Chapter 9: The Ethical Leader Flashcards
Ethics
A set of values that define right and wrong
“What is right?”
“What is the correct action?”
Values
Principles or standards that a person finds desirable
“What is important”
“What should I achieve?”
6 things that could influence values
- Religion
- Culture
- Media
- Models
- Attitudes
- Experiences
If it is not one of the six things that influences values, what is another thing that people use to make ethical decisions?
- “Everyone does it.”
- “If it isn’t illegal, then it’s ethical.”
- “Tit for tat”
- “A king’s pass”
Sources of Personal Ethics: Religion
Influences what is considered right and wrong. Can be the guiding force for many people when creating their ethical framework
Sources of Personal Ethics: Culture
Every culture has a set of societal values. Shown through slogans or what everyone else is doing within the country.
Sources of Personal Ethics: Example of Culture
- Costa Rica’s slogan “pura vita” = living a pure life
- China, India, and Russia accepting bribes even though it’s unethical, everyone does it.
Sources of Personal Ethics: Media
Advertising shows us what our values “should” be
Sources of Personal Ethics: Example of Media
Watching a late night show and getting an advertisement that says that having shiny hair and glass skin is the societal norm
Sources of Personal Ethics: Models
Parents, siblings, mentors, coaches, and others can affect ethics today and later in life. The way they act/say affect our values
Sources of Personal Ethics: Example of Models
My parent does this, so I do this
Sources of Personal Ethics: Attitudes
Impressions, likes, and dislikes affect our ethics
Sources of Personal Ethics: Example of Attitudes
Someone who spends a lot of time outdoors may feel a connection to the environment and try to purchase environmentally friendly products
Sources of Personal Ethics: Experiences
Values change over time depending on the experiences we have
Can values change over time?
Yes, as we get older we gain more experiences
Sources of Personal Ethics: Example of Experiences
If we are bullied by our boss at work, our opinion might change on the right way to treat people when we become managers
Rationalizing Unethical Decisions: “Everyone does it”
Makes the assumption that the more people who engage in unethical behavior, the more “OK” it is
Rationalizing Unethical Decisions: Example of “Everyone does it”
Everyone cheats on tests, so it must be OK for me
Basically “Everyone _____________, so it must be OK for me”
Rationalizing Unethical Decisions:
“If it isn’t illegal, then it’s ethical”
If the act isn’t covered by a law, it certainly must be OK
Rationalizing Unethical Decisions:
Example of “If it isn’t illegal, then it’s ethical”
The dude hiring his girlfriend and saying that it is ethical because it doesn’t fall under the “conflict of interest” law
Rationalizing Unethical Decisions: “Tit for tat”
To justify unethical behavior by saying it’s a response to someone else’s unethical behavior
Rationalizing Unethical Decisions: Example of “Tit for tat”
A client making snide sexual comments to the project manager, so the project manager overcharges some items, justifying that since the client is a jerk that the company deserves better pay.
Rationalizing Unethical Decisions: “A king’s pass”
Person has done so much good for so many people that an unethical decision can be overlooked
Rationalizing Unethical Decisions: Example of “A king’s pass”
Many people were willing to overlook Lance Armstrong’s scandal because he survived cancer and started a foundation to support cancer patients and cancer research
Should we, as leaders, be making decisions that benefit ONLY us?
No, as leaders, we need to make decisions that benefit our employees and organizations
7 Steps of Josephson Institute of Ethics Model
- Stop and Think
- Clarify Goals
- Determine Facts
- Develop Options
- Consider Consequences
- Choose
- Monitor/Modify
Stop and Think
Recognize the right decision-making process and avoid making rash decisions. Allows us to see if the situation is legal or ethical
Clarify Goals
Allows ourselves to focus on expected and desired outcomes
Determine Facts
Where are we getting our facts? Is the person who is providing the facts to us credible? Is there bias in the facts or assumptions that may not be correct?
Develop Options
Create a list of options. Brainstormed list with all possible solutions
Consider Consequences
Who will be helped? Who will be hurt? All ethical decisions may not always be perfect
Monitor/Modify
Consider if the decision was right, how you felt about it, and what you might do differently next time
Philosopher’s Approach: Utilitarian Approach
Source of ethical standards that says when choosing one ethical action over another, we should select the one that does the most good and least harm
Greater good for greater number of people
Recognizes that some good and some harm can come out of every situation and looks at balancing the two
Philosopher’s Approach: Example of Utilitarian Approach
Cashier gives you too much change. If you keep the change, what harm is caused? What good is created? You can pay back your friend, but then the cashier risks losing their job
Philosopher’s Approach: Rights Approach
Source of ethical standards that says we look at how our actions will affect the rights of those around us
Philosopher’s Approach: Example of Rights Approach
Given too much change. Look at the rights of the corporation, rights of the cashier to be paid for something I purchased, my own rights to keep change because it was their mistake
Philosopher’s Approach: Common Good Approach
Source of ethical standards that says when making ethical decisions, we should try to benefit the community as a whole
Philosopher’s Approach: Example of Common Good Approach
Given extra change. Donated to local park cleanup might be considered OK because we are focused on the good of the community
Philosopher’s Approach: Virtue Approach
“What kind of person will I be if I choose this action?”
Source of ethical standards that looks at desirable qualities and says we should act to obtain our highest potential
Philosopher’s Approach: Example of Virtue Approach
Given too much change
If I accept this change, this will make me a dishonest person, which I don’t want to be
Social Responsibility
Duty of business to do no harm to society
Areas of Social Responsbility
- Economic
- Legal
- Ethical
- Philanthropic
Social Responsibility: Economic Aspects
Maintain strong economic interest so business can stay in business. Being profitable and providing value to shareholders is part of a company being socially responsible
Social Responsibility: Legal Aspects
Company and its leaders must follow the law and have a legal obligation to do so
Car companies meeting a certain level of emission standards in car production is an example of what social responsibility?
Legal Aspect
Social Responsibility: Ethical
Going above and beyond the legal requirements and meeting the expectations of society.
EX: Suicide rates for workers producing iPhones were high. Foxconn raised the salary by double
Social Responsibility: Philanthropic
The expectation that companies should give back to society in the form of charitable donations of time, money, and goods
EX: REI donates 3% of its profit and thousands of volunteer hours to nonprofit community groups each year
Creating Shared Value
Idea that companies and community are closely tied together, if one benefits, they both benefit
Example of Creating Shared Value
If a company donates money to schools, it benefits both because there will be a better educated workforce
Individual Social Responsibility
An individual’s awareness of how personal actions affect the community
Examples of ISR
- Performing charitable acts
- Working for the community
- Supporting issues that affect society
- Observing individual ethics (integrity, honesty, and the “golden rule”)
Triple Bottom Line
Maintains that companies should commit to focusing as much on social environmental concerns as they do on profits
3 P’s of Encouraging CSR
- People
- Planet
- Profit
