leb.pp.36-38 - Chapters 36-38 Chapters Business Ethics...

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Unformatted text preview: Chapters 36-38 Chapters Business Ethics Morality Appropriate Treatment of Others What is right, just and fair? We are defined by the choices we make “Moral Dumbfounding” Gut feeling Rational/logical explanation difficult Emotional Reaction Least emotional impact Self-serving bias (avoid guilt, shame, regret) Philosophical Approaches 1. Relativism Conform to cultural norms = ethical * Variations among societies 2. Utilitarianism Promote “greatest good for greatest number” = ethical * Individual = means to an end * Focus on consequences of act Philosophical Approaches 3. Deontology “Treat others as you want to be treated” = ethical * Individual = end unto him/herself * Focus on act 4. Virtue Ethics Honesty, integrity, reliability = ethical * Actor’s character Moral Minimum * Tell the truth * Be loyal * Honor commitments * Do no harm Grendell v. Kiehl Assigned to the following students to brief and present in class on Thursday, 2/10: (1) David Clark (2) Melissa Hernandez (3) Tae Hoon Ro (4) Jaysie Yang Decision Making Rational component * Analytical * Thorough * Justifiable Decision Making A. Skill (practice, develop, hone) 1. Avoid mistakes (anticipate, recognize, address issues) 2. Promote ethical behavior in variety of situations (novel circumstances, cases of first impression) Decision Making B. Methodology 1. Issue * Identify ethical dilemma 2. Facts * Go beyond what you are given 3. Analysis & Alternatives * Think outside the box …find middle ground … compromise 4. Practical Considerations * Implement approach Decision Making C. Obstacles Psychological barriers to doing the right thing 1. “Just Following Orders” * Blind obedience to authority Decision Making C. Obstacles 2. “Everyone Else Is Doing It” * Peer pressure * Subprime mortgages Decision Making C. Obstacles 3. “Overoptimism,” “Untouchable” * Overconfidence Financial statements * Above reproach Decision Making C. Obstacles 4. “Self-Serving,” “Cognitive Dissonance” * Conflict of interest - Impartiality v. bias * Framing of issue - Profits v. accuracy/honesty * Escalation (good after bad) - Cover up lies Decision Making D. Overcoming Obstacles 1. Long-Term Perspective * Reputation * Good Will 2. Attractive Alternatives * WIIFM? 3. Consequences/Accountability * Big Brother Watching Corporate Ethics Philanthropic, but … Philanthropic, … how do companies conduct their affairs at ALL levels of operation? affairs Corporate Culture “Moral Spillover” * From managers down * Among peers * “Slippery Slope” Corporate Culture 1. Code of Ethics * Reward & promote ethical behavior * Monitor & punish unethical behavior * Sarbanes Oxley Act: Confidential system for reporting unethical (& illegal) conduct Corporate Culture 2. Long-Term Profits * How often do profits/compensation get in the way of doing the right thing? * “Maximum” v. “Optimum” Profits Corporate Social Responsiveness (CSR) 1. “Social Contract” * Corporate managers = agents of society * Ford & Firestone * Toyota recall Global Operations 1. Foreign Suppliers a. Public Opinion a. * Online corporate watch groups Online monitor employment practices * Risk negative publicity (“maximum” v. “optimum” profits) Global Operations 2. Bribery a. Foreign Corrupt Practices Act (1977) Prohibits bribery of foreign government Prohibits officials b. OECD Convention (1997) Other nations sign convention/treaty criminalizing bribery of foreign public officials Ethical Dilemmas Robin Hood “Take from the rich and give to the poor” Ethical? Ethical Dilemmas Dolphin-Safe Tuna Your company sells canned tuna * Tuna purchased from independent fishermen * Fishing methods: tuna & dolphins caught/killed Animal rights organization intervenes * Boycott fishermen (price of tuna increases), or * Press conference (negative publicity) What should you do? ...
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This note was uploaded on 08/24/2011 for the course LEB 323 taught by Professor Baker during the Spring '08 term at University of Texas at Austin.

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