Ethical Decision Making

Daniels College Mission

= Organizational Performance/ Results The Leadership Success Equation Values-Based Leadership Ethical Dilemmas Ethical Decision Making Corporate Responsibility Sustainable Development Intersections between Ethics and Law + Business/ Technical Acumen Leadership Intelligence Ethical Foundation + Dynamic Context Values & Ethical Foundation Execution Competence

Ethical Aptitude Survey Forced Choice Survey of decision making preferences and styles from a moral point of view

What is ethics and morality anyway?

Basic Concepts Morality-- norms, standards, principles guiding right/ wrong actions Ethics -- study/critical analysis of morality or moral situations and judgments Business Ethics -- applying ethical analysis to business situations

Elements of Ethical Situation Significant Harm / Potential Harm Choice Relevant Norms, Standards, Principles

Making Ethical Choices What should be the basis for making ethical decisions in the organization? What principles or values should guide decision makers? How does one determine what is right, good, appropriate?

Codes vs. Credos Credos and Values Statements — Examples  Johnson & Johnson (  Levi Strauss `(

Another Values Statement Communications - We have an obligation to communicate. Here, we take the time to talk with one another… and to listen. We believe that information is meant to move and that information moves people. Respect -We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Integrity -We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, then we won’t do it. Excellence -We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be.

What is ethically “right” for Bob to do? Hallet Peak at Sunrise

What about the dishonest DA?

Common Features Ethical Decision Making Frameworks Impartiality-- weighting interests equally Rationality-- backed by reasons a rational person would accept Consistency-- standards applied similarly to similar cases

Utilitarianism Features / Assumptions Consequentialist/ Teleological--consequences determine “rightness” action Acts not inherently right or wrong Focus on group happiness

Utilitarianism Decision Rule/Process Principle of Utility-- Greatest good for greatest number (maximize good) Decision Process — Identify alternatives — Evaluate likely costs/benefits for alternatives — Choose alternative that maximizes happiness for all affective

Utilitarianism Problems/Limitations Predicting consequences Measuring and quantifying Individual rights/Minority Rights Distribution of happiness/distributive justice

Kantian (Duty-Based) Features/ Assumptions Duty-based/ deontological -- determining moral duty determines right action Focus on individual and rights Moral standing -- consider those who have ability to reason Imperatives as commands of reason Hypothetical vs. Categorical Imperatives

Kantian Moral Decision Rules and Tests Categorical Imperatives: — Act on principles of action that could be willed as universal laws (Universalizable and Reversible) — Act always to treat other rational agents as ends as never as means only (Respect and Dignity)

Problems/ Issues and Criticisms of Kant Absolutism of rules-- no exceptions to moral duty Resolving conflicts of duties Multiple description of acts Universalizability not sufficient to determine duty or right action

Ford Pinto Case Situation: — Energy crisis and pressure to develop subcompacts and increase fuel efficiency — CEO Lee Iacocca guidelines: 2/2/2  $2,000 car in 2 years and under 2,000 pounds (usual product development cycle was 43 months) — Design flaw discovered such that because of the location of gas tank, rear collisions over 30 miles/hour would likely result in expolsion and fire. — Short of redesign, bladder could be installed for $5-11. — What should they do?  Cost-benefit Analysis

Ford Pinto Assess the reasoning and justification from an ethical point of view?

Your Ethical Aptitude? The Formula: Score = Odd As + Even Bs - 8

Score Interpretations +7 to + 5 : Flaming Utilitarian +4 to +2 : Moderate Utilitarian -8 to -5 : Ice-Cold Formalist -4 to -2 : Moderate Formalist -1 to +1 : Mugwump

Which Ethical Framework is Correct? Janus – the two-faced Roman god

General Ethical Guidelines for Ethical Decision Making Who is affected by the action? What are the likely harms and benefits? What are the relevant duties and obligations? What action will produce the greatest happiness? Does the action respect all affected and balance competing rights?