Doing Right Things: Ethics and Decision Making in Human Organizations

1. Doing Right Things:Ethics and Decision Making in Human Organizations MPA 8002 The Structure and Theory of Human Organization Richard M. Jacobs, OSA, Ph.D.

2. THE CHALLENGE OF ETHICS For generations, managers and leaders have wondered not only about what they might do when confronted by particularly troublesome dilemmas in their organizations. Sensing their responsibility to make things better, these women and men have also struggled to do what they believe and hope is the right thing to do.

3. the concept of ethics... …assumes that there exist norms principles values ...that have, are, and always will provide the foundation for a good life

4. these norms, principles, and values do not come from a religious, moral, political, or social source... …but are the product of rational reflection upon human existence …and exist independent of any religious, moral, political, or social system (i.e., are universally true)

5. these norms, principles, and values are normative for decision making... …while they do not specify what the decision should be …they do provide a principled framework to engage in making good decisions …for which managers and leaders bear responsibility

6. Some basic ethical principles... • mutuality • generalizability • caring • respect • honesty

7. mutuality: Are all parties operating under the same understanding of the rules of engagement?

8. generalizability: Does a specific action follow a principle of conduct that is applicable to all comparable situations?

9. caring: Does this action evidence authentic concern for the legitimate interests of others?

10. respect: Does this action demonstrate due consideration for the dignity and rights of others?

11. honesty: Is this decision and the process leading to it straight-forward and forthright?

12. Although these basic principles constitute the fundamental elements embedded in an ethical decision... …these principles do not provide a comprehensive ethical framework... …for use when managers and leaders engage in the decision-making process.

13. An executive ethical decision-making process (Barnard,1968)... 1. Recognize that people come to organizations with personal motives. 2. Direct efforts to induce cooperation towards a common effort. 3. Uphold the organizational purpose. 4. Design impersonal goals that translate the organization’s purpose into meaningful projects.

14. Questions for ethical decision making (Lax & Sebenius, 1986)... • Are the rules understood and accepted? …in poker, for example, bluffing is a defined part of the game

15. Is the decision defensible under tough scrutiny in the public forum? …it is highly probable that an important decision will be “spun” in ways that distort what managers and leaders intend

16. Would you want someone to make the very same decision... …if it impacted you? …if it impacted members of your family?

17. Should everybody act this way? …should children be trained to act this way? …should people in organizations behave this way? …should society be organized this way?

18. What are the alternatives? …what are the pro’s and con’s associated with each alternative? …can differences be negotiated so that the decision rests on a firmer ethical ground?

19. Ethics is “inquiry into the right thing” and acting conversant with it... When managers and leaders endeavor to inquire into the right thing... …“we are inquiring not in order to know what virtue is but in order to become good” …neither “to fall under any art or precept… but to consider what is appropriate to the occasion” (Aristotle, Ethics II.2, p. 183)

20. A paradigm for ethical decision making (Aristotle,Ethics III.2-5)... • quantitative and qualitative factual data that describe “what is truly the case” knowledge of the good • abstract, theoretical concepts identifying “the truly good” For managers and leaders, the primary sources of knowledge are research and experience.

21. technical skills techniques that foster the good • repertoires honed through experience For managers and leaders, techniques are learned in formal and informal apprenticeships where reflection on practice facilitates the development of expertise.

22. In light of what the good requires: • deliberation concerning the facts and ideas of this case practice • deliberation concerning the techniques that will foster the good

23. Aristotle’s ethical decision-making paradigm... ideas concerning what is good, proper, and just knowledge a practical judgment about what must be done in this situation, given what theory and best practice suggest practice discrete skills to achieve what is good, proper, and just techniques

24. For Aristotle, ethical practice is not... • dictating to others what the good is and what they ought to do • mindlessly enacting routines inculcated in training programs

25. For Aristotle, ethical practice is... • being deliberate by integrating a rational principle with a proven technique through discursive thought (ratiocination) • responding: • to the right person • at the right time • to the right extent • in the right way

26. and, thus... • evidencing a virtuous character revealed in practical wisdom when making decisions • bearing responsibility for the choices made • inculcating virtue throughout the organization as a shared purpose

27. For Aristotle, then, it is not so much what managers or leaders do that is crucial for ethical decision making... ...what is crucial is why managers or leaders do what they do ...and the quality of character revealed in very practical decisions.

28. “…that is not for everyone, nor is it easy; wherefore goodness is both rare and laudable and noble.” Aristotle, Ethics, II.9

29. Seven ethical virtues... • courage • anger • liberality • truth • magnificence • indignation • pride

30. COURAGE …the quality of being fearless or brave when facing and dealing with anything recognized as dangerous, difficult, or painful

31. LIBERALITY …the noble quality whereby one is generous in thought and evidences the absence of prejudice and partiality when considering substantive matters

32. MAGNIFICENCE …the condition or quality of grandeur, splendor, and glory uplifting the human spirit

33. PRIDE …the quality, state, and behavior evidencing an accurate perception of one’s dignity and worth

34. ANGER …the feeling engendered by a real or supposed injury for which one seeks satisfaction

35. TRUTH …the quality or state of sincerity, genuineness, honesty, trustworthiness, and loyalty emerging when one acts in accord with verified experience, facts, or reality

36. INDIGNATION …the contempt, disgust, and abhorrence caused by the disapproval of something mean, disgraceful, or unjust

37. Aristotle’s theory of the “Golden Mean”... • A virtue is a mean, delicate to achieve... …found somewhere between an excess (a positive vice) …and a deficiency (a negative vice) …which reflects the true character of the person making the decision

38. Manager/Leader Virtue: COURAGE confidence fear as a virtue: a “golden mean” as a vice: a defect as a vice: an excess

39. Courage, then, is virtuous when it is a practical judgment of the intellect wherein the defect of paralyzing fear and the excess of exuberant confidence are balanced as managers/leaders act rightly.

40. Manager/Leader Virtue: LIBERALITY prodigality meanness as a virtue: a “golden mean” as a vice: a defect as a vice: an excess

41. Liberality, then, is virtuous when it is a practical judgment of the intellect wherein the defect of meanness and the excess of prodigality are balanced as managers/leaders act rightly.

42. Manager/Leader Virtue: MAGNIFICENCE vulgarity niggardliness as a virtue: a “golden mean” as a vice: a defect as a vice: an excess

43. Magnificence, then, is virtuous when it is a practical judgment of the intellect wherein the defect of niggardliness and the excess of vulgarity are balanced as managers/leaders act rightly.

44. Manager/Leader Virtue: PRIDE vanity humility as a virtue: a “golden mean” as a vice: a defect as a vice: an excess

45. Pride, then, is virtuous when it is a practical judgment of the intellect wherein the defect of humility and the excess of vanity are balanced as managers/leaders act rightly.

46. Manager/Leader Virtue: ANGER irascibility equanimity as a virtue: a “golden mean” as a vice: a defect as a vice: an excess

47. Anger, then, is virtuous when it is a practical judgment of the intellect wherein the defect of equanimity and the excess of irascibility are balanced as managers/leaders act rightly.

48. Manager/Leader Virtue: TRUTH boasting modesty as a virtue: a “golden mean” as a vice: a defect as a vice: an excess

49. Truth, then, is virtuous when it is a practical judgment of the intellect wherein the defect of modesty and the excess of envy are balanced as managers/leaders act rightly.

50. Manager/Leader Virtue: INDIGNATION envy spite as a virtue: a “golden mean” as a vice: a defect as a vice: an excess