Ethic case assignment
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Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Organizational & Managerial Ethics
• This Lesson: https://youtu.be/0UZF-‐Zsg2S8?t=12s
• Milgram Experiment (set to start 38 seconds in; end at 9 minutes) https://youtu.be/Xxq4QtK3j0Y?t=38s
• Asch Experiment: https://youtu.be/NyDDyT1lDhA
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Links within this Lesson
• Organizational Ethics • Managerial Ethics • What Ethics is not • Perspectives (Views) on Ethics
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Organizational & Managerial Ethics
Ø Workplace Ethics Ø Business Ethics Ø Organizational Ethics
Organizational Ethics
All refer to “a process of promoting moral principles and standards that guide business behavior.”
• Refers to “individual’s responsibility to make business decisions that are legal, honest, moral, and fair.”
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Managerial Ethics
• Agreeing on what is “legal” and “honest” may not be difficult.
• Agreeing on what is “moral” and “fair” can be a difficult task!
Managerial/Organizational Ethics
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Our Feelings Our Religion
The Law Culturally Accepted Norms
Science
Ethics is not the same as…
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
• Ethics is not the same as feelings. – Feelings provide important information for our ethical choices. – Some people have highly developed habits that make them feel bad
when they do something, but many people feel good even though they are doing the same thing.
– And often our feelings will tell us it is uncomfortable to do the right thing if it is hard.
• Ethics is not religion. – Many people are not religious, but ethics applies to everyone.
What Ethics is not
• Ethics is not following the law. – A good system of law does incorporate many ethical standards, but law can deviate from what is ethical.
– Law may have a difficult time designing or enforcing standards in some important areas, and may be slow to address new problems.
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
What Ethics is not
Ethics is not following culturally accepted norms.
“But Dad, all my friends are going….”
What Ethics is not
“But, Prof. Williams, as we become adults, we no longer act this way. We’re not as easily influenced by people….”
Milgram
This is an illustration of the setup of a Milgram experiment. The experimenter (E) convinces the subject ("Teacher" T) to give what are believed to be painful electric shocks to another subject, who is actually an actor ("Learner" L). Many subjects continued to give shocks despite pleas of mercy from the actors.
Photo Source: http://en.wikipedia.org/wiki/Image:Milgram_Experiment_v2.png
Watch Youtube Video (link provided by Dr. Williams)
Asch
This is a sample item from the Asch study. Participants were asked one by one to say which of the lines on the right matched the line on the focal line on the left. While A is an exact match, many participants conformed when others unanimously chose B or C.
Focal Line A B C
Watch Youtube Video (link provided by Dr. Williams)
“But, Prof. Williams, these two examples aren’t business- related. This wouldn’t happen in an organization….”
Ethics is not science. – Social and natural science can provide
important data to help us make better ethical choices. But science alone does not tell us what we ought to do.
– Science may provide an explanation for what humans are like. But ethics provides reasons for how humans ought to act.
– And just because something is scientifically or technologically possible, it may not be ethical to do it.
What Ethics is not
Basic Perspectives (Views) on Managerial Ethics
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Utilitarian Self-‐Interest
Rights Justice
Deontological Integrative (Social)
• The Utilitarian view: – Anticipated outcomes and consequences should be
the only considerations when evaluating an ethical dilemma.
– Consequences are important; tries both to increase the good done and to reduce the harm done.
– The ethical corporate action, then, is the one that produces the greatest good and does the least harm for all who are affected -‐ customers, employees, shareholders, the community, and the environment
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Perspectives (Views) on Managerial (Organizational) Ethics
• The Self-‐Interest view: – Benefits of the decision-‐maker(s) should be the
primary considerations. – The ethical corporate action, then, is the one that
produces the greatest good for me
• The Rights view: – Humans have a dignity based on their ability to choose
freely what they do with their lives – The ethical corporate action, then, is the one that
protects basic individual rights.
Perspectives (Views) on Managerial (Organizational) Ethics
We the People….
When in doubt, do what’s best for yourself
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
• Beginning Fall 2016, students can carry concealed handguns into classrooms, dormitories and other buildings: http://www.tamus.edu/campus-carry-rules/
• Supporters say it will make college campuses safer by allowing licensed gun owners to defend themselves & others should a mass shooting occur
• Opponents say the notion that armed students would make a campus safer is an illusion that will have a chilling effect on campus life
• The Justice view: – All decisions will be made in
accordance with pre-‐ established rules or guidelines.
– The ethical corporate action, then, is the one that follows the rules/laws.
Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013
Perspectives (Views) on Managerial (Organizational) Ethics
The Integrative Social Contracts (Common Good) view: – Decisions should be based on existing norms of behavior,
including cultural, community, or industry factors. – The ethical corporate action, then, is the one that
follows accepted practices.
The Deontological view: – Decisions should be based on personal or religious convictions. – The ethical corporate action, then, is the one that
aligns with your belief system.
Perspectives (Views) on Managerial (Organizational) Ethics