1. Ethical Decision Making (Building Trust Through Good Decision Making)
Infotec ICT Masters
Ethical Decision Making
(Building Trust Through Good Decision Making)
Dennis Wittmer

2. DU/Daniels Leadership Development Model
Dynamic Strategic Context + + =
Organizational Performance & Results
Technical/Business Acumen
Leadership Intelligence
Ability to Execute
Values & Ethical Foundation IT
Finance
Human Resources
Operations
Management Support
Marketing
Etc
Build:
Client Loyalty
Organizational Capabilities
Community Value
Self-Awareness
Self-Management
Social Awareness
Relationship Mgmt
Team Effectiveness
Organizational
Leadership
Results Focus
Decision Making
Priority Setting
Dealing with Ambiguity
Planning for Action
Aligning & Motivating Others
Management Process
Change Management
Problem Solving
Personal Development Plan

3. The Leadership Success Equation
4/27/2018
The Leadership Success Equation
Dynamic Context
Business/ Technical Acumen + +
Organizational Performance/ Results
Leadership Intelligence
Execution Competence =
Values & Ethical Foundation
Ethical Foundation
Values-Based Leadership
Build/ Sustain Trust
Ethical Decision Making
Virtuous Leader
Create/Sustain Ethical Climate and Culture

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

5. Daniels Mission:
We develop students of business into ethical leaders who can navigate in a changing global marketplace and world, using their deep experiential knowledge, skills and perspectives.

6. What is morality or ethics?

7. Basic Concepts
Morality– set of norms, standards, principles for the purpose of guiding decisions and actions toward what is good/bad, right/wrong, appropriate/inappropriate
Ethics -- study/critical analysis of morality or moral situations and judgments
Business Ethics -- applying ethical analysis to business situations
Government Ethics– applying ethical analysis to government and public sector situations

8. Ethics Normative Behavioral What is right? What is good?
Prescriptive (“ought”)
Behavioral
What factors influence moral/ethical behavior?
Descriptive (“is”)

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

10. Apply to a mini-case or two

11. 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?

12. Codes and Credos Credos and Values Statements Examples
Johnson & Johnson
Home Page: Credo to “guide our actions”
Levi Strauss
Home Page: Empathy, Originality, Integrity, Courage

13. Living the Values: Johnson & Johnson Levi Strauss The Tylenol Case
China and Human Rights

14. 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.
ENRON

15. What is ethically “right” to do?
Mt Hallet at Sunrise

16. What about the dishonest district attorney?

17. 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

18. Utilitarianism: Features / Assumptions
Consequentialist/ Teleological--consequences determine “rightness” action
Acts not inherently right or wrong
Focus on group happiness
Moral standing--ability to experience pleasure pleasure/pain/happiness

19. 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

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

21. Kantian 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

22. 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)

23. 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

24. 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

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

26. Current Case: GM and Ignition Switch

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

29. 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

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

31. 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?

32. Moral Judgment
Making wise choices is practical wisdom (“phronesis”) – considered judgment
Key virtue or attribute (especially among leaders and managers)
Avoiding Sophie’s Corner
The challenge: Being creative and innovative while true to core principles

33. Judgment = “the ability to judge, make a decision, or form an opinion objectively, authoritatively, and wisely, especially in matters affecting action; good sense; discretion: a man of sound judgment” (Dictionary.com)
“Phronesis” -- practical wisdom/ prudence
“Sophia” – theoretical wisdom

34. Whereas young people become accomplished in geometry and mathematics, and wise within these limits, prudent young people do not seem to be found. The reason is that prudence is concerned with particulars as well as universals, and particulars become known from experience, but a young person lacks experience, since some length of time is needed to produce it” (Nicomachean Ethics 1142 a).

35. Ethical Decision Making and Consistency Creates Trust!

36. Now Your Situations and Dilemmas