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DISCUSSION:250-word (not including in-text citation and references as word count) count minimum with two scholarly sources in APA format. For the two scholarly sources, one from the textbook that’s posted below and the other one from an outside source. Let’s be sure to write it in own work 100% and give credit appropriately when using someone’s else work.Autonomous vehicles (AVs), are already sharing the road with us. The first pedestrian was killed just a few months ago, but the proportion of AVs can be expected to increase dramatically and decrease the accident rate significantly – by as much as 90%.Right now, autonomous braking and lane keeping are advertised on many cars. The car will hit the brakes for a pedestrian or move back into its lane if the human driver allows it to drift. Only a few vehicles, like Tesla, will swerve autonomously to avoid an obstacle, but that is changing rapidly with better sensors. All of the major automakers have announced plans to employ autonomous fleets over the next few years. The discussion question asks us to look at the ethical principles and moral philosophies that need to be considered, and draws heavily on the material in Chapter Six.An accident caused by a human driver is generally attributed to driver error and ethical issues seldom arise. However, the “decisions” of an autonomous vehicle are pre-determined by software that is written in advance. The discussion question, therefore, is not really asking about what you would do; it is asking about the ethical criteria that should guide the vehicle’s programming.Remember that a total of two sources, including the book, are required for the initial discussion post. There are several articles in the Unit 3 Course Materials that can be used to fulfill that requirement.I see an increasing number of articles about self driving vehicles. Whether cars will be truly autonomous, or just have an enhanced version of cruise control, I don’t know, but the trend toward reduced driver input is accelerating. It also raises some interesting ethical questions. The following is an extended quote from Forbes:In a series of surveys, researchers asked people whether autonomous vehicles (AVs) should swerve to avoid hitting a group of pedestrians, even if that meant killing the occupant of the car. Most people gave the greater good answer, that saving many lives was better than saving one. . . .Even when the researchers introduced variations to make it a more difficult choice, such as suggesting a family member or a child was in the car, participants still objectively want the car to save the most people possible. Just not when it’s them or their own children.“Although people tend to agree that everyone would be better off if AVs were utilitarian (in the sense of minimizing the number of casualties on the road), these same people have a personal incentive to ride in AVs that will protect them at all costs,” the researchers said. (Parnell, 2016, para. 2-4)We already see people driving like this, so putting the car in charge might well be an improvement . . .Here’s the assignment:1) Watch the brief video “The ethical dilemma of self driving cars.” It is a little over four minutes long and looks at some of the ethical questions that are likely to come up as cars start to make more and more decisions for us:http://ed.ted.com/lessons/the-ethical-dilemma-of-self-driving-cars-patrick-lin#watch2) Based on the what you learned about moral philosophies in Chapter 6, pp. 155-165, decide which philosophy seems the most ethical to you for the “decisions” that AVs will make about an unavoidable crash situation. It is probably best to avoid any of the types of relativism, since they won’t lead to a conclusion.Making a decision like this might require weighing the value of one life against another. Should that type of decision be based on fairness, consequences, rights, selfishness, or some other guiding principle? Explain your choice in terms of the discussion on pp. 157-165. The emphasis should be on explaining your choice and how it is related the course material. At least one additional source is required. The articles in the Unit 3 Course Materials can be helpful for that. The initial response should be a minimum of 250 words.Update the save line of the initial post so that it reflects what you are writing about.ReferenceParnell, B. (2016, June 24). Driverless cars should kill passengers to save lives – But then people won’t buy them. Forbes. Retrieved fromhttp://www.forbes.com/sites/bridaineparnell/2016/06/24/driverless-cars-should-kill-passengers-to-save-lives-but-then-people-wont-buy-them/#675f38d34f6cUpdate the subject line of the initial post so that it reflects what you are writing about. (Name the file as what you are writing about and save under there)COMPLETE:1,300 word count and there is a total of 4 questions (not including in-text citation and references as the word count), a minimum of three scholarly sources are required in APA format. For the three scholarly sources, one from the textbook that’s posted below and the other two from an outside source. Let’s be sure to write it in own work 100% and give appropriately when using someone’s else work.Q1 and Q3 are straightforward and both can be answered fully using material in the Read and Attend sections.In Q2, it isn’t necessary to focus on Warren Buffet specifically. Instead, look at whether leaders should trust people based on their character or whether leaders should focus more on codes and compliance to maintain an ethical organization. In other words, the question is asking if ethical behavior is primarily due to internal, individual factors, or if ethical behavior is influenced more by external factors.Q4 is asking something very similar to Q2. Generally, the two questions should reach similar conclusions. If they don’t, some additional explanation may be needed. Details about that are in Q4.Q2 and Q4 will both be stronger with the use of outside sources.Remember that a total of three sources, including the book, are required.Each response should be researched using the course materials and/or outside sources, including in-text citations and references following APA formatting.1 Habits of Strong Ethical LeadersReview the habits of strong ethical leaders in Chapter Five. Evaluate yourself on each of those habits, then identify and describe specific areas where you need to change to be a more ethical leader.2 Examining Warren Buffett as an Effective LeaderRead the Chapter Five debate issue on page 138. Clearly state whether you think 1) Warren Buffett is correct in trusting his managers based on their character, or 2) Buffett needs to focus more on ethical codes and compliance. Explain your answer.3 Moral Philosophies“Individuals use different moral philosophies depending on whether they are making a personal decision or a work-related decision” (Ferrell, Fraedrich & Ferrell, 2013, p. 166). Review the moral philosophies described in Chapter Six, and answer the following:1) Which moral philosophy best describes your personal decision making? Explain using an example from your own experience.2) Which moral philosophy best describes your work-related decision making? Explain using an example from your own experience.4 White Collar CrimeAfter reviewing the material on white collar crime (pp. 169-172), read the Chapter Six debate issue on page 171. Clearly state whether you think 1) White collar criminals have underlying psychological disorders that encourage misconduct, or 2) White collar crime is the result of weak organizational cultures and codes. Explain your answer. Note: the question is not suggesting that an underlying psychological disorder is a legal defense for white collar crime. The second question (Warren Buffett) also looks at whether ethical behaviors come from inside the individual or whether ethical behavior are influenced by organizational codes, culture and compliance. 3) Have you taken similar positions in both Q2 and Q4? If not, explain.Last part of Assignment:1) Watch “Enron: The Smartest Guys in the Room.” Based on the book by Fortune reporters Bethany McLean and Peter Elkind, the film examines how America’s seventh largest corporation crumbled out of existence in an incredibly short period of time. Narrated by Peter Coyote, this documentary looks at Enron’s faulty and corrupt organizational culture and business practices, and how those practices led to its fall, leaving thousands of investors and dedicated employees with virtually nothing as a tiny handful of top execs walked away with billions.Here’s a link to the video:freedocumentaries.org/documentary/enron-the-smartest-guys-in-the-room2) Write a one page response (300-400 words) indicating how it helps (or doesn’t help) create a better understanding of white collar crime. White collar crime is covered in Chapter 6, and is part of the Unit 3 Complete assignment. Follow APA requirements for a cover page and reference page3) The link above has Spanish subtitles. If those are distracting, the video is also available on Netflix.
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CHAPTER 5
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©Stanislav Bokrach, Shutterstock
ETHICAL DECISION2 MAKING AND
4
ETHICAL LEADERSHIP
7
Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER OBJECTIVES
CHAPTER OUTLINE
t To provide a comprehensive framework
A Framework for Ethical Decision Making
in Business
Ethical-Issue Intensity
for ethical decision making in business
t To examine the intensity of ethical issues as
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an important element influencing the ethical
decision-making process
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t To introduce individual factors that may
influence ethical decision making in
business
t To introduce organizational factors that
may influence ethical decision making
in business
C
A
R
D
,
t To explore the role of opportunity in ethical
decision making in business
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t To explain how knowledge about the ethical
D
decision-making framework can be used to
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improve ethical leadership
t To provide leadership styles and habits thatI
promote an ethical culture
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N
N
E
AN ETHICAL DILEMMA*
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4
7
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Troy Buchanan was in a bind. As a recent graduate
of a prestigious journalism school, he had taken a job
in the editorial department of Circa Communications,
a fast-growing company in the online publications
industry. Circa relocated Troy, his wife, and their
two-year-old son from the Southwest to Atlanta,
Georgia. On arriving, they bought their first home and
Individual Factors
Organizational Factors
Opportunity
Business Ethics Evaluations and Intentions
Using the Ethical Decision-Making Framework
to Improve Ethical Decisions
The Role of Leadership in a Corporate Culture
Leadership Styles Influence Ethical Decisions
Habits of Strong Ethical Leaders
Ethical Leaders Have Strong
Personal Character
Ethical Leaders Have a Passion to Do Right
Ethical Leaders Are Proactive
Ethical Leaders Consider
Stakeholders’ Interests
Ethical Leaders Are Role Models
for the Organization’s Values
Ethical Leaders Are Transparent and Actively
Involved in Organizational Decision Making
Ethical Leaders Are Competent
Managers Who Take a Holistic View
of the Firm’s Ethical Culture
Understanding Ethical Decision Making
and the Role of Leadership
a second car. Troy was told that the company had
big plans for him. Therefore, he did not worry about
being financially overextended.
Several months into the job, Troy found that he
was working late into the night, and even on his days
off, to complete his editorial assignments before the
deadlines passed. He knew that the company did not
Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
128
Part 3: The Decision-Making Process
want its clients billed for excessive hours and that
he needed to become more efficient if he wanted
to move up in the company. He asked one of his
co-workers, Mary Jo, how she managed to be so
efficient in completing her editing duties.
Mary Jo quietly explained: “Troy, there are times
when being efficient isn’t enough. You need to do
what is required to get ahead. The owners just want
results—they don’t care how you get them.”
“I don’t understand,” said Troy.
“Look,” Mary Jo explained, “I had the same
problem you have a few years ago, but Mr. Hunt [the
supervisor of the editorial department] explained that
everyone works ‘off the clock’ so that the editorial
department shows top results and looks good. And
when the editorial department looks good, everyone
in it looks good. No one cares if a little time gets lost
in the shuffle.”
T
Troy realized that “off the clock” meant not
reporting all the hours required to complete a
project. He also remembered one of Circa’s classic
catch phrases, “results, results, results.” He thanked
Mary Jo for her input and went back to work. Troy
thought of going over Mr. Hunt’s head and asking for
advice from the general manager, but he had met
her only once and did not know anything about her.
QUESTIONS
| EXERCISES
R
1. What should Troy do?
I
2. Describe one process through which Troy might
Cattempt to resolve his dilemma.
3.A
Consider the impact of this company’s approach
on young editors. How could working long hours
Rbe an ethical problem?
D
,
*This case is strictly hypothetical; any resemblance to real persons,
companies, or situations is coincidental.
A
o improve ethical decision making in business, one must first understand how individuals make ethical decisions in anDorganizational environment. Too often it is assumed that individuals in organizations make ethical decisions in the same way that
R
they make ethical decisions at home, in their families, or in their personal lives. Within
I however, few individuals have the freedom to
the context of an organizational work group,
decide ethical issues independent of organizational
pressures.
E
This chapter summarizes our current knowledge of ethical decision making in busiN making in organizations. Although it is
ness and provides insights into ethical decision
impossible to describe exactly how any one
N individual or work group might make ethical
decisions, we can offer generalizations about average or typical behavior patterns within
E on many studies and at least six ethical deciorganizations. These generalizations are based
sion models that have been widely accepted by academics and practitioners.1 Based on these
models, we present a framework for understanding ethical decision making in the context
2
of business organizations. In addition to business,
this framework integrates concepts from
philosophy, psychology, sociology, and organizational
behavior. This framework should be
4
helpful in understanding organizational ethics and developing ethical programs.
7
9
T ETHICAL DECISION
A FRAMEWORK FOR
S BUSINESS
MAKING IN
As Figure 5.1 shows, our model of the ethical decision making process in business includes
ethical issue intensity, individual factors, and organizational factors such as corporate culture and opportunity. All of these interrelated factors influence the evaluations of and intentions behind the decisions that produce ethical or unethical behavior. This model does
not describe how to make ethical decisions, but it does help one to understand the factors
and processes related to ethical decision making.
Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
129
Chapter 5: Ethical Decision Making and Ethical Leadership
FIGURE 5.1 Framework for Understanding Ethical Decision Making in Business
Ethical Issue
Intensity
Individual Factors
Opportunity
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I
C
A
R
D
Ethical Issue Intensity
,
Ethical or
Unethical
Behavior
The first step in ethical decision making is to recognize that an ethical issue requires an individual or work group to choose among several actions that various stakeholders inside or
A
outside the firm will ultimately evaluate as right or wrong. The intensity of an ethical issue
Dmaker.2 Ethical issue intensity, then, can
relates to its perceived importance to the decision
be defined as the relevance or importance of an ethical issue in the eyes of the individual,
R
work group, and/or organization. It is personal and temporal in character to accommoI characteristics of the situation, and the
date values, beliefs, needs, perceptions, the special
3
personal pressures prevailing at a particular place
Eand time. Senior employees and those
with administrative authority contribute significantly to intensity because they typically
N instance, insider trading is considered
dictate an organization’s stance on ethical issues. For
to be a serious ethical issue by the government as
Nthe intent is to take advantage of inside
information not available to the public. Therefore, it is an ethical issue of high intensity
E the government’s investigation of sofor regulators and government officials. Consider
called “expert-network” firms. These firms try to appear as legitimate consultants, but the
government believes they might be providing inside information. Technology companies
2 other innovations that will affect their
that are on the verge of new products, patents, or
market price are especially targeted by these consultants.
However, if investigations show
4
these firms to be legitimate, it is possible that the ethical issues they have raised will not
7
turn out to be of high intensity.4
Under current law, managers can be held liable
9 for the unethical and illegal actions of
subordinates. In the United States, the Federal Sentencing Guidelines for Organizations
T
contain a liability formula that judges use as a guideline regarding illegal activities of corS and managers who were aware of
porations. For example, many of the Enron employees
the firm’s use of off-balance-sheet partnerships—which turned out to be the major cause of
the energy firm’s collapse—were advised that these partnerships were legal, so they did not
perceive them as an ethical issue. Although such partnerships were legal at that time, the
way that some Enron officials designed them and the methods they used to provide collateral (that is, Enron stock) created a scheme that brought about the collapse of the company.5 Thus, ethical issue intensity involves individuals’ cognitive state of concern about
an issue, or whether or not they have knowledge that an issue is unethical, which in turn
©Cengage Learning 2013
Organizational
Factors
Business Ethics
Evaluations and
Intentions
Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
130
Part 3: The Decision-Making Process
indicates their involvement in making choices. The identification of ethical issues often
requires the understanding of complex business relationships.
Ethical issue intensity reflects the ethical sensitivity of the individual and/or work
group that faces the ethical decision-making process. Research suggests that individuals
are subject to six “spheres of influence” when confronted with ethical choices—the workplace, family, religion, legal system, community, and profession—and that the level of importance of each of these influences will vary depending on how important the decision
maker perceives the issue to be.6 Additionally, the individual’s moral intensity increases his
or her perceptiveness of potential ethical problems, which in turn reduces his or her inrelates to individuals’ perceptions of social prestention to act unethically.7 Moral intensity R
sure and the harm they believe their decisions
will have on others.8 All other factors in
I
Figure 5.1, including individual factors, organizational factors, and intentions, determine
why different individuals perceive ethical C
issues differently. Unless individuals in an organization share common concerns about ethical
A issues, the stage is set for ethical conflict.
The perception of ethical issue intensity can be influenced by management’s use of rewards
and punishments, corporate policies, and R
corporate values to sensitize employees. In other
words, managers can affect the degree to D
which employees perceive the importance of an
ethical issue through positive and/or negative incentives.9
, not reach the critical awareness level if managFor some employees, ethical issues may
ers fail to identify and educate employees about specific problem areas. One study found that
more than a third of the unethical situations that lower and middle-level managers face come
A
from internal pressures and ambiguity surrounding internal organizational rules. Many employees fail to anticipate these issues beforeDthey arise.10 This lack of preparedness makes it
difficult for employees to respond appropriately when they encounter an ethics issue. For
R
example, subprime lenders such as Countrywide Financial failed to educate brokers about
the damages of misrepresenting financial Idata to help individuals secure loans. This contributed to widespread organizational misconduct.
Organizations that consist of employees
E
with diverse values and backgrounds must therefore train them in the way the firm wants
specific ethical issues handled. Identifying N
the ethical issues and risks that employees might
encounter is aN
significant step toward developing their ability
to make ethical decisions. Many ethical issues are identified by
E or through general information available to a
industry groups
“Identifying the ethical
firm. Flagging certain issues as high in ethical importance could
issues and risks that
trigger increases in employees’ ethical issue intensity. The per2 of an ethical issue has been found to have a
ceived importance
employees might encounter
strong influence
4 on both employees’ ethical judgment and their
is a significant step toward
behavioral intention. In other words, the more likely individuals
7
are to perceive an ethical issue as important, the less likely they
developing their ability to
are to engage in
9questionable or unethical behavior.11 Therefore,
make ethical decisions.”
ethical issue intensity should be considered a key factor in the
T
ethical decision-making process.
S
Individual Factors
When people need to resolve ethical issues in their daily lives, they often base their
decisions on their own values and principles of right or wrong. They generally learn
these values and principles through the socialization process with family members, social groups, and religion, and in their formal education. Good personal values have been
Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 5: Ethical Decision Making and Ethical Leadership
131
found to decrease unethical practices and increase positive work behavior. The moral philosophies of individuals, discussed in more detail in Chapter 6, provide principles and
rules that people use to decide what is right or wrong. Values of individuals can be derived
from moral philosophies to apply to daily decisions. However, values are subjective and
vary a great deal across different cultures. For example, one individual might place greater
importance on keeping one’s promises and commitments than another would. Values
could also relate to negative rationalizations, such as “Everyone does it,” or “We have to do
what it takes to get the business.”12 Research demonstrates that individuals with destructive personalities who violate basic core values can cause a work group to suffer a perforR to groups with no “bad apples.”13 The
mance loss of 30 percent to 40 percent compared
actions of specific individuals in scandal-plagued
I financial companies such as AIG and
Countrywide Financial often raise questions about those individuals’ personal character
Cself-interest or in total disregard for the
and integrity. They appear to operate in their own
law and the interests of society.
A
Although an individual’s intention to engage in ethical behavior relates to individual values, organizational and social forces also R
play a vital role. An individual’s attitudes
as well as social norms will help create behavioral
D intentions that will shape his or her
decision-making process. While an individual may intend to do the right thing, organiza,
tional or social forces can alter this intent. For example,
an individual may intend to report
the misconduct of a coworker, but when faced with the social consequences of doing so,
may decide to remain complacent. In this case, social forces have overcome a person’s inA
dividual values when it comes to taking appropriate action.14 At the same time, individual
D ethical responsibilities in the work
values have a strong influence over how people assume
environment. In turn, individual decisions can be heavily dependent on company policy
R
and the corporate culture.
I generally varies according to the profesThe way the public perceives individual ethics
sion in question. Telemarketers, car salespersons,
Eadvertising practitioners, stockbrokers,
and real estate brokers are often perceived as having the lowest ethics. Research regardN judgment, intent, and behavior include
ing individual factors that affect ethical awareness,
gender, education, work experience, nationality, age,
N and locus of control.
Extensive research has been done regarding the link between gender and ethical decision making. The research shows that in many E
aspects there are no differences between
men and women, but when differences are found, women are generally more ethical than
men.15 By “more ethical,” we mean that women seem to be more sensitive to ethical scenar2 on gender and intentions for fraudulent
ios and less tolerant of unethical actions. In a study
financial reporting, females reported higher intentions
to report them than male par4
ticipants.16 As more and more women work in managerial positions, these findings may
7
become increasingly significant.
Education is also a significant factor in the ethical
9 decision-making process. The important thing to remember about education is that it does not reflect experience. Work
T
experience is defined as the number of years in a specific job, occupation, and/or industry.
S that a person has, the better he or she
Generally, the more education or work experience
is at ethical decision making. The type of education someone has received has little or no
effect on ethics. For example, it doesn’t matter if you are a business student or a liberal
arts student—you are pretty much the same in terms of ethical decision making. Current
research, however, shows that students are less ethical than businesspeople, which is likely
because businesspeople have been exposed to more ethically challenging situations than
students.17
Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent ri …
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