Portico Notes for Final Why Be an Ethical Company They re Stronger and Last Longer by Vivek Wadhua 61 companies on Forbes in 1917 ceased to exist in 1987 and only 39 of the top 100 remained CEO tenure average 4 2 years in 2010 10 5 years in 1990 Firms lacked higher purpose clear strategy and mismanaged their risk Laser like focus on customer service honesty and transparency allows Charles Schwab Co SCHW and US Bancorp USB to succeed also avoided subprime mortgage securitization market Short term profits intimidation to speak truth to superiors other s downfall Internal voice and moral compass success e g Costco Wholesale COST Higher wages and longer terms for employees strategic for long term growth and success Low prices too Ethical compass pointing north great business A Framework for Thinking Ethically Santa Clara University Ethics standards for behavior not feelings religion following laws accepted cultural norms science Why hard to follow o 1 On what do we base ethical standards o 2 How do those standards get applied to specific situations we face Five sources of ethical standards o 1 Utilitarian provides most good does least harm o 2 Rights approach best protects and respects moral rights of affected people ends not means o 3 Fairness justice all equals should be treated equally even CEOs and employees o 4 Common Good actions should contribute to life in community a good in itself o 5 Virtues ethics consistent with ideal virtues that provide for full development of humanity What kind of person will I become Need method for ethical decision making Framework for Ethical Decision Making Recognize an Ethical Issue o 1 Could this be damaging o 2 Is it about more than what s legal efficient Get the Facts o 1 What are the facts o 2 Who has state in outcome what are concerns o 3 What are the options for acting Evaluate alternative actions o 1 Evaluate through all five approaches Make a Decision and Test it o 1 What s best option o 2 What would tv audience say Act and Reflect on Outcome o 1 How to implement decision with greatest care and attention to all concerns o 2 How d it turn out and what did I learn If It Feels Right by David Brooks Teenagers don t think about right or wrong 2 3 of 18 23 year olds could not come up with moral dilemma that they faced Depressing how bad 18 23 year olds are at thinking talking about moral issues Default position moral choices are just a matter of individual taste Others said they d do what made them personally happy internal feelings Atmosphere moral individualism relativism and nonjudgmentism Interviewees untroubled by rabid consumerism Sturdy virtues are being diluted into shallow values Emotivism the idea that it s impossible to secure moral agreement in our culture because all judgments are based on how we feel at the moment Morality from shared inherited revealed characteristic to one that emerges in privacy of own heart Why Ethics Why now Randy Cohen Ethics set of questions every ordinary citizen can must address in a democracy Ethics is Not physics values of person and how well they are articulated to particular situation Free to attack volitional things but not those over which person has no control Legal and ethical are NOT synonymous Still not right to harm another or rob steal even if broke Ethics Just Society o Most act as cultural directs instead of scrutinizing all our own decisions o Individual ethics only understood within society which it s practiced o Need just society to act ethically o Buyer s low seller s lost profit o Rookie cops corrupt if brought into corrupt environment uncorrupt if not o Army stays with each other McD s employees rob Ronald My Ethics o Ethics is the rational determination of right conduct o Not just knowing but doing o Solitary sin but no solitary unethical behavior ethics needs other people o Ethics increase supply of human happiness don t contribute to suffering concordant with egalitarian society and augment human freedom esp thought and expression Other People s Ethics o Transparency act as if everyone can see you o Heroic model what would Lincoln do o Categorical imperative act as if all were to do as you do o Utilitarianism seek greatest good for greatest number o Religion and ethics are separate Mafia Ethics honest to the family o It s not what you do it s to whom you do it lie cheat kill outside the family but be o Nationalism thou shalt not kill except the enemy o Un American in principle to have nationalism ethics but in America where action not to whom constitutes crime rich can afford better attorneys and therefore get away with more o Like when fires were different if done to freeman slaves than to the aristocracy William Bennett s Ethics o Responsibility leads to reward leads to more responsibility o Interesting to see which lesson from story is emphasized o Champion of individual rectitude but real virtue not in saving poor orphan from burning building but working for world where orphan s not poor and building has decent fire codes Law Book Ethics o Laws too specific doesn t apply or too vague doesn t prescribe o Laws on how not to be bad but none on how to be good o Don t kill steal bare false witness and honor parents understood Relationships and Obligations o Human beings don t behave systematically so their behavior tests ethics o Sense of ethical obligation is affected by relationship of people involved o One must also deal honorably with strangers not just own child o One must be way of an ethics that is based not on what we do but to whom we do it Is Ethics Etiquette Politics o Difference between ethics and politics is artificial o Need for group endeavor to achieve some ethical goals o Etiquette has moral foundation Ethics and Incompetence o Lack of ability not virtue o Sometimes incompetence is unethical o Ethical living calls for tolerating others imperfections dropping wallet Ethics and Intent o In ethics intent counts like in different degrees of murder o Morality of an action depends on motives from which one acts Samuel Johnson o It doesn t matter why good or bad act was done Samuel Butler result depends upon the thing done and motives go for nothing o Not enough to be well intentioned must put intentions into action o To persist in ignorance is dishonorable in itself Ethics and Dr Johnson o Human life much to be endured and little to be enjoyed o Dr Johnson is informed by a knowledge of life understanding of the human heart love of sociability generosity of spirit