2292 Final 3/3/17

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  1. What do you want to know if you were facing a critical ethical issue and don't know what to do.
    • Who's affected?
    • What are my alternatives?
    • Has there been past experience with this?
    • --Is there someone else who already faced this issue that may help with the decision making
  2. What was Prof. Paine's basic ethics framework about?
    • How to reach the question of what the ethical standard us
    • Markets are amoral, but market participants frequently must make ethical judgements -> back to our notion of trust.
    • The difficulty is that we often use emotion, rather than reason, to solve ethical reason
  3. Sensibility influenced ethical "lens"
    • Our "gut instinct"
    • This lens shows that we are influenced to some degree by both head and heart
    • When faced with complex ethical challenges, instinct alone is often insufficient, it is necessary to consider a more strategic process
  4. Who said the intuitive mind is a scared gift and the rational mind is a faithful servant
    Albert Einstein
  5. Benefits of a decision making process
    • Anxiety, stress and fear can distort decisional choices
    • Recognize tendency to incorrectly process challenging news
    • Need to mindfully acknowledge our anxiety and feelings
    • Must actively push ourselves to hear bad as well as good
  6. Whats wrong with stress and anxiety when it comes to decision making?
    • Stress- makes us more prone to tunnel vision, less risk aversive
    • Anxiety- become more risk-adverse & deferential to authority
  7. "Framing" Bias
    • View data more favorably that supports our view, but tend to ignore data that is not supportive
    • Supportive data in stressful moments -> dopamine-like rush
  8. Paine's Four Q's
    • Is the action consistent with the actor's basic duties?
    • Does it respect the rights and other legitimate claims of the affected parties?
    • Does it reflect best practice?
    • Is it compatible with the actor's own deeply held commitments ("core values")
  9. Stakeholder Analysis
    • A stakeholder who has a share in the company, somebody who is affected by decisions or can effect the decision
    • The difficulty presented in ethical challenges: can we easily and objectively put ourselves in someone else's position?
  10. Stakeholder analysis theory:
    • Theory that a corporation cannot exist without those groups who support it (customers and employees as examples beyond shareholders alone)
    • First appeared in 1963; much broader and applied inclusion of those inherently part of corporate model, contrasting with Shareholder Theory
    • Free to explore modern businesses to see how dominant "stakeholders" are included, beyond shareholders alone
  11. What is a duty?
    • Requirement in us to act toward someone else
    • Basic moral duties often in law or codes
  12. What would be an example of one Duty Wells Fargo should observe toward their banking customers?
    • Protecting their information
    • Transparency
    • Don't take account info and use their information
  13. What is a Right?
    • Requirement in others to behave in a certain fashion towards us- also often in law or codes
    • -Converse of Duty
  14. What would be considered a right Uber should observe to its female IT engineers and other workforce women?
    • They need to protect women from sexual harassment in the workforce
    • -They ignored the complaints because the men were high producers
  15. Classic example of organizational Rights and Duties: West Point- Three Rules of Thumb
    • Does the action attempt to deceive anyone or allow anyone to be deceived?
    • Does the action gain or allow the gain of privilege or advantage to which I or someone else would not otherwise be entitled?
    • Would I be dissatisfied by the outcome if I were on the receiving end of the action?

  16. What are Best Practices?
    • Principles or standards of excellence (often in ethics codes, sector agreements, voluntary standards
    • - Ideals, values, aspirations
  17. What are commitments?
    Self-chosen or subjective moral convictions (principles, core values, standards of integrity)
  18. A company with good culture and values
    • JM Smucker Company
    • 115 year old company that is still making money
  19. ELI Lens
    • Rights and responsibilities
    • Relationship
    • Results
    • Reputation
  20. What does the ELI do
    • Reflects our touchstones and our values
    • How our values may position us, and those around us, in facing an ethical conflict
  21. Our Lens reflect one starting point, balancing between
    • Our intellect and our sensibility
    • Our individuality and our community 
    • Our manifestation of values and contrast with the values of ohers
  22. Key phrases for the Lens's:
    Relationship Lens
    Results Lens
    Reputation Lens
    • I am responsible
    • I am fair
    • I make choices that are good for everyone
    • I make virtuous choices
  23. Paine's questions within a strategic framework to help us "process" tough ethical questions
    • Who are the stakeholders?
    • What are the Ethical Standards- Duty, Rights, Best Practice, Core Values
    • Objectivity and Transparency
    • Get the Facts
  24. The first thing you should do when making ethical decisions is?
    • Stop and think
    • Emotion can derail objectivity
    • Trust your "gut" to alert you to issue, but critically examine facts and issues
    • Appreciate the difficulty and potential bias in fact gathering, can be fluid
    • Be careful to exercise critical thinking and ask questions to assure the accuracy of data
  25. Stakeholders
    • Those affected or can affect decisions
    • Who's making the decision?
  26. Ethical Standards
    • Explore duties, rights, best practice, and commitments to stakeholders
    • - Law, codes, mission statements often embed these
  27. Prof. Paine's CODEX
    • Fiduciary
    • Property
    • Reliability
    • Transparency
    • Fairness
    • Citizenship
    • Responsiveness
  28. Fiduciary
    • Act in company's best interest
    • -Being a fiduciary means you have to do something for the best interest of someone else besides you
  29. Property
    Respect property & others property rights
  30. Reliability
    Keep your commitments
  31. Transparency
    Conduct business openly and truthfully
  32. Fairness
    Treat everyone fairly
  33. Citizenship
    Act as responsible community members
  34. Responsiveness
    Be responsive to legitimate claims/concerns
  35. Don't prioritize profit over ethics.
    Doing the right thing will make you more long-term money
  36. Blind Spot and risk: 
    Rights/Responsibility Lens
    • Believe that the motive justifies method
    • Being autocratic (bossy)
  37. Blind Spot and risk: Relationship Lens
    • Overconfident in process
    • Being authoritarian
  38. Results Lens
    • Satisfied with too little good
    • Reducing decisions to cost-benefit analysis
  39. Reputation Lens
    • Have unrealistic role expectation
    • Self-righteous
  40. What can create hurdles to objectivity
  41. What can threaten our impartially
    • Conflicts of interest
    • Sometimes we need the help of others
  42. A solution to a conflict of interest
    • Voicing our core values
    • Prioritizing Ethical Actions/Outcomes as we make ethical choices
  43. Uber CEO Problem
    • Chief Executive Travis Kalanick apologized, saying he admits he needs "leadership help" after a video showed him berating one of the company's drivers
    • Michael Gorden, CEO of public relations, said it was time Kalanick took responsibility.
  44. Main objectivity- Paine's SUmmary of 3 Q's:
    • Visibility (mom test; newspaper test; Facebook test)
    • -Would I be comfortable if my action appeared on the front page of the newspaper?
    • Generality
    • -Would I be comfortable if everyone in a similar situation did the same thing?
    • Legacy:
    • -Is this how I want to remembered?
  45. Links between ethics and performance
    • Researchers have found that greater creativity is associated with fair rewards, mutual helpfulness, and honest information
    • Employees are more likely to share knowledge in an environment of trust
    • Avoiding misconduct and practicing good corporate citizenship contribute to a positive reputation
    • Firms convicted of wrongdoing often experience lower returns in succeeding years
  46. How are ethical decisions made?
    • Ethics is often left to instinct or "gut feel" and managed on an ad hoc basis as problems arise.
    • Many people make ethical decisions on the basis of instinct and emothion
  47. What is ethics
    It has been narrowly defined as "the study of right and wrong" and as broadly as "the general inquiry into what is good"
  48. Ethics involves four fundamental questions that an actor-- individual, company, or group-- should consider when evaluating a possible course of action:
    • Is the action consistent with the actor's basic duties?
    • Does it respect the rights and other legitimate claims of the affected parties?
    • Does it reflect best practice?
    • Is it compatible with the actor's own deeply held commitments?

    • The first two bring out basic requirements- the ethical minimum that would be expected of anyone in the situation
    • The third and fourth raise considerations that are somewhat more discretionary
  49. A basic moral duty
    • Is a requirement to act- or not act in a certain way
    • Duties are typically owned to other parties however duties to oneself are also important
    • Many basic moral duties have been written into law or otherwise codified
  50. Difference between perfect duties and imperfect
    • style='font-family:Calibri;font-size:11.0pt'>A distinction is sometimes
    • drawn between "perfect" duties, which involve specific
    • obligations to particular parties and "imperfect" duties are
    • more general and open-ended (example: duty of charity).
  51. Why have most basic moral duties been written into law?
    • Because basic duties reflect widely held expectations, actions that breach these duties may give rise to criticism or blame.
    • They may also subject the actor to demands for an apology or compensation for injuries.
  52. A right
    • An entitlement to certain behavior from other people
    • It is often the converse of a duty
    • Like basic duties, basic rights are often written into law or formal codes such as the Universal Declaration of Human Rights.
  53. Positive and Negative Rights
    Like basic duties, basic rights are often written into law or formal codes such as the Universal Declaration of Human Rights.
  54. What happens if you fail to respect basic rights?
    Failure to respect basic rights may be cause for blame, and rights violators may be penalized or required to compensate for harm caused by their actions
  55. Best Practice
    • Beyond basic rights and duties, most ethical systems also posit certain principles or standards of excellence
    • They are termed this since they represent conduct that is desirable but not necessarily obligatory.
    • The distinction between behavior that is ethically required (the "musts") and behavior that is good but not mandatory ("shoulds" or "good-to-dos") is not always clear
  56. Commitments
    • these self-chosen, or subjective, commitments may be rooted in an individuals personal values and beliefs, the culture and practices of the organization, or the needs of the larger society.
    • Typically represent an important aspect of the actor's identity.
    • Thus, although falling short on these commitments may not generate external criticism, it can be quite damaging to the actor's self-concept and may even lead to the actor's impaired functioning.
  57. First step to applying the framework
    • Understanding the facts
    • Confident in their own good intentions and focused on their own narrow objectives, they often overlook collateral effects, alternative interpretations, and likely impacts on others.
    • A useful tool for this purpose is what is sometimes called "stakeholder analysis" or "stakeholder impact assessment"
  58. Stakeholder analysis or stakeholder impact assessment
    • Stakeholder analysis has two basic components- identifying the parties likely to be affected by the action; and for each party, mapping the action's likely consequences-- both positive and negative, short term and long.
    • This process may also reveal opportunities to mitigate unnecessary harms or enhance the planned action's benefits.
  59. Second step in the framework
    • Identifying relevant standards.
    • Because ethical norms are often tacit rather than explicit and because they derive from varied sources-- reason, law, philosophy, religion, custom, and perhaps even biology-- deciding on the appropriate standards in a given situation is not always straightforward.
  60. Useful point of references
    • Using the company's own code and relevant industry standards
    • Another useful point of reference is the Global Business Standards Codex, a compilation of standards commonly found in leading codes of conduct for business around the world
  61. How is the Codex a useful point of reference
    The Codex provides a list of widely accepted standards to govern a company's dealings with its stakeholders, including precepts such as obey the law, forgo bribery and deception, disclose conflicts of interests, ect.
  62. Values
    • Know and appeal to a short list of widely shared values: eg, honesty, respect, responsibility.
    • Don’t assume too little-- or too much-- commonality with the viewpoints of others
  63. Choice
    • Believe you have a choice about voicing values by examining your own track record.
    • Know what has enabled and disabled you in the past, so you can work with and around these factors
  64. Normality
    • Expect values conflicts so that you approach them calmly and competently.
    • Over-reaction can limit your choices unnecessarily
  65. Purpose
    Define your personal and professional purpose explicitly and broadly before conflicts arise.
  66. Self-knowledge, self-image and alignment
    Generate a "self-story" about voicing and acting on your values that is consistent with who you are and builds on your strengths
  67. Voice
    Practice voicing your values in front of respected peers, using the style of expression with which you are most skillful and which is most appropriate to the situation and inviting coaching and feedback
  68. Reasons and Rationalizations
    • Anticipate the typical rationalizations given for ethically questionable behavior and identify counter arguments.
    • These rationalizations are predictable and vulnerable to reasoned response
  69. Giving Voice to values "story line"
    • I want to do this
    • I have done this
    • I can do this more and better
    • It is easier for me to do this in some contexts than other
    • I am more likely to do this if I have practiced how to respond
    • My example is powerful
    • Mastering and delivering responses to frequently-heard rationalizations can empower others who share my views to act, but I cannot assume I know who those folks are
    • The better I know myself, the more I can prepare to play to my strengths and be protected from my weakness
    • I am not alone
    • Although I may not always succeed, voicing and acting on my values is worth doing
    • Voicing my values leads to better decisions
    • The more I believe it's possible, the more likely I will be able to do this
Card Set:
2292 Final 3/3/17
2017-05-01 01:30:44
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