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Managing Business Ethics


* Chapter 3 Overview Ethical Awareness and ... Confirmation Trap Barriers to Consideration of Consequences Reduced number ... of nursing at a ... – PowerPoint PPT presentation

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Title: Managing Business Ethics

Managing Business Ethics
  • Chapter 3
  • Treviño Nelson 5th Edition

Chapter 3 Overview
  • Ethical Awareness and Ethical Judgment
  • Individual Differences, Ethical Judgment, and
    Ethical Behavior
  • Facilitators to and Barriers to Good Ethical
  • Toward Ethical Action
  • Gioias Personal Reflections on the Pinto Fires

The Relationship between EthicalAwareness,
Judgment, and Action
Ethical Judgment
Ethical Awareness
Ethical Action
  • Youve just started a new job in the financial
    services industry. One afternoon, your manager
    tells you that he has to leave early to attend
    his sons softball game, and he asks you to be on
    the lookout for an important check that his boss
    wants signed before the end of the day. He tells
    you to do him a favorsimply sign his name and
    forward the check to his boss.
  • What might influence whether you see this as an
    ethical issue or not?

Influences on ethical awareness
  • If peers agree
  • If ethical language is used
  • If potential for serious harm

Individual Differences Influence How We Make
Ethical Decisions
Individual Differences Ethical Decision-Making
Style Cognitive Moral Development Locus of
Control Machiavellianism Moral Disengagement
Ethical Awareness
Ethical Judgment
Ethical Actions
Cognitive Moral Development
  • Level I (Preconventional)
  • Stage 1 Obedience and Punishment Orientation
  • Stage 2 Instrumental Purpose and Exchange
  • Level II (Conventional)
  • Stage 3 - Interpersonal Accord - Conformity
    Mutual Expectations
  • Stage 4 System Maintenance - Upholding duties,
  • Level III (Postconventional or Principled)
  • Stage 5 Social contract and rights
  • Stage 6 - Theoretical stage only

Why is Cognitive Moral Development Important?
  • Because most people reason at the conventional
    level and are looking outside themselves for
  • That makes leading on ethics essential

Locus of Control
An individuals perception of how much control he
or she exerts over events in life.
Connection to Ethical Behaivor?
  • Internals are more likely to see the connection
    between their own behavior and outcomes and
    therefore take responsibility for their behavior.
  • Therefore, internals are more likely to do what
    they think is right

  • Self interested
  • Opportunistic
  • Deceptive
  • Manipulative

Moral Disengagement
  • The tendency for some individuals to deactivate
    their internal control system in order to feel
    okay about doing unethical things
  • Eight mechanisms used for doing this
  • Euphemistic language
  • Moral justification
  • Displacement of responsibility
  • Advantageous comparison
  • Diffusion of responsibility
  • Distorting consequences
  • Dehumanization
  • Attribution of blame

Moral Disengagement
Its not my responsibility - my boss told me to
do it. Its not my responsibility my team
decided this. Its no big deal! Its not as
bad as (what someone else) is doing. They
deserve whatever they get. They brought this on
Cognitive Barriers to Good Ethical Judgment
  • Barriers to Fact Gathering
  • Overconfidence
  • Confirmation Trap
  • Barriers to Consideration of Consequences
  • Reduced number
  • Self vs. others
  • Ignore consequences that affect few
  • Risk underestimated illusion of optimism,
    illusion of control
  • Consequences over time escalation of commitment

More Cognitive Barriers
  • Thoughts about integrity
  • Illusion of superiority or illusion of morality
  • Paying attention to gut
  • Careful! Gut may be wrong

Unconscious Biases
  • The IAT and race bias
  • The role of emotions

How it felt to be a recall coordinator
  • The recall coordinators job was serious
    business. The scripts associated with it
    influenced me more than I influenced it.
    Before I went to Ford I would have argued
    strongly that Ford had an ethical obligation to
    recall. After I left Ford, I now argue and teach
    that Ford had an ethical obligation to recall.
    But, while I was there, I perceived no obligation
    to recall and I remember no strong ethical
    overtones to the case whatsoever. It was a very
    straightforward decision, driven by dominant
    scripts for the time, place, and context.
  • Dennis Gioia, former recall coordinator at Ford

Toward Ethical Action
  • Script Processing
  • Cognitive frameworks that guide our thoughts and
  • Cost-Benefit Analysis
  • Too simplistic a way of analyzing
  • No moral dimension

  • Mary, the director of nursing at a regional blood
    bank, is concerned about the declining number of
    blood donors. Its May, and Mary knows that the
    approaching summer will mean increased demands
    for blood and decreased supplies, especially of
    rare blood types. She is excited, therefore, when
    a large corporation offers to host a series of
    blood drives at all of its locations, beginning
    at corporate headquarters. Soon after Mary and
    her staff arrive at the corporate site, Mary
    hears a disturbance. Apparently, a nurse named
    Peggy was drawing blood from a male donor with a
    very rare blood type when the donor fondled her
    breast. Peggy jumped back and began to cry. Joe,
    a male colleague, sprang to Peggys defense and
    told the donor to leave the premises. To Marys
    horror, the male donor was a senior manager with
    the corporation.
  • - What is the ethical dilemma in this case?
  • What values are in con?ict?
  • How should Mary deal with Peggy, Joe, the
    donor, and representatives of the
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