B A 300 Notes PDF

Decision making process ○ Moral awareness is the 1st step ○ More likely to recognize moral issue: Peers consider it morally problematic Moral languages is used when problem is presented Decision could cause serious harm to others ○...

Decision making process ○ Moral awareness is the 1st step ○ More likely to recognize moral issue: Peers consider it morally problematic Moral languages is used when problem is presented Decision could cause serious harm to others ○ Sound ethical decision-making Gather the facts Define the ethical issues Identify the affected parties Identify the consequences Identify the obligations Consider your character and integrity Think creatively about potential actions Check your gut Organizational Level ○ Group & Organizational effects Group Norms “Everyone’s doing it” Rationalizing unethical behavior Pressure Organizational effects Rewards and punishments Roles at work Diffusion of responsibility ○ Organizational culture Formal systems selection/training Performance management Authority structure Informal systems Role models/heroes Norms and rituals Myths and stories Individual Characteristics ○ Cognitive Bias Fact gathering Overconfidence about your knowledge of the facts Falling into the confirmation trap ○ So… Think about ways that you could be wrong Consequences Reduced number of consequences Consequences for self vs. others  Consequences as risk ○ Illusion of optimism and illusion of control Escalation of commitment ○ So… Invite input, especially from those who disagree with you Individual Differences Level of moral development ○ Level 1: Rewards/punishments, exchanges ○ Level 2: Shared norms, societal obligations ○ Level 3: Principled, autonomous Locus of control (internal locus of control, you take responsibility of your actions that are caused by you) Ego strength (somebody who has a healthy ego) Individual Differences Questionnaire Debrief ○ Desire 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 Moral Judgements 1- Introduction ○ Six ethical decision-making rules Utilitarianism: Maximize the Common Good Rights: Freedom from Force and Fraud Justice: Greatest Benefit to the Least Advantaged Objectivism: Rationality and Man qua Man Integrative Social Contracts Theory: Hypernorms and Authentic Norms Ethic of Care: Relationships and Dialogue Moral Judgements 1- Utilitarianism ○ Approaches to moral judgment Utilitarianism Rights Justice Objectivism Social contract Care ○ Utilitarianism  Decision rule Maximize the common good (only care about the consequences) Biggest Pro Replaces partiality with science Biggest Con The means don’t matter Example “The ones who walk away from Omelas” Moral Judgements 1- Nozicks ○ Focused on the means that it takes to get the consequences (non-consequences) ○ Negative right = the right to be left alone , the right to be free to pursue with what you want ○ Positive right = a right to a thing, ideology, someones love ○ Decision Rule Freedom from force and fraud ○ Biggest pro Virtually complete freedom of action with minimal government intrusion ○ Biggest Con Disregard for the interests of others ○ Example Certain “payday loan” providers Moral Judgments 1 - Rawls Justice Theory ○ 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 the 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  Approaches to moral judgment ○ Utilitarianism ○ Rights ○ Justice ○ Objectivism ○ Social contract ○ Care Objectivism ○ Russian who came up with this Decision rule Be rational and be all that you can be (reason) (best for me in the long-run to develop myself to be the best I can be) Biggest Pro Reinforces personal responsibility Biggest con Individualistic and judgmental (too self-centered) Example Motive communications Moral Judgements II- Integrative Social Contracts Theory ○ What does it integrate? Global norms and local norms ○ What does social contracts theory mean? That its created by people who come together to form a moral agreement Decision rule Action does not violate a global hypernorm or local authentic norm ○ Respect the dignity of all human beings ○ Respect human rights ○ Survey the local community Biggest Pro Adapts to variations in local norms within some global limits Biggest cons Local norms are vague and may give actors too much flexibility Example Levis Strauss and underage workers in Bangladesh Moral Judgments II– Ethic of Care Decision rule Focus on relationships and responsibilities ○ The moral thing to do is to focus on the relationship & responsibilities ○ Relationships with the suppliers and customers Biggest Pro Protects the weak and dependent Biggest con Neglects justice Example  Certain small, entrepreneurial businesses Corporate Responsibility Corporations: The Fundamentals ○ Definition: “legal entity chartered by the state with rights and responsibilities apart from the persons running or working for the corporation”(Scalet) ○ Separation of ownership and control ○ Shareholder rights vs. managerial discretion ○ What are the roles and responsibilities of a corporation? Two Perspectives ○ Shareholder Value: Maximize profits within the law (and morality) ○ Stakeholder Theory: Advance the interests of all stakeholders (even at the expense of profit) Shareholder Value Perspective A ○ What do Shareholders Own? At IPO, shareholders invest in the promise of maximum shareholder value within legal and moral constraints, in exchange for taking on the firm's residual risk That promise stays with shares as they change from hand to hand over time ○ Shareholder Value Perspective Maximize profits within the law (and morality) Want system to work ○ Arguments for Shareholder Value Legal argument (maximize the shareholder value) Economic imperative (fundamental to our economy) Ethical justifications Efficiency– resources pulled t o their most valued uses Liberty– individuals are free to participate or not ○ Challenges to Shareholder Value Difficult to rely on self-interested businesspeople to act on others behalf (including shareholders); market mechanisms are required to rein them in Shareholder value proponents think that corporate responsibility lies in devising effective corporate governance mechanisms to protect the long-term interests of shareholders Shareholder Value Perspective B ○ Corporate Social Responsibility “Commitment to corporate actions beyond maximizing profits within the law” (and morality) Instrumental/Strategic: How corporations should engage in CSR programs in order to maximize profits within legal and moral constraints  Normative: How corporations should engage in CSR programs because it's the right or moral thing to do, even at the expense of profits ○ Parents and savings account for college, bank wanting to use the money for other things, therefore decreasing the amount of interest you earn Arguments against Normative CSR Violates owners property rights Presumes that managers have better moral skills than shareholders Weakens management's accountability to shareholders Distracts management from its primary purpose Impact of Normative CSR Going Concern: Shareholders’ expectations are undermined, and owners of record at announcement pay for entire CSR redirection Startup: Investors purchase IPO shares with full knowledge of potential for lower market price Stakeholder Theory ○ Advance the interests of all stakeholders (even at the expense of profit) What are Stakeholders? Stakeholders: “Entities significantly affected by the firm's activity, such as employees, customers, shareholders, the community or broader society, the environment, and suppliers” “The debate is not whether management bears ethical responsibilities… [it] is about the reach and scope of these responsibilities” Ethical Justifications Powerful corporations can help alleviate global inequalities ○ Can, apply, should Stakeholder approach leads to greater liberty for the vulnerable Capitalism will only be efficient if the masses buy into it Shareholders don't do the real “work” Consider non-Western values: Economic actors should pursue what is sufficient ○ The Power Argument A corporation's purpose is to “use its resources to advance the interests of all those who are most affected by its corporate activities “With great power comes responsibility”  “The limited capacities of government and the power and influence of corporations require that the corporations address these social problems” ○ PRO CSR ○ A Key CSR Distinction Repair externalities/ “do no harm”, but not responsible for general social problems Advance the common good, “whether or not it's directly related to their core business” ○ Evidence of CSR Popularity Socially responsible investing CSR-related shareholder proposals Nongovernmental organizations Benefit corporations: Special legal status for for-profit businesses that include social responsibility in their core mission ○ Government Intervention Limited Intervention Top-down process: International organizations (e.g., the UN) specify norms endorsed by executives Bottom-up processes: “Ethical norms are rewarded by the purchasing decisions of consumers and investors” Significant intervention: CSR as legal mandate (e.g., codetermination laws) Whistleblowing ○ Whistleblowing “triggers” Truth Employee or customer rights Trust Harm Your personal reputation Your organization’s reputation Breaking the law ○ Precursors to whistleblowing Dealing with a serious issue Assembled the facts Checked to be sure facts are accurate Asked peers or manager for advice See a law or policy about to be violated ○ Steps 1). Go to your boss 2). Go home and talk your family 3). Keeping notes and a diary 4). Go to the next manager up 5). Go to your ethics officer 6). Call your lawyer