Chapter 2: Ethical Decision Making Flashcards
______ are generally defined as a set of values and standards that guide individual behaviour.
Ethics
Ethics as a concept can be defined more specifically in three ways:
- The rules or standards governing behaviour of a particular group or profession
- A set of moral principles or values
- The study of the general nature of morals and the moral choices made by individuals
___________ are the rules and habits of a society’s conduct that are established according to perceived standards of right and wrong.
Morals
Moral principles are based on _______.
Reason
_________ are the individual or cultural measures of the worth we place on certain ideas and behaviour.
Values
________ are a set of moral principles that govern our behaviour
Ethics
________ are based on values held by society.
Laws
______, _______, and _______ are all values that are prized by professionals in the securities industry. The security industry justifies its right to be self-regulating on the basis of a claim to these core values.
Integrity, Trust, and Honesty
Despite their ambiguous nature, _________ do have several common characteristics:
- They are beliefs, not facts.
- They are long lasting, not fleeting; however, they are not fixed or unchangeable.
- They guide your goals and behaviour on both a personal and corporate level.
Values
The process of becoming aware of the values that drive your day-to-day decisions and behaviour is called
Values Clarification
If you fail to develop a conscious understanding of your value system, many of your decisions will be influenced by what psychologist call
Unconscious Drives
The two types of values:
Ends Values & Means Values
_______ Values include a sense of accomplishment, service to people, security, a world at peace, a social recognition, which can be viewed as goals for which we strive
End Values
______ Values, include ambition, openness, or competence, which can be viewed as actions we take to achieve our goals.
Means
A ______________ is one in which end values and means values mutually reinforce and support each other.
Unified Value System
In the financial services industry in particular, the ideal most firms strive for is a climate of ethical behaviour where trust can flourish. The term commonly used to describe this ethical climate is
Tone At The Top
An _________ ________ of organizational values helps to harmonize the firm’s values with its day-to-day activities.
Explicit Statement
The first question to ask in the values clarification process is
“What are my core value?”
______ ______ states that there is no such thing as a universal moral principle that governs our behaviour. Everthing is relative, situational, negotiable, and personal.
Ethical Relativism
One of the securities industry’s answers to ethical relativism is the concept of professional ____ __ ____ under which the client’s’ interests come before those of the RR’s
duty of care
An _______ ______ arises when we are faced with two or more choices, and we must make an ethical decision. However, not all ethical decision making involves an ethical dilemma.
Ethical Dilemma
Every ethical decision falls into one of two categories:
Right-versus-wrong issues
Right-versus-right issues
An ______ ______ occurs when our central beliefs regarding the right way to act are present in two or more of the possible choices. In other words, when our core values are in conflict.
Ethical Dilemma
The first step in solving a right-versus-right dilemma is
recognizing it as a dilemma
Types of Ethical Dilemmas:
In a _____ vs ______ dilemma, the values of honesty or integrity clash with the values of commitment, personal responsibility, or promise keeping.
Truth-versus-Loyalty
Types of Ethical Dilemmas:
In an _______ vs ________ dilemma, the rights and values of the few clash with the rights and values of many.
Individual-versus-Group
Types of Ethical Dilemmas:
In a ________ vs _________ dilemma, the values of fairness, equity, and righteousness conflict with he values of compassion, empathy, and love.
Justice-Versus-Mercy
Types of Ethical Dilemmas:
In a _________ vs __________ dilemma, a conflict arises when immediate needs or desires run counter to future goals or prospects. In other words, means values clash with ends values.
Short-term vs Long-term
The three tests that can be used to determine whether you are dealing with a right-versus-wrong issue:
The legal test, the front page test, and the mom test
In dealing with Ethical Dilemmas
The resolution principles consist of four modes of problem solving, as follows:
End- based ethical thinking
Rule-based ethical thinking
Social contract based ethical thinking
Personalistic based ethical thinking
this resolution principle demands a cost benefit analysis to determine who will benefit and who will suffer. It asks that we look at our actions from the point of view of their consequences for various parties involved.
End-Based Ethical Thinking
This resolution principle requires the decision maker to act the way they would want others to act in similar circumstances. It demands that any action taken be turned into a universal principle.
Rule-Based Ethical Thinking
This resolution principle aims to create harmonious relationships within a group. The decision maker should ask how his or her actions affect the cohesiveness and the well being of the group.
Social Contract Ethical Thinking
This resolution principle requires that you act in a way that is authentic to who you are and that follows the dictates of your conscience.
Personalistic Based Ethical Thinking
The rules or standards governing the behaviour of a particular group or profession
Ethics
These are the rules and habits of a society’s conduct that are established according to perceived standards of right and wrong
Morals
The study of the general nature of morals and the moral choices made by individuals
Ethics
Describe the 8 step process in Ethical Decision-Making:
- Recognize that there is a moral issue.- Identify where the moral issue exists
- Determine whose moral issue it is.- Determine who must take responsibility for making a decision and who must be accountable for the consequences
- Gather the facts.-
To whom do you owe a duty?
Is there another way to follow the firm’s policy?
Are you acting in a professional manner?
Is the firm acting in a professional manner? - Test for right-versus-wrong issues.- Use the legal test, the front page test, and the Mom test
- Test for right-versus-right paradigms.- Determine if there are core values in conflict
- Apply the resolution principles.- End-based thinking, Rule-based thinking, personalistic based thinking, Social Contract based thinking.
- Make the decision.- Make sure you review the steps
- Reflect on the process.- The reflection stage is not a momentary step; it is one you should apply over time, especially when similar situations arise. How did you reach your final decision?
Personal Goals are __________ values
Ends
