Ethical Decision Making
Course Notes Table of Contents
Ethical Decision Making Objectives
Individual Differences and EthicsMoral development refers to the stage of ethical reasoning that an individual has achieved. Kohlberg has divided this into three broad categories:
Kohlberg's Six Stages of Moral Development http://www.vtaide.com/blessing/Kohlberg.htm The majority of adults reside in Stage 4 (Robbins & Coulter, 2005). Whistle-blowers,
or those who bring questionable organizational practices to light, mostly likely reside
in Stage 5. Some of the whistle-blowers who made national news in recent years include
Sherron Watkins (Enron), Cynthia Cooper (Worldcom), and Colleen Rowley (FBI). These
women were named the Time 2002 Persons of the Year. The Golden Rule: http://www.jcu.edu/philosophy/gensler/goldrule.htm Locus of Control Internals are more likely to:
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Socially Responsible Investing
Both individuals and organizations exist in different stages of moral development. Organizations that feel social responsibility to the greater society engage in such practices as protecting the environment, promoting social welfare around the world, and engaging in environmental conservation. One of these is Bayer, which tailors its socially responsible stance to the cultures in which it operates. http://www.bayer.com/social-responsibility/international-projects/page1289.htm Belgium: *donations to cystic fibrosis patients Russia: *donations benefited women's prisons by running child care centers at correctional
When individuals choose to invest in companies that either are proactive in social causes and/or limit their portfolios to funds based on some type of social screening, this is known as socially responsible investing. Check out www.socialfunds.com Also: Blue Marble at www.bluemarbleinv.com Focus: energy, trees, recycling, and conservation Parnassus: http://www.parnassus.com/ Focus: effective equal employment opportunities, good community relations and ethical
business dealings What about ethical standards in other countries? Sometimes, activities that would be illegal here are accepted practice in other countries, such as bribes for example. The Foreign Corrupt Practices prohibits bribes, but, "facilitating" or "grease" payments, in order to expedite shipments, secure permits, or obtain adequate police protection may be permitted, provided they are small payoffs, and are part of a larger system of accepted payments to administrative or clerical personnel (Robbins & Coulter, 2005).
Economic exploitation can led to subsequent economic collapse, to the disintegration of a country's social fabric (through displacement of families), and in the inability of affected countries (like Vietnam and Ethiopia) to repay their international debt. Fair trade practices make it easier for third world countries to remain solvent. Environmental conservation and preservation - dark green approach Environmental conservation is a defining factor in the approach of Tom's of Maine Tom's of Maine Mission statement: to address community concerns, in Maine and around the globe...to be distinctive
in products and policies which honor and sustain our natural world. [Manners quiz] In "Talk to the Hand" Lynn Truss argues that everyday pleasantries such as "excuse
me" Variables from corporate codes of business ethics: courtesy, respect, honesty, and fairness Source: Robbins & Coulter, Management, Pearson/Prentice-Hall, 2005. "Benevolence is expected at Tom's of Maine, which is why we put our money where our
values are by encouraging employees to donate five percent of their time at work -
for which we still pay them their usual wages - to community needs." examples: mentoring
programs for the young, assisting nonprofits in planning and finances, and soup kitchens
for the poor and homeless McDonald's & Corporate Social Responsibility [Ethics test] Contrast this culture with that of Enron, which emphasized that the ends justify the
means - http://bodurtha.georgetown.edu/enron/At%20Enron,%20Lavish%20Excess%20Often%20Came%20Before%20Success.htm Field Trips for Execs: Prison hhttp://www.highbeam.com/doc/1G1-106763054.html Which graduate students are most likely to cheat?
"'A person has to lie or cheat sometimes in order to succeed.' 43% of 12,000 high
school students surveyed in 2002 agreed with this statement." E-Commerce Business Ethics Case Study: http://www.merlot.org/merlot/viewMaterial.htm?id=85696 Voice p. 26: "Reduce cheating by strengthening democracy so that we all have a more equal say in how the rules are made and so rules get fairly enforced." From The Cheating Culture: p. 263 "[We need] a new social contract. Everyone has a say in how the rules get made. Everyone who breaks the rules suffers the same penalties." The Sarbanes-Oxley prohibits retaliation against whistleblowers; in addition, some companies in attempt to promote democratic management and stave off unfairness and potential lawsuits promote the concept of "voice."
Sexual Harassment Sexual harassment may be tolerated in a company that only values results, and not
the means in which they were obtained.
Example of quid pro quo sexual harassment: A junior due for promotion felt that he/she had to accept the affections of his/her manager. scenario from Robbins & Coulter, 2005, p. 119 The landmark of Meritor Savings Bank vs. Vinson concerned the harassment of Michele
Vinson by her boss, Mr. Taylor. http://www.bsos.umd.edu/gvpt/lpbr/subpages/reviews/cochran604.htm
Ethical stance should pertain to layoffs as well How would you want your company to tell you that you are being laid off? WARN: Worker Adjustment and Retraining Notification mandates that advance notification (60 days prior in writing) must be given in the case of a plant closing (at least 50 or more terminations of full time employees), or in the case of a mass layoff, in which 50 full time employees and at least 33% of the full time employees at a "single site of employment," or 500 employees worldwide experience terminations. Source: SHRM Legal Report, March-April, 2002. WARN and Inacom: http://www.bizjournals.com/eastbay/stories/2002/02/11/story2.html Alternatives to layoffs:
Also:
Check out Help in Making Those Tough Layoff Decisions in ABI Inform electronic database Cost of a Disengaged workforce |
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