What is the relationship between ethics and the law?

·         What is ethical is not always legal, and vice versa

What is the U.S. Sentencing Guidelines (FSGO)?  How does this work? To whom does it apply? When is it invoked? What have been the most significant effects of this law?

·         The company can choose to blow the whistle on themselves, and get a reduction in their culpablilty score.

·         Courts determine if the business acted criminally, and start with a culpability score of 5, then will be increased or lowered

·         It has made business more responsible, and accountable for their actions

·         Helped prevent criminal actions

What are the protections associated with the anti-discrimination laws discussed?

·         Whistle blower laws: employer cannot give negative punishment for an employee complaining, in good faith, to govt. officials.

Illusion of control

·         Think we have more control over the outcome than we really do

Illusion of optimism

·         We think things are going to turn out positively without really considering the options

·         Underestimate potential risks

Confirmation trap

·         Finding facts that already prove our point

The Pygmalion effect

·         We live up/down to the expectations that were set for us.

·         Think chameleon, we adapt to our expectations

Locus of control

·         Internal: think we have the ability to control our actions

·         External: think things happen and we cannot do anything about it

Ego strength

·         Healthy ego will be more likely to follow through on a moral issue

·         Pre conventional – young, are taught what is right and wrong by punishment and exchanges

·         Conventional: find how to behave due to social norms

·         Post conventional – can take care of yourself, take cues based on your morals rather than what laws are, trust in fairness and rights

What are the various types of “moral approbation?”

·         From others – praise

·         From others – blame

·         From self  

·         Based on the consequences – who will be effected and how much?

·         Utilitarianism is one

·         Focuses on the results

·         Cares about outcome, doesn’t care about the means

·         The minorities can get their rights taken away very quickly and easily 

·         Based on duty – what is right

·         Golden rule

·         Cares about the principle, not about the outcome

·         Decision rule: maximize the greatest good for the greatest number

·         Characteristics: use a scientific formula to judge the greatest good, factoring all the good and bad for everyone

·         Problems and disadvantages:

o   Pro: uses science, takes power away from the all powerful

o   Con: doesn’t take the means into consideration

§  Are able to make unethical decisions this way

·         Decision rule: freedom from force and fraud

·         Characteristics: minimum government intrusion, gives people free will

o   Do what is best for you

·         Problems and disadvantages: disregards the stakeholders 

John Rawls’ Theory of Justice

·         Decision rule: make a society for the greatest benefit of the least advantaged

·         Characteristics: make things as fair as possible because you may be the one on the bottom

o   Created by a veil of ignorance to create “the greatest benefit to the least advantaged”

o   Creates a social contract

·         Problems and disadvantages: takes away individualism/ meritocracy.

o   Thinks that you are a product of your environment, and you don’t deserve the credit for your successes. You should give back to those in need.

o   Natural lottery 

Virtue Ethics

·         Decision rule: focuses on the person (their attitude) rather than their action (behavior)

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  • Do no harm
  • Considers the actors character, motivations, and intentions
  • a.         Principles
  • b.         Rules
  • c.         Consequences

            Emmanuel Kant’s Categorical Imperative

·         Decision rule: act as if what you did was going to become a universal rule / universal law of nature

·         Characteristics

·         Problems and disadvantages

·         “I was just doing my job”

·         Makes it easier to make unethical decisions due to being separated from the consequences

·         Far away physically

·         Part of a group with no clear leader

·         Can lead to unethical behaviors 

• Objectivism

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  • Ann Rand – be all that you can be and be rational
  • Pro- reinforces personal responsibility
  • Con: Judgmental and individualistic
  • Take care of yourself
  • Laissez-faire capitalism – have the government leave businesses alone
  • Very limited government interference – Capitalism was a perfect system as long as you don’t mess with it

• Integrative Social Contracts Theory

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  • Donaldson and Duffy
  • Decision rule: if norm is authentic and doenst violate hypernorms
  • Pro – accepts other cultures without imposing on them

• Ethic of Care

•  
  • Carol Gilligan
  • Opposite of Noziks theory (Objectivism)
  • Focus on relationships and responsibilities
  • Pro: Protects the weak
  • Con: neglects justice
  • “Feminine Firm” take care of each other 

•  
  • When judgment or objectivity is compromised
  • When it looks like, or you do have, interests that may not be at the companies best interest  

•  
  • : giving someone money because they got you business (third party)
    • Receive a personal gift that is reoccurring
    • Benefit goes to the decision maker 

•  
  • giving a customer money back to entice their services 

•  
  • Subtle bribe – gifts of lavish entertainment.  If you cannot pay it back, it is probably unethical
    • Hopes in influencing their decision, but no clear understanding
  • Overt bribes – clear understanding what is going on
    • “Ill give you $$$ if you do XYZ”

 grease payments “Grease the wheel”

§  Usually a small payment that is made to a lower level government official to get something to happen quickly or more easily

§  If the intention is to change the outcome than it is not ok

o   Allow the payment of ransom

o   Must not change outcome

•  
  • Approach your immediate supervisor
  • Talk to family
  • Take it to the next level while informing your boss
  • Contact the ethics officer
  • Consider going outside the chain of command
  • Go outside the company
  • Leave the company 

•  
  • Reaction to corporate scandals
  • Focus on individual …
  • Makes fraudulent reporting a criminal offense
  • Strengthens penalties for corporate fraud
  • Requires corporations to establish codes of ethics for financial reporting
  • Requires greater transparency for investors and stakeholders
  • Makes loans to officers and executives illegal
  • Requires CEO’s and CFO’s to personally certify the company financial statements 

•  
  • Should be done constructively and professionally
  • Done in private
  • Should be consistent
  • They should have some input

•  
  • Termination for a cause
  • Termination for poor performance
  • Downsizing and layoffs

·         Isdell

o   Must accommodate social change

o   Socially responsible behavior can improve businesses public image

o   Resources would be helpful in solving societal problems

o   Have a moral obligation to help solve problems it has created 

·         Atkins

o   Managers are ethically responsible to earn the most money for stakeholders

o   Social issues should be left to politics and government

o   Business executives have little knowledge in how to solve social problems and little incentive to do so

o   Would undermine a free enterprise system