Download Building Trust Through Good Decision Making

Infotec ICT Masters
Ethical Decision Making
(Building Trust Through Good Decision Making)
Dennis Wittmer
DU/Daniels Leadership Development Model
Dynamic
Strategic Context
Technical/
Leadership
Ability to
Business
Intelligence
Execute
Acumen
Values & Ethical Foundation
+
+
•IT
•Finance
•Human Resources
•Operations
•Management Support
•Marketing
•Etc
•Self-Awareness
•Self-Management
•Social Awareness
•Relationship Mgmt
•Team Effectiveness
•Organizational
Leadership
=
•Results Focus
•Decision Making
•Priority Setting
•Dealing with Ambiguity
•Planning for Action
•Aligning & Motivating Others
•Management Process
•Change Management
•Problem Solving
•Personal Development Plan
Organizational
Performance
& Results
Build:
•Client Loyalty
•Organizational
Capabilities
•Community Value
The Leadership Success Equation
Dynamic Context
Business/
Technical
Acumen
+
Leadership
Intelligence
+
Execution
Competence
Values
& Ethical Foundation
Ethical
Foundation
Values-Based Leadership
Build/ Sustain Trust
Ethical Decision Making
Virtuous Leader
Create/Sustain Ethical
Climate and Culture
=
Organizational
Performance/
Results
Ethical Aptitude Survey
Forced Choice Survey of
decision making preferences
and styles from a moral point
of view
Daniels Mission:
We develop students of
business into ethical leaders
who can navigate in a
changing global marketplace
and world, using their deep
experiential knowledge, skills
and perspectives.
What is morality or ethics?
Basic Concepts
• Morality– set of norms, standards, principles
for the purpose of guiding decisions and
actions toward what is good/bad,
right/wrong, appropriate/inappropriate
• Ethics -- study/critical analysis of morality or
moral situations and judgments
• Business Ethics -- applying ethical analysis to
business situations
• Government Ethics– applying ethical
analysis to government and public sector
situations
• Ethics
– Normative
• What is right? What is good?
• Prescriptive (“ought”)
– Behavioral
• What factors influence moral/ethical behavior?
• Descriptive (“is”)
Elements of Ethical Situation
 Choice
 Significant Harm / Potential
Harm
 Relevant Norms, Standards,
Principles, Virtues
Apply to a mini-case or two
Making Ethical Choices
 What should be the basis for making
ethical decisions in the organization?
 What principles or values should guide
decision makers?
 How does one determine what is right,
good, appropriate?
Codes and Credos
• Credos and Values Statements
– Examples
• Johnson & Johnson
http://www.jnj.com/home.htm
– Home Page: Credo to “guide our
actions”
• Levi Strauss
http://www.levistrauss.com)
– Home Page: Empathy, Originality,
Integrity, Courage
Living the Values:
Johnson & Johnson
The Tylenol Case
Levi Strauss
China and Human Rights
Another Values Statement
• Communications- We have an obligation to
communicate. Here, we take the time to talk
with one another… and to listen. We believe
that information is meant to move and that
information moves people.
• Respect-We treat others as we would like to be
treated ourselves. We do not tolerate abusive or
disrespectful treatment.
• Integrity-We work with customers and
prospects openly, honestly and sincerely. When
we say we will do something, we will do it;
when we say we cannot or will not do
something, then we won’t do it.
• Excellence-We are satisfied with nothing less
than the very best in everything we do. We will
continue to raise the bar for everyone. The
great fun here will be for all of us to discover
just how good we can really be.
What is ethically “right” to do?
• Mt Hallet at Sunrise
• What about the dishonest
district attorney?
Common Features
Ethical Decision Making Frameworks
 Impartiality-- weighting interests
equally
 Rationality-- backed by reasons a
rational person would accept
 Consistency-- standards applied
similarly to similar cases
Utilitarianism: Features / Assumptions
 Consequentialist/ Teleological-consequences determine “rightness”
action
 Acts not inherently right or wrong
 Focus on group happiness
 Moral standing--ability to experience
pleasure pleasure/pain/happiness
Utilitarianism: Decision Rule/Process
• Principle of Utility-- Greatest good for
greatest number (maximize good)
• Decision Process
– Identify alternatives
– Evaluate likely costs/benefits for
alternatives
– Choose alternative that maximizes
happiness for all affective
Utilitarianism: Problems/Limitations




Predicting consequences
Measuring and quantifying
Individual rights/Minority Rights
Distribution of
happiness/distributive justice
Kantian Features/ Assumptions
• Duty-based/ deontological -- determining
moral duty determines right action
• Focus on individual and rights
• Moral standing -- consider those who
have ability to reason
• Imperatives as commands of reason
• Hypothetical vs. Categorical Imperatives
Kantian Moral Decision Rules and Tests
• Categorical Imperatives:
• Act on principles of action that could
be willed as universal laws
(Universalizable and Reversible)
• Act always to treat other rational
agents as ends as never as means only
(Respect and Dignity)
Problems/ Issues and Criticisms of Kant
 Absolutism of rules-- no exceptions to
moral duty
 Resolving conflicts of duties
 Multiple description of acts
 Universalizability not sufficient to
determine duty or right action
Ford Pinto Case
•
Situation:
– Energy crisis and pressure to develop subcompacts and
increase fuel efficiency
– CEO Lee Iacocca guidelines: 2/2/2
• $2,000 car in 2 years and under 2,000 pounds (usual
product development cycle was 43 months)
– Design flaw discovered such that because of the location of
gas tank, rear collisions over 30 miles/hour would likely result
in expolsion and fire.
– Short of redesign, bladder could be installed for $5-11.
– What should they do?
• Cost-benefit Analysis
Ford Pinto
Assess the reasoning and
justification from an ethical point
of view?
Current Case: GM and Ignition
Switch
Your Ethical Aptitude? The
Formula:
Score = Odd As + Even Bs - 8
Score Interpretations
•
•
•
•
•
+7 to + 5 : Flaming Utilitarian
+4 to +2 : Moderate Utilitarian
-8 to -5 : Ice-Cold Formalist
-4 to -2 : Moderate Formalist
-1 to +1 : Mugwump
Which Ethical Framework is
Correct?
Janus – the two-faced Roman god
Guidelines for Ethical Decision Making
 Who is affected by the action?
 What are the likely harms and benefits?
 What are the relevant duties and
obligations?
 What action will produce the greatest
happiness?
 Does the action respect all affected and
balance competing rights?
Moral Judgment
 Making wise choices is practical wisdom
(“phronesis”) – considered judgment
 Key virtue or attribute (especially among leaders
and managers)
 Avoiding Sophie’s Corner
 The challenge: Being creative and innovative
while true to core principles
Judgment = “the ability to judge, make a
decision, or form an opinion objectively,
authoritatively, and wisely, especially in matters
affecting action; good sense; discretion: a man
of sound judgment” (Dictionary.com)
“Phronesis” -- practical wisdom/ prudence
“Sophia” – theoretical wisdom
Whereas young people become accomplished in
geometry and mathematics, and wise within
these limits, prudent young people do not seem
to be found. The reason is that prudence is
concerned with particulars as well as universals,
and particulars become known from experience,
but a young person lacks experience, since some
length of time is needed to produce it”
(Nicomachean Ethics 1142 a).
 Ethical Decision
Making and
Consistency
Creates Trust!
Now Your Situations and
Dilemmas