MBA 515 Applied Business Ethics Session #4 Agenda ● ● ● ● Discussion Group Activities Questions Adjourn Harold Lahti Ph.D. Learning Activities for Week Four Theme: Ethical Standards and Strategies: Decision Making & Behavior & Normative Theories Read: Johnson Chapters 6 & 7 ● Links: Ethics articles and cases ● http://www.corporate-ethics.org TEDx Talks—Let’s disagree morally http://www.youtube.com/watch?v=X-3m37czBfk Discussion Board: ● DB 1 Review an ethical dilemma you have faced in light of Kidder’s ethical checkpoints on page 189 of the text. Did you skip any steps? Which step was most difficult and why? ● DB 2 War continues in the Middle East. What role should the U.S. take regarding the current conflict there? Use the steps of the SAD Formula (in this presentation) to bring a critical thinking element into your moral reasoning. Cite and reference at least two sources in your initial response to this question. ● DB 3 Take self-assessment 8.2 on servant leadership on page. 281. Rate your boss or have someone rate you. What was the score? What does it mean to you? Assignment: There is not an assignment due this week but the discussion boards will be assessed using the student learning outcomes. Harold Lahti Ph.D. Kidder’s Ethical Checkpoints Ethicist Rushworth Kidder’s nine steps that can help bring order to confusing ethical issues: 1. 2. 3. 4. 5. 6. 7. 8. 9. Recognize that there is a problem Determine the actor Gather the relevant facts Test for right-versus-wrong issues Test for right-versus-right values Apply the ethical standards and perspectives Look for a third way Make the decision Revisit and reflect on the decision Kidder’s Ethical Checkpoints Advantages (Pros) of Kidder’s Theory ● ● ● ● Is thorough Considers problem ownership Emphasizes the importance of getting the facts straight Recognizes that dilemmas can involve right–right as well as right–wrong choices ● Encourages the search for creative solutions ● Sees ethical decision making as a learning process Kidder’s Ethical Checkpoints Disadvantages (Cons) of Kidder’s Theory ● It is not easy to determine who has the responsibility for solving a problem ● The facts are not always available, or there may not be enough time to gather them ● Decisions don’t always lead to action The SAD Formula ● Media ethicist Louis Alvin Day of Louisiana State University developed the SAD formula in order to build important elements of critical thinking into moral reasoning. ● It begins with an understanding of the subject to be evaluated; moves to identifying the issues, information, and assumptions surrounding the problem; and then concludes with evaluating alternatives and reaching a conclusion. ● 3 Stages of SAD: situation definition, analysis of the situation, decision The SAD Formula Situation Definition ● Description of facts ● Identification of principles and values ● Statement of ethical issue or question Analysis ● ● ● ● Weighing of competing principles and values Consideration of external factors Examination of duties to various parties Discussion of applicable ethical theories Decision ● Rendering of moral agent’s decision ● Defense of that decision based on moral theory The SAD Formula (Pros) to SAD Formula ● Encourages orderly, systematic reasoning ● Incorporates situation definition, duties, and moral theories Disadvantages (Cons) to SAD Formula ● Failure to reach consensus ● Limits creativity ● Ignores implementation Nash’s 12 Questions Ethics consultant Laura Nash offers 12 questions that can help businesses and other groups identify the responsibilities involved in making moral choices. ● Question 1: Have you defined the problem accurately? ● Question 2: How would you define the problem if you stood on the other side of the fence? ● Question 3: How did this situation occur in the first place? ● Question 4: To whom and to what do you give your loyalties as a person or group and as a member of the organization? Nash’s 12 Questions ● Question 5: What is your intention in making this decision? ● Question 6: How does this intention compare with the likely results? ● Question 7: Whom could your decision or action injure? ● Question 8: Can you engage the affected parties in a discussion of the problem before you make your decision? Nash’s 12 Questions ● Question 9: Are you confident that your position will be as valid over a long period of time as it seems now? ● Question 10: Could you disclose without qualm your decision or action to your boss, your CEO, the board of directors, your family, or society as a whole? ● Question 11: What is the symbolic potential of your action if understood? Misunderstood? ● Question 12: Under what conditions would you allow exceptions to your stand? Nash’s 12 Questions Advantages (Pros) of Nash’s 12 Questions ● Highlights the importance of gathering facts ● Encourages perspective taking ● Forecasts results and consequences over time Disadvantages (Cons) of Nash’s 12 Questions ● Is extremely time consuming ● May not always reach a conclusion ● Ignores implementation The Lonergan/Baird Method Ethics expert Catharyn Baird used philosopher Bernard Lonergan’s model to develop a framework for making ethical choices ● Step 1: Be attentive—Consider what works and what doesn’t. ● Step 2: Be intelligent—Sort through the data. ● Step 3: Be reasonable—Evaluate the options. ● Step 4: Be responsible—Act with courage. The Lonergan/Baird Method Advantages (Pros) ● Is widely used ● Emphasizes the importance of paying attention and gathering data ● Incorporates ethical principles, reason, and emotion ● Recognizes the importance of follow-through Disadvantages (Cons) ● Overlooks many other types of ethical conflicts ● Used as a tool rather than as part of an ongoing process The Foursquare Protocol Catholic University law professor and attorney Stephen Goldman’s protocol method: ● Protocol Element 1: Close description of the situation. ● Protocol Element 2: Gathering accumulated experiences in similar situations. ● Protocol Element 3: Recognize the significant distinctions between the current problem and past ones. ● Protocol Element 4: Situating yourself to decide. The Foursquare Protocol Advantages (Pros) ● ● ● ● ● Highlights the importance of justice and fairness Applies broad principles to individual situations Situates the decision maker Recognizes the influence of self-interest Incorporates both intuition and reason The Foursquare Protocol Disadvantages (Cons) ● Undervalues other important ethical values and principles ● Hard to recognize what is relevant and significant and what is not ● Self-interest may still influence our decisions Exercising Ethical Influence Ethical Issues in Influence The key for leaders is not whether to exercise influence but how to do so in an ethical manner. Chapter seven of the text examines the ethical issues surrounding four sets of influence tools important to leaders: 1. 2. 3. 4. Compliance gaining The communication of expectations Argumentation Negotiation Compliance Gaining ● These are verbal tactics that leaders and others use to get their way. ● Gary Yukl of the State University of New York at Albany identified 11 common proactive managerial influence tactics used in the organizational setting. ● These are listed on the next slide and discussed in detail in the book. Yukl’s Tactics ● ● ● ● ● ● ● ● ● ● ● Rational persuasion Apprising Inspirational appeals Consultation Collaboration Ingratiation Personal appeals Exchange Coalition tactics Legitimizing tactics Pressure Focus on Followership Ethics Arizona State University professor Jeffrey Kassing’s five strategies workers use to express dissent to the organizational leaders ● ● ● ● ● Direct-factual appeals Solution presentations Repetition Circumvention Threatening resignation Communication of Expectations Pygmalion Effect ● Self-fulfilling prophecy named after the prince in Greek mythology ● Acknowledges that we tend to live up to the expectations others place on us, as in leaders’ impact on followers Golem effect ● The idea that negative expectations can lower performance Communication of Expectations Four channels leaders use to signal high or low expectancies: 1. Climate: the social and emotional atmospheres leaders create for followers 2. Feedback: leaders give more frequent positive feedback when they have high expectations of followers 3. Input: refers to the attention and focus given to followers 4. Output: high performers are given more opportunities to speak Communication of Expectations Strategies for improving organization-wide performance should focus on building follower self-efficacy or self-confidence by: ● Breaking down tasks into manageable segments and providing followers with the time to practice their skills ● Delivering constructive suggestions about how to improve performance or how to carry out tasks ● Modeling skills as well as positive thinking and how to deal with failure ● Verbal persuasion backed with reasons why the follower will succeed Argumentation ● Leaders generally rely on arguments when they want to influence others who take a different side on controversial issues ● Argumentation is focused on ideas ● Verbal aggressiveness is hostile communication that attacks the self-concepts of others instead of issues Argumentation Aggressive tactics include: ● ● ● ● ● ● ● ● ● ● Competence attacks Character attacks Insults Teasing Ridicule Maledictions Profanity Physical appearance attacks Threats Nonverbal indicators that express hostility Argumentation Argumentation expert Dominic Infante identifies five skills that make up argumentative competence: ● ● ● ● ● Stating the controversy in propositional form Inventing arguments Presenting and defining your position Attacking other positions Managing interpersonal relations The Toulmin Model Professor Stephen Toulmin developed one widely used model for developing arguments: ● Claim based on fact ● Grounds or proof to support the claim ● Warrant makes the link from the grounds to the claim ● Backing with additional evidence ● Qualifiers ● Rebuttals Ethical Decision Making and Behavior Plaisance, P. (2014, June). Virture in media: The moral psychology of U.S. exemplars in news and public relations. Journalism and Mass Communication Quarterly, 91(2), 308-325. 1. What did you learn about moral psychology and moral exemplars after reading this article? 2. What are 2-3 key takeaways from the results of this research? 3. What does personality traits have to do with overall moral reasoning? 4. Discuss 2-3 other learnings from this article and how you can apply that learning in a new way. Harold Lahti Ph.D. Negotiation ● Involves influencing those who actively disagree ● The goal of negotiation is to reach a settlement that satisfies both sides ● Leaders of all kinds engage in negotiation ● Ethical issues in negotiation generally fall into three categories: 1. The choice of tactics 2. The distribution of benefits 3. The impact of the settlement on those who are not at the bargaining table Negotiation Fisher, Ury, and Patton’s principled negotiation model of problem solving: 1. 2. 3. 4. Separate the people from the problem Focus on interests, not positions Invent options for mutual gain Insist on objective criteria Resisting Influence ● Leaders must resist unethical influence attempts ● Reciprocation (Give and Take) ○ Reciprocation—the obligation to repay others—is a universal norm of human society that encourages cooperation. ○ The power of reciprocation is long lasting. ○ The reciprocity norm can lead to disastrous decisions. ○ One way to resist the power of reciprocity is by turning down the initial favor. Resisting Influence •Social Proof ● Looking at others to determine how we should behave ● Uncertainty increases the impact of social proof ● Bystander effect ● Recognize counterfeit evidence of social proof Resisting Influence Liking ● We are more likely to comply with the requests of people we like ● Liking is based on: 1. 2. 3. 4. 5. physical appearance similarity compliments contact and cooperation association Resisting Influence Authority ● Obeying authority allows organizations, communities, and societies to coordinate their activities. ● We often comply with the appearance of authority, not real authority. ● Consider credentials and the relevance of those credentials. Resisting Influence Scarcity ● This principle is based on the notion that when opportunities are less available, they appear more valuable. ● This principle is most influential when items or information are newly scarce. ● We find scarcity hard to resist. Ethical Decision Making and Behavior Gang, W., In-Sue, O., Courtright, S. & Colbert, A. (2011). Transformational leadership and performance across criteria and levels: A meta-analytic review of 25 years of research. Group and Organization Management, 36(2), 223-270. 1. What are the main points of this article? Why is this article powerful? 2. What is the relationship between transformational leadership and followership? 3. What is the meta analysis? 4. What are the implications for the managers in this article? How can you use this information be become a better leader? Harold Lahti Ph.D. Exercising Ethical Influence Ogunfowora, B. (2014). It’s all a matter of consensus: Leader role modeling strength as a moderator of the links between ethical leadership and employee outcomes. Human Relations. 67(12) 1467-1490. 1. 2. 3. 4. How does ethical leadership role modeling impact employees ethical decision making? Explain social learning theory and how it applies to ethical leadership in the workplace. According to this article, how are leader role modeling related to employee outcomes/ What can you learn from this article and apply to your current position? Exercising Ethical Influence Liu, L., Friedman, R., Barry, B., Gelfand, M., & Zhang, Z., (2012). The dynamics of consensus building in intracultural and intercultural negotiations. Administrative Science Quarterly. 57(2), 269-304. 1. 2. 3. 4. Describe the authors use of mental models in relation to cross culture negotiations? How do intra cultural negotiations differ from same culture negotiations? Discuss the need for closure as discussed in the article. Which findings were most surprising to you? Why? Questions ●??? Harold Lahti Ph.D. Adjourn Harold Lahti Ph.D.
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