ethical decision-making in business. characteristics of individuals cognitive biases individual...
TRANSCRIPT
Ethical Decision-making in Business
CHARACTERISTICS OF INDIVIDUALSCognitive BiasesIndividual Differences
CHARACTERISTICS OF ORGANIZATIONSGroup and Organizational PressuresOrganizational Culture
MORALAWARENESS
ETHICALJUDGMENT
ETHICALBEHAVIOR
Process of Individual Ethical Decision-Making Behavior
Ethical decision-making process
Moral awareness
More likely to recognize moral issue when
• Peers consider it morally problematic• Moral language is used when problem
is presented• Decision could cause serious harm to
others
Sound ethical decision-making
1. Gather the facts2. Define the ethical issues3. Identify the affected parties4. Identify the consequences5. Identify the obligations6. Consider your character and integrity7. Think creatively about potential actions8. Check your gut
Ethics and organizational culture
1. Who shapes your ethical decisions?2. The Pygmalion effect3. Rewards and punishments4. Goals5. Diffusion of responsibility6. Roles and deindividuation
Ethics and the law
• The relationship between ethics and the law
• Corporate rules as “law”• Discrimination laws• Whistleblower laws• Federal Organizational Sentencing
Guidelines
Cognitive biases
Fact gathering• Overconfidence about your
knowledge of the facts• Falling into the confirmation trapSo…• Think about ways that you could be
wrong
Cognitive biases
Looking at consequences• Reduced number of consequences• Consequences for self vs. others• Consequences as risk
– Illusion of optimism and illusion of control
• Escalation of commitmentSo…• Invite input, especially from those who
disagree with you
Cognitive biases
Thinking about integrity• Illusion of superiority• Ethics of your profession
Individual differences
• Level of moral development– Level 1: Rewards/punishments, exchanges– Level 2: Shared norms, societal
obligations– Level 3: Principled, autonomous
• Locus of control• Ego strength
Desired Moral Approbation
• “Desire for moral approval from oneself or others”
• Level of desired moral approbation (DMA) is an individual difference
• Study discovered three types of DMA– DMA from Others—Praise – DMA from Others—Blame– DMA from the Self
Scoring the Moral Approbation scale
Average your responses for these 20 questions into three categories:•DMA-OP 1, 3, 5, 6, 8, 13, 16, 19, 20•DMA-OB 2, 9, 10, 12, 15, 18•DMA-S 4, 7, 11, 14, 17
Desired Moral Approbation averages
• DMA from Others—Praise 4.93• DMA from Others—Blame 4.35• DMA from the Self 5.17
Approaches to moral judgment
• Utilitarianism• Rights• Justice• Objectivism• Social contract• Care
Utilitarianism
• Decision rule – Maximize the common good
• Biggest pro– Replaces partiality with science
• Biggest con– The means don’t matter
• Example– “The Ones who Walk Away from Omelas”
Robert Nozick’s Rights Theory
• Decision rule – Freedom from force and fraud
• Biggest pro– Virtually complete freedom of action with
minimal government intrusion
• Biggest con– Almost complete disregard of interests of
others with a stake in behavior
• Example– Certain “payday loan” providers
John Rawls’ Theory of Justice
• Decision rule– Greatest benefit to the least advantaged
• Biggest pro– “Unbiased” approach to social justice
• Biggest con– Denies free will, meritocracy
• Example– Ben and Jerry’s Ice Cream
The “real” Rawls
• Incorrect approach in textbook• Really…
– Contractors are stripped of bias to decide on two principles of justice
– “Greatest benefit…” rule the most challenging
– Veil of ignorance is not used for decision making