LEB320F 1st Edition Lecture Outline of Last Lecture II ADR 6 A Mediation B Negotiation C Arbitrate III Ethics A Learned or practiced IV Universal norms V Minimums A Honesty B Loyalty VI Theories A Utilitarianism B Deontological C Virtue ethics Outline of Current Lecture Chapter 3 36 and 37 Cont VII Utilitarianism VIII Deontological IX Virtue Ethics X H125 XI Dilemmas A Omission v commission XII A process XIII Ethics in Business XIV Limitations XV Over optimism Overconfidence XVI Self serving Bias XVII Cognitive dissonance XVIII Rationalize the irrational XIX Long term short term XX Why A Practice B Tools C Reinforcement Ethical Issues Cont Sometimes it s just easier to back away Reporting Cheating v not cheating Major Applewhite improper sexual conduct o Applewhite engaged in a one time sexual episode with an adult student at the 2009 Fiesta Bowl o It doesn t take much to destroy your reputation Utilitarianism o Economists often speak of maximizing utility Is the economically efficient choice the same as the utilitarian s best choice o For example homeless guy offers his last dollar for your jug of milk rich man offers you 2 for same jug of milk just to waste it Which offer would you take o Its hard to measure what s good Deontological o John Rawls the veil of ignorance o You can be top bottom when making the rules o Shifted to difference principal strict equality is not required if inequality raises the lease o As long as you follow the rules Same gender marriage Death penalty Abortion o Rigged Rules o Absence of Rules Yahoo China Should Yahoo provide info to convict Chinese citizens o Same thing happened to Google resulting in Google pulling out of China Rights duties justice o Example Say you re a big farming company Are you going to invest in river blindness or curing American obesity Virtue Ethics o Be good o Virtue is your only guide compass and ruler o What about collisions loyalty to shareholders v people who need your product o Example should you tell a friend that their name is on a list 2 month advance notice for layoffs if your boss specifically tells you not to Safer not to tell them until day of What if your work buddy comes to you to tell you he s buying a house that s a financial stretch Do you tell him get fired o Problem sometimes your virtues collide H125 o Oftentimes the situation matters o Is it because I have not been tempted enough o Stand for something I fall for something Are we always the best that we can be Not always o Expensive o Time consuming Are we just good enough Does it matter why we are good o Doesn t matter to who gets the benefit o Contribute to charity Help others Makes you feel good Gets your name in lights o Does it matter why we are not bad Dilemmas o Hurt now or hurt later o If no harm is done if you don t get caught Example disbarment for embezzlement Earnings recognition o Omission v commission Report others Trolley example if you pull lever you are killing someone Wrongdoings often not reported A process o Can you spot an issue o What principles will govern o Gather all available info o Apply the facts and weigh the competing obligations o Any excusing causes wait until the end to decide Ethics in business o Has to become second nature o Put yourself near the best most ethical people Limitations o Obey authority Its not me its them What is the option Experiment with electricity from text If cheating is the rule then you must cheat to be in the game Slippery slope and backfill Desire to fit in Group think is more than individuals Whiteboards smart people in a room with a whiteboard come up with terrible ideas First cell phone Webvam sell you groceries online went out of business in 18 months Over optimism Overconfidence o This isn t a bubble it s a paradigm shift o Believe we can hit ridiculous targets o Have to ride the wave Bank of America Have to get mine while the getting is good o Getting away with small thing is worst that can happen to you too confident that you re not corruptible o Who is below average We all feel we have integrity o 70 85 believe they re more ethical than colleagues and competitors o Good people can do bad things too o I am good therefore o Situations often are determinative o Cheating when its easy and when its hard Self Serving bias o Believe only the facts that help your decision o Framing o Most common form of mechanized transportation Elevators o 99 natural is still 1 not Ivory Soap o mostly honest would you want to work with a company that s mostly honest Cognitive dissonance o My company is honest but may ask you to do something wrong o I am honest o Disbelieve everything else in order to survive Rationalize the irrational o I had to do it o Everyone does it o It s going to happen I will do it in the least harmful way o No one will know o No one will get hurt Long term short term o Maybe we ll get caught later but get off now Lawyers embezzling from trust fund o Loss aversion cover up rather than crime Watergate Lie to keep the stock price up avoid going down Why are we talking about this o Practice o Tools o Reinforcement