Ethical Decision-making

Ethical Decision-making Craig P. Dunn, PhD Ethical  Decision-­‐making   ì         The  Centre  for  Organiza0on  Effec0veness   Assump&ons…    ...
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Ethical Decision-making

Craig P. Dunn, PhD

Ethical  Decision-­‐making  

ì

       

The  Centre  for  Organiza0on  Effec0veness  

Assump&ons…            -­‐  People  want  to  do  the  right  thing…    

 

 

 -­‐  People  have  good  moral  intui&on…  

 

 -­‐  People  don’t  have  ra&onal  ethics  training…  

   

  sufficient  

       

 …but  good  people  some&mes  do  bad  things  

 …but  this  doesn’t  lead  to  solid  moral  discourse

 …no  one  system  of  ethical  reasoning  is  

   Ethical  Decision-­‐making  

Ethics  isn’t  about  ethics…   …but  rather  about  trust  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

 

…When  we  say  we  trust  someone   or  that  someone  is  trustworthy,  we   implicitly  mean  that  the  probability   that  he  will  perform  an  ac&on  that   is  beneficial  or  at  least  not   detrimental  to  us  is  high  enough  for   us  to  consider  engaging  in  some   form  of  coopera&on  with  him.   OPPORTUNISM AND ITS CRITICS

   Ethical  Decision-­‐making  

Model  of  Moral  Decision-­‐making   Engage  in   Moral   Behavior  

Recognize   Moral  Issue  

Willful  Ignorance   ì  The  prac0ce  or  act  of  inten0onal  and  blatant  avoidance,  

disregard  or  disagreement  with  facts,  empirical  evidence   and  well-­‐founded  arguments  because  they  oppose  or   contradict  your  own  exis0ng  personal  beliefs.    

ì  www.urbandic&onary.com    

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

Willful  Ignorance   ì  The  prac0ce  or  act  of  inten0onal  and  blatant  avoidance,  

disregard  or  disagreement  with  facts,  empirical  evidence   and  well-­‐founded  arguments  because  they  oppose  or   contradict  your  own  exis0ng  personal  beliefs.    

     …their  recogni0on  would  impose  an  ethical  obliga0on  to  act   against  your  self-­‐interest.  

   Ethical  Decision-­‐making  

Model  of  Moral  Decision-­‐making   Engage  in   Moral   Behavior  

Recognize   Moral  Issue  

Moral   Uncertainty  

   Ethical  Decision-­‐making  

Model  of  Moral  Decision-­‐making  

Recognize   Moral  Issue  

Make  Moral   Judgment  

Moral   Uncertainty  

Engage  in   Moral   Behavior  

Moral   Dilemma  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making   ì   Ethical  dilemmas  “are  situa&ons  arising  when  

equally  compelling  ethical  reasons  both  for  and   against  a  par&cular  course  of  ac&on  are   recognized  and  a  decision  must  be  made…”     ì  (CNA,  2002,  p.  5).    

ì  Ethical  distress,  on  the  other  hand,  occurs  when  a  

decision  is  made  regarding  what  one  believes  to   be  the  right  course  of  ac&on,  but  barriers  prevent   the  nurse  from  carrying  out  or  comple&ng  the   ac&on.  

   Ethical  Decision-­‐making  

ì   There  is  a  dis&nct  difference  between  an  ethical  dilemma  

and  ethical  distress…  

ì   Ethical  or  moral  distress  arises  when  one  is  unable  to  act  

on  one’s  ethical  choices,  when  constraints  interfere  with   ac&ng  in  the  way  one  believes  to  be  right.  

   Ethical  Decision-­‐making  

Model  of  Moral  Decision-­‐making  

Recognize   Moral  Issue  

Make  Moral   Judgment  

Moral   Uncertainty  

Establish   Moral  Intent  

Moral   Dilemma  

Engage  in   Moral   Behavior  

Moral   Distress  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

Model  of  Moral  Decision-­‐making  

Recognize   Moral  Issue  

Make  Moral   Judgment  

Moral   Uncertainty  

Establish   Moral  Intent  

Moral   Dilemma  

Engage  in   Moral   Behavior  

Moral   Distress  

What factors allow formaking these behavioral distinctions?

ì  Ethics  is  concerned  with  the  following:   ì  Good  vs  Bad   ì  Right  vs  Wrong   ì  Fair  vs  Unfair   ì  Praise  vs  Blame  

   Ethical  Decision-­‐making  

Ø  Universalism:   ì  An  ethical  theory  that  holds  that  ac&ons  are  right  or  wrong   independent  of  their  consequences  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?  

   Ethical  Decision-­‐making  

1  

2  

3  

4  

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6  

principles   outcomes   fairness   caring   liberty   character   sustainability  

   Ethical  Decision-­‐making   The  ends  

jus&fy   the  means  

Ø  U&litarianism:   ì  An  ethical  theory  that  holds  that  ac&ons  are  right  if  they   produce,  or  tend  to  produce,  the  greatest  amount  of  good  for   the  greatest  number  of  persons  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?   ì  Create  more  good  than  harm?  

   Ethical  Decision-­‐making  

1  

2  

3  

4  

5  

6  

principles   outcomes   fairness   caring   liberty   character   sustainability  

   Ethical  Decision-­‐making  

ì  What  are  the  core  ethical  cri&cisms  of  u&litarianism?     ì  How  might  these  best  be  remedied?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

Economic   Ø  U&litarianism:   ì  An  ethical  theory  that  holds  that  ac&ons  are  right  if  they   produce,  or  tend  to  produce,  the  greatest  amount  of  good  for   the  greatest  number  of  persons  

shareholders  

profit  

Ford  Pinto  

Ø  U&litarianism:   ì  An  ethical  theory  that  holds  that  ac&ons  are  right  if  they   produce,  or  tend  to  produce,  the  greatest  amount  of  good  for   the  greatest  number  of  persons  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

rules  should  be  cra`ed   in  such  a  way  that   Rule   Ø  U&litarianism:   ì  An  ethical  theory  that  holds  that  ac&ons  are  right  if  they   produce,  or  tend  to  produce,  the  greatest  amount  of  good  for   the  greatest  number  of  persons  

   Ethical  Decision-­‐making  

Ø  Jus&ce:   ì  Consists  in  giving  each  person  his  or  her  due,  trea&ng  equals   equally  and  unequals  unequally  

   Ethical  Decision-­‐making  

ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?   ì  Create  more  good  than  harm?   ì  Lead  to  fair  outcomes?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

1  

2  

3  

4  

5  

6  

principles   outcomes   fairness   caring   liberty   character   sustainability  

   Ethical  Decision-­‐making  

Ø  Ethic  of  Care:   ì  Asks  us  to  recognize  and  take  seriously  the  moral  worth  of   rela&onships,  par&cularly  those  characterized  by  caring  

   Ethical  Decision-­‐making  

ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?   ì  Create  more  good  than  harm?   ì  Lead  to  fair  outcomes?   ì  Promote  caring  rela&onships?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

1  

2  

3  

4  

5  

6  

principles   outcomes   fairness   caring   liberty   character   sustainability  

   Ethical  Decision-­‐making  

Ø  Libertarianism:   ì  Suggest  right  ac&on  consists  in  maximizing  the  capacity  for  free,   informed  personal  choice  

   Ethical  Decision-­‐making  

ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?   ì  Create  more  good  than  harm?   ì  Lead  to  fair  outcomes?   ì  Promote  caring  rela&onships?   ì  Support  personal  choice?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

1  

2  

3  

4  

5  

6  

principles   outcomes   fairness   caring   liberty   character   sustainability  

   Ethical  Decision-­‐making  

Ø  Virtue  theory:   ì  Focus  is  on  achieving  our  personal  ethical  ideal–a  mafer  of  who   we  are,  not  what  we  do  

   Ethical  Decision-­‐making  

ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?   ì  Create  more  good  than  harm?   ì  Lead  to  fair  outcomes?   ì  Promote  caring  rela&onships?   ì  Support  personal  choice?   ì  Encourage  virtuous  character?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

1  

2  

3  

4  

5  

6  

principles   outcomes   fairness   caring   liberty   character   sustainability  

   Ethical  Decision-­‐making  

Ø  Land  Ethic:   ì  A  thing  is  right  when  it  tends  to  preserve  the  beauty,  stability,   and  integrity  of  the  bio&c  community.    It  is  wrong  when  it  tends   otherwise.  

   Ethical  Decision-­‐making  

ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?   ì  Create  more  good  than  harm?   ì  Lead  to  fair  outcomes?   ì  Promote  caring  rela&onships?   ì  Support  personal  choice?   ì  Encourage  virtuous  character?   ì  Contribute  to  sustainability?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

1  

2  

3  

4  

5  

6  

principles   outcomes   fairness   caring   liberty   character   sustainability  

Ethical  Decision-­‐Making   Worksheet   ì  1)  Iden&fy  Ethical  Issues:  

*  ___________________________   *  ___________________________   *  ___________________________   *  ___________________________   *  ___________________________   *  ___________________________  

Ethical  Decision-­‐Making   Worksheet   ì  2)  Select  one  issue:  

*  ___________________________  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

Ethical  Decision-­‐Making   Worksheet  

ì  3)  Decide  which  ethical  frameworks  are  most  relevant  

to  this  par&cular  issue  (you  will  only  include  checked   frameworks  in  your  further  analysis):    Universalism    U&litarianism      Jus&ce      Ethic  of  Care      Liberty      Virtue      Land  Ethic  

Ethical  Decision-­‐Making   Worksheet   ì  4)  Develop  alterna&ves  to  resolve  this  issue:   (a)  ___________________________   (b)  ___________________________   (c)  ___________________________   (d)  ___________________________   (e)  ___________________________   (f)  ___________________________  

Ethical  Decision-­‐Making   Worksheet   ì  5)  Analyze  these  alterna&ves:  (only  include  

checked  frameworks  from  step  3)  above)  

 

(a)  Principles:  Does  the  alterna&ve  conform  to  fixed   rules  of  conduct?   (b)  Outcomes:  Does  the  alterna&ve  create  more   good  than  harm?   (c)  Fairness:  Does  the  alterna&ve  lead  to  fair   outcomes?   (d)  Caring:  Does  the  alterna&ve  support  caring   rela&onships?   (e)  Liberty:  Does  the  alterna&ve  promote  personal   choice?   (f)  Character:  Does  the  alterna&ve  advance  personal   ideals?   (g)  Sustainability:  Does  the  alterna&ve  respect  the   natural  environment?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

Ethical  Decision-­‐Making   Worksheet   ì  5)  Analyze  these  alterna&ves:  (only  include  

checked  frameworks  from  step  3)  above)  

(a)

(b)

(c)

 

(a)  Principles:  Does  the  alterna&ve  conform  to  fixed   rules  of  conduct?   (b)  Outcomes:  Does  the  alterna&ve  create  more   good  than  harm?   (c)  Fairness:  Does  the  alterna&ve  lead  to  fair   outcomes?   (d)  Caring:  Does  the  alterna&ve  support  caring   rela&onships?   (e)  Liberty:  Does  the  alterna&ve  promote  personal   choice?   (f)  Character:  Does  the  alterna&ve  advance  personal   ideals?   (g)  Sustainability:  Does  the  alterna&ve  respect  the   natural  environment?  

Ethical  Decision-­‐Making   Worksheet   ì  5)  Analyze  these  alterna&ves:  (only  include  

checked  frameworks  from  step  3)  above)  

(a)

(b)

(c)

 

(a)  Principles:  Does  the  alterna&ve  conform  to  fixed   rules  of  conduct?   (b)  Outcomes:  Does  the  alterna&ve  create  more   good  than  harm?   (c)  Fairness:  Does  the  alterna&ve  lead  to  fair   outcomes?   (d)  Caring:  Does  the  alterna&ve  support  caring   rela&onships?   (e)  Liberty:  Does  the  alterna&ve  promote  personal   choice?   (f)  Character:  Does  the  alterna&ve  advance  personal   ideals?   (g)  Sustainability:  Does  the  alterna&ve  respect  the   natural  environment?  

Ethical  Decision-­‐Making   Worksheet   ì  6)  Select  the  op&mal  alterna&ve:  

*  ___________________________  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

Ethical  Decision-­‐Making   Worksheet   ì  7)  Is  the  op&mal  alterna&ve…  

  ì  financially  viable?  (if  not,  is  the  second-­‐best  

financially  viable?    the  third-­‐best?)   -­‐  Yes  

 

 -­‐  No  

ì  poli&cally  viable?  (if  not,  is  the  second-­‐best  

poli0cally  viable?    the  third-­‐best?)   -­‐  Yes  

 

 -­‐  No  

Ethical  Decision-­‐Making   Worksheet   ì  8)  Develop  a  plan  for  implementa&on:  

___________________________   ___________________________   ___________________________   ___________________________   ___________________________  

ì  Gather  the  facts   ì  Does  the  contemplated  ac&on:   ì  Conform  to  important  principles?   ì  Create  more  good  than  harm?   ì  Lead  to  fair  outcomes?   ì  Promote  caring  rela&onships?   ì  Support  personal  choice?   ì  Encourage  virtuous  character?   ì  Contribute  to  sustainability?  

ì  Think  crea&vely  about  poten&al  ac&ons  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

ì What  might  a  principle-­‐based  

approach  ‘look  like’?  

   Ethical  Decision-­‐making  

ì Avoid  all  appearance  of  

impropriety  

   Ethical  Decision-­‐making  

ì Do  not  sacrifice  the  public  

good  for  private  gain  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ethical  Decision-­‐making  

ì Daedelus  and  Icarus  

ì Operate  at  all  &mes  with  

humility,  never  underes&ma&ng   your  capacity  for  self-­‐decep&on  

ì Brain Advance Access published February 12, 2009 doi:10.1093/brain/awp008

Brain 2009: Page 1 of 11

| 1

BRAIN A JOURNAL OF NEUROLOGY

OCCASIONAL PAPER

Hubris syndrome: An acquired personality disorder? A study of US Presidents and UK Prime Ministers over the last 100 years 1 House of Lords, London, UK 2 Department of Psychiatry and Behavioural Sciences, Duke University Medical Center, Durham, USA Correspondence to: Lord David Owen, House of Lords, SW1A 0PW London, UK E-mail: [email protected]

‘The history of madness is the history of power. Because it imagines power, madness is both impotence and omnipotence. It requires power to control it. Threatening the normal structures of authority, insanity is engaged in an endless dialogue—a monomaniacal monologue sometimes— about power’. Roy Porter A Social History of Madness: Stories of the Insane, Weidenfeld & Nicolson, 1987 p. 39

Introduction Charisma, charm, the ability to inspire, persuasiveness, breadth of vision, willingness to take risks, grandiose aspirations and bold self-confidence—these qualities are often associated with successful leadership. Yet there is another side to this profile, for these very same qualities can be marked by impetuosity, a refusal to listen to or take advice and a particular form of incompetence when impulsivity, recklessness and frequent inattention to detail predominate. This can result in disastrous leadership and cause damage on a large scale. The attendant loss of capacity to make rational decisions is perceived by the general public to be more than ‘just making a mistake’. While they may use discarded medical or colloquial terms, such as ‘madness’ or ‘he’s lost it’, to describe such behaviour, they instinctively sense a change

of behaviour although their words do not adequately capture its essence. A common thread tying these elements together is hubris, or exaggerated pride, overwhelming self-confidence and contempt for others (Owen, 2006). How may we usefully think about a leader who hubristically abuses power, damaging the lives of others? Some see it as nothing more than the extreme manifestation of normal behaviour along a spectrum of narcissism. Others simply dismiss hubris as an occupational hazard of powerful leaders, politicians or leaders in business, the military and academia; an unattractive but understandable aspect of those who crave power. But the matter can be formulated differently so that it becomes appropriate to think of hubris in medical terms. It then becomes necessary first to rule out conditions such as bipolar (manicdepressive) disorder, in which grandiosity may be a prominent feature. From the medical perspective, a number of questions other than the practicalities of treatment can be raised. For example can physicians and psychiatrists help in identifying features of hubris and contribute to designing legislation, codes of practice and democratic processes to constrain some of its features? Can neuroscientists go further and discover through brain imaging and other techniques more about the presentations of abnormal personality? (Goodman et al., 2007). We see the relevance of hubris by virtue of it being a trait or a propensity towards certain attitudes and behaviours. A certain level of hubris can indicate a shift in the behavioural pattern

The CENTRE for Organization Effectiveness Received September 29, 2008. Revised December 10, 2008. Accepted January 5, 2009 ! The Author (2009). Published by Oxford University Press on behalf of the Guarantors of Brain. All rights reserved. For Permissions, please email: [email protected]

Downloaded from http://brain.oxfordjournals.org/ at Western Washington University on February 1, 2014

David Owen1 and Jonathan Davidson2

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

Brain Advance Access published February 12, 2009 doi:10.1093/brain/awp008

ì

Brain 2009: Page 1 of 11

BRAIN A JOURNAL OF NEUROLOGY

| 1

OCCASIONAL PAPER

Hubris syndrome: An acquired personality disorder? A study of US Presidents and UK Prime Ministers over the last 100 years 1 House of Lords, London, UK 2 Department of Psychiatry and Behavioural Sciences, Duke University Medical Center, Durham, USA Correspondence to: Lord David Owen, House of Lords, SW1A 0PW London, UK E-mail: [email protected]

Hubris syndrome is a disorder of the possession of power, particularly power which has been associated with overwhelming success, held for a period of years and with minimal constraint on the leader. ‘The history of madness is the history of power. Because it imagines power, madness is both impotence and omnipotence. It requires power to control it. Threatening the normal structures of authority, insanity is engaged in an endless dialogue—a monomaniacal monologue sometimes— about power’.

Roy Porter A Social History of Madness: Stories of the Insane, Weidenfeld & Nicolson, 1987 p. 39

Introduction

Charisma, charm, the ability to inspire, persuasiveness, breadth of vision, willingness to take risks, grandiose aspirations and bold self-confidence—these qualities are often associated with successful leadership. Yet there is another side to this profile, for these very same qualities can be marked by impetuosity, a refusal to listen to or take advice and a particular form of incompetence when impulsivity, recklessness and frequent inattention to detail predominate. This can result in disastrous leadership and cause damage on a large scale. The attendant loss of capacity to make rational decisions is perceived by the general public to be more than ‘just making a mistake’. While they may use discarded medical or colloquial terms, such as ‘madness’ or ‘he’s lost it’, to describe such behaviour, they instinctively sense a change

of behaviour although their words do not adequately capture its essence. A common thread tying these elements together is hubris, or exaggerated pride, overwhelming self-confidence and contempt for others (Owen, 2006). How may we usefully think about a leader who hubristically abuses power, damaging the lives of others? Some see it as nothing more than the extreme manifestation of normal behaviour along a spectrum of narcissism. Others simply dismiss hubris as an occupational hazard of powerful leaders, politicians or leaders in business, the military and academia; an unattractive but understandable aspect of those who crave power. But the matter can be formulated differently so that it becomes appropriate to think of hubris in medical terms. It then becomes necessary first to rule out conditions such as bipolar (manicdepressive) disorder, in which grandiosity may be a prominent feature. From the medical perspective, a number of questions other than the practicalities of treatment can be raised. For example can physicians and psychiatrists help in identifying features of hubris and contribute to designing legislation, codes of practice and democratic processes to constrain some of its features? Can neuroscientists go further and discover through brain imaging and other techniques more about the presentations of abnormal personality? (Goodman et al., 2007). We see the relevance of hubris by virtue of it being a trait or a propensity towards certain attitudes and behaviours. A certain level of hubris can indicate a shift in the behavioural pattern

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David Owen1 and Jonathan Davidson2

Received September 29, 2008. Revised December 10, 2008. Accepted January 5, 2009 ! The Author (2009). Published by Oxford University Press on behalf of the Guarantors of Brain. All rights reserved. For Permissions, please email: [email protected]

S   N   IN F  A N  IN L L  O IO  CO ES AT IJ M TAG NIZ 5  S RGA O

E IN CL E  D

 

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

ì  “We  can  never  be  gods,  a`er  all—  

 but  we  can  become  something  less  than  human    with  frightening  ease.”    

 

   

   

N.K. Jemisin, The Hundred Thousand Kingdoms  

   Ensuring  Ethical  Behavior  

ì  In order to ensure ethical behavior, one has to be able to: ì  recognize an ethical issue ì  evaluate the ethical issue ì  intend to follow the 'right' course of action ì  follow the 'right' course of action ì  What organizational impediments might interfere with this

process?

   Ensuring  Ethical  Behavior   ì  “You  need  a  moral  corporate  culture,  and  that  is  what  

is  missing  now…Codes  of  conduct  are  useless.”  

    ì 

NORMAN  BOWIE,  the  Elmer  L.  Andersen  Chair  in  Corporate  Responsibility,  the  Carlson  School  of   Management,  the  University  of  Minnesota  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ensuring  Ethical  Behavior   ì  “Enron  had  a  corporate  code  of  conduct,  but  their  

upper  management  was  so  devoid  of  ethics  that  the   code  became  an  inside  joke.  The  best  codes  of   conduct  are  worthless  unless  ethical  conduct  is   modeled  every  day  by  the  leadership.”  

  ì 

C.  WILLIAM  THOMAS,  the  J.  E.  Bush  Professor  of  AccounFng,  Baylor  University  

   Ensuring  Ethical  Behavior   ì  “A  profession  seeks  to  demonstrate  a  certain  

proficiency  and  excellence  in  prac&ce  based  on  a   systema&c  body  of  knowledge;  it  aims  at  inculca&ng   in  its  members  a  sense  of  responsibility  towards   others  and  in  establishing  a  norm  of  behaviour  and   clearly  defined  qualifica&ons  for  membership.”  

  ì 

Kanawaty,  G.    1977.    Turning  the  Management  OccupaFon  into  a  Profession.  

   Ensuring  Ethical  Behavior   ①  a  common  body  of  knowledge  res&ng  on  a  well-­‐developed,  widely  

accepted  theore&cal  base;  

②  a  system  for  cer&fying  that  individuals  possess  such  knowledge  

before  being  licensed  or  otherwise  allowed  to  prac&ce;  

③  a  commitment  to  use  specialized  knowledge  for  the  public  good,  

and  a  renuncia&on  of  the  goal  of  profit  maximiza&on,  in  return  for   professional  autonomy  and  monopoly  power;  

④  a  code  of  ethics,  with  provisions  for  monitoring  individual  

compliance  with  the  code  and  a  system  of  sanc&ons  for  enforcing  it.  

ì 

Khurana,  R;  Nohria,  N.  and  Penrice,  D.  2005.  Is  Business  Management  a  Profession?  

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ensuring  Ethical  Behavior  

ì  Compliance-based Codes vs

ì  Values-based Codes

   Ensuring  Ethical  Behavior   ì  Our Credo ì  We believe our first responsibility is to the doctors,

nurses and patients, to mothers and fathers and all others who use our products and services… ì  We are responsible to our employees, the men and

women who work with us throughout the world… ì  We are responsible to the communities in which we

live and work and to the world community as well… ì  Our final responsibility is to our stockholders.

   Ensuring  Ethical  Behavior  

Model of Motivation (Expectancy Theory)

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ensuring  Ethical  Behavior  

Model of Motivation Motivation

=

   Ensuring  Ethical  Behavior  

Model of Motivation Motivation

=

Expectancy

   Ensuring  Ethical  Behavior  

Model of Motivation Motivation

=

Belief that effort will lead to behavior

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ensuring  Ethical  Behavior  

Model of Motivation =

Motivation

Expectancy

X

Instrumentality

   Ensuring  Ethical  Behavior  

Model of Motivation =

Motivation

Belief that behavior will be rewarded

   Ensuring  Ethical  Behavior  

Model of Motivation

Expectancy

Motivation

=

X

X

Instrumentality

Valence

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ensuring  Ethical  Behavior  

Model of Motivation =

Motivation

Value placed on the reward

   Ensuring  Ethical  Behavior  

Model of Motivation

Expectancy

Motivation

=

X

X

Instrumentality

Valence

   Ensuring  Ethical  Behavior  

ì How does this model inform

our understanding of why individuals behave unethically?

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ensuring  Ethical  Behavior  

ì  Suppose that you want to ensure that employees 'do the

right thing.' What steps would you take to make certain this happens?

   Ensuring  Ethical  Behavior   ì  BOARD/MANAGEMENT/EMPLOYEE SELECTION ì  CODE OF CONDUCT ì  DEVELOPMENT AND IMPLEMENTATION ì  TRAINING ì  SPLIT TRAINING FROM ENFORCEMENT ì  RECOGNITION OF ETHICAL DILEMMAS ì  ETHICAL DECISION-MAKING ì  CONSENSUS BUILDING/CONFLICT RESOLUTION ì  SHAPING ORGANIZATIONAL CULTURE ì  GROUP PROCESSES ì  RISK MANAGEMENT ì  INDUSTRY SPECIFI

   Ensuring  Ethical  Behavior   ì  CODE OF CONDUCT ì  DEVELOPMENT AND IMPLEMENTATION ì  Tailor-make your code ì  Get employees involved ì  Consult key stakeholders ì  Outsource the job only carefully ì  Seek out good examples ì  Be clear about scope ì  Be specific about implementation ì  Plan for education ì  Be clear about enforcement ì  Specify a sunset date

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Sarbanes-­‐Oxley  406  (b)  

ì  THE SARBANES-OXLEY ACT: ì  Quarterly CEO/CFO certification of periodic reports

and internal controls ì  Audit Committee ì  Independence ì  Financial expertise ì  Oversight of audit firm ì  Complaint/whistleblowing procedures ì  Independent advisors authorized

   Sarbanes-­‐Oxley  406  (b)  

ì  THE SARBANES-OXLEY ACT: ì  CEO/CFO disgorgement of bonuses and stock profits

upon restatement ì  Loans to directors/officers prohibited ì  New crimes and enhanced penalties ì  Federal regulation of auditing firms ì  Code of ethics for senior financial officers

   Sarbanes-­‐Oxley  406  (b)  

ì  A code of ethics comprises standards

reasonably necessary to promote

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Sarbanes-­‐Oxley  406  (b)  

ì  A code of ethics comprises standards

reasonably necessary to promote ì  honest and ethical conduct, including the

ethical handling of actual or apparent conflicts of interest between personal and professional relationships

   Sarbanes-­‐Oxley  406  (b)  

ì  A code of ethics comprises standards

reasonably necessary to promote ì  full, fair, accurate, timely, and understandable

disclosure in the periodic reports to be filed by the issuer

   Sarbanes-­‐Oxley  406  (b)  

ì  A code of ethics comprises standards

reasonably necessary to promote ì  compliance with the applicable governmental

rules and regulations

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Sarbanes-­‐Oxley  406  (b)  

ì  A code of ethics comprises standards

reasonably necessary to promote ì  the prompt internal reporting of code violations

to an “appropriate person or persons” identified in the code

   Sarbanes-­‐Oxley  406  (b)  

ì  A code of ethics comprises standards

reasonably necessary to promote ì  accountability for adherence to the code

   Ensuring  Ethical  Behavior  

ì  Code Building Exercise

The CENTRE for Organization Effectiveness

www.dunn.cc

Ethical Decision-making

Craig P. Dunn, PhD

   Ensuring  Ethical  Behavior  

   Ensuring  Ethical  Behavior   ì  BOARD/MANAGEMENT/EMPLOYEE SELECTION ì  CODE OF CONDUCT ì  DEVELOPMENT AND IMPLEMENTATION ì  TRAINING ì  SPLIT TRAINING FROM ENFORCEMENT ì  RECOGNITION OF ETHICAL DILEMMAS ì  ETHICAL DECISION-MAKING ì  CONSENSUS BUILDING/CONFLICT RESOLUTION ì  SHAPING ORGANIZATIONAL CULTURE ì  GROUP PROCESSES ì  RISK MANAGEMENT ì  INDUSTRY SPECIFIC

   Ensuring  Ethical  Behavior   ì  TRACKING RESPONSIBILITY ì  ENFORCEMENT ì  REPORTING ì  REWARDS/SANCTIONS ì  DISSENT ì  COMPENSATION STRUCTURE ì  PERFORMANCE APPRAISAL ì  TERMINATION

The CENTRE for Organization Effectiveness

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