Ethical Decision Making

Introduction to Ethical Judgment Decision Rules

  • Completion of the first half of the course in ethical judgment decision rules.

  • Focus on three major ethical theories: Utilitarianism, Rights, and Justice.

  • The goal was to provide not only theoretical knowledge but also application experience.

  • Transition to new group of ethical theories: Objectivism, Integrated Social Contract Theory, and the Ethic of Care.

Objectivism

  • Creator: Ayn Rand, a Russian who moved to the United States at 18.

  • Core Idea: Promotion of American values, capitalism, and rational thinking.

  • Main Decision Rule: Two parts - be rational and be the best you can be.

Be Rational

  • Belief that human knowledge comes from reason rather than emotions or intuition.

  • Encourages thorough thinking and hard work.

  • Emphasis on exercising one’s intellect at all times.

Be All You Can Be

  • Building oneself into the best version of oneself.

  • Decisions should consider long-term benefits for personal development.

    • Example: Not stealing (robbing a bank) because it is irrational and would not improve one's character.

  • Suggests that self-improvement aligns with ethical behavior.

Positive Aspects of Objectivism

  • Reinforces Personal Responsibility: Advocates against dependency on welfare and encourages individual initiative.

  • Promotes the idea that individuals should take ownership of their actions, utilizing their capacities to their fullest.

  • Recognizes that while self-help is vital, those capable of more are virtuous to assist others, as long as they are doing their best.

Critiques of Objectivism

  • Individualism and Judgmental Nature: Critics claim it promotes excessive self-centeredness.

    • Concern for lack of community focus and caring for group needs.

  • Judgmental Attitude: The theory is seen as quick to dismiss or judge individuals not living up to their potential.

  • Example: Company "Motive Communications" reflects this ethos, leading to low turnover but may not be suitable for all employees.

Integrated Social Contract Theory

  • Developed by: Donaldson and Dunphy.

  • Designed for global business ethics.

  • Combines global norms with local norms.

Decision Rule

  • Evaluate potential actions against two norms: Authentic norm and Hyper norm.

    • Hyper Norms: Global standards (e.g., respect for human dignity and human rights).

    • Authentic Norms: Local cultural practices and expectations.

  • Ethical behavior is determined when actions conform to local concerns while respecting hyper norms.

Pros of Integrated Social Contract Theory

  • Cultural Respect: Acknowledges and appreciates local norms and practices.

  • Encourages ethical behavior that aligns with the cultural context, avoiding the imposition of foreign values.

Cons of Integrated Social Contract Theory

  • Complexity of Local Norms: Difficulty in identifying local norms for those from outside cultures.

  • Requires a delicate balance between respecting local practices and adhering to universal human rights.

Ethic of Care

  • Focus: Relationships and responsibilities towards others.

  • Developed to address moral dynamics overlooked by traditional ethics models:

    • Organizations are complex networks of relationships.

  • Moral development includes understanding and fostering these relationships.

Relationship Orientation

  • Ethical decisions arise from focusing on personal and professional relationships, emphasizing the moral obligation to care for others.

    • Example: Addressing issues with suppliers based on relationship rather than strict contract terms.

Responsibility Perspective

  • Each right bears a corresponding responsibility.

    • Example: If someone has a right to food, others have the responsibility to ensure that right is fulfilled.

Pros of the Ethic of Care

  • Protection of the Vulnerable: Greater awareness and care for the dependent and weaker members of society.

  • Promotes empathy and understanding in decision-making situations.

Cons of the Ethic of Care

  • Potentially Detrimental Justice: Critics argue it can enable irresponsible behavior by focusing more on leniency and forgiveness.

    • Example: It might prevent holding individuals accountable for wrongdoing.

Practical Examples

  • Small businesses may thrive on building supportive, nurturing relationships over strict capitalist frameworks.

    • Examples include flexible work hours for family time over profit maximization.

Summary of Ethical Decision Making Approaches

  • Understanding and applying these ethical theories provides a framework for making robust moral decisions in both personal and corporate contexts.

  • Theories conflict and provide various philosophies guiding ethical behavior in business.

Whistleblowing

  • Definition: Reporting unethical, illegal, or harmful practices within an organization to outside parties.

  • Triggers for Whistleblowing:

    • Violation of truth, employee or customer rights, trust, reputation, organizational reputation, or legality.

Steps for Whistleblowing

  1. Report to Immediate Supervisor: Start within the organization.

  2. Document Concerns: Follow up with a memo if necessary.

  3. Consider Personal Impact: Discuss with family to ensure support.

  4. Escalate if Necessary: Approach the supervisor's manager if no resolution.

  5. Consult an Ethics Officer: Use internal mechanisms for reporting.

  6. Seek External Support: As a last resort, go to outside authorities if internal channels fail.

  7. Consider Resignation: If the situation remains unresolved and harmful.

Conclusion

  • Completion of the entire course includes understanding six decision-making frameworks in ethics.

  • Emphasis on critical thinking and ability to navigate complex ethical issues in business.

  • Important to be prepared and comfortable making ethical decisions that can impact oneself and wider society.