978-0470639948 Chapter 5 Solution Manual Part 2

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ADDITIONAL QUESTION 3: WHAT ORGANIZATIONAL FACTORS IMPACT

ETHICAL DECISION MAKING?

Ethical intentions and behaviors are also shaped by organizational factors. Researchers

have found four organizational characteristics associated with ethical behaviors:

Therefore, employees of organizations with a code of ethics, an ethical climate, and

whose managers reward ethical behavior and punish unethical behaviors, are more likely

to make better ethical decisions.

DISCUSSION ACTIVITY

Do you believe small businesses behave more ethically than large corporations? Why?

ADDITIONAL QUESTION 4: WHAT OTHER OBSTACLES DIVERT PEOPLE FROM

FOLLOWING THROUGH ON THEIR ETHICAL INTENTIONS?

An ethical intention is determining mentally to take some action that is morally appropriate. But

even if an intention to act ethically is solidified, an individual still may not follow through on the

ethical intention.

SECOND DOUBTS

WEAKNESS OF WILL OR LACK OF MORAL COURAGE

BREAKING OLD HABITS

Breaking old habits can be formidable. An employee who has never spoken out against

DISCUSSION ACTIVITY

Have students think of a situation when they were absolutely sure they were going to take an

important ethical action, but then at the last moment decided not to. What obstacles arose at the

last second that prevented the students from taking action?

Was it an individual characteristic previously discussed, a moral intensity factor, an

organizational factor, due to weakness or will or difficulty breaking an old habit, or some other

factor? Why was that factor the deciding factor not to take an ethical action?

CHAPTER QUESTION 4: WHAT SEVEN QUESTIONS ARE THE BASES FOR A

SYSTEMATIC RATIONAL ETHICAL DECISION-MAKING FRAMEWORK? WHAT

THREE QUESTIONS POINT THE DECISION-MAKER IN THE DIRECTION OF THE

MSOT MORAL DECISION?

Rational ethical decision-making frameworks help individuals analyze the ethical basis of their

decisions and actions. The simplest question to ask is: How would my mother (or any person of

high integrity you respect) feel if what I’m planning to do appeared on the front page of a

newspaper?

ROTARY INTERNATIONAL’S FOUR-WAY TEST

The Rotary International’s “Four-Way Test” provides a simple framework for analyzing

the ethical dimension of a decision.

Of the things we think, say, or do:

1. Is it the TRUTH?

2. Is it FAIR to all concerned?

3. Will it build GOODWILL and BETTER FRIENDSHIPS?

4. Will it be BENEFICIAL to all concerned?

RAYTHEON’S ETHICS QUICK TEST

Raytheon, a defense industry technology company, provides its 75,000 employees with

an Ethics Quick Test consisting of the following questions to consider when facing an

ethical dilemma:

Is the action legal?

Is it right?

Who will be affected?

Does it fit Raytheon’s values?

How will I feel afterwards?

How would it look in the newspaper?

Will it reflect poorly on the company?

Review BEST PRACTICE IN USE, Raytheon’s ACTION decision-making model

Act Responsibly

Consider our Ethical Principles

Trust your Judgment

Identify Impact on Stakeholders

Obey the Rules

Notify Appropriate Persons

SYSTEMATIC RATIONAL ETHICAL DECISION-MAKING FRAMEWORK

The Rotary’s Four-Way Test and Raytheon’s Ethics Quick Test and ACTION model are

very helpful lists of questions. But they are not philosophically systematic.

Strong consensus, though not absolute agreement, exists among philosophers that some

ethical reasons are more morally acceptable than others. For example, it has been long

established that the Golden Rule “do to others as you would want done to you” takes

precedence over an individual’s self-interests when these two ethical theories are in

conflict, although some hard-core libertarians might object.

Answer Questions 1 through 7 to gather the information necessary for performing an ethical

analysis. Based on this information, develop a decision that has the strongest ethical basis.

1) Who are all the people affected by the action? [Stakeholder Analysis]

2) Is the action beneficial to me? [Egoism]

3) Is the action supported by my social group? [Social Group Relativism]

4) Is the action supported by national laws? [Cultural Relativism]

5) Is the action for the greatest good of the greatest number of people affected by it?

[Utilitarianism]

6) Does the action treat every stakeholder with respect and dignity, and is the act

something that everyone should do? [Deontology]

7) Is this how a virtuous person would act? [Virtue Ethics]

The answers to questions 5, 6, and 7 point managers in the direction of the most moral

decision. Doing something because the action is to the greatest good of the greatest

number of people affected by it, treats all stakeholders with respect and integrity, and is

Note how the “legal” answer is not the highest ethical theory (Question 4). Laws are not

created out of thin air, they are justified by concerns about the greatest good for the

DISCUSSION ACTIVITY

Assume you are a bartender. A very pregnant 35 year old woman and her group of friends,

previously served by another bartender, requests another beer. Being a well-educated and

ethically sensitive person, you realize this is an ethical dilemma. You learned in school that the

Centers for Disease Control and Prevention has determined that“There is no safe level of alcohol

use during pregnancy. Women who are pregnant or plan on becoming pregnant should refrain

from drinking alcohol,” which is when the baby’s brain is being developed. According to the

Mayo Clinic, approximately 40,000 babies are born annually with some type of alcohol-related

damage. Alcohol consumption can cause miscarriage, stillbirth, and a range of fetal alcohol

spectrum disorders (FASDs) following birth, which includes physical, behavioral, and learning

problems.

But the woman is an adult capable of making her own decisions and has already been served by

another bartender, which has happened before. Amid the loud bar noises you find yourself

pouring her another beer. Then you stop and reflect for a moment.

Would it be ethical to serve her a beer?

ADDITIONAL QUESTION 5: DESCRIBE THE SIX ETHICAL THEORIES.

The six ethical theories are ordered in Exhibits 5.5 and 5.6 beginning with the most basic ethical

theory (egoism) and ending with the most important and demanding ones (deontology and virtue

ethics).

Review EXHIBIT 5.6 elaborates on the meaning of each ethical theory that appears in EXHIBIT

5.5. View these six ethical theories as sequential steps on a moral ladder, and the first step is

egoism.

EGOISM

How does the action relate to me? If the action furthers my interests, then it is right. If it

conflicts with my interests, then it is wrong.

SOCIAL GROUP RELATIVISM

How does the action relate to my social group (peers, friends, etc.)? If the action

conforms to the social group’s norms, then it is right. If it is contrary to the social group’s

norms, then it is wrong.

Social group relativists tend to reason as follows: “I strongly believe that x is

the best decision, because that is what my social group supports.”

Social group relativists are very concerned about what their social group

thinks about an issue because they share common interests.

Social group relativism is a common ethical theory. Managers usually feel a

strong affinity for the interests of other managers. When problems arise, a

manager might ask other managers what they have done in the past when

faced with a similar problem. The decision-maker wants to do what a good

manager would do in the particular situation.

CULTURAL RELATIVISM

How does the action relate to the national culture, particularly its laws? If the action

conforms to the law, then it is right. If it is contrary to the law, then it is wrong.

Cultural relativists tend to reason as follows: “I strongly believe that x is the

right thing to do, because the law says so.”

The person perceives herself or himself as a member of a larger society that

has some common interests. A common saying among cultural relativists is

“When in Rome do as the Romans do.” This demonstrates tolerance and

respect for the practices and policies of the host nation or community.

Cultural relativism is also a rather common ethical theory. Many managers do

not want to break the law, even when doing so might personally benefit them

or their company.

UTILITARIANISM

How does the action relate to everyone who is affected by it? If the action is beneficial to

the greatest number of people affected by it, then it is right. If it is detrimental to the

greatest number, then it is wrong.

Utilitarians tend to reason as follows: “I strongly believe that x is the best

decision, because the consequences benefit the greatest number of people.”

Utilitarianism serves as the foundational ethic for the political, economic, and

business systems in the United States.

oDemocracy is utilitarian in the sense that everyone can state his or her

preference and the best public policy is that which the majority desires.

oThe ethics of capitalism is based on utilitarian logic – the economic

pursuit of self-interest improves national wealth more than other

economic systems.

oCost-benefit analysis is based on utilitarian logic – determine a

project’s total benefits and total costs, and if the benefits outweigh the

costs the project receives a favorable review.

DEONTOLOGY

Does the action treat every stakeholder with respect and dignity in all situations? Is the

action something that everyone should do? If yes, then it is right. If no, then it is wrong.

Deontologists tend to reason as follows: “I strongly believe that x is the best

decision, because everyone has a duty to treat everyone else with respect in all

situations.”

Deontologists emphasize the motives behind an action and individual rights,

rather than the consequences. They have a duty to follow “moral rules”

applicable to all people in all situations, such as the Ten Commandments.

The philosopher Immanuel Kant prevents this faulty reasoning based on a

categorical imperative, which is a rule that applies to all situations. Kant’s

primary categorical imperative maintains that one must: “Act according to the

maxim whereby you can at the same time will that it should become a

universal law.” In other words, what would happen if everyone did what you

were planning to do?

VIRTUE ETHICS

How would a virtuous person act in this situation? If the act strengthens moral character,

then it is right. If it is contrary to moral character building, then it is wrong.

Virtue ethicists tend to reason as follows: “I strongly believe that x is the best

decision, because that is what a person of high moral character would do.”

Virtue refers to achieving excellence in morals. The list of virtues is quite

extensive. The most common grouping of virtues includes justice, empathy,

passion, piety, reliability, respect, and incorruptibility.

Virtue ethics is based on cultivating good habits. Humans are creatures of

habit. Kindness and fairness must be practiced daily to become virtuous

habits. A person becomes kind and fair by being kind and fair.

Review EXHIBIT 5.8, which provides a list of virtues and vices.

Review EXHIBIT 5.10, five values Rushworth Kidder and his colleagues

have found strong global consensus: Responsibility, Fairness, Respect,

Compassion, and Honesty

DISCUSSION ACTIVITY

Have students respond to the three scenarios in Exhibit 5.7 “The Trolley Problem.” For scenario

1, tally how many students would pull the lever (utilitarian) or not pull the lever (deontology)

and discuss the results.

Then for scenario 2, tally how many people who would pull the lever (utilitarian) in Scenario 1

would now not pull the lever (deontology) because the one person is a family member and

discuss the results.

Similarly, for scenario 3, tally how many people who would pull the lever (utilitarian) in

Scenario 1 would now not throw the stranger I the path of the trolley (deontology) and discuss

the results.

ADDITIONAL QUESTION 6: HOW DO THE ETHICAL THEORIES PARALLEL

KOHLBERG’S THEORY OF MORAL DEVELOPMENT?

The six ethical theories parallel Lawrence Kohlberg’s six levels of moral reasoning discussed in

Chapter 1.

Review EXHIBIT 5.9, which shows that:

DISCUSSION ACTIVITY

Have students review some of their answers to the opening “What Would You Do?” ethical

dilemmas, the “Let’s Build a Building” ethical dilemmas, and the Enron ethical dilemmas. Based

on their answers, what stage of moral reasoning do they most often use when deriving a moral

conclusion? What ethical theory do they most often use when deriving a moral conclusion?

ADDITIONAL QUESTION 7: HOW CAN THE ETHICAL THEORIES BE APPLIED TO

PERSUADE PEOPLE?

BACKGROUND

Most managers are primarily social group relativists (Question 3), wanting to do what a

good manager would do, and cultural relativists (Question 4) who want to obey the law.

But some managers are primarily egoists (Question 2), utilitarians (Question 5),

deontologists (Question 6), or virtue ethicists (Question 7). Their ethical intuition is

grounded in one of these six theories.

PERSUASION

A healthier approach is for a manager to listen carefully to people who disagree,

categorize the other person’s response in terms of one of the six ethical theories, and then

reframe the analysis using the other person’s ethical theory to address the employee’s

concern.

Each ethical theory is similar to a different foreign language.

oFor the egoist to persuasively reason with the utilitarian, the egoist must realize

that the utilitarian does not care what is in his or her self-interest, so appealing to

oSimilarly, egoists do not care about the greatest good for the greatest number of

people, so appealing to the egoist’s sense of the greatest good will fall on deaf

ACHIEVING ETHICAL CONSENSUS

Review TIPS AND TECHNIQUES.

Many ethical disagreements can be solved. Use the following steps to help people

achieve ethical consensus and win-win ethical outcomes.

Step 1: Both parties state their position on the issue.

Step 2: Both parties reveal the values and ethical reasoning that underlie their

position.

Step 3: Both parties paraphrase each other’s position.

Step 4: Both parties paraphrase each other’s underlying values and ethical

reasoning.

Step 5: Both parties, working together, craft a resolution to the conflict over the

issue.

Step 6: Both parties check that the resolution does not conflict with their own

values or ethical reasoning, or those of the other party.

DISCUSSION ACTIVITY

Choose any ethical dilemma in this chapter and put students in teams of two based on arriving at

different conclusions regarding the right thing to do. Then have the two students following the 6

steps for achieving ethical consensus. After doing so, did the two students reach consensus?