Chapter 2 Sources of Ethical Problems in Business; Corporate Social Responsibility:

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  1. Kohlberg's stages of moral development
    people make decisions based on where they are in different stages of cognitive moral development
  2. The two pre-conventional stages (one and two)
    We are egocentric and our aim is to avoid punishment and achieve personal gain through our choices

    1. stage one: (punishment and obedience) focus on rewards and punishments for their behavior

    2. Stage Two: ( Individual Instrumental Purpose and Exchange) A person determines what is right by the action that best serves his or her needs
  3. The Two Conventional stages (three and four)

    People are conformists and highly socialized beings ; they look to peers and other groups for behavioral expectations , approval, or disapproval
    Stage three: Mutual interpersonal expectations, Relationships, and Conformity-  people conform to the general societal expectations( a good friend, a model son or daughter)

    • Stage Four: Law and Order Orientation- People in this more advanced stage of conventional moral development determine what is right by considering their duty to society at large
  4. The Two post-conventional stages (five and six)

     The main difference between these stages and previous levels of development is the ability of an individual to engage in his or her own moral reasoning rather than simply following rules set by society or authority figures
    Stage Five: Prior Rights, social contract, or Utility- People within this stage recognize that opinion often conflict; therefore they try to use fair methods to reach a consensus by agreement, contract, and due process

    Stage six: Universal Ethical Principles -Right actions are determined by universal ethical principles that all people should follow
  5. Kohlberg found that the moral development, character, and behavior of adults can be improved. Do you agree?
    I agree that moral development can be improved during the course of an individual's life.

    First, by presenting them with real case studies and scenarios that deal with ethical issues and raise the awareness of the diversity of the issues.

    Second, by given them moral reasoning skills  and the opportunity to practice them
  6. describe the six forces that shape decision making and lead people to make questionable choices

    The Milgram study example- milgram gathered a group of experts to hypothesize when people would cease administering the shocks.

    The concluded that the average person would stop at 150 volts and that fewer than 1 person in 1000 would go all the way to 450 volts. in fact, over 50 percent of the subjects went all the way to 450 lots and continued to shock at that level.

    While all the subjects expressed concern about the harm they thought they wee doing to the learner and asked to  stop the experiment, a large majority counted to shock what pressed to do so by the authority figure 

    Conclusion: Study suggested that authority can overwhelm individual conscience and moral beliefs, leading people to make choices they would otherwise consider wrong
  7. describe the six forces that shape decision making and lead people to make questionable choices

    In the milgram studies, participants drew the line too narrowly. 

    participants claimed they wanted to stop shocking the learner, but they felt forced into doing so by the authority; however, the authority did not make threats towards them, did not use force, and explicitly had no power to punish them for failure to follow orders. 

    Some teachers hesittated in the experiment and said they were uncompfatble continuing with the shock applications because why did not want responsibility for what might happen to the learner

    After the authority figure mentioned that he would be accountable for their actions, the participants went on shocking the learner at higher levels.

    • Conclusion: Individuals as long as they can pass the buck and not be solely responsible for an action that is being pushed on them by an authority at times will act without conscious 
  8. describe the six forces that shape decision making and lead people to make questionable choice

    Zimbarado study: he made a mock prison and had graduate students participate as guards and prisoners. The guards and prisoners assumed role, which the guards started treated inmates harshly and the prisoners conformed to the harsh treatment. The study went on for awhile as the instructor observed the students deep into the roles of the two. it was not until his wife came along and had Zimbarado take a step back and realize that the guards were treating the prisoners inhumanly 

    Ford Motor case: The recall coordinator did not call back the ford pinto after reports of ruptured gas tanks and fires. It was not until he was removed from the job that he realized the ethical overtones of the situation

    Morton Thiokol Managers: managers were so caught up in a variety of factors from confidence in their expertise and launch record to a desire to meet the launch schedule that the emphasis shifted from safety first to a decision making framework were engineers virtually had to prove that a crash would occur in order to delay the or halt the launch 

    Conclusion: The mental models we carry around dictates in our behavior; peer pressure, and organizational culture are sources are natural and important in daily life;however,  the power to take more extreme forms and lead us to either miss moral problems entirely or skew our value system so that w make choices we cannot defend to the larger community

  9. describe the six forces that shape decision making and lead people to make questionable choice

    Problems arise when we people convince themselves that actions they otherwise know are wrong and immoral are actually acceptable.

    are excuses we offer ourselves to hop us feel like it is acceptable to take actions we otherwise know are wrong
  10. describe the six forces that shape decision making and lead people to make questionable choice

    Very often, ethical lapses happen in a charged environment where there is stress on the decision maker to close a sub-optimal path. Managers, when faced with deadlines , quotas, or meeting professional expectations, often fell intense pressure to cut corners or break the rules.
  11. describe the six forces that shape decision making and lead people to make questionable choice

    Communication Breakdowns
    One of the most effective ways to avoid ethical problems is to foster an environment where people can openly discuss their problems and concerns in the workplace . Unfortunately, many corporate cultures prevent people from taking openly, especially regarding issues connected with ethics. 

    This reluctance is based on a variety of sources.

    First, mangers are concerned about how openly discussing ethics will make them appear others.

    Second, many managers see ethics as being about blame;

    third, most managers do not believe they have the expertise and training to handle ethics issues ands assume that such issues are better handled by experts
  12. describe the six forces that shape decision making and lead people to make questionable choice

    Conclusion of the Six forces
    Each of these six forces from the effects of authority to communication breakdowns- may work in concert with others to create poor decision making and behavior that we see in practice

    The Milgram studies reveal authority, distancing from responsibility, and tunnel vision

    The ice cream parlor story at the beginning of the chapter illustrates the effects of tunnel vision ( on the stock price rather than good business practices),

    distancing from responsibility (through the use of public accountants to verify financial results), 

    External pressure (from analysts looking for a certain stock price), and rationalization ( in the belief that competitors are helping to commit the acts of fraud)
  13. discuss the 10 managerial tools for reducing the chances that employees and managers will make morally problematic choices
    Effective Methods to avoid ethical lapses 

    1. Introduce Ongoing Ethics Education

    2. Do a Policies and Procedures Audit

    3. Stick to the Fundamentals

    4. Cultivate Moral Imagination

    5. Use Guides to Avoid Rationalizations

    6. Lead by Example

    7. Make this part of the dialogue

    8. Emphasize Responsibility and accountability throughout the firm

    9. Foster Communication and push back

    10. make sure people know ethics is everybody business

    Conclusion: These are ways to offer a set of directives for managers to use in developing programs that fit their organization
Card Set:
Chapter 2 Sources of Ethical Problems in Business; Corporate Social Responsibility:
2015-10-27 17:03:42
chapter ethics
Mid term
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