Decision Making Models

Decision Making Models OS230 Organizational Ethics Week 2

Can Ethics be Taught? • Video

Convenience Store Coffee • $1.05 with Tax, any size to anyone • Less than McDonalds and about a third than DD • Free for Uniformed Personnel - Policy • Military • Fire • Police !!! • What is the cost of free coffee? • How would you handle it? • You as the manager? • You as the officer? • What was the thought process you used?

Ethics and The Law Does following the law mean you are acting ethically? Speeding is violating the law but not necessarily unethical Employing people in foreign countries to work with toxic materials for $0.20 per hour six days a week is not against the law but is it unethical Is it OK to pollute to gain economic advantage? No, the environment is everyone’s domain OK to bribe? What Questions are you asking yourself?

Where do we learn Ethics? Home, School and Work Does your corporate culture put you in the position to use your own concepts of right and wrong? Are you pressured into questionable activities?

Organizational Ethics In business, what do our stakeholders expect? In politics, what do our stakeholders expect? The Foxhunting Selectman

World.Com Case • Discussion

WorldCom Case Fast Growing company reselling discounted long distance communications Bernard Ebbers was CEO and Investors unaware of shaky ground Ebbers took $408m loan to cover margin calls then $2.6b one year loan to cover the vapor July 2002, chapter 11 - Largest Bankruptcy at the time Betty Vinson, mid level accountant, balked 7 times when asked to make false entries but eventually caved in Falsified $3.8b 2001 into 2002 Could she say no to the boss? Her livelihood was on the line. Blame – Arthur Anderson, itself under fire, the CEO, the board, several other executives convicted. Ebbers got 25 years Questions What are some things that could have been done by WorldCom executives to prevent the accounting scandal? How could corporate ethics have played a part in this failure? What penalties have WorldCom executives paid for their part in the fiasco? Do you think these penalties are sufficient?

The Gray Areas • Even experienced managers need formal training on workplace ethics to help them • Can’t just tell people to do what’s right • Their actions are then dependant on their personal standards and upbringing. • One unethical person can kill a company and cost thousands their pensions and livelihood • Ethical Decision making cannot be trusted to a policy that tells the person to “Do what’s right” • This will be the subject of your final paper

Memorial Hospital • Struck By Natural Disaster • Plans for Mass Casualty Incident • Facing Weather Hurricane – Category 5 • Triage Removal of Patients – Limited Resources. • Fear of gun toting drug seekers/looters esp at night • How would you do it? • Write down your criteria.

Triage Criteria • Level 1 • Ambulatory, Self care capable, fairly good health • Level 2 • Require assistance to ambulate, sicker • Level 3 • Require full care, non-ambulatory, some ventilator dependant, critically ill, those with DNR orders • DNR • No resuscitative efforts for circulation or breathing

CiscoBest Corporate Citizen • Video Clip

New Haven Principal’s Punishment • Fill in Slide …

Rion’s Framework • Why is this bothering me? Is it really an issue? Am I genuinely perplexed, or am I afraid to do what I know is right? • Who else matters? Who are the stakeholders who may be affected by my decision? • Is it my Problem? Have I caused the problem or has someone else? How far should I go to resolve the issue? • What is the ethical concern – legal obligation, fairness, promise keeping, honesty, doing good, avoiding harm? • What do others think? Can I learn from those who disagree with my judgment? • Am I being true to myself? What kind of person or company would do what I am contemplating? Could I share my decision “in good conscience” with my family?, my colleagues?, with public officials?

Questions Next Week - Morality

Decision Making Models