Ethics

1
Ethics

• The process of determining what are and are not
  reasonable standards of moral conduct.
• Social Responsibility - The organizations
  obligation to protect and contribute to the
  social environment in which it functions.

2
Levels of Ethical Questions

• Systemic (e.g., economic system)
• Organization (e.g., policies)
• Individual (e.g., moral standards)

3
Ethics Models

• Utilitarian Model
• Rights-based Models
• The Golden Rule
• The Kantian Model
• Enlightened Self-Interest Model

4
Utilitarian Model

• An action is morally appropriate if it maximizes
  net benefits and minimizes overall harms for all
  stakeholders

5
Golden Rule Model

• An action is morally appropriate if it treats all
  stakeholders with the same respect and dignity
  one would expect from others.

6
The Kantian Model

• An action is morally correct if it minimizes the
  violation of the rights of all stakeholders.
• The right of free consent
• The right of privacy
• The right of freedom of conscience
• The right of freedom of speech
• The right of due process

7
Enlightened Self-Interest

• An action is morally correct if it increases
  benefits for the individual in a way that does
  not intentionally hurt others and if these
  benefits are believed to counterbalance any
  unintentional harms that ensue.

8
Misconceptions about Ethics

• Profit and morality are necessarily incompatible
• All ethical problems have simple solutions (Right
  and Wrong)
• Ethics is simply a matter of compliance with laws
  and regulations

9
Common Ethical DilemmasDo the following issues
constitute ethical issues for business?
Source Corporate ethics. Conference Board
10
Causes of Unethical Behaviour

• Gain
• Temptation can be strong, especially where no
  punishment is expected
• Role Conflict
• Competing corporate roles (for example, social
  responsibility versus profit motives)
• Competition
• Competition for scarce resources

11
Causes of Unethical Behaviour (continued)

• Personality
• Are certain types of personalities more prone to
  unethical decisions?
• Organizational and Industry Culture
• Peer and superior conduct strongly influences
  ethical behaviour, for good or for bad

12
Watch for

• Unusually high rewards for success
• Unusually severe sanctions for poor performance
• Implicit support for explicitly forbidden actions

13
How to Deal with an Ethical Dilemma

• Relevant facts?
• Ethical issues?
• Who are the primary stakeholders?
• What are the possible alternatives?
• What are the practical constraints?
• What actions should be taken?

14
A few simple guidelines

• Identify the stakeholders that will be affected
  by any decision
• Identify the costs and benefits of various
  decision alternatives to these stakeholders
• Consider the relevant moral expectations that
  surround a particular decision
• Be familiar with the common ethical dilemmas that
  are common in your organizational role or
  profession
• Discuss ethical matters with others
• Convert your ethical judgments into appropriate
  actions