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ch02.pptETHICS AND YOU
BA 354
COLLEGE OF BUSINESS
What is an Ethical Dilemma?
A situation where values are in conflict
Two or more values you hold dear - or –
A personal value conflicts with an organizational value
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The Layoff
You’re the plant manager in one of ABC Company’s five plants. You’ve worked for the company for 15 years, working your way up from the factory floor after the company sent you to college. Your boss just told you in complete confidence that the company will have to lay off 200 workers. Luckily, your job won’t be affected. But a rumor is circulating in the plant, and one of your workers (an old friend who now works for you) asks the question. “Well, Pat, what’s the word? Is the plant closing? Am I going to lose my job? The closing on our new house is scheduled for next week. I need to know.”
What will you say?
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Consequentialist Analysis
Bottom line = action that produces the greatest good for the greatest number of people, for society overall!
| Stakeholder | Tell - Harms | Tell - Benefits | Don’t Tell - Harms | Don’t Tell - Benefits |
| #1 | ||||
| #2 | ||||
| #3 | ||||
| #4 ….etc. |
Prescriptive Approaches
3 Common Ethical Philosphies
- Focus on consequences (consequentialist theories)
- Focus on duties, obligations, principles (deontological theories)
- Focus on integrity (virtue ethics)
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Focus on Consequences
(Consequentialist Theories)
Utilitarianism - best known consequentialist theory
- Identify alternative actions and consequences to stakeholders
- Best decision yields greatest net benefits to society
- Worst decision yields greatest net harms to society
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Focus on consequences – classic Trolley example
A runaway trolley is hurtling down the tracks toward 5 people who will be killed if it proceeds on its present course. You can save these 5 by diverting the trolley onto a different set of tracks, one that has only 1 person on it, but if you do this that person will be killed.
Should you turn the trolley to prevent 5 deaths at the cost of 1?
Focus on consequences – classic Trolley example
Now you have the same situation as before; the trolley is headed toward the five workers on the track. But this time there is a bridge and a fat man standing on this bridge. If you push the man over he would stop the trolley.
Would you push the man to save the five on the track?
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Self driving car scenario:
What would a self driving car do in the trolley situation: Sacrifice one to save many or do everything to keep its passenger safe.
Christoph von Hugo a Mercedes senior safety manager, made statement to protect the person in the car in this type of scenario.
Received a lot of backlash!
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Consequentialist Questions
- Can I indentify all the stakeholders?
- Immediate, distant?
- What are the potential actions I could take?
- What are the harms and benefits for stakeholders given potential decisions/actions?
- What decision will produce the most benefit (and least harm) for the greatest number of people, and for society at large?
Focus on Consequences
(Consequentialist Theories)
- Advantages
- Practical
- Already underlies business thinking
- Challenges
- Difficult to evaluate all consequences
- Rights of minorities can be sacrificed
Focus on Duties, Obligations, Principles (Deontological Theories)
- Decisions based upon abstract universal principles: honesty, promise-keeping, fairness, rights, justice, respect
- Focus on doing what’s “right” (consistent with these principles) rather than doing what will maximize societal welfare (as in utilitarianism)
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Deontological Questions
Which values or principles apply?
Which are most important and why?
What are my ethical duties, obligations?
Have I treated others as I would want to be treated? (Golden Rule)
Have I assumed that the other(s) is ethical and responsible?
If everyone behaved this way, would that be acceptable?
Would I want to live in that world? (Kant’s categorical imperative)
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Focus on Duties, Obligations, Principles (Deontological Theories)
- Advantages
- Rights approach found in public policy debates (e.g., abortion)
- Challenges
- Determining rule, principle, or right to follow: ex. Golden rule, Kant’s maxim
- Deciding which takes precedence
- Reconciling deontological and consequentialist approaches when they conflict
What would deontology and utilitarianism demand in each scenario?
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A Drug Study
A number of physicians are recruited to participate in a large-scale, multi- center study to investigate the survival rates of breast cancer victims who are being treated with a new drug. Strict rules are developed regarding inclusion of patients in the study. Only those who have had surgery within the last three months can be included. Dr. Smith has a patient who hears about the study and wants very much to participate. Dr. Smith thinks the drug could help this patient.
Taking the utilitarian approach what should he do?
Taking the deontological approach what should he do?
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The Burning Building
Assume you approach a burning building and hear voices coming from both ends, each seeking help. Assume the fire is burning so rapidly you only have time to go to one or the other end of the building. Initially, you hear multiple voices at one end and a sole voice at the other end. Which way do you go? Why? Now include some additional information. The sole voice is that of your daughter (father, mother, etc.). Or, the sole voice is that of a Nobel laureate who is close to finding a cure for cancer? Do you still choose to go to the end with multiple voices (will that even do the greatest good for society)? What will the different approaches advise? What will you do?
Focus on Integrity
(Virtue Ethics)
- Focus on integrity of moral actor rather than the act
- Considers character, motivations, intentions
- Need to identify relevant community
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Virtue Ethics Questions
What does it mean to be a person of integrity in this situation, profession, etc.?
What ethical community would hold me to the highest ethical standards?
Do carefully developed community standards exist?
What would the broader community think if this were disclosed? New York Times test?
What would my “harshest moral critic” expect me to do?
What would my “ethical role model” expect?
What do I want my professional reputation to be?
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Focus on Integrity
(Virtue Ethics)
- Advantages
- Can rely upon community standards
- Challenges
- Limited agreement about community standards
- Many communities haven’t done this kind of thinking
- Community may be wrong
Nine Steps to Ethical Decision Making in Business
- Get the facts.
- Define the ethical issues
- Identify the stakeholders
- Identify possible courses of action to resolve the dilemma.
- Identify consequences associated with each contemplated action.
- Identify duties and obligations.
- Consider your integrity.
- Think creatively about other possible solutions
- Check your gut.
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Practical Preventive Medicine
(When Asked to Make a Snap Decision)
- Pay attention to your gut
- Ask for time
- Find out about organizational policy
- Ask manager or peers for advice
- Use New York Times test (disclosure rule)
Getting to work on the
Personal Ethical Action Plan:
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Another values exploration exercise…
- Think of five people (living or dead) that you most admire. Write their names down.
- Then, next to each of their names, list five attributes that come to mind when you think of that person.
- Now, review your list (you should have 25 attributes listed). The attributes that came up most often can be viewed as your core values.
- If you live in harmony with these values you are living with integrity. If you live on conflict with these values you will likely be unfulfilled and unhappy.
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The Cost to Society of Dying in a Pinto
(in 1971 dollars) equals…
$200,000
The benefit and cost of an $11 safety improvement would have been:
benefit = $49.5 million
cost = $137 million
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In your group record some of the main facts of this case:
- include information about the development of the Ford Pinto
- Ford’s leadership at the time
- the problem with the Pinto’s gas tank
- the potential fix they identified
- the financial analysis Ford conducted
- the decision they made
- any other pertinent information that you feel is noteworthy regarding the case
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