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
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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
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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
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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
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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
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Ethical Decision-making
Craig P. Dunn, PhD
Ethical Decision-‐making
ì Does the contemplated ac&on: ì Conform to important principles?
Ethical Decision-‐making
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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:
* ___________________________
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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
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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:
* ___________________________
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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
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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
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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
Downloaded from http://brain.oxfordjournals.org/ at Western Washington University on February 1, 2014
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
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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
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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)
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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
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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
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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
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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
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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
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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
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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
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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
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