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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! 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