WHAT’S RIGHT? PRESCRIPTIVE APPROACH Ethical Dimensions of Leadership Virginia Tech MBA Andrew Watson

Tighten Up Description of transition into this chapter/meeting Song by Archie Bell & The Drells We might listen to Tighten Up, or watch some of a 3-minute videoTighten Up3-minute video Back to the course! Ch. 2 is prescriptive, and includes: Statements about what we should do Eight steps to sound ethical decision making Back to Archie! “Don’t you get too tight” The statements come from a variety of approaches to ethics Next chapter/meeting is descriptive

Agenda Tighten Up slide (and Title slide) came before this one Barclays case Prescriptive approach to “What’s right?” Actually, prescriptive approaches Break somewhere round here Eight-step process Preventive medicine Pinto Fires case Looking ahead

Barclays Case How did your impression of the scandal, and of Barclays’ role in it, change as you read the case? Why? What is LIBOR? What is the LIBOR scandal? How scandalous is it? Why? What was Barclays role in the scandal? Who are the other key actors in the case? Banks? Regulators? Other organizations? Specific individuals? Comments on the LIBOR reforms (on p. 13 of case)?

Prescriptive Approaches Authors “We certainly don’t intend to offer a philosophy course here” Ethical dilemma Multiple “right” values in conflict Layoff example Outline “major contemporary approaches”: Consequences Principles Integrity

Consequentialist Theories Focus on consequences of decisions Utilitarianism: maximize benefits, minimize harm Arguments for? Arguments against? Descendants: Stakeholder theory Utility theory

Deontological Theories Focus on values, principles, etc. But which principles? Do we need to order the principles? Do people have rights? If so, what are they? The Golden Rule “Do unto others as you would have them do unto you” Kant’s Categorical Imperative “Act as if the maxim of thy action were to become… universal” Rawls’ Veil of Ignorance Develop rules as if you don’t know how you’d be affected

Virtue Ethics Focus on personal integrity Intention to be a good person… as defined by a relevant moral community Such as a profession Should management be a profession?

Step One Of Eight 8-step process for “sound ethical decision making in business” Step One: Gather the Facts What qualifies as a fact? What theories explain the facts? What does it take for a theory to acquire the force of fact? Newton’s theory of gravitation Theories of vaccination, global warming,… Let’s look at all eight steps Which are most difficult? Which are most interesting? How does each relate to the rest of the chapter?

Eight-Step Process 1. Gather the facts 2. Define the ethical issues 3. Identify the affected parties 4. Identify the consequences 5. Identify the obligations 6. Consider your character and integrity 7. Think creatively about potential actions 8. Check your gut

Preventive Medicine “Your mission is to be as prepared as possible before you run into a problem” 1. Code of ethics, and policies 2. Ask questions relevant to ethical issues 3. Network within your organization 4. Network outside your organization How does this come from the book? Snap decisions Snappiness may act against ethics

Pinto Fires Case question from the text Process: 8-step from text Perspective: Ford recall coordinator What other processes and perspectives might we use?

Looking Ahead Next meeting/chapter takes a descriptive approach to the “What’s right” question Due from you before we meet next week Ch. 3 of text Skim up to the heading Toward Ethical Action Toward Ethical Action: read this section carefully It includes a reflection on Pinto from someone who was involved Discussion questions: come to class prepared to discuss any 3 of the 10 Due from me before 6am on Saturday I don’t think that there is anything further

Standard Closing Anything else I should say to the whole class? Rest of evening Safe home Enjoy Anything you’d like to discuss with me? As individual or group