Governance and Ethics (within decision making)

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Governance and Ethics (within decision making)

• Author
• Dr John McManus

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Objectives of material

• How should Managers behave?
• Who should Managers be responsible to?
• Governance and Governance and ethics, (the
  business dimensions for concern)
• Code of Governance and ethics
• The rise of the green agenda and ethical business
• Environment complexity

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Ethical Issues Faced by Managers

• Bribery
• Conflicts of interest
• Environmental protection
• Fairness
• Fraud
• Honesty in research and testing
• Public safety

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Definitions of Governance and Ethics

• Governance and ethics is the study of the
  characteristics of morals
• The moral choices that are made by each person in
  their relationship to others
• Engineering Governance and ethics is the rules
  and standards governing the conduct of engineers
  in their role as professionals

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A Definition of Ethics

• A mans ethical behavior should be based
  effectually on sympathy, education, and social
  ties no religious basis is necessary. Man would
  be in a poor way if he had to be restrained by
  fear of punishment and hope of reward after
  death.
• Albert Einstein (1879-1955)

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Governance and Ethics Provides Framework for
Decision Making

• The concepts are not aimed at making the decision
  maker a good person or a bad person
• Ethical problems are complex
• The choice between right and wrong is often
  complex and overshadowed
• Analytical tools need to be applied to break the
  question down to its core elements
• The correct decision is often obvious at the
  rudimentary level

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Governance and Ethics Across the World

• General philosophy behind Governance and ethics
  is non-religious
• Human societal experience
• Not for Greeks see Ulysses
• Location or tradition independent
• What is considered to be unethical in one
  location will be considered unethical in another
• Ethical behavior doesnt change just because of
  local circumstance

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Similar to other Management Disciplines

• No unique correct solution
• Range of answers with some better than others
• Apply a large body of knowledge to the problem
• Involve the use of analytical skills

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Moral Theory

• Utilitarianism
• Produce the most overall utility
• Duty Governance and ethics
• Duties should be performed regardless of outcome
• Rights Governance and ethics
• Moral rights can not be violated
• Virtue Governance and ethics
• Good character traits (virtues) vs. bad character
  traits (vices)

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Utilitarianism

• Risk-benefit analysis and cost-benefit analysis
• Ultimately tied together
• Can seem to ignore the needs of the individual
• The needs of the many outweigh the needs of the
  few or the one - Spock from The Wrath of Khan
• Outcome prediction is key to application
• Act utilitarianism and rule utilitarianism
• Act utilitarianism only outcome counts
• Rule utilitarianism must stay within boundary of
  law even if outcome is limited Because of
  unintended consequences

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Duty and Rights Governance and Ethics

• Good Consequences for Society as a whole are not
  the only moral consideration
• Duty Governance and ethics
• Ethical actions can be written as a list of
  duties
• Be honest, dont cause suffering, be fair, etc.
• Rights Governance and ethics
• People have fundamental rights
• Life, liberty, and the pursuit of property
  (happiness) interesting change

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Duty and Rights Governance and Ethics (cont.)

• Opposite sides of the same coin
• Duty Governance and ethics people have certain
  duties one of which is to protect the rights of
  others
• Right Governance and ethics people have
  fundamental rights that others have a duty to
  protect
• Problems
• Conflicts between ones rights and anothers
• Doesnt account for the overall good of society
  very well

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Virtue Governance and Ethics

• Fundamentally interested in determining what kind
  of people we should be
• Virtue is often defined as moral distinction and
  goodness
• Actions are deemed right if they support good
  character traits
• Personal morality should not be separated from
  business morality
• Virtuous behaviors should extend from personal
  life into his or her business life

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Personal vs. Corporate Morality

• A company cannot be a moral agent
• Legal authority is diminished
• As a pseudo moral agent they should however be
  held to the same standard as individuals
• A corporation cannot do whatever it pleases
• Must respect right of others
• Demonstrate same virtues that we expect of
  individuals

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Which Theory to Use?

• Many times the different theories lead to the
  same conclusion (THE GREEN ISSUE)
• A chemical plant releasing toxins into watershed
• Utilitarianism vs. Rights
• Some cases lead to conflicting conclusions
• Duties and rights Governance and ethics
  conclusion weighted more heavily
• One life lost effect
• Rationalization of 55 mph vs. 65 mph speed limits
• Right to smoke, drink and take drugs vs societal
  effects

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Analysis of Issues in Ethical Problems

• Factual
• What is actually known about a case
• May be unclear and controversial
• Conceptual
• Meaning or application of an idea
• What constitutes a bribe vs. a gift?
• Moral
• Usually obvious when factual and conceptual issue
  resolved
• If the gift was a bribe, then it clearly was
  unethical

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Overcoming Controversy

• Reaching Some Acceptable Agreement through
  Compromise
• Factual
• Factual issues can often be resolved with
  research to determine the truth
• Conceptual
• Agreement on the meaning of terms and concepts
• Not always possible - best level playing field
• Moral
• Agreement on which moral principles are pertinent
  and how they should be applied

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Ethical Problem-Solving Methods

• Six Steps to a Responsible Decision
• Adapted from the University of Michigan
  Engineering Governance and ethics Web Page

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Six Steps to a Responsible Decision

• 1. Goals
• Summarize the goals of your project in one or two
  sentences, ideally around 40-60 words.
• 2. Players (stakeholders)
• List all the players who are affected by or have
  an interest in your project
• Rank each one as a major/average/minor player
• provide a brief explanation (one or two
  sentences) of how each player is affected or
  their interest in your project

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Six Steps (cont.)

• 3. Facts and Standards
• Collect information on the engineering facts as
  well as the engineering safety and regulatory
  standards that have bearing on the decisions you
  will be making on this project
• 4. Ethical Dilemmas
• Before you begin and as you continue to work on
  your project, draw up a comprehensive list of
  ethical dilemmas you will confront

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Six Steps (cont.)

• 5. Solutions
• Explain how and why you propose to resolve the
  ethical dilemmas identified in Step Four
• 6. Double-check
• Review your most controversial decisions from the
  perspective of players who's interests your were
  not able to satisfy, an appropriate engineering
  society ethical code, and the reaction of
  friends, family, and project advisor

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Professional Codes of Governance and Ethics

• Professional society charters typically include a
  code of Governance and ethics
• Provides a framework for ethical judgment
• Some codes are enforceable
• Medicine and Law
• Codes of engineering societies
• Generally unenforceable
• May help bolster an individuals position when
  confronting an ethical issue imposed by a
  superior
• Few engineers aware of the codes

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National Society of Professional Engineers

• Code of Governance and ethics and pledge
• As a Professional Engineer, I dedicate my
  professional knowledge and skill to the
  advancement and betterment of human welfare.
• I pledge
• To give the utmost of performance
• To participate in none but honest enterprise
• To live and work according to the laws of man and
  the highest standards of professional conduct
• To place service before profit, the honor and
  standing of the profession before personal
  advantage, and the public welfare above all other
  considerations.
• In humility and with need for Divine Guidance, I
  make this pledge.
• Adopted by National Society of Professional
  Engineers, June 1954

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The Role of Codes in Law

• Can a professional society and its code help you?
• Support of professional society gives credence to
  ethical cases in court
• Validates the engineers concerns but may not
  keep the engineers job

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Some Study Questions

• The basis for choosing a particular way for
  implementing a decision is not governed merely by
  considerations of conventional logic or
  rationality. Decisions are also likely to involve
  considerations of justice and fairness as
  perceived by various stakeholders and by
  considerations of personal Governance and ethics
  or morality as perceived by different persons.
• Making decisions is by and large what project
  managers do. How well (or effectively) they make
  such decisions will be based on the criteria of
  behavioural history, situational beliefs,
  personnel and ethical values, social and
  occupational norms, personality, and
  environmental constraints.
• If we wish to encourage ethical risk taking, we
  must be prepared to accept and recognise that
  people will fail from time-to-time. Having
  absolute success without experiencing failure is
  almost impossible in business.