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DISCUSSION ACTIVITY
Have students review some of their answers to the opening “What Would You Do?” 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?
CHAPTER QUESTION 4: HOW WOULD YOU APPLY THE STYSTEMIC RATIONAL
EDITHICAL DECISION-MAKING PROCESS TO REACH A MORAL CONCLUSION
ABOUT A BUSINESS ISSUE (E.G., INSTALL A REGULATORY “DEFEAT DEVICE”
IN VOLKSWAGEN’S DIESEL CARS)?
• The six ethical theories raise important issues for the decision maker to consider.
• Each theory looks at an issue from a different vantage point, and prepares a manager to
anticipate multiple points of view.
• Question 1—stakeholder analysis: The primary stakeholders include the vehicle owners,
people impacted by the pollution, other VW engineers, VW shareholders, government
regulators, and the natural environment.
• Question 2— egoism: Following your boss’s directions maintains job security and cordial
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• Question 5—utilitarianism (greatest good). This seems to favor doing as directed yet is
complex.
o Doing as directed contributes to VW achieving its goal to be the largest automotive
company in the world, and enriches many shareholders.
o However, clean air is a public good that impacts many people and people with
• Question 6—deontology: Doing as directed violates deontology because it requires lying
to consumers and regulators, disrespects the environment, and exceeding nitrogen oxide
regulatory limits contributes to respiratory illnesses.
• Question 7—virtue ethics: A person of high moral character would not participate in the
• The second option is to not participate on the project. The strengths of this option include
legal compliance (cultural relativism), respecting customers, regulators, the environment,
and people with respiratory illnesses (deontology), and honesty (deontology and virtue
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• Utilitarianism, deontology, and virtue ethics point the decision maker in the direction of
the most ethical choice. In this situation, answers to these questions are mixed, although
• How can the engineer manage this option’s three big weaknesses—(1) getting fired, (2)
being ostracized by other engineers, and (3) the outcome is not for the greatest good?
o Confidentially seek advice on how to do this from a mentor who can help.
• In real life, the VW engineers chose to do as directed and created and installed emissions
cheating software.
o During the government’s investigation, VW lied many times about the technology,
which wasted government resources.
CHAPTER QUESTION 5: HOW COULD YOU PERSUADE SOMEONE WHO
DISAGREES WITH YOU ABOUT A BUSINESS ETHICS ISSUE (E.G., SHOULD YOU
BREAK CONFIDENTIALITY TO HELP BOSS SOON TO BE FIRED)?
BACKGROUND
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• 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
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
• Each ethical theory is similar to a different foreign language.
o Assume that egoism (self-interests) is equivalent to speaking English and
utilitarianism (greatest good) is equivalent to speaking Spanish. If an English speaker
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o Similarly, 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 ears.
ACHIEVING ETHICAL CONSENSUS—Review BEST PRACTICES.
Many ethical disagreements can be solved. The following steps can 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.
DISCUSSION ACTIVITY
Have students apply the systematic rational ethical decision-making process to the chapter’s
opening “What Would You Do” dilemma on “Dismissal and Promotion Politics.”
Students should individually apply the ethical decision-making process questions to the opening
dilemma: You are IT support person, and have been confidentially told that your boss will be
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As a team, review their answers, and prioritize them. Then facilitate a discussion between the
two sides.
CHAPTER QUESTION 6: WHAT ARE SOME OF THE WARNING SIGNS THAT AN
UNETHICAL DECISION IS APPROACHING?
Michael Josephson’s 10 common rationalizations for unethical acts appear in Table 5.7 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.
DISCUSSION ACTIVITY
Have students think about the last time they heard someone state one of the 10 “ethical hazard
approaching” comments in Table 6.7. Which of the 10 justifications was it? Ask them to describe
the situation. What alternative action could the person have taken to generate a more ethical
outcome?
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Chapter 6 QUESTIONS ANSWERED
Chapter Question 1: Which individual, organization, and societal characteristics affect the
formation of a person’s moral consciousness?
INDIVIDUAL CHARACTERISTICS
The research findings in Table 6.1 show individual characteristics that have a positive impact on
ethical decision making.
• Age (mixed results)
• Decision style (balanced thinking better)
ORGANIZATIONAL FACTORS
Researchers have found four organizational characteristics associated with ethical behaviors:
1. Codes of ethics: The existence of a code of ethics is positively related to ethical
decision making.
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SOCIETAL CHARACTERISTICS
An individual’s moral consciousness and ethical behaviors are also shaped by the society in
which s/he is raised and works. Geert Hofstede has developed a framework that rates national
cultures along a continuum for each of the six paired values:
1. Individualism versus collectivism refers to the extent to which people in a society
feel independent (individualism), rather than interdependent members of larger
wholes (collectivism).
4. High versus low uncertainty avoidance refers to the extent to which people in a
society tolerate uncertainty and ambiguity, and deal with the fact that the future
can never be known.
5. Long-term versus short-term orientation refers to the extent to which people in
Chapter Question 2: What are the seven systematic rational ethical decision-making
process questions, and which of these three questions point the decision maker in the
direction of the most moral decision?
Table 6.3 provides a systematic rational ethical decision-making framework that can help
management and nonmanagement employees reveal the ethical dimension of any decision being
made. A similar ranking of the ethical principles can be found in many cultures.
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Questions 1 through 7 can be used 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)
7) Is this how a virtuous person would act? (virtue ethics)
• If answers to Questions 2 through 7 are all “yes,” then do it.
• If answers to Questions 2 through 7 are all “no,” then do not do it.
• If answers to Questions 2 through 7 are mixed, then modify your decision.
o If answers to Questions 5, 6, and 7 are “yes,” this action is the most ethical.
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
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Chapter Question 3: What are the strengths and weaknesses for each of the six major
ethical theories?
The six ethical theories are ordered in Tables 6.3 and 6.4 beginning with the most basic ethical
theory (egoism) and ending with the most important and demanding ones (deontology and virtue
ethics).
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.
UTILITARIANISM: How does the action relate to everyone who is affected by it? If the action
Chapter Question 4: How would you apply the systematic rational ethical decision-making
process to reach a moral conclusion about a business issue (e.g., install a regulatory “defeat
device” in Volkswagen’s diesel cars)?
For the VW case (summarized under the section for Chapter Question 2), the decision maker’s
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• Question 1—stakeholder analysis: The primary stakeholders include the vehicle owners,
people impacted by the pollution, other VW engineers, VW shareholders, government
regulators, and the natural environment.
• Question 5—utilitarianism (greatest good). This seems to favor doing as directed yet is
complex.
o Doing as directed contributes to VW achieving its goal to be the largest automotive
company in the world, and enriches many shareholders.
o However, clean air is a public good that impacts many people and people with
• Question 6—deontology: Doing as directed violates deontology because it requires lying
to consumers and regulators, disrespects the environment, and exceeding nitrogen oxide
regulatory limits contributes to respiratory illnesses.
• Question 7—virtue ethics: A person of high moral character would not participate in the
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character would do (Question 7). On the other hand, doing as directed is in your self-
interests (Question 2), social group’s interests (Question 3), and the greater good for the
company’s employees and shareholders (Question 5).
• Utilitarianism, deontology, and virtue ethics point the decision maker in the direction of
• How can the engineer manage this option’s three big weaknesses—(1) getting fired, (2)
being ostracized by other engineers, and (3) the outcome is not for the greatest good?
o The engineer could confidentially seek advice on how to do this from a mentor who
can help.
Chapter Question 5: How could you persuade someone who disagrees with you about a
business ethics issue (e.g., should you break confidentiality to help boss soon to be fired)?
• 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.
o Assume that egoism (self-interests) is equivalent to speaking English and
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Spanish, otherwise no progress will be made. The same logic applies to using the
ethical theories as a persuasion tool.
o For 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 the
Chapter Question 6: What are some of the warning signs that an unethical decision is
approaching?
Michael Josephson’s 10 common rationalizations for unethical acts appear in Table 6.7 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.
CHAPTER 6 ANALYSIS FOR WHAT “WOULD YOU DO?” OPENING DILEMMA
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CHAPTER 6: Dismissal and Promotion Politics
Summary
• You are information technology support person in small company with a two-person IT
department.
• Company president and chief operating office both tell you in confidence that they plan
Table 6.3 Systematic Rational Ethical Decision-Making Process
1. Who are all the people affected by the action?
2. What option benefits me the most (egoism)? Why?
Don’t say anything (Option B): The company president has trusted you with confidential
3. What option does my social group support (social group relativism)? Why?
4. What option is legal (cultural relativism)? Why?
5. What option is the greatest good for the greatest number of people affected
(utilitarianism)? Why?
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6. What option is based on truthfulness and respect/integrity toward each stakeholder
(deontology)? Why?
7. What option would a virtuous person do (virtue ethics)? Why?
Mixed: Moral character can be strengthened by maintaining confidentiality in personally
Note
• If answers to Questions 2 through 7 are all the same option, then do that option.
• If answers to Questions 2 through 7 are mixed, then:
weaknesses of Questions 2 through 7.
Option
Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
A: Break
confidence and
confidentially tell
boss about his
You have a friendly relationship
with boss, and this is how friends
behave.
You can help boss avoid a major
This may violate law.
You could get fired for breaking
confidentiality.
Firm performance could be
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confidentiality in difficult
situations.
Saying nothing avoids potential
lawsuit.
Saying nothing benefits present
project and firm performance.
be able to prevent.
C: Other?
Option Chosen
Option B: Don’t say anything to the boss.
Chosen Because
This is based on egoism, cultural relativism, utilitarianism, and
deontology, and in part by virtue ethics and social group relativism. The
drop some hints that this may not be a good time to do remodeling. The
How Will You
Manage Chosen
Option
The biggest weakness is the financial problems your current boss will
incur. Your decision to not say anything lacks compassion and respect
toward your boss. This is why most people initially feel compelled to first
CHAPTER 6 ANALYSIS FOR UP FOR DEBATE
Up for Debate: Gender and Ethical Decision Making
Some people maintain that women are generally more caring about others than men and, as a
result, are more likely to make ethical decisions at the workplace. Other individuals claim there
is no difference between genders when it comes to making decisions that have ethical impacts.
and this is what most managers would do in this situation (social group
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Critical Thinking Questions
1. Are women more ethical than men at the workplace?
Up for Debate: Gender and Ethical Decision Making—Are women more ethical than men at
the workplace?
Yes
• Some researchers report that there are
gender differences (social group
• Women are less willing than men to
sacrifice ethical values for money,
social status, and career success (social
group relativism deontology).
• Women associate business with
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• Women are more willing than men to