Ethical Models

							                  Day 2
• Discuss Ethics Learning Module
  – What makes a decision unethical?
  – Use notes in film
Ethics Learning Module
    Hands on Exercise (p 30)
• On a separate sheet of paper, write down
  your response and compute your average.
• Compare/discuss your answers on items
  where there is disagreement.
• Were there more or less items where
  group members agreed? Disagreed?
                  Ethics
• Study of moral issues and choices
• Moral implications spring from virtually
  every decision . . . on and off the job
          A Model of Ethical Behavior in the
                     Workplace
         Cultural Influences
                - Family
             - Education
               -Religion
       - Media/entertainment          Individual
                                    - Personality
                                       - Values
   Organizational Influences            - Moral     Ethical
         - Ethical codes              principles    behavior
    - Organizational culture         - History of
          - Role models            reinforcement
- Perceived pressure for results       - Gender
- Rewards/punishment system


            Political/legal/
               economic
              influences
  Approaches to Ethical Situations
• Ethical decision tree
• Ethical Models: Approach to ethical
  situations requiring an understanding of
  relevant stakeholders and criteria for
  deciding on “ethics” of a situation
              Ethical Models
• Utilitarian model: An ethical decision is one that
  produces the greatest good for the greatest
  number of people.
• Moral rights model: An ethical decision is one
  that best maintains and protects the fundamental
  rights and privileges of the people affected by it.
• Justice model: An ethical decision is one that
  distributes benefits and harm among
  stakeholders in a fair, equitable, or impartial
  way.
            Ethical Challenge
• Stakeholders: individuals or groups with an
  interest, claim, or stake in an organization.
   – Stockholders, management, employees
   – Customers, suppliers, community, the public
   – These stakeholders provide inputs and derive
     something from the company.
• An ethical challenge arises when a situation or
  decision forces a dilemma: which stakeholder to
  please and which to displease.
         Fourth Quarter Deal
• As a group, describe the ethical dilemma
  facing the manager. Use either:
  – Ethical decision tree
  – Ethical models
          IBM Cuts . . . (p.26)
• As a group, describe the ethical dilemma
  from the point of view of senior
  management. Use either:
  – Ethical decision tree
  – Ethical models
      General Moral Principles
• Dignity of human life
• Autonomy . . right to self determination
• Honesty . . the truth should be told to those who
  have the right to know
• Loyalty . . fidelity, keep promises, etc.
• Fairness
• Humaneness
• Common good
    Ethical Behavior – Additional
              Thoughts
• Hiring right people, firing undesirables,
  modeling behavior, etc. not sufficient.
• Example: Women in SUNAT and police
  women in Peru
• Reduce opportunities for unethical
  behavior (through design of control
  systems and processes)