Ethics case assignment

© 2013 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject to

the License Agreement available here http://www.flatworldknowledge.com/legal. No

part of this work may be used, modified, or reproduced in any form or by any means

except as expressly permitted under the License Agreement.

Parnell, Strategic Management: Theory and Practice. SAGE Publications, Inc. © 2013

© 2013 Flat World Knowledge, Inc.

• 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

Organizational & Managerial Ethics

• Organizational Ethics

• Managerial Ethics

• What Ethics is not

• Perspectives (Views) on Ethics

Organizational Ethics

 Workplace Ethics

 Business Ethics

 Organizational Ethics

All refer to

“a process of

promoting

moral principles

and standards

that guide

business

behavior.”

Managerial Ethics

• Refers to “individual’s responsib ility to make business decisions that are legal, honest, moral, and fair.”

Managerial/Organizational Ethics

• Agreeing on what is “legal” and “honest” may not be difficult.

• Agreeing on what is “moral” and “fair” can be a difficult task!

Ethics is not the same as…

Our Feelings Our Religion

The Law Culturally Accepted

Norms

Science

What Ethics is not

• Ethics is not the same as feelings. – Feelings provide importantinformation for our ethical choices.

– Some people have highly developed habits thatmake them feel bad when they do something, butmany 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, butethics 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.

What Ethics is not

Ethics is not following culturally accepted norms.

“But Dad, all my friends are going….”

“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

“But, Prof. Williams, these two examples aren’t business- related. This wouldn’t happen in

an organization….” Focal Line A B C

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 orC.

Watch Youtube Video (link provided by Dr. Williams)

VW executives reportedly knew about false fuel efficiency and emissions

VW CEO was told about emissions crisis ayear before adnritting to cheatscandal •Then-CEO Martin Winterkorn was sent memo detailing

emissions figures •Volkswagen installed illegal 'defeat device' in US cars

to trid< regulators

It Could Be That Only A Few VW Engineers Really Knew About Emissions Cheating

Volkswagen used codewords to conceal diesel emissions cheating Volkswagen probe finds manipulation was open secret in department: newspaper

What Ethics is not

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 whatwe oughtto do.

– Science may provide an explanationfor what humansare like. But ethics provides reasons for how humansoughtto act.

– And just because somethingis scientifically or technologically possible, it may not be ethical to do it.

Basic Perspectives (Views) on

Managerial Ethics

Utilitarian Self-Interest

Rights Justice

Deontological Integrative

(Social)

Perspectives (Views) on Managerial (Organizational)

Ethics • 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

Perspectives (Views) on Managerial (Organizational)

Ethics

• The Self-Interest View When in doubt, do

what’s best for yourself

– 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: We the People…. – 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.

• 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

Perspectives (Views) on Managerial (Organizational)

Ethics

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.

) Ethics

Perspectives (Views) on Managerial (Organizational

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.