Study Notes: Ethics in the Workplace (3rd Edition)

Welcome to Ethics

  • Definition of Ethical Principles: General statements about how people should or should not act. They serve as the reasoning behind choices and beliefs.

  • Universal Principles: Often described as rules rational people would agree follow, such as the Golden Rule (treating others as you wish to be treated).

  • The Existence of Right and Wrong:

    • Relativism: The belief that because ethical values vary widely, there are no universal principles. Skeptics argue right and wrong are merely personal opinions.

    • Legalism: The belief that because laws and policies exist, ethics is irrelevant. However, "legal" is not synonymous with "ethical"; ethical standards are usually higher.

  • Sources of Ethical Beliefs:

    • Authority: An action is right/wrong because an important figure (religious or political) said so.

    • Culture: Morality depends on the beliefs of a nation or group based on history and experience.

    • Intuition: Relying on an internal "little voice" or conscience.

    • Reason: Using consistent, logical thinking as the primary tool for decision-making.

  • Standards of Behavior:

    • Standard of Etiquette: Expectations regarding manners/social graces; less serious than ethics (e.g., knocking before entering).

    • Standard of Law: Rules imposed by governments with specific negative consequences for violations.

    • Standard of Ethics: Social expectations of moral behavior validated by reason rather than authority.

Ethical Principles

  • Basing Morality on Consequences:

    • The Egoism Principle: Actions are right if they serve the individual’s own long-term interests.

    • The Utility Principle: Actions are right if they produce the best consequences (greatest happiness) for everyone involved.

  • Basing Morality on Rights, Duties, and Virtues:

    • The Principle of Rights: Focuses on individual entitlements (e.g., life, liberty, property). An action is moral if it respects these rights.

    • The Principle of Duties: Obligations to others. Immanuel Kant emphasized Universality (acting as you'd want others to act) and Respect for Persons (it is wrong to use people for personal gain).

    • The Principle of Virtues: Focuses on being a good person by making ideal character traits (honesty, courage, etc.) into habits. Aristotle proposed the Golden Mean: virtues are the perfect balance between two extremes (e.g., courage is between cowardice and foolhardiness).

Personal Ethical Development

  • Kohlberg’s Justice Model: Measures moral maturity based on the concept of justice.

    • Stage 1 (Punishment/Obedience): Right is avoiding punishment.

    • Stage 2 (Instrument/Relativity): Right is meeting personal needs via manipulation/bargaining.

    • Stage 3 (Interpersonal Concordance): Right is earning social approval/joining the peer group.

    • Stage 4 (Law and Order): Right is maintaining social order and obeying the law.

    • Stage 5 (Social Contract): Right is upholding the values and rights of society’s social contract.

    • Stage 6 (Universal Ethical Principles): Right is following self-chosen, universal principles (e.g., Martin Luther King, Jr.).

  • Rest’s Four Components of Moral Behavior:

    1. Moral Sensitivity: Recognizing an ethical issue exists.

    2. Ethical Judgment: Deciding the best course of action.

    3. Ethical Motivation: The desire to do the right thing over other values (like money).

    4. Ethical Character: Having the courage and self-discipline to follow through.

  • Opposing Forces: Inner Conflict motivates growth toward higher stages, while Fear of Change prevents it.

Shareholder Theory and Stakeholder Theory

  • Shareholder Model: Advocated by Milton Friedman. Corporations exist primarily to maximize wealth for owners (shareholders) while obeying the law.

  • Stakeholder Model: Businesses have ethical obligations to anyone affected by their actions.

    • Direct Stakeholders: Employees, Customers, Suppliers/Distributors, Communities, Stockholders.

    • Indirect Stakeholders: The Environment and Society at large.

  • Philanthropy: Efforts to improve community well-being through charitable donations.

Ethical Selling, Marketing, and Advertising

  • Deceptive Advertising Types:

    • False Advertising: Flatly untrue claims about a product.

    • Puffery: Legal exaggerations (e.g., "The world's best coffee") that a reasonable consumer would recognize as overstatement.

    • Bait and Switch: Advertising low prices to lure customers in, then pushing more expensive items.

  • Advertising Standards (AAF Code): Focuses on Truth, Substantiation (evidence-based claims), and Testimonials (honest opinions from competent witnesses).

  • Sales Ethics: Issues include Price Gouging (pricing far above market value during disasters) and Straight Commissions (pay based entirely on sales, which can encourage dishonesty). Principles of ethical selling include thinking long-term and building relationships.

Technology, Testing, and Workplace Privacy

  • Privacy Law: The constitutional right to privacy (Griswold v. Connecticut, Roe v. Wade) applies to government action, not private workplaces. Workplace rights often come from Statutes.

  • Drug Testing: Common types include pre-employment, post-offer, and the more controversial Random Drug Testing.

  • Employee Polygraph Protection Act (EPPA): Limits lie detector use in private firms; exams move through physiological indicators (heart rate, sweat) and are controversial regarding accuracy.

Ethics and Discrimination

  • Legal Protections: The Civil Rights Act of 1964 prohibits discrimination based on race, color, gender, religion, and national origin. Other laws cover age (40+) and disability.

  • Sexual Harassment:

    • Quid Pro Quo: "Something for something"; job benefits tied to sexual favors.

    • Hostile Work Environment: Creation of an intimidating or offensive climate through jokes, posters, or behavior.

  • Affirmative Action: Active measures to ensure equal opportunity; critics sometimes cite Reverse Discrimination.

Ethics for Employees

  • Employee Misdeeds: Theft (costing billions annually), wasted time (on personal web use), and misuse of technology (pornography or gambling at work).

  • Top Employee Virtues: Honesty (telling the truth), Respect (deference to others), Integrity (consistent adherence to an ethical code), Industriousness (hard work), and Loyalty (allegiance to organizational values).

  • Whistle-Blowing: Reporting illegal/unethical acts to authorities. It requires significant courage and is protected by some laws.

Ethical Lending and Financial Issues

  • Subprime Lending/Recession: Issues like Usury (excessively high interest) and Payday Loans (short-term, high-interest loans) are scrutinized.

  • Mortgage Concepts:

    • Foreclosure: Repossessing property for non-payment.

    • Deficiency Judgment: A lender's claim for the remaining balance if an auction doesn't cover the loan.

    • Negative Equity: Being "underwater," where the loan balance exceeds the home's value.

    • Strategic Default: Choosing to stop paying a mortgage while paying other bills (like credit cards).

Global Issues: Environment and Sweatshops

  • Sustainability: Making wise use of resources so they are not diminished for future generations.

  • Green Building: Minimizing environmental impact through construction (e.g., solar panels, rainwater collection).

  • Sweatshop Labor: International workers with low pay and poor conditions. A "Race to the Bottom" occurs as manufacturers seek the lowest labor costs globally.

Critical Thinking and Logical Fallacies

  • Logical Fallacies: Deceptive arguments including Either/Or (false dilemma), Post Hoc (false cause), Two Wrongs Make a Right, Red Herring (distraction), and Slippery Slope (chain reaction of fear).

  • Applying Critical Thinking: Identifying all stakeholders, applying ethical principles (egoism, utility, rights, duties, virtues), and choosing the most logical moral option.