Ethical Decision Making.ppt

Ethical Decision Making Consider This:“You and Al”nYou are the manager for Big-Mart,a large discount retailer.You recently fired Al,a sales clerk,after Al punched a customer during a dispute in the store(Al admitted this after the customer complained).nSue,manager of your competitor,Mega-Mart,calls you to tell you that Al has applied for a job at Mega-Mart,and to ask you whether Al is“good with customers.”nWHAT DO YOU DO?WHAT IS ETHICS?(class discussion)What is Ethics?nEthics:The study of right and wrong“in action”nLearning Objective:Be able to effectively resolve“ethical dilemmas”in businessnMoral philosophy:tools for this processn“Values:”principles that are important to individual,group Legal Responsibilities&Ethical DilemmasnLegal duties may be clearnIs the decision the RIGHT action to take?nMaking a business decision can involve ethical dilemmas“An Ethical Dilemma?”nChoice to be made nImplicates competing values,rights,&goalsnPotential harm to decision maker?nPotential harm to others?n“Ripple effect:”long-term,far reaching implications of decision to be made.LAW&ETHICSWith an Emphasis on EthicsA COMPARISONIs“legal”the same as“ethical?”YES or No or Maybe,or I Dont Know?Is“legal”the same as“ethical?”YES?nIf one is acting within the law presumably one is acting ethically.nThe law defines specific duties.nSome conduct is allowed some not.nBalance competing values.nCompliance no further actionnFormal punishment of illegal conduct.Is“legal”the same as“ethical?”NO?nEthics offers guidance on how one should act.nAddresses situations where competing values clash.nAction or inaction may be controlled by formal or informal process.nAction beyond mere compliance to legal duty.How to Evaluate Solutions:Some TheoriesnStakeholder/Utilitarian Theory:greatest good to the greatest numbernRights Theory:Respecting and protecting individual rights to fair and equal treatment,privacy,freedom to advance,etc.nJustice Theory:fair distribution of benefits and burdens:can harm to individual be justifiable?nCategorical Imperative:“what if everyone took such action?”n“Front Page Test:”What if my decision was reported on the front page of the Los Angeles Times?How to Resolve Ethical Dilemmas in BusinessnIdentify relevant factsnIdentify relevant issue(s)nIdentify primary stakeholdersnIdentify possible solutionsnEvaluate each possible solutionnCompare and assess consequencesnDecide on solutionnTake actionAdditional Approaches to Ethical Decision MakingnFive Question Approach(Tucker)nMoral Standards Approach(Velasquez)nPastins ApproachPractical Approaches to EthicsnFive Question Approach(Tucker)nEvaluate each alternative on:nProfitability(shareholders)nLegality(society at large)nFairnessnImpact on the rights of stakeholdersnImpact on sustainable development(environment)Practical Approaches to EthicsnMoral Standards Approach(Velasquez)nIs the decision:nOf net benefit to societynFair to all stakeholders(fair distribution of benefits and burdens)nConsistent with each persons rightsPractical Approaches to EthicsnPastins approach(Pastin)nGround rule ethics(organization/individual rules and values)nEnd-point ethics(greatest net good for all concerned)nRule ethics(determine ethical boundaries to take into account impingement of rights)nSocial contract ethics(how to move boundaries)Consider This:“You and Al”nYou are the manager for Big-Mart,a large discount retailer.You recently fired Al,a sales clerk,after Al punched a customer during a dispute in the store(Al admitted this after the customer complained).nSue,manager of your competitor,Mega-Mart,calls you to tell you that Al has applied for a job at Mega-Mart,and to ask you whether Al is“good with customers.”nWHAT DO YOU DO?Class ExerciseEvaluate“You and Al”in Light of Class DiscussionLegal vs.Ethical“You and Al”ActionLegal/Illegal Ethical/UnethicalTell the TruthLieNo CommentOtherEnd of Ethics Exercise