Ethics Part 1

1. Ascentis Ethics Part 1 Individual Values Presented by: Jacquelyn Thorp, SPHR-CA

2. Lesson 1. Course Introductionbusiness ethics The focus of this course is to help you answer these questions: • What are my personal value priorities? • How can I use those value priorities in my daily life?

3. Course introduction • As we proceed through this course, we will strive to help you identify your personal values to determine what you might do if placed in some of the ethical situations included in the course scenarios.In this lesson, we will outline a very realistic ethical dilemma.

4. Ethics part 1 • The decisions you make at work are inescapably your decisions. No matter how we might like to blame others for them if they are later exposed as ethically deficient, we must bear some responsibility for having said "yes," when a "no" was possible.Correspondingly, when you make an ethical decision at work, you deserve some of the credit, for you could have easily taken a less-ethical course of action.

5. Ethics part 1 • Knowing more about yourself and understanding the reasons why you have chosen to be the kind of person you are goes a long way toward pushing you in an ethical direction. You can say to yourself: A person with values like mine would act this way and not that way.Values serve as guides toward correct behavior at work. Becoming more familiar with your own values is the goal of the following scenario.

6. Ethics part 1 • The chairperson of an Institutional Review Committee (the IRC) at Purdue University has asked you to serve as a community representative on the committee. • You are a manager for a private organization and have been asked to offer the committee a layperson's perspective on some issues the committee faces with regard to drug studies.

7. Ethics part 1 • Before you tell the committee "yes," you want to review your knowledge of the committee's work and its relationship to Eli Lilly & Co. • The IRC came about largely in response to an article the Wall Street Journal published in 1996. This article exposed Eli Lilly and Co.'s practice of using homeless men to participate in Phase One drug tests.

8. Ethics part 1 • The Food and Drug Administration (FDA) requires U.S. pharmaceutical companies to engage in three phases of drug testing. • In Phase I, companies test drugs on healthy volunteers to see whether they can safely test them on patients in Phase II. • In Phase II, companies test the drugs on normal and sick patients to determine possible side effects of the drugs. • In Phase III, pharmaceutical companies give drugs to sick patients to try to determine appropriate dosages. Today, Eli Lilly has a drug clinic at Perdue, and the IRC reviews Eli Lilly's policies.

9. Ethics part 1 • According to the 1996 Wall Street Journal article, by the mid-1990s, Eli Lilly's Laboratory for Clinical Research had become a refuge for homeless alcoholic men. Many of the men became regular "volunteers" and willingly subjected themselves to testing to earn $85 per day, which at the time was the lowest per diem in the business."

10. Ethics part 1 • The article told several stories of men who participated in the testing to earn a few thousand dollars of "easy money." They then left the testing clinic that had housed them for weeks and wasted the money on all kinds of unsavory — and often illegal — activities.At the time, the company denied the allegations, asserting that 94 percent of its test subjects provided residential addresses. However, Dr. W. Leigh Thompson, the company's retired chief scientific officer, responded differently.

11. Ethics part 1 • He had expressed concerns that the company might be exploiting the homeless. He said that Eli Lilly's Board, which oversaw the company clinic, as well as the company's top executives, believed that using homeless men in drug testing was a philanthropic act.Dr. Thompson stated that he, too, took this position. He said, "Providing homeless men with a nice warm bed and good medical care and sending them out drug- and alcohol-free was a positive thing to do."

12. Ethics part 1 • After the Wall Street Journal published the article, a flurry of angry responses from different sectors of the American public inspired the company to create two panels of outside experts to advise them about whether to stop using homeless volunteers. • The IRC, which you have been asked to join, is one of those two committees.

13. Ethics part 1 • You know the IRC has already engaged in important work. For instance, the IRC has already sought scientific advice about whether alcoholism could affect drug-testing results. Additionally, the committee has consulted medical ethics experts to advise them on whether the company should pay the homeless to serve as test subjects.

14. Ethics part 1 • Today, Eli Lilly's drug testing center, the Lilly Clinic, is no longer a Mecca for homeless men. The company has changed its procedures for qualifying volunteers.In particular, the company now focuses on signing up female volunteers so they can test drugs geared toward women, such as drugs that respond to breast cancer and osteoporosis. Also, the company has moved some of its early drug testing to clinics in Singapore and Europe.

15. Ethics part 1 • You do not know what the IRC's focus will be in the three-year term they have asked you to serve. • You have already decided to say yes, but now you know you must prepare to provide the kind of outside oversight the committee says it needs.

16. Ethics part 1 • You have never been the kind of person to rubber-stamp decisions, and you are not about to start to do that now. • All the newspaper articles you are reading about corporate corruption are making you see the importance of acquiring and applying ethical knowledge to business decisions. • You will need to take your new volunteer job seriously, including learning some practical ways to apply ethical concepts to business.

17. Ethics part 1 • Business ethics focuses on a process for improved business conduct. We began this process by learning about American business culture as the context for our ethical dilemmas. We continue this process by introducing you to some basic language units of ethics: interests, roles, and values.

18. Ethics part 1 • Additionally, we ask you to work with these language units to see how they might function in real decision making processes. • To illustrate what this knowledge will do for you, we will consider a possible issue that our hypothetical IRC member will face.

19. Ethics part I • Suppose you decide to ask questions about why Eli Lilly has started engaging in early drug testing abroad. You are truly an outsider, which means you have no idea why a pharmaceutical company would want to move drug testing to locations in Singapore and Europe.

20. Ethics part 1 • You wonder whether: • Regulations in other parts of the world are more lenient with regard to drug testing. • It is cheaper to engage in drug testing abroad.

21. Ethics Part 1 • You wonder whether: • The company shows more or less compassion to test subjects who are not American. • Your past volunteer work with vulnerable populations will affect your work with the IRC.

22. Ethics part 1 • You wonder whether: • The company has clarified its value priorities. • You can articulate your own value priorities. • You will be able to contribute to the committee and remain true to your beliefs

23. Ethics part 1 • Now, let's learn some important concepts so you can think through this hypothetical situation.

24. YOUR PERSONAL VALUES PRIORITIES • In this lesson, you will begin learning the language of ethics. Interests, roles, and values will be explained along with a real life scenario and several activities that should help you start defining your own personal ethical standards.

25. YOUR PERSONAL VALUES PRIORITIES • After completing this lesson, you should be able to: • Learn how interests refer to the involvement of all parties in a decision • Determine the roles you play everyday in your personal life • Learn what values are good or desirable to you

26. YOUR PERSONAL VALUES PRIORITIES • Learning the language of ethics is the first step in the process of applying ethical concepts to business life. • Two basic language units of ethics discussion are interests and values.

27. interests • Interests refer to the involvement of all relevant parties in a decision. Ordinarily, we can expect any business decision to affect individuals and groups in diverse ways. Decisions typically help some people more than others and harm yet others. Identifying and weighing these interests are primary components of practical ethics.

28. interests • Many of you will encounter situations in which you have to weigh your personal interests against the interests of an entire business entity.CEOs who have large personal stakes in their corporations constantly struggle with these competing interests.

29. interests • A recent article entitled "The Good CEO" highlighted executives who are more interested in advancing their company's interests than their personal interests.These executives help to remind us that interests are pertinent because we have an obligation to consider and respect others' needs.

30. Interests & ROLES • How do these interests arise? The many roles we play yield different interests. For example, every businessperson is both an employee of the business and much more.He or she is also a neighbor, a citizen, a customer, and perhaps a hiker, property owner, and mentor as well. Each of these roles has interests attached to it, interests that are often in conflict, even within the same individual.

31. interestS & ROLESs • As a neighbor, I may not want you to buy that ugly brown fence you plan to place between our houses, but as the manager of the lumber yard from which you will buy the fence, I hope you buy our entire inventory of brown fence.

32. Interests & ROLES • As actors in the business world make decisions, they should think about the different options in the context of roles and interests. Especially at early stages of decision making, actors have the power to think through which interests the potential decision advances and which are hurt.

33. Interests & ROLES • EXAMPLEWhen David Simon's Brooklyn Carpet Exchange experienced lower profits after the September 11th attacks, he had to make financial decisions that would undoubtedly affect a variety of people.Taking his employees' interest into consideration, he decided against layoffs and instead cut employee salaries, including the salaries of top management.

34. Interests & ROLES • Listing the interests is a helpful first step in ethical conversation.Next, we must decide how to weigh those interests in conformity with our aspirations for our community and ourselves.To better define the aspirations we possess, we require the assistance of values, another basic unit of ethical discussion.

35. Values • Ethical talk and thought is constructed from building blocks, and none is more crucial than values.Values are positive abstractions that capture our sense of what is good or desirable. They are ideas that underlie conversations about business ethics.Values such as honesty, efficiency, fairness, security, and freedom play key roles in shaping business decision making.

36. values • Conversations about controversial business ethics issues require you to choose among alternative options. • Talking about our values would be simple if we could just make a list and say, "Well, there they are."But such a list is pretty meaningless because the concepts on our list are, by definition, values that • everyone else has as well.What makes organizations and individuals unique is the priority we attach to particular values.

37. values • Every business has honesty as one of its values, but we know from rough experience that for some businesses this value is far down on the list of values that will guide their actual behavior.In addition, when people say, "I value honesty," they may not all be defining honesty in the same way.Therefore, before we focus on value priorities, we need to think through some basic definitions of important values.

38. values • In the area of business ethics, certain values play a particularly large role in reasoning. We will list some key values and will offer some alternative definitions.You should view these lists as a starting point. Then add your values and definitions to the lists.

39. * Key Values • Also, note that our American business culture shapes the list of key values we present in this lesson. In our culture, they have become as American as Mom's apple pie.

40. * Key Values • The following table shows the alternative forms of key values that shape business decision making in its entirety.

41. Value Value Alternative Meanings • Honesty • To refuse to lie, steal, or deceive in any way • To adhere to the facts • To answer accurately any question directed to me Example: Should I lie or deceive employees who work for me about whether the company plans to lay them off next month?

42. Value Value Alternative Meanings • Freedom • To act without restriction from rules imposed by others • To possess the capacity or resources to act Example: Should I follow the crowd and adopt a flexible approach to how to use my company expense account?

43. Value Value Alternative Meanings • Security • To be safe from those willing to interfere with your property rights • To achieve the psychological condition of self-confidence such that you welcome risks Example: Should I speak out if I believe my employer is treating one of my colleagues unfairly by engaging in a sexual harassment investigation that is poorly designed and implemented? Has my company assured me that it welcomes dissent?

44. Value Value Alternative Meanings • Justice • To receive the product of your labor • To treat all human beings identically, regardless of class, race, gender, or age Example: Does my employer appear to have a different benefits package for workers of a particular race or ethnicity?

45. Value Value Alternative Meanings • Efficiency • To get the most from a particular input • To minimize costs Example: Should I ship products I know will not meet my customer's expectations and/or are defective, when fixing the problem will be costly?

46. A Special Set of Values: The Cardinal Virtues • Virtue ethics focuses on how to become the kind of person who can do the right thing. People who care about developing virtue in themselves and others often focus on a particular set of values, known as • the cardinal virtues.

47. A Special Set of Values: The Cardinal Virtues • Dr. Robert Kennedy, a business ethics professor at the University of St. Thomas, explains that the traditional names of the cardinal virtues are • fortitude, temperance, prudence, and justice, • but that he presents them as • courage, discipline, wisdom, and fairness.

48. Cardinal virtues • We present Kennedy's definitions here because we believe they might assist you as you think through your own value priorities. When you learn more about virtue theory, you will understand why Kennedy uses the word habit in each definition. The following tables shows the list of cardinal virtues in its entirety.

49. Virtue Virtue Meaning • Courage • The habit of moderating the emotions of fear or boldness to achieve a rational goal.

50. Virtue Virtue Meaning • Discipline • The habit of moderating the emotions of enjoyment and denial to achieve a well-ordered personal or professional life.