Ethics Vocabulary

Ethics

Last Class Review

  • Diversity II. Culture involves shared values, norms, and practices.

  • Biases, perceptions, and stereotypes tend to be exaggerated across cultures.

  • Cultural Dimensions:

    • Individualism-Collectivism

    • Power Distance

    • Uncertainty Avoidance

    • Aggressive-Nurturing

Levels of Analysis

  • Organization

  • Group

  • Individual

Individual Factors

  • Decision Making

  • Individual Differences & Personality

  • Attitudes & Behaviors

  • Motivation

  • Creativity

  • Diversity

  • Ethics

Ethics Definition

  • Ethics involves the investigation and analysis of moral principles and dilemmas.

  • It refers to rules or guidelines determining whether conduct is right or wrong.

  • Ethicality is not the same as legality.

  • Ethics provides a framework for understanding and interpreting right and wrong in society.

Ethical Theories

  • Ethical theories attempt to provide a clear account of our moral obligations.

  • Three main categories:

    • Consequentialism

    • Deontology

    • Virtue

Consequentialism

  • Ethical theory that judges whether something is right based on its outcomes or consequences.

    • "The end justifies the means."

    • Example: Lying is typically wrong, but it might be the right thing to do if it could save someone’s life.

  • Examples:

    • Utilitarianism: Seeks the greatest good for the greatest number of people.

    • Hedonism: Something is good if it produces pleasure or avoids pain.

Pros of Consequentialism

  • Can be pragmatic and efficient.

  • Focuses on collective benefit, not just individual benefit.

Cons of Consequentialism

  • Can be difficult or impossible to know the full result of an action.

  • Can lead to objectionable decisions even if the consequences are good.

Deontology

  • Ethical theory that uses rules to distinguish right from wrong.

    • "Don’t lie. Don’t steal. Don’t cheat."

    • Example: An engineer hears about a potential nuclear threat but hesitates to hack a network because it is wrong to "break in without permission."

  • Examples:

    • Rights: Respects and protects fundamental rights of others.

    • Categorical Imperative: Asks whether a rule would be acceptable if it became universal.

Pros of Deontology

  • More easily applicable.

  • Less subjectivity and uncertainty.

Cons of Deontology

  • Disregards possible consequences of actions.

  • Can produce results many people find unacceptable.

Virtue

  • Ethical theory that focuses on the moral character of a person.

    • "Follow your moral compass."

    • Example: A virtuous person should work on treating all human beings equally through practice and habit.

  • Examples of Virtues:

    • Courage

    • Honesty

    • Temperance

Pros of Virtue Ethics

  • Gives people a guiding framework without specific rules.

  • Focuses on growth and development.

Cons of Virtue Ethics

  • Some virtues are inconsistent with others.

  • No consistent application across cultures.

The Real Challenge with Ethics

  • Many people fail to recognize when they are dealing with an ethical dilemma.

  • Each ethical perspective has its pros and cons.

  • Ethical frameworks are often in conflict with one another.

MBA Hackers Case: University Decisions

  • Harvard Business School: Rejected all 119 applicants who entered the system.

    • Dean Kim Clark: The behavior is unethical, representing a serious breach of trust. Harvard aims to educate principled leaders with integrity, sound judgment, and a strong moral compass.

  • MIT Sloan: Rejected all 32 applicants who entered the system.

    • Dean Richard Schmalensee: Hacking into the application system is a serious ethical offense, akin to breaking into the admissions office. MIT Sloan seeks principled, innovative leaders with a strong ethical sense and judgment.

  • Stanford GSB: Reviewed all 41 applicants who entered the system individually.

    • Admissions Director Derrick Bolton: Stanford makes admissions decisions individually. Unauthorized access demonstrates a lack of judgment or integrity, which will factor into the assessment of character and competence. Stanford aims to educate applicants about the implications of their actions, emphasizing integrity, responsibility, accountability, and respect for others.

      • Later, Stanford admitted none of the 41 applicants who gained unauthorized access because none could satisfactorily explain their actions.

MBA Hackers Debrief Questions

  • What’s your reaction to the announcements by the universities? Are you surprised at these announcements?

  • Which ethical theories are each of these universities drawing from?

Starbucks Example

  • You wait in line for 15 minutes and the cashier gives you change for 2020 instead of 1010. What do you do?

    • A. Go back to Starbucks and get the correct change.

    • B. Wait until the next time you visit Starbucks and return the difference then.

    • C. Savor your coffee and the extra 1010.

Financial Reporting Example

  • You figure out a way to make your organization’s financial results look better in the short run using an accounting trick, even though there is no underlying change in performance. You are pretty sure this will have significant consequences for shareholders in the future, but, in the short run, your organization can profit from this.

    • Is this wrong? Is this a big deal?

Slippery Slope

  • Small ethical lapses can lead to larger ones.

  • Example:

    • Keeping 1010 extra change vs. 1Billion1 Billion fraud (Enron)

  • John: No big deal (for small lapses) → Big deal (for large fraud).

  • Thomas: No big deal → Big Deal.

  • Who would you rather hire? Who would you rather work for?

Ethics Unwrapped

  • Ethical problems are not created by unethical people.

    • Failure to have an ethical code leads people to make questionable in-the-moment decisions.

  • Think about the biases we have already discussed.

    • It’s easy to lull yourself into thinking you won’t commit unethical acts.

    • Note: it is easier to engage in unethical behaviors in the digital age.

Moral Reasoning

  • Begin with an opinion (e.g., "Turn trolley onto side track").

  • Seek the ethical principle on which this opinion is based (e.g., "It’s better to sacrifice one life for five").

  • Revisit the principle when confronted with a situation that calls the principle into question (e.g., "It’s better to save as many lives as possible, but pushing a man off the bridge seems wrong").

Key Takeaways

  • People often fail to recognize they are dealing with a moral dilemma.

  • It is of the utmost importance that you can provide a justifiable rationale for your decisions and actions.

  • You must have a personal and consistent code; otherwise, it’s hard to know when something becomes a “big deal.”