chp 2 30 evolving complexities of business ethics

Conscious capitalism

• ability of a firm to align the true purpose of the firm, the practice of free market capitalism, and diverse interests of its stakeholders to create virtuous actions

The 5 themes of conscious capitalism

1. The belief of a higher purpose

2. The orientation of stakeholders

3. The integration of both financial and nonfinancial strategies

4.  a positive and supportive culture

5.  value-focused leaders

1 The belief of a higher purpose

• Profits generated are not an absolute goal in itself but an outcome that can be used as a means to support the greater good

• View decisions from long term perspective through serving of needs of all their stakeholders

• Focus on long term impacts of ethical and social responsibility issues

2 The Orientation of Stakeholders

• Understand and willingly embrace the needs of all of its stakeholders

• Employees, customers, stockholders, suppliers, and local communities are seminal force in how a firm develops strategic decisions

• Needs of stakeholders integrated in the decision making process, they develop both financial and stakeholder goals as part of their performance evaluation

• Both motivation and accountability of their employees

3 The Integration of both financial and nonfinancial strategies

4 a positive and supportive culture 

• Positive and supportive culture to encourage commitment and motivation 

• Attract and retain best employees

• Employees embrace value system

• Providing the needs od all firms stakeholders

• In both managing and decision making processes from both strategic and operationa

5 Value focused leaders

• CEOs of CCF yield spotlight of media to actions of the firm

• Chief executives view their role as servant leaders 

• Address needs of stakeholders

• Managers receive intrinsic rewards as well as financial rewards 

• Patagonia whole foods starbucks southwest airlines and trader joes 

2016 Pope Francis

“ what is required now is not a new social compact in the abstract but concrete ideas and decisive action which will benefit all people and which will begin to respond to the pressing issues of our day”

The goal of the council for inclusive capitalism is

 the development of stronger fairer and more collaborating relationships between national and global economies and societies which will improve the living conditions of millions of people

The vision of CIC

is in the creation of long term value of all stakeholders including firms investors employees customers governments communities and the natural environment

The mission of BLM movement

“is an ideological and political intervention in a world where black lives are systemically and intentionally targeted for demise. It is an affirmation of black folks’ humanity, our contributions to this society, and our resilience in the face of deadly oppression.”

The idle no more movement

• Indigenous led social movement that started Nov 2012

• 4 women in Canada organized a workshop to raise their concerns about a federal government bill which would contain 64 different acts and regulations weakening environmental protection in indigenous protected land

principle 1: shared purpose

• Social upheaval organizations present a vision of a shared purpose which is that everyone can make change

• Every person has ability to enact positive change if they have proper tools including relevant information and are enabled to make change

• Organically developed belief system in which likeminded people see the benefit of both their individual contribution as well as the contributions of the whole group

• Results in the development of both trust and transparency in the interactions of the members 

principle 2 clear roles

• oles

1. Sharer- able to quickly process both internal and external information and is able to identify emerging patterns and themes which are relayed to its social network

2. Connector - actively identify the specific capabilities and needs in others in the org and then match the individual with responsibilities and expectations. Valuable when org needs to make event or starts new project

3. Curator - responsible for sorting through new resources and opportunities to determine which ones are considered most useful and appropriate for network

4. Innovator - responsible for moving beyond traditional methods and strategies and focuses on new alternative courses of actions and solutions to move the organizations social movement forward

5. Builder - responsible for analyzing different alternatives and plays the devils advocate by presenting the pros and cons of diff scenarios. Based on scenarios the builder develops a coherent actionable plan to be executed by members

The storyteller - individual who is able to motivate the other members in the organization by listening to concerns and feelings of the group members and being able to give an informal narrative of the overall standing of the org as it attempts to achieve its social goals. Are the spokespersons of org in describing their stories to stakeholders.

Principle 3: the right rewards

• Peer recognition valuable in increasing motivation

• Above and beyond

• Recognized to the rest of the members

• Intrinsic satisfaction to all members

• Unique experience rewards

• Reputational awards

Ally

• any person who actively supports the promotion and advancement of a corporate culture in which DEI is integrated holistically within the firm

• Allies can use their power to guide the process

Allyship

• lifelong process of people of power and privilege building relationships that are built on trust consistency and accountability with marginalized individuals or groups.2 way benefits of this relationship include not only building confidence in others but also having both sides expand their skillsets and their knowledge of how to be better employees

Mentor

• offers advice to an employee

Sponsor

• actively aids in the career progression of an employee

identifying inappropriate behavior

• Manager has the obligation in the identification and resolution of unacceptable behavior toward underrepresented people 

• Privilege manager has opportunity to identify issues 

• While those opportunities are not available to unrepresented people 

employee involvment in DEI related tasks

• Role of allyship is to spread the value and beliefs structure to helping others throughout the organization

• Managers can propose programs and training opportunities to highlight the valuable benefits both individually and within the firm for all employees to embrace dei

• Development allows firm to demonstrate how these activities an enhance both the financial and nonfinancial performance of the firm

using inclusive language

using inclusive language

• Manager must be aware of gendered terms and use language for everyone

• Partner instead of boyfriend or wife

Unconscious bias training

• Employees can have biases they aren't  aware of in how they make decisions and how they interact with other people

• People can have bias with having a stronger connection with people who are similar to them (affinity bias)

• Confirmation bias- people can make decisions based on their personal desires, beliefs and prejudices

• Attribution bias- people can also make decisions based on prior observations and interactions in the past

• Unconscious bias can occur based on gender age name perceived beauty height and weight

affinity bias

People can have bias with having a stronger connection with people who are similar to them

Confirmation bias

• people can make decisions based on their personal desires, beliefs and prejudices

Attribution bias

people can also make decisions based on prior observations and interactions in the past

Trying different recruitment methods

• Managers need to focus on nontraditional recruitment methods to attract and retain different kinds of people 

• Beneficial to partner with organizations that actively push for equality in hiring process

• Allow to potentially interact with a more diverse recruitment base 

Recognizing privilege

• Managers in the positions of power and privilege must be able to use these attributes to amplify the voices of those that are underrepresented 

• Important for them to try and understand how privilege has yielded advantages which are not available to those underrepresented groups

Following the voices

• Managers must not only help guide others but must not feel threatened to be challenged in their beliefs

• Important to listen to diverse voices in the workplace and be able to reevaluate whether unconscious biases have distorted their relationship with others

Corporate justice

• the implementation of any initiative or program which has a positive impact on the life experiences of groups that have been harmed and have been disadvantaged by society

Integrity

• a firm adherence to a code of especially moral or artistic values 

Publicity test

Trusted friend test-

•  would be comfortable in telling their best friend or a close family member about their actions 

Reciprocity test / golden rule

• whether the individual treats others as they would like to be treated

Universality test

• asks whether the individual would consider it acceptable behavior if anyone in the world did the same action 

Obituary tests

• asks the individual to look back on one's previous actions during one's career and ask if they are comfortable with the evaluation 

Implicit prejudice

 is a bias that occurs based on unconscious beliefs. A common bias occurs when a decision maker supports the decision pertaining to a person by relying on unconscious stereotypes or the unconscious comparison of past behavior to a person in the past that had similar characteristics with a person currently working for the organization

In group favoritism

 occurs when the decision maker forms a bias toward individuals in the same “group” as the decision maker. For example, a manager may be more helpful to subordinates who have a good personal relationship with the boss.

Claiming credit for others actions

 occurs when the decision makers believe they are above average in their job duties, responsibilities, and general intellect, which results in above average performance

Conflicts of interest

A bias occurs when there is a conflict of interest and the decision maker favors a solution in which there would be personal benefits.

Ill conceived goals

Ill-conceived goals occur when goals are set to promote a positive behavior, but they actually encourage a negative behavior.

Motivated blindness

occurs when managers “overlook” the unethical behavior of employees if it is in the best interest of the managers to not be aware of the actions of the employees.

Indirect blindness

• refers to not applying the same level of ethical accountability when a third party is involved in the questionable actions within the organization. An example of “transferring” the questionable ethical action to another party occurs when a drug company sells the rights to a drug to another company and that company raises the price. The drug company still manufactures the drug on a contract basis, so it would benefit from the price increase, yet the increase is “officially” an act of the third party. Therefore, the drug company is “protected” by the decision of the third party.

The slippery slope

•  refers to the inability of managers to see the unethical actions of others if these behaviors develop slowly over time. If a manager accepts minor questionable actions, over time, it will be more difficult to identify unethical behavior as the actions increase in unethical severity. 

Overvaluating outcomes

• Managers are more likely to accept unethical behavior if the final outcome is positive. This barrier reinforces the “ends justify the means” philosophy of managing. As a result, from the managers’ perspective, the outcome supersedes the actions that took place to achieve the outcome.

cheating

any action in which an individual breaks the rules to benefit their self-interests, whether it is academically, professionally, or financially