of moral reasoning, role taking is useless as nothing is gained by putting yourself in the shoes of others.
False
According to cognitive moral development theory, the actual moral decision is more important than the reasoning process used to arrive at it.
False
An employer cannot be held liable for an employee's sexual harassment activities.
False
Despite the disclosure rule, making decisions in private to avoid negative reaction is generally best for a business as it safeguards your firm's reputation and keeps competitive information away from your competitors.
False
Discarding the few "bad apples" will usually solve all the ethical problems wkthin an organization
False
Employee satisfaction and commitment are not related to the leader's moral development
False
In business, concerning yourself with how your decision-making affects stakeholders is useless given the number of stakeholders and their different interests.
False
It is good advice to always just go with your gut when faced with an ethical dilemma
False
It is good advice to always just go with your gut when faced with an ethical dilemma.
False
It is unethical for managers to "control" employees ethicla behavior through direct management and the organziation's formal and informal cultural systems.
False
The type of language used when describing a situation does not affects moral awareness.
False
There are major differences in levels of moral reasoning between men and women.
False
Training, whether in groups, peer to peer, or using DVD to deliver the content, has been shown to be ineffective in helping employees become ethically aware.
False
With the advent of technology, fewer people look to others in their social environment for guidance in ethical dilemma situations
False
According to the textbook, most people are guided by a strict internal moral compass and will not be swayed by organziation factors.
False.
Illusion of Validity
Fast thinking is not prone to doubt Confidence is a feeling, not something based upon reason or reasoning. bias toward coherence favor overconfidence. An individual who expresses high confidence probably has a good story, which may or may not be true.
why don't people whistleblow
Fear - reprisal/retaliation nobody will do anthing anyways org won't protect me being treated different by co workers people said not to report.
Legal approach to ethics
Focus on Compliance Follow the law
Risk Management Approach
Focus on Conduct (what not to do)
Deontological Ethics
Focus on Duties, Obligations, Principles. Advantages: Stay true to our values Consistent results Rights approach found in public policy debates. Challenges: Deciding which value takes precedence. Does not take into account context.
Philosophical/Psychological Approach (normative ethics)
Focus on the "why" or "how"
Cognitive Moral Development Level III: Conventional Stage 6: Universal Ethical Principles
Following ethical principles of justice and rights. Acting in accord with principles when laws violate principles.
Cognitive Moral Development Level I: Pre-conventional Stage 2: Instrumental Purpose and Exchange
Following rules only when it is in one's immediate interest. Right is an equal exchange, getting a good deal.
Ethical multisystem approach
Formal and Informal Systems
Cognitive Moral Development Level II: Conventional Stage 4: Social Accord and System Maintenance
Fulfilling duties and obligations of the social system. Upholding laws and rules except in extreme cases where they conflict with social duties.
The first step in the sound ethical decision making business:
Gather the facts
Kent Druyvesteyn
General Dynamics, 1985 first "ethics Officer"
Locus Control relationship to Ethical Judgment.
High internal locus of control see a relationship between behavior and outcomes more clearly. More in control of things. Take responsibility. being in charge of their fates.
Creating an ethical culture
Highering Process values and mission statements policies and codes orientation and training programs performance management systems - focus on the mechanics - marry the what with the how employees must take responsibility for their behavior. Held accountable employees must feel free to question orders to behave unethically. employees need to report misconduct or problems. employees need to report misconduct or problems. - loyalty vs unquestioning obedience. - formal structures and systems for reporting misconduct (whistle blowing) - monitor reporting & survey employees to see if problems exist. reward systems for reporting problems. consider discipline for failure to report. Employees have a voice in decision making. Make ethics a regular part of meetings. - stories/myths/legends - include core values on agenda. Beyond a quantitative cost benefit analysis. - the bottom line is important, but not to the exclusion of ethical considerations.
Ethical Action & Expectation for Self
Honesty Trustworthy Integrity Humility consistently ethical - in public and private Accepts responsibility for own failings. High ethical standards (self and others)
The Moral Dimension, Amitai Etzioni
Human action has two distinct sources: 1. the pursuit of self interest and 2. Moral commitments.
Amitai Etzioni - The Moral Dimension
Human action has two distinct sources: the pursuit of self interest and moral commitments.
Amitai Etzioni - The Moral Dimension
Human action has two distinct sources: Pursuit of self interest and moral commitments. Most human decisions are based on ethical and emotional considerations as well as rational economic self interest. People are motivated by both economic and moral concerns.
Tendency to underestimate risks because of the belief that we are in charge of what happens
Illusion of Control
Tendency to underestimate risks because of the belief that we are in charge of what happens.
Illusion of Control
Tendency to overestimate the likelihood of good future events
Illusion of Optimism
Consequences as risk
Illusion of Optimism - People tend to underestimate potential risks. Overestimate the good and underestimate the bad. They overestimate the likelihood of good future events and underestimate the bad. Illusion of Control - general belief that we really are in charge of what happens. "If we are in control bad things are less likely to happen" Framing - People are loss averse. when decisions are framed in terms of loss, people are more likely to behave unethically.
Unconscious distortion of information in order to maintain a positive self image
Illusion of Superiority
Tendency to overestimate the likelihood of good future events
Illusion of optimism
Barriers to Fact Gathering
Illusions, biases, and heuristics
Positive Illusions
Illusory Superiority Illusion of Control Optimism Biases
Emotions In Ethical Decision Making
Importantly, emotions are not just an interference to good ethical judgment, as many used to believe. Instead, emotions often lead to right action. Fairness, along with compassion or harm to others, have also been found to be among just a few ethical motivations that appear to be hardwired in us through evolution.
Those with higher ______ are more likely to avoid pressure to violate social norms because ______
Internal locus of control; they believe they are in charge of their own fate
Role Models - 4 Perspectives
Interpersonal Behaviors Fairness with Others Ethical Action & Expectations for Self Articulating Ethical Standards
Levels to Discuss Ethics
Individual Group Organization
Decision Making occurs at 3 levels
Individual Group Organization
An approach to change
Intitial Audit - cultural surveys Systems view - target both formal and informal. Long term view - culture change takes time. Assumptions about people - typcially behave in best interest - focus on behaviors, hold accountable. - unethical actions a signal for audit/investigation. Formal: Use surveys, interviews, observations at meetings, orientation/training, analyze documents. Auditing the content of decision making. coding content of stories/anecdotes Open ended meetings with all employees at all levels. Informal: Use HR department or outside person - outside persons trusted by employees - conducting an audit sends a message that ethics is important. follow up by action. Ask ethical related questions during interviews. Intervention: - discuss audit data with employees - formal change is more straightforward - change structure for personal responsibility and discourage unquestioning obedience. Participation in creating codes, distribute them, enforce them. Obtain employee buy in Performance management that foceses on process and outcomes. reporting systems with confidentiality assured. Orientation/training that discusses values. Selection/Promotion with integrity considered. decision making with time devoted to ethics.
Doctrine of Double Effect
It is ethically okay to do something that is morally good even if it has a morally bad side effect, provided the bad side effect wasn't intended. This is true even if you foresaw that the bad effect would probably happen.
Cognitive Moral Development Levels
Level 1: (Pre-Conventional Morality) most common in children vs adults Stage 1 - obedience and punishment orientation (Lacks empathy for the individual) Stage 2 - Instrumental purpose and exchange (What's in it for me?) Level II: (Conventional Morality) Most people are in this level. Stage 3 - Interpersonal Accord - Conformity - Mutual Expectations (Respect, Gratitude, Golden Rule) Most people stay in stage 4. Abiding by laws. Stage 4 - System Maintenance - Upholding duties, laws (What is right? What is wrong?)
Cognitive Moral Development Levels
Level III: (Post-Conventional or Principled Morality) Can disobey rules because they have their own principles. Rules are useful but not absolute. Stage 5 - Social contracts and rights. Laws are not rigid edicts. Laws should be changed for the greatest good. Stage 6 - Theoretical Stage Only. Abstract reasoning on universal thought.
Three aspects of ethics (3)
Knowledge Conduct Governance
Why are people unethical?
Lack ethical awareness Do not have a standard ethical decision making process Cognitive biases and organizational practices can blind unethical behavior.
View problems through lenses:
Lenses are the theories which can serve us when looking at problems
Rights can be thought of as Negative Rights
Limits on government interference with citizens' right to privacy or the pursuit of happiness.
Informal Change
More difficult "art" rather than science Attention to symbolic management Re-create rituals, symbols, stories Remythologize the firm - consider current values/needs of firm - infrequently because the strength of culture comes from stability across time.
Cognitive Moral Development Level II
Most adults are in this category.
Role Models & Heroes
Modeling is a well documented means of transmitting values, attitudes and behaviors. formal and informal - informal - what employees observe of people in authority or they respect. - formal - mentoring socialization systems
Two (2) pillars of ethical leadership
Moral Person Moral Manager
Kohlberg's Theory of Moral Development
Moral development takes place in 3 broad levels, each composed of two stages and awareness of other people increases at each stage
Natural Rights which emerge from
Natural Law.
Cognitive Moral Development Level I: Pre-conventional Stage 1: Obedience and Punishment Orientation
Obedience to authority for its own sake. Sticking to rules to avoid punishment.
Personal Responsibility
Obligations that each person assumes individually; accepting consequences for actions, behave in civil manner.
Idealists
One should always avoid harm (high idealist) vs. harm is sometimes okay because i produces good (non-idealist)
Chapter 5
Organizational Ethics
Influence of Culture on Individuals
Organizational ethical culture can affect all three (3) stages of the ethical process: Ethical awareness Ethical judgement Ethical Action whereas Individual culture can affect two (2) stages of the ethical process: Ethical Judgement Ethical Action
People tend to look to others in their social environment for guidance.
Peers Agree Section
People are more likely to be ethically aware if:
Peers agree Ethical Language is Used Decision has potential serious harm to others.
Illusion of Superiority
People overestimate their positive qualities and underestimate their negative qualities relative to others
Focuses on avoiding punishment
Stage 1
Advantages to Consequentialist Approach
Practical Way most of people think
Ethical decision making
Prescriptive Approach Descriptive Approach
you scratch my back and I'll scratch yours
Stage 2
Giving Voice to Values
Purpose is Self Story: Questions of Purpose Questions of Risk Questions of Personal Communication Style or Preference Questions of Loyalty Questions of Self Image
Focuses on interpersonal trust and social approval
Stage 3
System 2 thinking
Reflective thinking that is slow, deliberate, and conscious. Often less charged with emotions. analytic Slow Costly Avoided/Lazy
Fairness with Others
Resources distributed equitably open to and solicits input equal respect - never condescending, even in disagreements. offers explanations of decisions. willing to admit to and correct mistakes. willingness to listen - invites argument - a reason or set of reasons given with the aim of persuading others that an action or idea is right or wrong. ethical decision making is searching for morally appropriate action. an ethical leader must be willing to listen to other perspectives and change opinion based upon validity of arguments from others.
Focused on following the rules or laws that are designed to promote the common good
Stage 4
Considers the possibility of changing the law for socially useful purposes
Stage 5
Jack Abramhoff's downfall
Rationalization Overconfidence Bias Framing Self serving bias
3 Components to Define Fairness
Reciprocity Equity Impartiality
Consequences for decision making
Reduce the number of consequences - Likely to ignore consequences which affect a few people. Consequences for the self vs. for others - people who make decisions in a self interested manner. When consequences of multiple alternatives are ambiguous, people tend to choose the alternative they prefer rather than the one which is more just.
How people thiunk about consequences - Challenges
Reduced number of Consequences - people simplify their decisions and make them mor emanageable by reducing the number of consequences they consider. Consequences for the self versus consequences for others - making decisions in a self interested manner.
Self Assessment questions
Questions of Purpose: what are your goals Questions of Risk: risk profile Questions of Personal Communication Style: Deal well with conflict? Questions of Loyalty? loyalty to family? other? Questions of Self Image: Idealistic or pragmatic
Self Assessment Questions
Questions of Purpose: what are your personal and professional goals? Questions of Risk: What is your risk profile? are you a risk taker or risk averse. Questions of Personal Communication Style or Preference: Deal well with conflict? or non-confrontational? Do yo prefer communicating in person or letter? Questions of Loyalty: Do you tend to feel the greatest loyalty to family, colleagues, employer or stakeholders? Questions of Self Image: identify as shrewd or naive? idealistic or pragmatic?
Sexual Harassment (Title VII)
Quid pro quo sexual harassment -sexual favors are a requirement, or seem to be a requirement, for advancement. Hostile Work Environment - a worker feels uncomfortable because of unwelcome comments or behavior of a sexual nature.
Moral Manager (Brown 2005)
Role Modeling Takes visible ethical action Rewards/Discipline Hold people accountable for ethical conduct. Communicating Sends an "ethical and values" message
Script Processing
SCRIPTS: cognitive frameworks that guide our thoughts and actions. Contain information about the appropriate sequence of events in routine situations.
Three (3) qualities that differentiate great leaders from average ones
Self Awareness Self Management Empathy
How Culture Influences Behavior
Socialization - (Sensemaking and Sensegiving) - Sensemaking: process by which org members gain an understanding of the work environment by observing those around them. - Sensegiving: how the org influences employees interpretation of sensemaking. - Internalization: when employees adopt the or values on its own. can also occur when the employee adopts the company's values over time. Formal - Values and Mission Statements - Policies and Codes - Orientation and Training Programs - Performance Management Systems. Informal - role models and heroes - Norms: The way we do things around here - Rituals - Myths and Stories
conscientious moral agent
Someone who is concerned impartially with the interests of everyone affected by what he or she does.
Cognitive Moral Development Level II: Conventional Stage 3: Interpersonal Accord, Conformity, Mutual Expectations
Stereotypical "good" behavior. Living up to what is expected by peers and people close to you.
You should guard your reputation as it is built slowly with countless actions, but it can be destroyed in an instant by one foolish mistake
True
System 1 vs. System 2
System 1: automatic evaluation based on pre-set assumptions System 2: Slower, more effortful, deliberate processing
The brain is in two sytems, called...
System 1: fast and intuitive System 2: slow and deliberate
Anchoring Effect
Tendenc to rely too heavily ("anchor") on a past reference or on one trait or piece of infomration when making decisions (also called "insufficient adjustment")
Disclosure Rule
Test an ethical decision by asking how you would feel explaining it to a wider audience such as newspaper readers, television viewers, or your family
Conflict of Interest
a conflict between self-interest and professional obligation
Adam Smith's first book
The Theory of Moral Sentiments
Context
The circumstances, atmosphere, attitudes, and events surrounding a text.
Consumer Trust
The degree to which consumers trust organizations has a direct impact on their buying patterns.
Bounded Awareness
The systematic ways in which we fail to notice obvious and important information that is available to us. Emotion vs Reasoning
Moral Disengagement: Individuals have a higher (or lower) propensity to deactivate self control systems through eight (8) moral disengagement mechanisms.
These moral disengagement mechanisms allow individuals to engage in unethical behavior without feeling bad about it.
Discrimination can be subtle or not so subtle
Those who don't fit the "corporate profile"
Laws to Prevent Discrimination
Title VII of the Civil Rights Act of 1964 Age Discrimination Act of 1967 1973 Rehabilitation Act - Protects disabled Americans against disrimination by federal , state, and local governments, agencies, and contractors. Pregnany Discrimination Act of 1978 Americans with Disabilities Act of 1990 - exteneded protections to private sector of companys of 15 or more people
Difference between causality and correlation
To answer questions like this, we need to understand the difference between correlation and causation. Correlation means there is a relationship or pattern between the values of two variables. ... Causation means that one event causes another event to occur
Moral Person (Brown 2005)
Traits Honest, Integrity, Trust Behaviors Openness, concern for people, personal morality Decision Making Values based, Fair, Giving people a voice
Consequences of Secrecy
Transparency is important. Decisions in private in order to avoid some negative reaction.
Golden Rule
Treat others the way you want to be treated both parties must be ethical
Platinum Rule
Treat people how they want to be treated.
1. A virtue ethics approach is particularly useful for individuals who work within a professional community, such as the accounting profession, that has developed high standards of ethical conduct for community members.
True
A challenge involved in using a strictly consequentialist approach is that it is often difficult to obtain the information required to evaluate all of the consequences for all stakeholders who may be directly or indirectly affected by an action or decision.
True
A major challenge of taking a deontological approach to resolving an ethical dilemma is deciding which duty, obligation, right, or principle takes precedence because ethical dilemmas often pit these against each other.
True
A virtue ethics perspective requires a moral actor to look to the community that will hold the moral actor to the highest ethical standard and support the moral actor's intention to be a virtuous person.
True
According to cognitive moral development theory, the actual moral decision is not as important as the reasoning process used to arrive at it.
True
An effective way to avoid decision making weaknesses and biases is to become aware of them and to incorporate steps into decision making that are explicitly aimed at reducing their impact
True
An effective way to avoid decision-making weaknesses and biases is to become aware of them and to incorporate steps into decision-making that are explicitly aimed at reducing their impact.
True
An organization led by a leader high in cognitive moral development establishes a much stronger ethical climate in the organization
True
Business managers generally rely on the consequentialist approach.
True
Cognitive biases are the result of trying to reduce uncertainty and simplify the world
True
Cognitive biases are the result of trying to reduce uncertainty and simplify the world.
True
Ethical dilemmas represent conflicts in values
True
If an individual does not recognize that he or she is facing an ethical dilemma, then ethical judgement is likely not to occur
True
In organizations, individuals high on Machiavellianism are significantly more likely to have unethical intentions and to engage in unethical behavior including accepting kickbacks
True
Kohlberg argued that the higher the reasoning stage, the more ethical the decision
True
Managers must structure the work environment to support ethical conduct and this includes ensuring that reward systems are aligned with the ethics of the firm
True
Neutral language can be used to make an unethical action seem less problematic
True
One of the best things we can do to preserve our moral intent is to monitor our own rationalizations.
True
People's locuse of control is relatively stable, but can change over time
True
Stage 1 of Kohlberg's Levels of Moral Reasoning is focused on avoiding punishment.
True
The human ability to rationalize is perhaps the single most important factor that enable good people to give themselves license to do bad things.
True
The human ability to rationalize is perhaps the single most important factor that enables good people to give themselves license to do bad things.
True
The self-serving bias can cause us to selectively remember things that make us look good.
True
Ethical Culture Change
Unethical to Ethical Managers who want to change. Pressure for change comes from outside forces. - stockholders, the government, regulators. - threat of government regulation - sentencing for corporate crimes. Vulnerable to external pressures because of other corporate wrongdoings. New CEOs hired for change - clout and resources to make changes.
Cognitive Moral Development Level III: Post-conventional or Principled Stage 5: Social Contract and Individual Rights
Upholding rules because they are the social contract if they are consistent with values such as fairness and rights and the greater good (not because of the majority opinion)
Best known consequentialist theory
Utilitarianism
Consequentialist Theories (aka Teleological)
Utilitarianism - an ethical decision should maximize benefits to society and minimize harms. What matters is the net balance of good consequences over bad for society overall.
Excellence - Value
We are satisfied with notherin less than the very best in everything we do.
cognitive blindness
We make decisions based upon the facts as they appear.
Illusion of Validity
We overestimate our ability to use data to accurately predict an outcome, especially when the data analyzed tells a coherent story.
Integrity - Value
We work with customers and prospects openly, honestly and sincerely
Advantagous Comparison
We're not as bad as others. A rationalization and a distraction.
Virtue Ethics Questions
What does it mean to be a person of integrity in this situation, profession, etc.? What ethical community would hold me to the highest ethical standards? Do carefully developed community standards exist? What would the broader community think if this were disclosed? New York Times test? What would my "harshest moral critic" expect me to do? What would my "ethical role model" expect? What do I want my professional reputation to be?
Prescriptive Ethical Theories
What individuals decide what they SHOULD do in response to ethical dilemmas.
Cialdini 1993
When looking at tethics in organizations, one cannot merely consider core values statements and ignore social proof.
Fairness
Willingness to listen
Think with your Gut
Your gut alerts you to something which is wrong. Ethical judgements are often more intuitive, impulsive, and automatic than deliberative.
Culture
a body of learned beliefs, traditions, and guides for behavior shared among members of a society or a group.
cost-benefit analysis
a decision-making process in which you compare what you will sacrifice and gain by a specific action. Reducing the value of human life to quantitative terms can remove moral criteria from the decision making process and reduce ethical awareness.
Ethical Awareness
a person recognizes that a situation or issue is one that raises ethical concerns and must be thought about in ethical terms.
Willful Blindness
a person trying to avoid responsiblity by intentionally puttting themselves in a position so they do not know something or appear to be unaware.
Conflicts of Interest
a person's judgement or objectivity is compromised, typically because of financial or other gain for the person making a decision or for a close relative or friend.
Ethics
a set of moral principles or values
ethical dilemma
a situation in which two or more "right" values are in conflict
Cognitive Bias
a type of error in htinking that occurs when people are processing an interpreting information in the world around them
Quid Pro Quo
a type of sexual harassment wherein an individual believes that sexual favors are a requirement for advancement in the workplace.
Corporate Reputation
a widely held perception of a company by the general public
special fiduciary responsibilities
acting in the best interest of the customer or company.
Organizational Culture
affects the way groups interact, as well as their stakeholders.
B.F. Skinner
all behavior is controlled, either intentionally or unintentionally.
Eight Moral Disengagement Mechanisms
allow individual sto engage in unethical behavior without feeling bad about it.
Appearance of a Conflict of Interest
an appearance that your judgement has been compromised.
Whistleblower
an employee who exposes unethical or illegal conduct within the federal government or one of its contractors
Locus of Control
an individual's perception of how much control he or she exerts over life events.
Locus of Control
an individual's perception of how much control he or she exerts over life events. A single continuum from a high internal locus of control to a high external locus of control.
Ethical Behavior can be influenced by:
an individual's religion an organization's culture ethical training an individual's personality
Organizational justice
an overall perception of what is fair in the workplace, composed of distributive, procedural, and interactional justice
Stakeholder
any person or group with a stake in the issue at hand.
stakeholder
any person or group with a stake in the issue at hand.
Those with higher Internal locus of control
are more likely to avoid pressure to violate social norms because they believe they are in charge of their own fate.
Representative Heuristic
assessing similairty of objects and organizing them based on likeness. used because it is an easy computation. people overestimate its ability to accuratley predict the likelihood of an event. people rely on representativeness to make judgements, they are likley to judge wrongly because the fact that something is more representative does not make it more likely.
Machiavellianism
associated with unethical action. individuals who act in self interest; opportunistic, deceptive, and manipulative ways to win no matter what the cost or how it affects other people. "Ends justify the Means"
Strong Culture
assujptions, values, beliefs widely shared
Deontological "Duty" approach
base decisions about what's right on broad, abstract, universal ethical principles or values such as honesty, promise keeping, fairness, loyalty, rights (to safety, privacy, etc.), justice, responsibility, compassion, and respect for human beings and property.
Ethical judgement AND action
based on individual characteristics from moral reasoning.
Common Sense
based on upon a loosely organizaed set of facts, observations, and experiences that we accumulate over our lifetime. Not theoretical. It is practical.
Perceived Fairness
based upon individual perceptions of authority's (e.g. organization, leader, manager, etc.) decision making.
Ethical behavior in business
behavior that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society.
Self management
being able to manage your emotions in ways that allow you to effectively lead youself
System 2 endorses the suggestions by System 1, the impressions and intutions turn into
beliefs and impulses turn into actions.
Alignment
both formal and informal systems are "pushing" employees in the same direction - either ethical or unethical. examples: policies and training match what employees observe of leaders and coworkers.
Patter recognition
brain sees patterns.
consequentialist theory "aka Teleological"
focus attention on the results or consequences of the decision or action.
Deontological Approach
certain moral principles are binding, regardless of the consequences.
Cognitive Moral Development represents a
cognitive "capacity" to reason about ethical dilemmas at a particular level, and that it is possible to act below one's capacity.
"Slippery Slope"
committing increasingly serious ethical infractions over time.
Decision Making
complex endeavor
What if others are Unethical?
complicit? by not reporting?
Customer Confidence
confidentiality, product safety and effectiveness, truth in advertising, and special fiduciary responsibilities.
Customer Confidence
confidentiality, product safety and effectiveness, truth in advertising, and special fiduciary responsiblities, respect for others.
Customer Confidence Issues
confidentiality, product safety, truth in advertising, special fiduciary responsibilities
Tendency to search for and focus on information that endorses the decision we prefer
confirmation bias
Prescriptive ethical decision making lens is helpful when considering
conflicts of interest. Utilize veil of ignorance
Role of Culture
culture and climate are cruicial to understanding how unethical cultures facilitate unethical and illegal activity within organizations (Trevino, 2001) Ethical cutlures within organizations can influence the process and judgment dimension of integrity (Barnett & Varcys, 2000) Incidents of unethical behavior can help to shape a cutlure that influences future incidents, thus creating a cycle of unethical behavior. (Sinclair, 1993)
Corporations can have ethical and unethical
cultures
Rawls Veil of Ignorance
deciding what's fair
Deontological approach challenges
deciding which duty, obligation, right or principle takes precedence because ethical dilemmas often pit these against each other. when they conflict with consequentialist reasoning. ex: telling the Nazis of jews hiding in your attic.
John Rawls
decision makers use a veil of ignorance exercise to arrive at fundamental principles of justice that should guide ethical decision making. Rational people who use the veil of ignorance principle will be more likely to develop ethical rules that do not unfairly advantage or disadvantage any particular group.
Consequences of Time: Escalation of Commitment
decisions are a series of choices within the context of investment in a larger decision. "good money after bad".
Organizations have core values as well
define what the organization believes. Expressed in mission and value statements.
Pattern recognition can be flawed
derived from perceptions and applied to memories. Perceptions may not be accurate. How accurate are our memories?
People Issues
describe the ethical problems that occur when people work together. The problems may concern privacy, discrimination, sexual and other types of harassment, or simply how people get along.
Altruism
disenterested and unselfish concern for the welfare of others. "working with the elderly out of altruism"
Moral Licensing -
doing good in one manner and offsetting unethical behavior because of that.
Motivated Reasoning
emotion-based confirmation bias that leads people to confirm what they already believe, whiule ignoring contrary data. Drives people to develop elaborate rationalizations to justify holding beliefs that logic and evidence have shown to be wrong. Results in defensive responses to contrary evidence. Driven by a desire to avoid cognitive dissonance. Basis for conspiracy theory beliefs.
Misalignment
employees are getting mixed messages about expectations. ex: Enron
Conversations with co-workers, trainings, policies, etc. all help
employees identify ethical issues
Human decisions are based on
ethical and emotional considerations as well as rational economic self interest.
Script Processing can be problematic
ethical decision making requires active consideration of the more dimensions of the situation and a "custom" decision, tailored to the complexities of that particular case. But in many occasions members don't even know their is an ethical dilemma. They handle situations by following scripts that are likely to exclude ethical considerations.
People Issues
ethical problems that occur when people work together. Problems with privacy, discrimination, sexual and other type of harassment, or simply how people get along. Key considerations: fairness/Equity/Impartiality/ recriprocity
Ethical Cutlure Change
ethical to unethical unethical to ethical - change for alignment between formal and informal - change at lower levels must be supported by higher levels - modeled by senior managers. New members actively accept culture, especially if alignes with their values, but change for existing members is difficult. Changing individual/group behavior is time consuming and difficult - cultural persistence/inertia.
Symbolic consequences
every decision and action sends a message.
Overconfidence Bias
excessive confidence in one's own ansers (e.g., for certain types of questions, answers that people rate as "99% ceratin" turn out to be wrong 40% of the time.
Overconfidence Bias
excessive confidence in one's own answers.
Change blindness
failing to notice changes in the environment change is made during an eye movement or an eye blink Change blindness can also occur if the change is made while the changing item is occluded by another object
Humans are hardwired for
fairness and altruism
According to research, one's ethics are fully formed and unchangeable by the time one is old enough to enter college or a job.
false
The tendency to overemphasize personality based explanations for behaviors observed in others while under emphasizing the role and power of situational influences on the same benavior.
fundamental attribution error
Confirmation Bias
give more weight to facts that support our already held opinion. can makes us rationalize vs reason.
Smith
good life derives from the expression of "beneficence", not from material wealth.
availability heuristic
greater weight to events/facts that we can recall. Biased worard vivid, unusual or emtionally charged examples.
Behavioral Economists
have found that people are not only less rational than classical economists assumed, but more moral.
High Idealists
high ethical intentions because of strong concern with doing no harm.
High Relativism
high unethical intentions because they do not follow clear ethical principles and find it easier to rationalize unethical behavior
Concept of Fairness: Organizational Justice
how employees judge the behavior of the org.
Kohlberg's moral reasoning theory is a cognitive developmental theory that focuses primarily on
how people think about and decide what course of action is ethically right.
Disclosure Rule
how would you feel if your behavior appeared on ____? The assumption behind the disclosure rule is that community standards do exist for most situations, and at a gut level, most of us know what those are.
Utilitarianism
idea that the goal of society should be to bring about the greatest happiness for the greatest number of people
Ethical Decision-Making Style
idealism and relativism
Utilitarian approach
identify stakeholders alternative actions and their consequences (harms vs benefit)
Unsconscious distortion of information in order to maintain a positive self image:
illusion of superiority
Illusions of Thoughts
illusions which affect our thought.
Level III: Postconventional Morality aka: Principle Reasoning
individual has developed beyond identification with others' expectations, rules and laws to make decisions more autonomously. Looks to ethical principles of justice and rights. Stage 5 - Social Contract and Individual Rights. social contract Emphasis on rules and laws as they represent the social contract. Willing to question the law and to consider changing the law for socially useful purposes. Stage 6 - universal ethics right and wrong. Theoretical Stage. following ethical principles of justice and rights. Acting in accord with principles when law violate principles.
Level II: Conventional Morality
individual is still externally focused on others but is less self centered and has internalized the shred moral norms of society or some segment like a family or work group. What's right is what pleases or helps others or is approved by those close to you. Stage 3: Interpersonal Accord, Conformity, Mutual Expectations. Interpersonal trust and social approval are important. Stage 4: Social Accord and System Maintenance: Fullfilling duties and obligations of the social system. Upholding laws and rules except in extreme cases where they conflict with social duties. Individual is concerned about fulfilling agreed upon duties and following rules or laws which are designed to promote the common good. Perspective broadens to consider society.
rational choice theory
individuals always make prudent and logical decisions that provide them with the greatest benefit or satisfaction and that are in their highest self interest. EV = Probability * Payoff
Thinking about Integrity
individuals think positively about their own ethics. Unconsciously filter and distort information to maintain positive self image. ILLUSION OF SUPERIORITY: Thinking one is more ethical, fair and honest than most. ILLUSION OF MORALITY: belief that the group's decisions are morally correct Virtue Ethics: rely on ethics of profession. Integrity: a person may like to think that he/she is a person of integrity, but engages in small indiscretions.
Illusion of Validity
is a cognitive bias in which a person overestimates his or her ability to interpret and predict accurately the outcome when analyzing a set of data, in particular when the data analyzed show a very consistent pattern—that is, when the data "tell" a coherent story.
Hostile Work Environment
is a type of sexual harassment wherein a worker is made to feel uncomfortable because of unwelome actions relating to sexuality.
Discrimination
is an ethical issue. it's at the core of fairness in the workplace.
Equality
is the quality of being the same in status, quantity, and value
Conflict of Interest
is your judgement or objectivity compromised. bribes, undue influence, access to priviledged information.
Long term vs short term consequences
it is important to think about both in business.
Heuristics
judgement shortcuts in decision making. used at the cost of occasionally sending us on the wrong path. Useful as they use effort reduction and simplication in decision making.
Adam Smith's "Wealth of Nations"
justify breed of capitalism that abhors regulation and focuses on short term profits over long term stewardship.
Self awareness
knowing your own strengths and limits and strengthening your inner ethical radar.
Cost of Descrimination
legal fees, punitive damages, media coverage, morale of existing work force. Important Note: Valuing Diversity * Discrimination means treating people unequally beacuase they are, or appear to be different. * Valuing diversity is a positive action - treating people equally while incorporating their diverse ideas.
optimism bias
less at risk at experiencing negative affects than everyone else. Rules don't apply to them.
high external locus of control
life events are determined primarily by fate, luck or powerful others.
Ethical Judgement Process
making a decision about what is the right thing to do in a situation with ethical overtones. A truly unique form of decision making.
False memories
memories for events that never happened, but were suggested by someone or something
Virtue Ethics Approach
moral behavior stems from personal virtues the integrity of the moral actor (person) than on the moral act itself (the decision or behavior)
Virtue Ethics Approach
moral behavior stems from personal virtues. focuses on the integrity of the moral actor than on the moral act itself (decision or behavior)
Deontological approach
moral principles are binding, regardless of the consequences. Some actions are wrong even if the consequences of the actions were good. focuses on "doing what is right"
Business school students ranked lower in
moral reasoning than other students.
Loyalty to a particular group can lead to
more ethical behavior, but it can also be problematic.
Principled based approach
most cherished values
Integration
most of the time System 2 adopts the suggestions of system 1 with little or no modification. You generally believe your impressions, which is usually fine.
Ethical conduct may be either/or
nature vs nurture
Virtue ethics -
one's character may be defined by a relevant ethical community - a community that holds you to the highest ethical standards.
Virtue ethics
one's character may be defined by a relevant ethical community.
F. Neil Brady
observed that when faced with an ethical dilemma, managers reasoned from dual perspectives. His model proposes that individuals, when faced with an ethical dilemma use two separate and practical reasoning styles.
Illusion of Causality or Correlation
occur when people develop the belief that there is a causal connection between two events that are actually unrelated. "pick pocket vs loss of wallet"
Locus of control does not shift from
one situation to another
Values
one's core beliefs about what is important, what is valued, and how one should behave across a wide variety of situations.
The authors focus on
organziation factors because these facotrs can be diredlty controlled by managers.
Ethical conduct is influenced by
our environment
High internal locus of control
outcomes of his or actions are primarily the result of his or her own efforts.
Conflicts of Interest examples
overt bribes or kickbacks Subtle Bribes Influence Privileged Information
Common Sense is a
paradox It can undermine our ability to correclty understand the world.
Intuitition
pattern recognition
Heirchacle Mum affect
people are hesitant to convey bad news to the chain of command
Prospect Theory
people choose to take on risk when evaluating potential losses and avoid risks when evaluating potential gains
illusion of superiority or illusion of morality
people tend to think of themselves as more ethical, fair, and honest than most other people
Illusion of Control
people's belief that they overestimate their ability to influence events, even when they have no control over what will happen
Self Story "narrative"
personal characteristics that will help you find ways of behaving that align with your image
what do we do when values conflict?
possible lie for good reason or excusable?
Realism
pragmatic - what "is" rational safer choices Ethical principles dependent on situation. More goal oriented
2 ways of ethical decision making
prescriptive approach descriptive approach
Confidentiality
privacy is a basic right.
Neutral language can be used to make an unethical action seem less
problematic.
Decision making is a
process
Virtuous persons balance
prudence (mature self love), strict justice and benevolence, and ideal societies.
Resemblence Heuristic
psychological heuristic pertaining to how people make judgments based on similarity
Descriptive Approach
psychological research to describe HOW people actually make ethical decisions. Focuses in particular on individual characteristics that influence how individuals think and on cognitive limitations that often keep people from making the best possible ethical decisions.
2 types of sexual harassment
quid pro quo: sexual favors are a requirement, or appear to be a requirement, for advancement. and hostile work environment: employee has been made to feel uncomfortable because of unwelcome actions or comments relating to sexuality.
Moral Disengagement
rationalizing immoral behavior as legitimate, as a way of justifying one's own bad acts.
Intuition
reason by analyogy to situtations that seem quite similar to ones we are currently facing. rather than exploring a wide range of options, if we find an analogy that seems to fit, we often go with it. Works most of the time. works best when we face problems with which we have had experience.
the decision about whether the behavior constitutes harassment is determined from the viewpoint of a
reasonable person
Ethical Awareness is the
recognition that a situation or issue raises ethical concerns.
Memories are
reconstructed at each recall
Law
reflecting society's minimum norms and standards of business conduct.
Evaluate
regular surveys and interviews analyze documents Law suits and other reports most org's are unwilling to invest in evaluation and thus can't evaluate effectiveness.
Pre-scripting
rehearse voicing your values to increase the odds and comfort of doing so in the moment. certain actions, or deciding to take the actions in advance, tends to make an actor more likely to do a certain action.
Cognitive Bias
result of our attempt to simpligy information processing. Rules of thumb that help us make sense of the world and reach decisions with relative speed.
Some Deontological Theories focus on
rights rather than duties, values, or principles
Deontological theories can also focus on
rights rather than duties, values, or principles.
Rights can be thought of as positive rights
rights to health and safety.
Being able to see the situation though others' eyes is a key skill called
role taking
Relationship between ethics and law
see diagram
Pareidolia
see patterns which do not exist.
Level I: Pre-conventional Morality
self centered views ethical rules as imposed form outside the self. Stage 1: Obedience to authority for its own sake. sticking to rule to avoid punishment Stage 2: Instrumental Purpose and Exchange: Following rules only when it is in one's immediate interest. Right is an equal exchange, gettiung a good deal. Personal reward What's in it for me? Can I get away with it? Will I get punished?
Trust is essential in a
service economy
Fairness
signals organization/person can be trusted. Demonstrates that org/person values you. Neurological response when things seem unfair.
Locus of Control can be thought of as a
single continuum from a high internal locus of control to a high external locus of control.
Ethical Dilemma
situation in which two or more "right" values are in conflict.
Virtue ethics perspective considers
the actor's character, motivations and intentions. important that the individual INTENDS to be a good person.
According to Kohlberg
the actual decision an individual makes isn't as important as the reasoning process used to arrive at it.
Bias Blind Spot
the cognitive bias of failing to compensate for one's own cognitive biases.
Machiavellian-ism
the degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. Self Interested Opportunistic Deceptive Manipulative ends Justify the means Associated with sociopath/psychopath
moral intensity
the degree to which an issue demands the application of ethical principles
Organizational Climate
the employee's shared perceptions of the organization in terms of policies, pracxtices, expectations, and outcomes. Climate is a more surface level phenomenon reflecting individual or group experiences. Climate is easier for us to change than culture.
Endowment Effect
the fact that people often demand much more to give up an object than they would be willing to pay to acquire it.
Endowmnet Effect
the fact that people often demand much more to give up an object than they would be willing to pay to acquire it.
Core Values
the important principles that will guide decisions, behavior and actions
morally intense
the moral intensity of an issue is higher when consequences for others are potentially large, the consequences are relatively immediate and likely to occur, and the potential victims are psychologically or physically close to the decision maker.
Doctrine of Double Effect
the moral principle that performing a bad action to bring about a good effect is never morally acceptable but that performing a good action may sometimes be acceptable even if it produces a bad effect
Discrimination
unequal treatment based on one's race, gender, ethnicity, national origin, religion, age, disability, etc. Standard for hiring, promotions, etc. should be the ability to do the job. People are passed over because they don't fit the "corporate profile" (may be discriminatory)
External Locus of Control
the perception that chance or outside forces beyond your personal control determine your fate.
Internal Locus of Control
the perception that you control your own fate
Memory
the persistence of learning over time through the storage and retrieval of information
Idealism
the person's concern for the welfare of others ( a focus on consequences)
Idealism
the person's concern for the welfare of others ( a focus on consequences) What "should be" More risky decisions
Relativism
the person's emphasis on ethical principles being dependent on the situation rather than being applicable to all situations (similar to deontological theories)
Relativism
the person's emphasis on ethical principles being dependent on the situation rather than being applicable to all situations. (similar to deontological theories)
Core Values
the primary or dominant values that are accepted throughout the organization Organizations guiding principles Corporations Value or Mission Statements
Ethics
the principles, norms, and standards of conduct governing an individual or group - focuses on conduct.
Cognitive Moral Development
the process of moving through stages of maturity with regard to making ethical decisions
Fundamental Attribution Error (Bias)
the tendency for people to overemphasize personality based explanations for behaviors observed in others while under emphasizing the role and power of situational influences on the same behavior.
Conformity Bias
the tendency people have to take their cues for ethical behavior from their peers rather than exercising their own independent ethical judgment.
Confirmation Bias
the tendency to attend to information that will help confirm the decision we would prefer to make.
Hindsight Bias
the tendency to see past events as being predictable at the time those events happend.
Hindsight Bias
the tendency to see past events as being predictable at the time those events happened.
Anchoring
the tendency, in making judgments, to rely on the first piece of information encountered or information that comes most quickly to mind
Organizational Culture
the underlying shared values and beliefs which lead to the experiences that influence the development of those perceptions.
Framing
the way an issue is posed; how an issue is framed can significantly affect decisions and judgments.
Leaders create culture by
their actions and behaviors what they pay attention to what gets rewarded and what gets punished the allocation and attention to resources
Prospect Theory
theory that suggests that a decision, or argument, can be framed in different ways and that the framing affects risk assessments consumers make
Ethical language, both positive (integrity, honesty, etc.) and negative (lying, cheating)
trigger ethical thinking / awareness
two "right" values that can create significant conflict are
truthfulness loyalty
Empathy
understanding the emotional reactions of others in order to lead them effectively.
Discrimination
unjustifiable negative behavior toward a group and its members
leaders hav ethe single biggest impact on the ethicality or org culture
values ar ethe glue that holds an org and its employees together. values must be conveyed from the top of the organization (Dickson 2001)
John Rawls
veil of ignorance
Memory
we can add/subtract facts
Intuition as a Problem Solver
we can intuitively resolve many problems quickly and effortlessly "Danger". "Sense to survive"
Communication - Value
we have an obligation to communicate
Respect - Value
we treat others as we would like to be treated
Conflict of Interest
when a person's judgement or objectivity is compromised, typically because of financial or other gain for the person making a decision or for a close relative or friend.
Socialization
when employees lear appropriate behaviors.
Negativity bias
where people pay mor eattention to and give more weight to negative rather than positive experiences.
Negativity Bias
where people pay more attention to and give more weight to negative rather than positive experiences.
Challenges of deontological approach
which duty, obligation, right, or principle takes precedence? When this approach conflicts with the consequentialist approach.
Hostile Enviornment
would a reasonable person define it as hostile. Reasonable person standard. was it physically intimitading? did it affect the employees performance?
Culture vs Value statements
you must look at the org itself, not just its statements. They may be a presentation only.
Virtue ethics perspective assumes that
your identify as a moral actor is important to you and that you are devoted to continuously developing that aspect of yourself.
