Chapter 16 Ethical Decisions

Chelst & Canbolat Value Added Decision

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Chapter 16Author: Dean Pichette

Chapter 16Ethical Decisions

Not interested in classical unethical behavior (criminal activities) and big issues Shuttle disasters

Incorporate ethical values in a decision List of ethical values to consider Recognize there are ethical issues Identify and explore ethical values in conflict Balance the ethical issues

No right answerNot label decision maker -- unethical


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Ethical Issues?Tim has worked for his present employer for ten years. During this time, he has advanced from trainee to senior engineer. Until approximately five months ago, Tim’s performance had been exceptionally strong but then changed dramatically. Assignment deadlines were missed and those that were turned in were either incomplete or of poor quality. Team members were becoming frustrated because of Tim’s lack of participation. His boss is considering a variety of forms of progressive discipline.


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OverviewDecision-making can be difficult

Multiple peopleCompeting goalsMultiple objectivesUncertainty

Good ethical decisionsRecognizes and evaluates ethical issuesAppropriate balance between conflicting

values


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Ethics DefinitionsMorality, norms, principles, and

standardsThe science of human duty (e.g.

political, social, medical)Rules of conductMoral principlesRightness and wrongness of actionsGoodness and badness of motives


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Ethical PrinciplesThe nature of right and wrong

Doing the right thingDoing no harmTelling the truthNot interfering with the rights of

othersObserving the golden rule

Issue: From whose perspective?


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ThesisPeople strive to make ethical decisions

if they recognize there is an ethical dilemma

In the best interest of businesses?It is easier said than done

Values include sources of conflictBias barriersPressure barriers

Policy statements, codes of ethics, and laws cannot prevent breaches


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Making Moral Decisions: Awareness through questioning Am I addressing the right problem? Am I aware of all of the issues? Who will be harmed by this decision? What is the right thing to do? Will I regret this decision later? Would I be embarrassed if my decision became public

knowledge? Do the long-term benefits outweigh the short-term

losses?

Issues: Extent to which values are weighed Moral standards vary among people


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Ethical Decision-MakingThe Context of Decisions (Guy, 1990)

Individual factors:(knowledge, values, intentions, interests)

Problem Decision Maker Decision

Stakeholders: Opportunity considerations:self, superiors, peers,

subordinates, family, and community

costs, difficulty, customary policy,

and potential consequences


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The Four Complex QuestionsWhich course of action will do the

most good and the least harm?Which alternative best serves other’s

rights?Which plan can I live with, which is

consistent with my basic values and commitments?

Which course of action is feasible in the world as it is?


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Values: Generally Accepted?

Caring for people in generalPrioritizing others’ needs in a social networkRespect for othersHarmony and avoidance of conflictHonestyFairnessIntegrity

Which do you think people find most difficult to maintain?


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Values (cont.) Generally Accepted?

FidelitySelf-disciplinePromise keepingResponsibilityPursuit of excellenceSurvive, sustain, and thriveResponsible citizenship

Which do you think people find most difficult to maintain?


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Biases and MyopiaAssociationsIn-group favoritism

Activity: Describe a situation in your experience where in-group favoritism was ethically justifiable. Activity: Describe a situation in your experience where in-group favoritism was not ethically justifiable.


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Biases and MyopiaConflict(s) of interest(s)Self-deception

EuphemismsGifts

Activity: Describe a situation in which you have observed a conflict of interest in your surroundings at work or in local government.

Activity: Describe an organizational situation in which you or a colleague received a small gift from someone. What do you think the giver was hoping to accomplish?


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Biases and MyopiaEstimating consequences

LiesWithholding informationEthical boundaries


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Biases and MyopiaActivity: Describe a decision in which you poorly estimated the consequences to others. What was the impact on the recipient? What was the recipient’s reaction to the decision?

Activity: Describe a situation in which you know a lie was told to you or information was withheld but you wish you had been correctly informed.

Activity: Describe a situation in which you felt it was ethically correct to withhold information or lie. How do you think the other person would have felt if he had known the truth?

Activity: Describe a situation where you allowed some leeway or told a white lie that had ethical implications. How did you justify this decision to yourself?


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Biases and MyopiaDon’t want to know

Activity: Describe a situation where you became aware of a potentially suspect activity. What action, if any, did you take? What made the decision difficult?


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Strategies to Counter BiasesCollect data about yourself

Implicit Association Testhttps://implicit.harvard.edu/implicit/demo/

Shape the environmentBroaden your decision-making

Overseas assignmentsDiversify decision-making group

https://implicit.harvard.edu/implicit/demo/


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Competing Pressures Time Cost and profit Peers

Activity: Describe a situation where you experienced time pressure to complete an assignment that led to cutting corners that undermined other ethical values.

Activity: Describe a situation where you were faced with cost pressure that had an impact on some other measure in your organization. How did you deal with the tradeoffs associated with this pressure?

Activity: Describe a situation where you faced peer pressure. How did you deal with the pressure? Why did you choose to deal with the situation in this way?


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Competing PressuresFamilyCompetitive

Activity: Describe a situation where you had to make a decision between work and family commitments. How did you deal with the pressure?


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Strategies to Counter PressuresMethodology to focus on the decision

Identify decision elementsSet prioritiesEvaluate alternativesAlternative trade-offsEvaluate alternatives against priorities


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Short CasesThe recently poorly performing employee

(personal crisis)

Would your approach be different now?

Placing a relative in a managed care facility

Squeezing suppliers – renegotiating contracts in crisis

Pressure to achieve and ignoring future problems


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Short CasesThe design of a powertrain control module includes both hardware and software dimensions. The automotive company decided to develop a common hardware architecture that could be used on all corporate powertrains and would be the means for tailoring the performance to the specific powertrain families. The goal of this powertrain control module strategy was to achieve significant hardware cost reduction via economies of scale. The target cost for the module was $200 and Sam, a newly appointed engineering supervisor, had a stretch objective of $180.


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Short CasesCorporate culture vs. personal ethicsSelecting a supplier (domestic,

developed country, emerging market)The dilemma of being a lean

organization


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Short CasesTed, an industrial engineer, was ideally suited for his next assignment. His company was under a lot of pressure to reduce their manufacturing costs. Ted had suggested that a good approach to accomplish this objective would be to apply lean manufacturing methodologies.

Documents

Chapter 16 Ethical Decisions