Ethics: Personal & Business
BCN 4712 Leading & Managing Construction Operations
Ethics – A good starting point.
“The reputation of a thousand years is determined by the conduct of one hour.” – Japanese proverb
Ethics – the dictionary
Merriam Webster The embodiment of those values that the person or organization feels are important…, and spell our proper conduct and appropriate action.
Ethics Vocabulary Obligation Virtue Responsibility
Courage Character Integrity Honesty Accountability Ideals Self-Respect
Morals
Professionalism
What is Ethics?
A system or code of morals that provides a guide for daily living
Simple honesty
Relates to right and wrong in daily living Establishes principles for conduct
Choosing the right, ethical way is not always easy Ethical confrontations in the workplace can be some of the most stressful events we experience
Without it, life becomes a constant struggle of intrigue, second-guessing, and maneuvering The same is true for ethics
Ethical Choices
What you find is that the tough ethical choices are not between good and evil, but rather between two goods:
Truth versus Loyalty
Individual versus Community Short-term versus Long-term Justice versus Mercy
Ethical Principles
Objectivity Selflessness Stewardship Transparency Integrity
What about …..?
Values Morals Integrity Character Laws
Values
Acts, customs or institutions that a group of people regard in a favorable way Usually words of approval, Intrinsically valuable or desirable principles or qualities
What really matters to us most Personal and societal beliefs
Equality Freedom Hard Work
Morals
A set of rule or modes of conduct upon which society is based, very similar to ethics Four Points to Remember (R.C. Solomon)
Moral rules are important Morality consists of universal rules Morals are objective Morality affects other people
Conforms to accepted rules of right or wrong Established by society
Integrity
Adhering to a moral code in daily decision making To have integrity is to be honest and sincere Assurance that “It will happen because I say it will.”
Character
Ethics is not only about how we think and act, it is also about character Pattern of behavior or personality trait of an individual or group that denotes moral strength Drives what we do when no one is looking Involves a choice to act morally at all times We build character by how we live, thinking good thoughts, performing good acts Similarly bad thoughts and bad behavior destroy character Character pertains to organizations too.
Laws
A set of rules and regulations designed to express the needs of and to control a society Protect people from the most blatant and despicable affronts to morality, such as murder, rape, and theft Needed to maintain the functioning of a society Change to reflect a society‟s changing standards
Summary of Terms
Ethics: a system or code of morals that provides guidance for living in society Values: Intrinsically valuable or desirable principles or qualities Morals: A set of rules or modes of conduct on which society is based Integrity: Adherence to a moral code in daily decision making, emphasis on honesty and reliability Character: A personality trait of pattern of behavior that denotes moral strength Laws: A set of rules and regulations designed to express the needs of society
Ethics, Morals, and the Law
Morals
Classification of Actions: Unethical
Principles of right and wrong
Legal
Ethical
Ethics
Illegal
A set of moral principles guiding behavior and action
Laws
Binding codes of
conduct; formally recognized and enforced Company Policies
Unethical but Legal
Ethical but Illegal
Business Today
Business recognizes the impact of unethical behavior: “Business Ethics” movement
Poor public image Increased government scrutiny Public reluctance to use a product or service
Ethics is good business Most major corporations have their own code of ethics and provide training It is not new or trendy, it will impact you personally and professionally
Ethical Dilemmas or Landmines
Like unexploded bombs, must be defused before they blow up in our faces
Personal reputations, legal standing, company‟s public name are at risk Much is at stake for companies and individuals in facing ethical dilemmas
Company expectations for employee commitment Pressure from managers and co-workers Opportunities for unethical behavior Internal pressure in the form of personal ambitions External forces such as family needs
Recent History
1980s
Bribes/illegal contracting Influence peddling
1990s
Unsafe labor in 3rd world Increased corporate liability for personal damage
2000s
Cyber crime Privacy issues (data mining) International corruption Loss of privacy Intellectual property theft
Deceptive advertising Financial mismanagement & fraud Financial fraud Transparency issues
Historical Perspective
Ethics can be traced to ancient times Greek philosophers (Socrates, Plato, Aristotle; biblical figures Moralists (Immanuel Kant, John Stewart Mill, and Jean-Paul Sartre)
Moral Codes and Religion
Religion and morality are closely interwoven But religion and morality are not the same thing People can be moral without being religious and vice versa People can do good because of altruism or fear of punishment People do good work out of habit or because of upbringing Moral instructions from religions can be vague: Thou Shalt not Kill! Code of Hammurabi: 1762 B.C. general set of moral rules so strong did not oppress weak, economic and family laws, criminal laws, civil laws. Not based on religion
Ethical Theories
Many different ethical theories Focus will be based on two theories
Duty-Based ethical theory Utilitarian theory
Duty-Based Ethical Theory
One has the duty or obligation to do the right thing, regardless of outcome An act is moral if it could become a universal rule for society To consider the morality of an act, one must consider the perspective of both doer and recipient Proposed by Immanuel Kant
Utilitarian Theory
Moral behavior is tied to the common good Results are the measure of moral behavior, not the intent An act is good if it results in the greatest benefit for the most people Proposed by John Stuart Mill
Ethical Decision Making Model
Ethical Issue Intensity
Individual Factors
Ethical Decision
Organizational Factors
Individual character moral develop psychological factors
Organization
Culture Opportunities Significant others
Ethical Issue Intensity
Ethical attitudes & expectations Ethical Dilemma
Ethical Decision
Determining an ethical action: Six Practical Steps
Is the action legal? How will it make me feel about myself? Is it fair to all concerned? Is it the truth? Will it cause anyone personal loss or pain, or violate confidentiality, or harm somebody in any other way? Is there a conflict of interest?
Kohlberg‟s Moral Development Scheme
Level/Stage Early Criteria for Determining the Morality of an Act Is it good for me: reward or punishment
Middle
Late
The reactions of others
Universal standards, nature of the act
Ford Pinto: Cost vs. Benefit
Cost of Changes: Sales: 11 million cars; 1.5 million light trucks Unit Costs: $11/car and $11/truck Total Cost: 12.5 million vehicles x $11/vehicle = $137.5 million Benefits to Society: Savings: 180 burn deaths; 180 burn injuries
Unit Costs: $200,000 per death, $67,000 per injury; $700 per car
Total Benefit: (180x $200,000+180 x $67,000+700 x 12.5 million) = $49.5 million
Benefits of Ethical Codes
Client satisfaction resulting from mutual trust A positive public image for the company Savings as a consequence of cutting wasted resources Responsible and respected employees
Company Code of Ethics 1
Employment Practices
Workplace Harassment Equal Opportunity Diversity Fair Treatment of Staff Work-Family Balance Discrimination Illegal Drugs and Alcohol Use of Organization Property
Company Code of Ethics 2
Employee, Client and Vendor Information
Maintaining Records and Information Privacy and Confidentiality Disclosure of Information Advertising and Marketing Development and Fundraising Clarity of Information Access to Information Transparency of Information
Public Information/Communications
Company Code of Ethics 3
Conflicts of Interest
Relationships with vendors
Gifts and Gratuities Political Activity Outside Employment Family Members
Environmental Issues
Procurement Negotiating Contracts
Ethical Management Practices
Commitment to the Environment Employee Health and Safety
The Public Sector: YOU MAKE THE CALL!
The support contractor for your organization wants to offer ALL of the Soldiers and government employees of the organization free tickets to the home opener for the Washington Nationals! The contractor hopes that this will further promote the partnership b/w the Army and the contractor personnel. The tickets have a face value of $25 but the contractor paid $15/piece for the tickets.
May the Soldiers and employees accept the tickets?
ANSWER
Contractor is a prohibited source - no gifts are permissible unless exception applies $20/$50 rule
No – look to face value not what contractor paid No – offered only to those w/in organization No – offered b/c of status
Discount or benefit?
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Personal Relationship?
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More…
Is there any way that the Soldiers or employees can accept the tickets? Yes – individuals can pay the contractor the face value of the ticket
If you pay market value (face value) for the ticket, it is not a gift
Still may have appearance concerns
Ask the ethics counselor!
A Soldier has been working on the same project for a year with the same contractor employee. The two have developed a friendship outside of the office, often going to each others’ homes for dinners and gettogethers with their families. The contractor employee gives the Soldier a birthday present – the iPOD that she has been wanting!
May the Soldier accept the gift from the contractor employee?
YOU MAKE THE CALL!
ANSWER
Contractor employee is a prohibited source – general prohibition unless exception applies $20/$50 rule?
No – cost of the iPOD exceeds Not applicable Possibly Need objective review of the facts/circumstances May still have an appearance problem Ask the Ethics Counselor!
Discount or benefit?
Personal relationship?
Quote
“A perfect value consists in doing without witness all that we could have done in front of the entire world”
- Nobel Laureate Gabriela Mistral
Quote
“If … you can’t be a good example, then you’ll just have to be a horrible warning.”
- Catherine Aird
A 21st Century Ethical Toolbox
Getting Started (Ch 1-2) Values (Ch 3) Tools for Critical Thinking Ch 8-10)
Getting Started- Routes to an Open Mind (Ch 1-2)
Dogmatism
Dogmatism = unshakable commitment to one point of view Actively seek out arguments for the other side Look at the reasons for other and opposed positions
Automatic rationalization Don‟t use excuses that are not well thought out Relativism: No one standard is right Ethics is about standards
Offhand Self-Justification
Relativism
Values (Ch 3)
Values = those things we care about Aesthetic values: art, beauty Scientific values: knowledge, truth Economic values: production, prices, efficiency Instrumental values: means to end, technology Moral values: fairness, trustworthiness, the well-being of others. The legitimate expectations of ourselves and others
Tools for Critical Thinking in Ethics
Finding the facts
Gun control Death penalty Vegetarianism Language manipulates feeling, „loaded‟ Use neutral and descriptive language Use a dictionary Clear vs. unclear: the case of „drugs‟
Watching words
Judging like cases alike
Case of the motorcycle helmet: I have the right to do anything I like, therefore if I get „creamed,‟ it‟s just going to be me!