Ethics Study Guide Fall 2024 PDF

Foundations of Ethical Behavior (MGT 20700) Prof. Sikorski Fall 2024 Final Exam Study Guide Book readings: - Standing up to Power” (p. 15-30) (Day 11) - Challenge 13: Showing Mercy, pp. 197-209 (Day 6) - “All-Purpose Tools,” pp. 231-245 (Day 3) - Being Ethically Proactive” pp....

Foundations of Ethical Behavior (MGT 20700) Prof. Sikorski Fall 2024 Final Exam Study Guide Book readings: - Standing up to Power” (p. 15-30) (Day 11) - Challenge 13: Showing Mercy, pp. 197-209 (Day 6) - “All-Purpose Tools,” pp. 231-245 (Day 3) - Being Ethically Proactive” pp. 247-258 (Day 10) - The Big Question, pp. 281-285 (Day 2) Kristol agrees with Smith in that capitalism provides equality of opportunity and that the state trying to create social justice actually impedes on human freedom. “The egalitarian impulse requires an authoritarian means.” As we have mentioned, the final exam will include short answer/ reflection, multiple choice, and true/false. You should be ready to be able to give a coherent account of any topic in the class, and be able to relate authors, ideas, virtues, topics, etc. to one another in the context of answering the questions that are asked of you. To help you prepare, you might consider all of the following questions to be helpful. Obviously, some are more “factual” and “objective,” while others are synthetic (ie: they could be answered in a variety of ways drawing from various authors/sources/discussions that we’ve had). Define Morality of Happiness Christensen- 3Qs that lead to purpose, happiness 1. How can I be sure that I’ll be happy in my career? 2. How can I be sure that my relationships with my spouse and my family become an enduring source of happiness? 3. How can I be sure I'll stay out of jail? Eudaimonia- flourishing ○ From “eu”= good, and “daimon”= spirit Purpose as a motivator for daily practices Most major ancient and medieval treatises on ethics begin by discussing happiness Define Morality of Obligation More modern approach to ethics, until recently… Extrinsic morality Glaucon’s position– act justly merely to avoid consequences, and even the most just people would act unjust if there were no consequences Justice is not inherently good, but allows for order and civil life  We are called to play by the “rules” What are some different Ethical Systems? Deontology (“Deon” = duty): ○ Ten Commandments ○ Universal rules and respect of the goals of human beings “don’t lie” “don’t cheat” “don’t steal” What is universal? - people make exceptions natural (life, liberty, pursuit of happiness) and legal rights preserved Reversibility (“golden rule”) Consequentialism → utilitarianism→utility (net) ○ Qualitative vs. quantitative utility ○ Qualitative: can't put a price on human life ○ Quantitative: Ford (Pinto) chose to exclude the heat shield to save a marginal amount of money ○ End justifies the means if the net gain > net loss Egoism (Still technically under consequentialism) ○ Always make the decision that is best for you ○ Counter: Am I only considering myself? What can be done for others involved? Relativism ○ Everyone’s point of view is equally valid ○ One statement can compete with another statement and they both end up being “true’ ○ Not a great decision-making tool Virtue Ethics: ○ Emphasis on becoming your best self ○ Mirror test: Will I like the person I see in the mirror, what I have become? ○ Pillow test: Will I be able to sleep well at night? ○ Sunshine test (publicity): Would I be willing to have my actions reported to a public audience? What kinds of questions would a person who subscribes to these systems ask? Look above at each system, questions should be apparent What are the differences between extrinsic and intrinsic forms of motivation? Extrinsic motivation is when you are motivated by the reward, whereas intrinsic motivation is the result of an innate desire to do something because of pure enjoyment of the task How does a virtue ethics approach to business differ from other approaches?  It recognizes that our actions shape who we are and become A habitual good action is a VIRTUE; need to do the right thing consistently, 100% of the time is easier than 98% of the time (Christensen) What personality traits do the best and most successful leaders possess? “High levels of guilt proneness, honesty-humility, conscientiousness are hallmarks of an ethical employee” - cohen, et al. People who have a higher levels of guilt proneness reported a greater sense of responsibility for others and were rated as more effective leaders Conscientiousness is almost the same magnitude as extraversion on leadership impact Not-so-valid signs of high H (honesty-humility): ○ Respectability: could just be a reasonable level of self-control ○ Anti-conformity: not authenticity; could be trying to attract attention ○ Religious piety: could be trying to maintain status and respectability ○ Championing the underdog: could be vehicle to achieve high status ○ Blunt criticism: could be a habit cloaked in “honesty” ○ Publicly displayed generosity: could be done to attract public attention What are the different reciprocity styles? 1. Givers (larger network in the long-run) Definition: Givers focus on what they can do for others. They contribute their time, energy, knowledge, and resources without expecting anything in return. Behavior: They help others selflessly, often going above and beyond, even when there’s no immediate benefit to themselves. Strengths: Can build strong relationships, trust, and goodwill; often have long-term success. ○ Dormant ties–pick up where you left off because of the relationship of trust Risks: Can be exploited or burn out if they neglect self-care or boundaries. ○ 5 minute favors: not taxing in the short run but may have positive long run consequences 2. Takers Definition: Takers seek to gain as much as possible while giving as little as necessary. Behavior: They prioritize their own interests, often leveraging relationships and resources to get ahead. Strengths: Can achieve short-term success by being competitive and assertive. Risks: Often alienate others, leading to damaged relationships and limited long-term success. 3. Matchers  Definition: Matchers strive to maintain an even balance between giving and receiving. They operate on a principle of fairness and reciprocity. Behavior: They help others, but with the expectation of receiving help or favors in return. Strengths: Create balanced, mutually beneficial relationships; avoid exploitation. Risks: May miss opportunities to foster deeper, trust-based connections by focusing too much on quid pro quo. Key Insights from Grant: Success and Givers: While givers can sometimes end up at the bottom of success hierarchies if they’re overly self-sacrificing, they’re also disproportionately represented at the top. Thoughtful and strategic givers achieve success by helping others in ways that create value for everyone involved, including themselves. Collaboration: Understanding and balancing these styles can lead to more effective teamwork and stronger professional relationships. Generosity with Boundaries: Givers thrive when they combine generosity with self-awareness and set healthy boundaries to avoid burnout or exploitation. What is the principle of double effect, and why does it matter, or when could it be used? Person performs an action that he foresees will produce a good effect and a bad effect, provided that four conditions are verified at the same time 1. That the action in itself from it's very object be good or at least indifferent 2. That the good effect and not the evil effect be intended 3. That the good effect be not produced by means of the evil effect 4. That there be a proportionally grave reason for permitting the evil effect A classic example of the Principle of Double Effect is the use of force in self-defense. Suppose a person is faced with an attacker and, in defending themselves, accidentally kills the attacker. According to the principle: ○ The act of defending oneself (the good effect) is morally neutral or good. ○ The intention is to save one’s own life, not to harm the attacker. ○ The death of the attacker is an unintended side effect, not the means to save oneself. ○ The harm (death of the attacker) is proportional to the good (preserving one's own life), especially if no other less harmful means of self-defense are available. What is the common good? Sum total of all conditions of social life that allow for the flourishing of each individual and the whole What is solidarity? Interdependence; see ourselves as part of a community What is subsidiarity? Respecting people's freedom and responsibility “decisions [that] should be made at the lowest level possible and the highest level necessary” What is the role of the Church and the state in pursuing justice? Church: (faith) forms people, and PURIFIES reason & awakens spiritual energies to fight for justice State: Just order & share of wealth Why does Pope Benedict XVI think we need something more than just “justice”? 5 takeaways of solidarity: 1. Thirst for power and desire for profit leads to structures of sin (all wealth in the hands of a few; corruption) 2. Obstacles to development are not purely economic 3. Solidarity as a virtue; interdependence; see oneself as part of a community 4. Influential people should feel a responsibility for the weaker and share 5. Need Christian dimension of total gratuity, forgiveness, or reconciliation Define the logic of exchange, the logic of the gift, and the logic of the market (Benedict XVI) The Logic of Exchange: I give in order to get (TAKERS) The Logic of Duty: I give because I have to (MATCHERS) The Logic of Gratuitousness (Gift) : I give because I want to (Giver –Adam Grant) ○ Adam Rifkin What is a pre-commitment device? Pre-commitment devices, as discussed in Narrowing the Gap, are strategies or tools individuals use to align their future actions with their current goals or values, helping them overcome procrastination, impulsivity, or temptation. These devices create binding commitments that make it more difficult to deviate from intended behaviors. ○ Keep want self from dominating should self in the moment by adhering to your should self prior ○ Ex: Getting a personal trainer → forces you to go to gym ○ Locking money in lockbox → increased family savings ○ Change password on social media or delete apps Why can curiosity be a vice? (Littlejohn)  Curiositas— a vice pertaining to an intemperate pursuit of knowledge vs Studiositas—the virtue of curiosity; really caring to delve deep into a topic/idea ○ Err in Object of Knowledge: Arrogant Curiosity: only God can know Meddling Curiosity: gossiping Distracting Curiosity: not the right time (to be doing something else) ○ Err in the Mode of Knowing: Intemperate Curiosity: to feverish a desire Impertinent Curiosity: seeking a certainty that can’t be had Shallow Curiosity: only superficial before moving on (novelty; especially in today’s digital world) ○ Err in the End Purpose of Knowledge: Possessive Curiosity: Privatizing knowledge: I know and you don’t What are some negative effects of technology? Pope Francis: Technocratic Paradigm ○ One-sided and all encompassing way of seeing the world as raw matter to be manipulated ○ Progress = technological advancements ○ “If we can do it, we should” ○ Pope Francis juxtaposes this with the creation paradigm creation is a gift; we are stewards not masters of creation; use what we have responsibility What are some ways of morally disengaging? - Justification, comparison, euphemism What is stakeholder theory? What are some arguments for or against it? Lynn Stout: Four Arguments 1. History: shareholder approach is novel 2. Legal: Corporate is a legal person (owns itself) a. Different people make contracts with the corporation b. Shareholders don’t control the directors 3. Evidence: Returns are actually greater than those companies who merely emphasize profit maximization in the long run 4. No single “shareholder” value a. some short-term investors, some long-term Counter argument: To whom should businesses be accountable? Any person with an opinion gets to be a stakeholder toll free? What qualifies them? What power is assigned? Ethical concerns? What is shareholder theory? What are some arguments for or against it? Proposed by Milton Friedman wherein the CEO is an agent of the shareholders and their moral duty is to act in the interest of the shareholders by increasing shareholder returns. If the returns are maximized by increasing profit than the CEO has done their job and shareholders can then choose themselves how to allocate the money. Essentially CEO is taxing the shareholders if they use firm funds towards social goals ○ They can do this ON THEIR OWN TIME ○ Shareholders should be able to do what they want with the money Main arguments against shareholder theory are: ○ Stakeholder theory: SEE ABOVE ○ Common Good View (JPII): social value is found in its very existence as a community of people who endeavor to satisfy their basic needs and form a particular group at the service of society Define prudence, justice, fortitude, and temperance. Prudence: “seeking truthfully so that you can act rightly” or in simpler terms, determining right from wrong and then acting in the “right” manner Justice: Giving to each their due Fortitude: Courage Temperance: “moderates the attraction of pleasures and provides balance in the use of created goods” ○ Right desires, intentions, and actions Give an account of how the virtues work together. Can one have only one of the virtues? How does one grow in virtue? What are some related virtues or opposed vices to the four cardinal virtues? Prudence Justice Fortitude Temperance Deficiency Carelessness, Cowardice Rashness, Impulsiveness Virtue Alignment of courage; moderation; “want” and vulnerability directs teh “should”; right sensitive from wrong appetites toward and acting right what is good and maintains healthy discreation  Excess Overcautious, Daring paranoid, irresoluteness What is characteristic of the founding of business studies at Notre Dame? O’Hara: Primary function of commerce is service to mankind. Business has a code of ethics based very largely on divine principals. When this code is followed, commerce can and does advance civilization.” How would you answer a question like “What is business ethics?” The application of moral principles and virtues to everyday business practices Business ethics involves applying virtues like prudence, temperance, fortitude, and justice to decision-making, ensuring actions are morally sound and balanced. Prudence guides wise choices; temperance ensures moderation in pursuit of profit; fortitude upholds ethical commitments in challenges; and justice promotes fairness to all stakeholders. Rooted in Catholic social thought, particularly St. John Paul II's common good approach, business is seen as a community of persons contributing to human dignity and the collective well-being, rather than solely profit-driven pursuits. What is the 8-step decision making process in the Business Ethics Field Guide? 1. Identify Important Facts: Gather and evaluate all relevant information to understand the situation comprehensively. 2. Identify the Ethical Issue(s): Define the moral dimensions of the situation, listing values and possible conflicts, and categorizing the issue among common dilemmas. 3. Identify Stakeholders: Consider all parties affected by the decision, prioritizing their significance and assessing potential impacts. 4. Identify Potential Solutions: Brainstorm possible actions, combining creativity with practicality. Include "doing nothing" as an option if appropriate. 5. Assess Solutions Using Ethical Perspectives: Apply principles such as justice, fairness, and utility to evaluate solutions critically. 6. Assess New Potential Solutions: Reassess in light of new insights, refining solutions for greater effectiveness and moral clarity. 7. Act on Your Ethical Analysis: Implement the chosen solution with courage, relying on prior preparation for confidence. 8. Evaluate Actions and Outcomes: Reflect on the decision's success, noting lessons learned for future dilemmas Review the “All Purpose Tools” in the Business Ethics Field Guide pp. 231-245 (Day 3)  - Deontology: Adhering to universal principles, such as fairness and reversibility (e.g., the Golden Rule). - Utilitarianism: Maximizing the greatest benefit for the most people. - Virtue Ethics: Acting in ways that reflect and reinforce personal integrity. - Social Contracts: Fulfilling societal obligations to maintain harmony. - Ethics of Care: Prioritizing relationships and protecting the vulnerable Describe the qualities of a good leader - Guilt proneness, conscientiousness, virtuous (high in prudence, temperance, fortitude and/or temperance) What are some pitfalls of leaders, and signs of bad leadership? - Takers; ethical egoists, self-absorbed, “diseases of leadership” – Pope Francis - Disease of leadership Alzheimer’s: forgetting those who helped you get to where you are - Disease of a downcast face: being overly stoic, glum, instead of having a smile and “transmitting” joy - Disease of gossiping: This is the disease of “cowardly persons” who lack the courage(fortitude) to speak out directly, and would rather go behind the backs of others Is compliance with ethics codes enough for ethical behavior? Why or why not? With ethics comes compliance, but not necessarily the reverse… What roles might a chief integrity officer play? What might be obstacles to instituting this position? - Create and shape culture where people are happy and proud to work because they are making a positive contribution to society (Drives intrinsic motivation) - Perks: Better performance, favorable views, happier workers, - Obstacles: - Hard to spend money because many people wouldn’t see it as a real position - Too much overlap with compliance - Would it be above the CEO? Is profit a good, bad, or neutral goal in business? Why or why not? Pope Benedict would say that it is can be good, but could be BAD if → leads to structures of sin Perhaps a more realistic and modern view is that it can be a neutral goal; are the people who lead the company virtuous? What is the culture of the company? Are people encouraged to give with their time and money?  ○ B-Corp business still prioritize profit because the more they make, the more they can allocate towards their communities What role does culture play in a company’s pursuit of ethics? - figure out how to word Discuss employee workplace surveillance in relation to ethics. How might some authors for our class weigh in? - Glaucon would recommend it [Prudence] Discuss some strategies for improving ethical behavior. - Decreasing isolation and increasing teamwork - Curbing powers of special interest groups - communicating saliently and clearly - NOT building a culture of time-pressure and efficency [Prudence] Are you able to discuss and give examples of “REVISE”? - REminder - Using subtle cues to remind others to be ethical and decrease the ability to justify dishonesty - Studies show that when you ask someone to think of the 10 commandments and then ask them a question, they will answer truthfully - VIsibility - When people are seen by others they will act more ethically  - Study: When people were taking a test in a well lit room with others they cheated a lot less; honor jars with a picture of eyes on it received more money - We act like people we look up to; if our bosses and role models are cheating and being unethical we will too - - SElf Engagement - People want to be ethical but often don’t think about how their everyday actions arent. - Self Engagement makes people act how they see themselves (morally) and resist unethical temptation. - Example: Having people sign their name on the top of mileage reimbursement made more people report their true mileage Are we selfless or selfish by nature? Why does the answer to this question matter? - What is the dopamine effect? - Dopamine causes us to want, desire, seek out, and search. It’s not just about physical needs such as food, or sex, but also about abstract concepts. Dopamine makes us curious about ideas and fuels our searching for information. SHALLOW CURIOSITY; NOVELTY Define blind spots and identify some common ones. - Ethical Blindspots result from: - Believing yourself to be ethical, therefore your behavior is ethical - unconscious biases - conflicts of interest Common ethical blindspots: - overconfidence (i am more ethical than others) - Failure to recognize ethical dimensions - Self-serving bias: viewing yourself/your actions wth a positive self-image, even when that is evidently not true - Incrementalism: gradually compromising ethical standards little by little until it is normal and now you make more significant unethical behavior What is behavioral ethics? - Determining how people actually behave, rather than how they ought to behave - Descriptive, not normative - Key finding: “bounded ethicality” What is bounded ethicality? What is ethical fading? What are forecasting errors? - Bounded ethicality: Even the most ethical people can behave unethically - Ethical Fading: our “should self” (rational) fades into the background in favor of the “want” self (emotive) - we think differently about a decision when we are predicting about how we will behave vs. when we actually have to act - Forecasting: - Prudence helps us act rightly, and remember truthfully Can you identify the parts of the ethical fading process (the diagram from Bazerman and Tenbrunsel that we’ve discussed)? [Should self vs want self] - Prediction - Forecasting errors (should) - “I should behave ethically…therefore i will” - Decision Time - Ethical fading (want) - “I dont see the ethical implications of this decision…so i do what i want to do” - Recollection - Memory revisionism (should) - “I should have behaved ethically…therefore I did” What are the three “c’s” of business, and discuss their relation to one another? Contribute to human dignity/flourishing Cooperate with solidarity Compete in subsidiarity Competition vs Cooperation - Competition is characterized by bargaining in markets and cooperation requires one to see the shared purpose and commit to others (i.e. in teams) Give some qualities and characteristics of servant leadership  1. Success is not measured by material things a. You are measured more by who you are than by what you have. b. Being > Having 2. Fame & status are not infinite/lasting accomplishments a. e.g. Alexander the Great 3. Virtue forms your character a. Only you can form or change virtues 4. Know thyself, for change begins within a. Business leaders have less control over external failings, than internal failing 5. Be open to the transcendent a. Religion is the third dimension of morality b. Religion provides a primary site of moral formation for the majority of people around the world Past Quiz Questions/Answers: 1. What are four possible ethical systems, as described by Engelland in Ofrce for Good) a. Moral Relativism b. Utilitarianism c. Duty Ethics d. Ethical egoism 2. According to Agle, et al., the “mirror test”, the “pillow test” and the “sunshine test” are all important questions that grow out of an help define a: a. Virtue Ethics Framework 3. The Catechism of the Catholic Church lists four cardinal virtues. They are: a. Prudence, justice, fortitude, and temperance 4. According to Lynn Stout, who owns a corporation? a. Corporation owns itself; is its own legal person 5. This is the name Stout gives to the alternative to shareholder primacy she endorses: a. “Satisficing” 6. In Lynn Stout’s article, she argues that companies that endorse Friedman’s view (shareholder theory) perform better over time: a. False 7. In Caritas in Veritate, which of the following does Benedict XVI seem to favor the most? a. In addition to profit-oriented business, business see itself as a service to society 8. Is Adam Rifkin a giver, taker, or matcher? a. Giver 9. With the help of this virtue we apply moral principles to particular cases without error and overcome doubts about the good to achieve and the evil to avoid a. Prudence 10. Ann Tenbrunsel’s chapter in Blind Spots introduces ______ as the term referring to the fac that, when predicting our behavior, we think about our ethical decisions differently than when we actually act in the moment of decisions 11. What does REVISE stand for?  a. Reminder, Visibility, Self Engagement 12. True or False: According to our readings, enforcement and deterrence are effective and low-cost ways of curbing dishonesty. a. False 13. According to Bazerman and Tenbrunsel, ALL of the following are strategies for increasing ethics except: a. Building a culture of time pressure and efficiency 14. According to Brad Agle, et al, what is the real “Big Question”, and list 2 of the 4 possible answers to this question: a. Big Question: Why should we always act in an ethical manner? b. Ethical Harmony; Costs of doing unethical business can be very high 15. In Dan Ariely’s experiment regarding due dates for papers, which students received the best grades? List the three groups in order from best to worst grades: a. Best: set deadline by professor (staggered due dates) b. Middle: Students set their own deadlines c. Worst: Deadline is final day of class for all papers 16. What is “Self control” credit card? Did the banks adopt Ariely’s idea? a. A self-control credit card allows people to set spending limits for each category or spending such as food, clothing, etc. b. The banks did not ultimately adopt Ariely’s ideas 17. Which of the following is NOT one way of being ethically proactive, according to our authors? a. Read and be aware of compliance policies through the HR department 18. Milton Friedman says the idea that corporations have social responsibility is “pure and unadulterated”... a. Socialism 19. Irving Kristol does not believe that capitalism results in nearly everyone’s bettering his or her condition a. False