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BUSINESS ETHICS
ROBERT FOLGER, Ph.D.
DISTINGUISHED ALUMNI ENDOWED PROFESSOR
IN BUSINESS ETHICS
DEPARTMENT OF MANAGEMENT
UNIVERSITY OF CENTRAL FLORIDA
OVERVIEW
• NORMATIVE PHILOSOPHY
–A PRESCRIPTIVE APPPROACH
• EMPIRICAL RESEARCH
–A DESCRIPTIVE APPROACH
NORMATIVE, PRESCRIPTIVE
APPROACH
• ETHICAL PHILOSOPHY ABOUT “RIGHT” & “GOOD”
• RECOGNIZING WHEN ETHICS MATTERS
• BEING FAMILIAR WITH ETHICAL PERSPECTIVES
NORMATIVE: “THE RIGHT”
(FOCUS ON BEHAVIOR)
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“IT WAS JUST THE RIGHT THING TO DO”
“IT’S THE PRINCIPLE OF THE THING”
DEONTOLOGICAL (IMMANUEL KANT)
THE “CATEGORICAL IMPERATIVE”
NORMATIVE: “THE GOOD”
(FOCUS ON RESULTS)
• “THE ENDS JUSTIFY THE MEANS”
• “GREATEST GOOD FOR THE GREATEST
NUMBER”
-- UTILITARIAN (e.g., BENTHAM; J. S. MILL)
-- MORE GENERALLY, “CONSEQUENTIALIST”
INTUITIONISM: W. D. ROSS AND
“PRIMA FACIE” DUTIES
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BENEFICIENCE: HELP OTHERS
NON-MALEFICIENCE: DON’T HARM OTHERS
JUSTICE: GIVE PEOPLE WHAT THEY DESERVE
SELF-IMPROVEMENT: ENHANCE GOOD QUALITIES
REPARATION: COMPENSATE WHEN YOU’VE
WRONGED
• GRATITUDE: “RETURN THE FAVOR” IF BENEFITTED
• FIDELITY: KEEP YOUR WORD
• VERACITY: DON’T LIE
Intuitionism: a normative, prescriptive approach
OTHER GUIDELINE LISTS
• ROBERT AUDI—INCLUDE 2 MORE
– LIBERTY:
PRESERVE, ENHANCE HUMAN FREEDOM
– RESPECTFULNESS:
TREAT WITH DIGNITY
• “PRINCIPLISM”— SYNTHESIZE INTO 4
(Beauchamp in Kennedy Institute of Ethics Journal,
1995: “respect for autonomy, nonmaleficence,
beneficence, justice”)
DEVELOPMENTAL PSYCHOLOGY:
SHIFTING TO THE EMPIRICAL
• CONNECTING NORMATIVE ETHICS WITH
DESCRIPTIONS OF MORAL REASONING
• KOHLBERG: MORAL ORIENTATIONS AS STAGES
OF COGNITIVE DEVELOPMENT
• REST: FOUR COMPONENTS OF MORAL
DECISION-MAKING
REST’S FOUR COMPONENTS OF
MORAL DECISION-MAKING
• AWARENESS
• JUDGMENT
• MOTIVATION
• BEHAVIOR
1. AWARENESS: THE JONES
MODEL OF MORAL INTENSITY
• MAGNITUDE OF CONSEQUENCES
• SOCIAL CONSENSUS
• PROBABILITY OF EFFECT
• TEMPORAL IMMEDIACY
• PROXIMITY
• CONCENTRATION OF EFFECT
LACK OF AWARENESS
• “BOUNDED ETHICALITY”
• “MORAL SEDUCTION”
2. JUDGMENT: MORAL
REASONING ABILITY
• LEVEL OF COGNITIVE-MORAL DEVELOPMENT
• KOHLBERG’S STAGE THEORY
PRE-CONVENTIONAL
CONVENTIONAL
POST-CONVENTIONAL
TYPES OF MORAL ORIENTATION
• BRADY AND WHEELER
– UTILITARIAN (CONSEQUENTIALIST) VS.
FORMALIST (DEONTOLOGICAL)
• FORSYTH
– IDEALISM
– RELATIVISM
3. MOTIVATION FROM
MORAL IDENTITY
• INTERNALIZATION
• SYMBOLIZATION
4. BEHAVIOR IN THE
WORK ENVIRONMENT
• WORKPLACE ETHICAL CLIMATE
• WORKPLACE ETHICAL CULTURE
COMPRESSED COMPONENTS?
THE NEW SYNTHESIS
• TWO-SYSTEMS APPROACH
• SOCIAL-INTUITION MODEL
SYSTEM 2
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SLOW
DELIBERATIVE
SUBJECT TO CONSCIOUS CONTROL
EFFORTFUL
SYSTEM 1
• FAST
• INTUITIVE
• AUTOMATIC
• EFFORTLESS
HAIDT’S SOCIAL
INTUITION MODEL
• INTUITION FIRST BY SYSTEM 1
• JUSTIFICATION NEXT BY SYSTEM 2
THE INTUITION-EMOTION
COMPLEX
• ENVIRONMENTAL CUE
MORAL INTUITION
• MORAL INTUITION
MORAL EMOTION
• MORAL EMOTION
ASSOCIATED ACTION TENDENCY
BANDURA: MORAL
DISENGAGEMENT
• SELF-CRITICISM IS UNCOMFORTABLE
• RELAXED SELF-STANDARDS ARE USED
WEAK LINKS OF
DEFENSIVENESS
• DETRIMENTAL CONDUCT
• INJURIOUS EFFECTS
• OPPONENTS, VICTIMS
TAKING THE “BAD” OUT OF
BAD BEHAVIOR
• MORAL JUSTIFICATION
• EUPHEMISTIC LABELING
• ADVANTAGEOUS COMPARISON
DOWNPLAYING PROBLEMATIC
CONSEQUENCES
• RESULTS MINIMIZED, IGNORED,
MISCONSTRUED
• RESULTS DENIED, DISTORTED
DEMONIZING THE
OPPOSITION
• VICTIM DE-HUMANIZATION
• DISPARAGING, DENIGRATING
CRITICS
MINIMIZING
ACCOUNTABILITY
• ATTRIBUTION OF BLAME
• DISPLACEMENT OF RESPONSIBILITY
• DIFFUSION OF RESPONSIBILITY
MORAL DISENGAGEMENT:
LONGITUDINAL STUDY
• MEASURES AT START OF SEMESTER
–EMPATHY
–MORAL IDENTITY (INTERNALIZATION)
• MEASURES SOME WEEKS LATER
–MORAL DISENGAGEMENT
START OF NEXT SEMESTER:
UNETHICAL BEHAVIOR
MEASURE
• IMPROVED DISENGAGMENT SCALE
(24-ITEM AVERAGE)
• SURVEY 3 BEHAVIOR SCORES PREDICTED
VALIDATION OF THE UNETHICAL
BEHAVIOR SCALE
• ETHICS EXPERTS’ RATINGS
• MONEY-RETURNED TEST
• KEEPING OR RETURNING MONEY IN A
SECOND TEST WAS PREDICTABLE FROM THE
ANSWER IN THE FIRST SURVEY
DISENGAGEMENT RESEARCH:
BROAD-BASED SAMPLES
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TWO U.S. UNDERGRADUATE SAMPLES
ONE U.K. UNDERGRADUATE SAMPLE
INTERNATIONAL MBA PROGRAM
MANAGERS ACROSS INDUSTRIES
MANAGER SURVEY
• FOCAL MANAGER
• CO-WORKERS
• SUPERVISOR
CAPTURING THE PROCESS
• INFLUENCE FROM THE SITUATION
• CHANGE IN MORAL
DISENGAGEMENT
CORPORATE MORAL
DISENGAGEMENT
• TOBACCO, LEAD, VINYL CHLORIDE
• SILICOSIS-PRODUCING
PROCESSES
REDUCING MORAL
DISENGAGEMENT
• ETHICAL CULTURE MAKES A DIFFERENCE
• “EXPLICIT INSTITUTIONALIZATION”
PROMOTING ETHICAL BEHAVIOR
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ETHICAL CLIMATE
ETHICAL CULTURE
CODE ENFORCEMENT
INSIGHTS INTO LEADERSHIP
PRESSURE TO BEHAVE
UNETHICALLY (PBU)
• BEN TEPPER, BUSINESS HORIZONS, 2010
• SOURCES OF INFLUENCE
– PERSONAL
– SOCIAL
– STRUCTURAL
• EXECUTING FACTORS
– MOTIVATION
– ABILITY
PBU—PERSONAL
• MOTIVATION:
MANAGERS HAVE NOT INTERNALIZED
HONESTY, INTEGRITY, SELF-RESPECT
• ABILITY:
MANAGERS UNABLE TO REACH GOALS
WITHOUT USING PBU (LACK APPROPRIATE
REPERTOIRE—OR PERCEIVE THAT TO BE THE
CASE)
PBU—SOCIAL
• MOTIVATION:
OTHERS EXPLICITLY CONDONE IT OR
IMPLICITLY COMMUNICATE ITS ACCEPTABILITY
BY THEIR USE OF PBU
• ABILITY:
OTHERS LACK SKILLS TO RESIST PBU WHEN
TARGETED BY IT, CONFRONT/REPORT WHEN
AWARE OF IT
PBU—STRUCTURAL
• MOTIVATION:
FORMAL INCENTIVE SYSTEM REWARDS PBU,
OR MANAGERS THINK THEY WILL FAIL
WITHOUT IT
• ABILITY:
ENVIRONMENTAL FACTORS FACILITATE PBU
OR FAIL TO INHIBIT IT