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CHAPTER QUESTION 5: DISCUSS SOME OF THE WARNING SIGNS THAT AN
UNETHICAL DECISION IS APPROACHING.
Review Michael Josephson’s 10 common rationalizations for unethical acts that appear in
EXHIBIT 5.12 as “ethical hazard approaching” signs.
Beware when someone says:
1. It may seem unethical … but it is legal and permissible
2. It may seem unethical … but it is necessary
3. It may seem unethical … but it is just part of the job
4. It may seem unethical … but it is all for a good cause
5. It may seem unethical … but I am just doing it for you
6. It may seem unethical … but I am just fighting fire with fire
7. It may seem unethical … but it doesn’t hurt anyone
8. It may seem unethical … but everyone else is doing it
9. It may seem unethical … but I don’t gain personally
10. It may seem unethical … but I’ve got it coming
Train employees to recognize these rationalizations. When spoken pause for additional
ethical reflection and develop an alternative strategy that meets ethical guidelines.
DISCUSSION ACTIVITY
Have students think about the last time they heard someone state one of the ten “Ethical Hazard
Approaching” comments in Exhibit 5.12. Which of the ten justifications was it? Describe the
situation. What alternative action could the person have taken to generate a more ethical
outcome?
CHAPTER 5 CHAPTER AND ADDITIONAL QUESTIONS SUMMARY
Additional Question 1: Describe James Rest’s ethical decision making model. What is the
relationship between ethical beliefs and ethical actions?
As noted by business ethicist Marvin Brown, “Most people do what they think is right,
considering the world they think they live in.”
James Rest, an educational psychologist, has developed a four component model sequentially
showing that an individual is likely to behave morally if:
In general, ethical beliefs generate ethical intentions and result in ethical behaviors. But there
Many people may agree on what ethical action “should” be done, but fewer people “would”
Research has shown that a large percentage of managers who claim they would report a
FOR DICUSSION: Have each student reflect on a time when he or she observed another student
cheating. Does the student believe cheaters should be stopped? Did the student report the
cheater? If the first answer is “Yes” and the second answer is “No”, what prevented the student
from doing the right thing?
Chapter Question 1: What individual characteristics impact ethical beliefs, sensitivities,
intentions, and behaviors?
Age (mixed results)
Education level (higher education)
FOR DISCUSSION: Do students believe that: (a) older people are more ethical than young
people? (b) educated people more ethical than less educated people? or (c) women are more
ethical than men? Why?
Chapter Question 2: How are ethical intuitions formed? How do the value sets of liberals
and conservatives differ?
Professor Jonathan Haidt of the University of Virginia concludes that many ethical decisions
are the result of intuitive reactions rather than deep reflection.
According to Haidt, our quick intuitive ethical judgments are the result of habituated
patterns, emotions, and internalized teachings.
FOR DISCUSSION: Present two contentious political issue to students, one that is of concern to
liberals (such wanting to nationalize healthcare) and one that is of concern to conservatives (such
as reducing federal spending for the poor). Ask students to write down why they support or
oppose these policies. Then review Exhibit 5.4 and note which value sets their reasoning
matches. Does the student identify with the political affiliation (liberals or conservatives) the
value set represents?
FOR DISCUSSION: Ask students if they classify themselves as liberals or conservatives, or if
their parents are liberal or conservatives? Which of the value sets in Exhibit 5.4 resonates the
most with students or their parents? How does this political preference impact their views about
government regulation of business activities?
Chapter Question 3: Describe Icek Ajzen’s “Theory of Planned Behavior.”
According to Icek Ajzen’s Theory of Planned Behavior, formulating an intention to act
ethically is a function of a person’s:
oattitudes toward the behavior
The strength of the belief
The evaluation of the outcome
o subjective norms
The strength of the normative belief
The motivation to comply with the referent group
operceived behavioral control
The strength of the control belief
The perceived power of the control belief
FOR DISCUSSION: Have students think of two injustices they’ve observed or heard about: (1)
an injustice when they took some action to remedy, and (2) an injustice when they did not act to
remedy. Analyze the two situations using the theory of planned behavior factors.
Additional Question 2: What is moral intensity and how does it impact ethical decision
making?
Moral intensity refers to issue-related factors, rather than individual or organizational
An issue’s moral intensity is likely to vary based on six factors: (1) Magnitude of
Therefore, the most morally intense acts are those with a high likelihood of causing severe
Factors that influence the decision-making of judges and juries include the nature of the harm
(physical, economic, or psychological), the nature of those harmed (person or nonperson),
FOR DICUSSION: Have students evaluate two public issues, one that is high on the political
agenda (national healthcare/reducing spending for the poor) and one that is not (implementing
living wage regulation on the national level) using the six moral intensity factors. Do the six
moral intensity factors differentiate why one issue is high on the national agenda and the other
issue is low?
Additional Question 3: What organizational factors impact ethical decision making?
Researchers have found four organizational characteristics associated with ethical behaviors:
Therefore, employees of organizations with a code of ethics, an ethical climate, and whose
FOR DISCUSSION: 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
FOR DISCUSSION: 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? Which three questions point the decision making in the
direction of the most moral decision?
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?
The moral philosophy literature provides a more systematic approach for deriving moral
conclusions.
Strong consensus, though not absolute agreement, exists among philosophers that some
Review EXHIBIT 5.5, which provides a systematic rational ethical decision-making
framework that can help management and nonmanagement employees reveal the ethical
dimension of any decision being made.
FOR DISCUSSION: Have students respond to the bartender ethical dilemma that appears in the
chapter. Would it be ethical to serve the pregnant woman a beer in a crowded bar?
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 and ending with the most important and demanding ones.
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.
FOR DISCUSSION: Have students respond to the three scenarios in Exhibit 5.7 “The Trolley
Problem.”
Additional Question 6: How do the ethical theories parallel Kohlberg’s theory of moral
development?
oThe six ethical theories parallel Lawrence Kohlberg’s six levels of moral reasoning discussed
in Chapter 1.
oStage 3 moral reasoning reflects social group relativism
FOR DICUSSION: 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?
oMost managers are primarily social group relativists (Question 3), wanting to do what a good
oMost people are very comfortable with the ethical theory they intuitively rely on, and may
oTo persuade others, listen carefully to people who disagree, categorize the other person’s
oEach ethical theory is similar to a different foreign language.
FOR DISCUSSION: 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?
Chapter Question 5: Discuss some of the warning signs that an unethical decision is
approaching.
oReview Michael Josephson’s 10 common rationalizations for unethical acts that appear in
EXHIBIT 5.12 as “ethical hazard approaching” signs.
oIt may seem unethical … but I am just fighting fire with fire
oIt may seem unethical … but it doesn’t hurt anyone
FOR DISCUSSION: Have students think about the last time they heard someone state one of the
ten “Ethical Hazard Approaching” comments in Exhibit 5.12. Which of the ten justifications was
it? Describe the situation. What alternative action could the person have taken to generate a more
ethical outcome?
CHAPTER 5 KEY WORDS
Belief (p. 119): a mental state that guides behaviors.
Categorical imperative (p. 131): a rule that applies to all situations.
Cultural Relativism (p. 127): 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.
Deontology (p. 127): 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.
Egoism (p. 127): 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.
Ethical intuition (p. 120): a quick insight independent of any reasoning process about right and
wrong.
Ethical intention (p. 123): determining mentally to take some action that is morally appropriate.
Ethical sensitivity (p. 119): an individual’s awareness that a particular situation raises ethical
concerns.
Moral intensity (p. 122): six issue-related factors that are likely to determine the magnitude of a
person’s moral approval or disapproval.
Social Group Relativism (p. 127): 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.
Theory of Planned Behavior (p. 121): A theory developed by Icek Ajzen where formulating an
intention to act ethically is a function of a person’s attitudes toward the behavior, subjective
norms, and perceived behavioral control.
Utilitarianism (p. 127): 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.
Virtue Ethics (p. 127): 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.
CHAPTER 5 ANCILLARY MATERIALS
Websites to Explore
oEthical dilemmas reported in newspapers, available at:
http://deniscollins.tumblr.com/.
oExamples of Ethical Decision Making models, available at:
http://www.ethicsweb.ca/resources/decision-making/index.htm
l.
oJosephson Institute, available at:
http://josephsoninstitute.org/MED/index.html.
oAyn Rand Institute, available at: http://www.aynrand.org/.
Best Place to Work Video
Best Place to Work – Stew Leonard’s, available at:
http://money.cnn.com/video/fortune/2010/01/20/f_bctwf_stew_leonards.for
tune/.
Business Ethics Issue Video
“Black Money,” Frontline, about international bribery; April 7, 2009, 57 minutes,
available at: http://www.pbs.org/wgbh/pages/frontline/blackmoney/view/?
utm_campaign=viewpage&utm_medium=grid&utm_source=grid.
TEDTalks Videos
Moral Roots of Liberals and Conservatives: Psychologist Jonathan Haidt explains the
five moral values that form the basis of our political choices, whether we're left, right or
center, and pinpoints the moral values that liberals and conservatives tend to honor most;
March 2008, 19 minutes, available at:
http://www.ted.com/talks/jonathan_haidt_on_the_moral_mind.h
tml.
Justice and Ethical Decision-Making: Harvard professor Michael Sandel probes: Is
torture ever justified? Would you steal a drug that your child needs to survive? Is it
sometimes wrong to tell the truth? How much is one human life worth?; September 2005,
55 minutes, available at:
http://www.ted.com/talks/michael_sandel_what_s_the_right_th
ing_to_do.html.
Conversations with Charlie Rose
A conversation with David Brooks, New York Times columnist and author, about the
unconscious mind, emotions, decision-making, and social behaviors; September 16,
2010, 60 minutes, available at:
http://www.charlierose.com/view/interview/11206.
A conversation with Jeff Bezos, founder, president, chief executive officer and chairman
of the board of Amazon.com; February 26, 2009, 60 minutes, available at:
http://www.charlierose.com/view/interview/10105.
