Ethics and Rationalization Techniques - Chapter 1

Basic rights that should not be violated, even if it increases overall social happiness.

An ethical approach that focuses on maximizing overall happiness or well-being.

Rules or guidelines that dictate how we should act, regardless of consequences.

Obligations to act or decide in certain ways, based on ethical principles.

Ethical duties stemming from roles or institutions you participate in.

Ethical decision-making considerations within business contexts; rules or guidelines for business practices.

Child labor is ethically wrong because it violates the right to be treated with respect.

Rules enforced by the law; ethical duties associated with laws.

These are ongoing processes within an organization that can lead to unethical behavior. They lead to a normalization of problematic actions.

Taking swift action to reverse unethical practices in an organization.

Outsiders brought in to implement organizational changes, often to address unethical issues.

Organizations' reluctance to acknowledge unethical behavior.

A decline in trust from important groups (e.g., investors, customers, employees) due to organizational issues

A downward trend of an organization, often caused by a significant loss of confidence from stakeholders.

Existing employees may struggle to initiate and implement the right changes, due to their ingrained relationships within the organization.

Executives constantly face complex issues with incomplete information.

Treating employees fairly during decision-making, regardless of the outcome. It involves giving employees input, transparency, and respectful treatment.

The perceived fairness of the final result of a decision.

Implementing fair processes (like giving input and being transparent) often reduces costs in the long run. This is because employees feel more respected and are less likely to leave or engage in negative behaviors.

Employees' perceptions of process fairness are impacted by how much input they feel they have, their understanding of how decisions are made, and the managers' behavior towards them.

Some organizations may prioritize tangible resources (money, rewards) over treating people decently, leading to unfair processes.

While transparency is essential for fair process, some organizations may fear negative consequences like: -Employees feeling overwhelmed by information -Uncomfortable situations during discussions -Unwanted scrutiny of decisions.

While fair process doesn't guarantee everyone gets what they want, it does create a sense of fairness and respect, fostering a more supportive and innovative culture.

While process fairness is important, providing tangible support (like rewards) is also necessary. Balancing both is key to maximizing employee satisfaction.

An unconscious bias that relates to social groups and identities. It operates outside of our awareness and control.

A conscious bias that is related to social groups and identities. It is something we are aware of and can control.

Preconceptions that our brain uses to quickly make sense of the world. They are mental shortcuts that can lead to biases related to social groups.

Making decisions based on unconscious stereotypes, often related to age, race or other social groups.

A tendency to favor people who are similar to us, such as those sharing our race, religion, or interests.

Unconscious biases can blind us to situations where our associations are inaccurate, leading to unfair judgments.

Our brains automatically associate things that commonly go together, leading to the assumption that they always coexist.

By preferring our 'in-group', we might unintentionally discriminate against those who are different from us.

The tendency for groups to make decisions that are more extreme than the average individual member's initial inclination.

The tendency to favor information that confirms pre-existing beliefs and ignore or downplay contradictory evidence.

The tendency for groups to focus on information that everyone knows, even if it's not the most important.

A work environment where employees feel comfortable expressing their opinions and ideas without fear of reprisal.

Employees may choose not to voice concerns due to factors like lack of confidence, fear of retaliation, or belief that their input will be ignored.

Bias in AI systems that results from the data they are trained on, reflecting the biases of the people who created or curated the data.

The ability to understand and explain how AI systems make decisions, revealing the underlying logic and reasoning behind their output.

The potential for AI systems to cause physical or emotional harm, either intentionally or unintentionally, to humans or the environment.

Being fair isn't enough; leaders must also appear fair in their actions to build trust and achieve positive outcomes.

A model for achieving process fairness that involves engaging employees, capturing their insights, and building consensus on strategy execution. It helps organizations capture value by getting employees to buy in to strategies.

The freedom for employees to decide how they complete their work tasks, leading to increased creativity, innovation, and motivation.

Some managers mistakenly believe that tangible resources are more important to employees than fair treatment, overlooking the value of process fairness.

Many managers find it easier to avoid uncomfortable situations and conversations when dealing with fairness concerns, leading to inaction.

Corporate policies (e.g., by legal departments) can hinder open communication about decisions, preventing fair process implementation.

Managers who believe knowledge is power might resist involving others in decision-making, fearing loss of control. This can hinder the practice of process fairness.