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Ethical Dilemma AND
Leadership Values and Ethical
Reasoning
SHABINA Z DESAI
Module :-1 & 2
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What Is Ethics?
A group of moral principles
or set of values that defineor direct us to the right
choice
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Nine theories of ethics1. Situational ethics
Lying is Wrong , but if you lie to do avoid
hurting someone feelings, lying is right .
2. Consequential ethics
Result will be positive
3. value ethics
Your behavior according to your value
4. Utilitarian ethics
If you kill one person to save many , it ok
to do so.
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5. Moralistic ethics
Pacifisit may always believe war is always
wrong ,no matter how justified it may seems.
6. Ethical realism
Based on real world
7. Ethical hierarchies
Certain ethical values are more important than
others
8. Principles of ethics
Just principles or theories to guide decision s.
9. Moral development
Ethics can be taught that greater levels of
ethical behavior can be achieved as one learn
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What Is an Ethical Dilemma?
Situation in
which two or
more deeply heldvalues come into
conflict. In these
situations, the
correct ethicalchoice may be
unclear.
What should or
ought I do?
What is rightor wrong,
good or bad?
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Ethical Dilemma
Ethical Dilemma arises in a situationwhen one is faced to choose the right
one from several conflicting alternatives
(e.g conflict between responsibility andvalues)
There are situations when there is not
simple choice between right or wrong. Dilemmas are complex when manager
have no clear guidelines either in law or
in religion.
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Ethical dilemma are complex judgments onthe balance between the economic
performance and the social performance ofan organization.An ethical dilemma exists when one is faced
with having to make a choice among following
alternative-Significant value conflict among differinginterest,
-Real alternative that are equally
justifiable-Significant Consequences onstakeholders in the situation.
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According to Rushworth Kidder, in ethical
dilemma, the toughest choices are Rightversus right.
-Truth versus Loyalty
-Individual versus Community-Short-term versus Long term
-Justice versus mercy
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Resolving Ethical Dilemma The following guidelines help to resolve the issues.
-Clearly define the problem.
-Look on the problem from the opposite end.
-Identified the source of problem.
-Define your intention to how to resolve theproblem.
-Define your loyalty to individual/ organization.
-Compare the out come of various alternative
decision.-who will be affected by your decision.
-What would be effected of the decision to theaffected person as a whole on long term
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Approaches to resolving ethical
dilemmas We have observed there are three
classical approaches in resolving ethical
dilemmas.a) Ends-based thinking
b) Rule-based thinking
c) Care-based thinking
d) Virtue-based thinking
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Characteristics of ethical
dilemmas Most ethical decisions have extended
consequences.
Most ethical decision have multiple alternatives and
have to be considered. Most ethical decisions have mixed outcomes.
Most ethical decision have uncertainconsequences.
Most ethical decisions have personal implication.
Ethical decisions are not simple choice betweenright or wrong.
It have complex judgments.
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Causes of Ethical Dilemmas
A Bottom Line Orientation
Short Term Traps The Ego Barrier
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There is no excuse for failure.
Zero defects.
Can do.
Just do it.
Tell them what they want to hear.
Make the report say what theywant to see.
Causes of Ethical Dilemmas
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Determining the
Right ThingBasic Approaches
Kantian (Deontic) Approach
Utilitarian (Consequential) Approach
Virtue (Character) Approach
Fairness (Justice) Approach Common-Good Approach
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Kantian (Deontic or Rights)
Approach Immanuel Kant
Rules or principles determine action.
Emphasizes the principle over the result.
The action should not be done if everyone should
not do it. Can my act become universal law?
People have rights: truth, privacy, and protection.
People are not a means to an end, but are an endin themselves.
Bottom Line: Does the action respect the moral
rights of everyone?
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Utilitarian (Consequential)
Approach John Stuart Mill and Jeremy Bentham
Emphasizes the results of the action.
Ethical actions provide the best balance ofgood over evil.
An act is right if and only if it results in as
much good as any available alternative.
Bottom Line: The greatest good for the
greatest number of people.
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Virtue (Character) Approach
Aristotle and Thomas Aquinas
Emphasizes character.
Character traits or virtues enable usto reach our highest potential.
A virtuous person is an ethicalperson.
What kind of person should I be?
Bottom Line: People develop virtuesthrough habit.
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Fairness (Justice) Approach
Aristotle
Equals should be treated equally and
unequals should be treated unequally.
Favoritism and discrimination are unjust
and wrong.
Bottom Line: How fair is the action? Does
it treat everyone the same way, or does itshow favoritism or discrimination?
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Common-Good Approach
Plato, Aristotle, Cicero, John Rawls
Veil of Ignorance Those that makedecisions should be blind to personalgain.
We are all members of the samecommunity.
Bottom Line: What is good forindividuals is based on what is goodfor the community as a whole.
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What Are Values?, cont.
Values indicate desirable or preferred
end-states or corrective goals or
explicable purposes, and values arestandards in terms of which specific
criteria may be established and choices
made among alternatives. JamesMacGregor Burns, Leadership, p. 74
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What Are Values?, cont.
Value systems provide an overall frame of
reference for goal setting; they are normative
views held by individuals (consciously orsubconsciously) of what is good or desirable.
Values provide standards by which people
are influenced by their choice of action.
French, Kast, and Rosenzwig, UnderstandingHuman Behavior in Organizations, p. 69
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What Are Values?, cont.
Values are the deep seated, pervasive
standards that influence every aspect of
our lives (our moral judgments, ourresponses to others, our commitment to
personal and organizational goals).
Values set the parameters for decisionmaking. Kouzes and Posner, The
Leadership Challenge, p. 212
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What Are Values?, cont.
Values are the enduring beliefs that
have worth, merit, and importance for
the organization. Daft, LeadershipTheory and Practice, p. 192
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Types of Values
Individual individuals
Group formal or informal groups
Organizational composite of individual,group, organizational, culture
Constituents those in direct contact with theorganization
Cultural the entire society Understanding Human Behavior in
Organizations, Kast and Rosenzweig, p. 150
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Sources of Values
Personal
value
system
Religion
Peers
Education
Parents
Media
Technology
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Beliefs
Assumptions or convictions you hold as true
about people, concepts, or things
People generally behave in accordance withtheir beliefs.
As a leader, your beliefs directly impact on
the leadership climate, cohesion, discipline,training, and combat effectiveness of the unit.
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Norms
Rules or laws based on a groupscommonlyaccepted beliefs or values
Formal norms are official standards orlawsthat govern behavior.
Informal norms are unwritten rules orstandards.
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Army Values
Example is not themain thing in
influencing
others. It is theonly thing.
--Dr. Albert
Schweitzer
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Are There Universal Values?
Justice
Mutual Respect
Stewardship Honesty
Interfaith Declaration, British-North American
Research Association The Ethical Imperative, Dalla Costa, 1990, p.
132
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Are There Universal Values,
cont. Human Dignity
Mutual Responsibility
Economic Equity Fiscal Fairness
Social Justice
Environmental Integrity
The Ethical Imperative, Dalla Costa, 1990, p.132
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Basic National Values
Truth
Life
Liberty
Equal opportunity
Pursuit of happiness
Justice and fairness Peace and security
Responsibility
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Values
Serve as our moral compass to help us
find our way to the right action.
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Influences on Ethical
Reasoning Laws and regulations
Basic national values
Army values
Unit operating
procedures
Personal values
Institutional pressures
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Step 1: Define the problem.
Step 2: Know the relevant rules.
Step 3: Develop and evaluate courses of
action.
Step 4: Choose the course of action thatbest represents Army values.
Ethical Reasoning Process
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Step 1: Define the Problem
Who said it?
What was said, ordered, or demanded?
Dont accept hearsay.
Get the details.
Remember that problems can be
described in more than one way.
The hardest step.
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Step 2: Know the Rules
Conduct research.
A seemingly ethical dilemma may in
reality be a misunderstanding of aregulation or policy.
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Step 3: Develop and Evaluate
Courses of ActionTwo Parts
Develop Courses of Action
Brainstorming
Evaluate Courses
Ethical Approaches
Army Values
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Rotary Clubs Four Way Test
Is it the truth?
Is it fair to all concerned?
Will it build good will and better
friendships?
Will it be beneficial to all concerned?
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Step 4: Choose the Course of
Action That best represents Army Values
A values-based organization provides
publicized values as a framework for expressing expectations,
making decisions, and
evaluating systems, processes, decisions,and employee performance
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Practical Exercise Captain Rockwood Is he using this or any ethical reasoning process?
Is there a point at which his thinking becomesflawed?
What is the tension for him, or what values are inconflict? What is he focused on, the actions or theend result?
What solution would you have come to if faced withRockwoods experience? How did his use or lack ofuse of an ethical reasoning process effect hischoices?
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What If Your Boss Asks You to
Do Something Unethical? Examine the facts.
Turn implied request into ethical response.
Never appear to be self-righteous. Expose your personal sensitivity.
Remember that ethical people have the power.
Be professional and ethical.
Be friendly and non-threatening.Richard Chewning, When Your Boss Asks for Something Unethical.
Presbyterian Journal, 24 Dec 86, 14 Jan 87, 4 Feb 87
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The Leaders Challenge
To act morally and ethically
in all aspects
of ones private/personaland public/professional life
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Ethical
LeadershipThoughts to consider inpursuit of being an ethicalleader
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Ethics and Leadership
Your ability to
lead flows from
your individualbeliefs,
values, and
character.
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What Is Leadership?
Leadership is an influence relationship
among leaders and followers who
intend real changes that reflect theirmutual purposes.
-- Rost, Joseph C. Leadership for the
Twenty-first Century.
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What is the difference betweenethical leadership and unethical
leadership?
Is there a type of leadership that is
neither ethical nor unethical?
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Practical Exercise
Role-play the Parable of the Sadhu
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The Parable of the Sadhu Describe the breakdown between the
individual ethic and the organizational ethic.
What are some ways that we showfavoritism?
What is the leaders responsibility to thesubordinate?
What are some sources of stress on leaders
and how does stress influence leaders? What part does a shared purpose, values,
and a process for making decisions play in anorganization?
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Leaders Ethical
Leadership Responsibilities
Be a role model.
Develop your subordinates ethically.
Avoid creating ethical dilemmasfor your subordinates.
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Leaders and Followers
Either leading or following, we model ethicalbehavior in either role.
(1) Leaders set standards of ethical behavior.
(a) Define and affirm core values.
(b) Provide clarity.
(c) Act as standard bearers.
(2) Followers embrace those standards.(a) Embrace core values.
(b) Ask for direction when uncertain.
(c) Meet standards.
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Four Essential Character Traits
of Ethical Leaders Ability to recognize and articulate the
ethics of a problem
The personal courage no to rationalizeaway bad ethics
An innate respect for others.
Personal worth from ethical behavior
"Report on Ethics of
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Report on Ethics ofAmerican Youth" in October
1997Set One82% think that their parents want them to do the ethical
thing no matter what the cost78% think it is not worth it to lie, cheat or steal becauseit hurts your character69% think that their school works hard on characterdevelopment
68% think it is very important or essential to be ethicalin all aspects of life
epor on cs o
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epor on cs oAmerican Youth" in October
1997Set Two
93% think that being treated with respect is essentialor very important
91% are satisfied with their own ethics and character
90% think that they would be listed by a friend as oneof the most ethical people they know
73% think that they are more ethical than most peoplethey know
Set Three70% had stolen something at least once in the last year50% had cheated on at least once exam in the last year
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INTEGRATING
VALUES/ETHICS
INDIVIDUAL
Personal
Private
Values
Professional
Public
Ethics
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Establishing an Ethical Climate
Typical Responses
Gut instinct
Defining the Shalt-Nots
The Starting Point: explicitly articulating
a personal and professional philosophy
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Personal Operating Philosophy
Mission Statement
Vision Statement
Core Values
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A Vision Statement
Vision Statement: a guiding picture of a
desirable, ambitious future. Criteria for
a quality vision statement: futuristic,challenging, preserves core ideology,
applicable to individual or organization,
inspires change, compelling, clear andconcise.
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A Mission Statement
Mission Statement: purpose and reason
for existence. Criteria for a quality
mission statement: clear and concise,consistent with values, action-oriented,
measurable, drives or directs all
decisions and actions.
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What Are Values?
Values are the deep seated, pervasive
standards that influence every aspect of
our lives (our moral judgments, ourresponses to others, our commitment to
personal and organizational goals).
Values set the parameters for decisionmaking. Kouzes and Posner, The
Leadership Challenge, p. 212
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A Healthy Organization
Guidelines are clear.
Ethical behavior is rewarded.
Levels of competition and stress are low. Expectations and standards are clearly defined.
Informal norms are consistent with Army values.
All rewards and punishments are fair and equal.
Developing Ethical Fitness
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Developing Ethical FitnessThree Levels of Personal Moral Development
1. Pre-conventional
Rulebook
Self-interest
Blind Obedience/
Compliance
Acts based on
reward/
punishment
(Requires
leaders
2. Conventional
Fulfills others
expectations
Societys
obligations
Law abiding
Identification
Acts to become
a recognized
member of the
group
3. Post-conventional
Internalized
universal principles
Balances concern
for self and others.
Independent
Complete belief in
the values
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Internalizing Beliefs,
Values, and Norms Compliance-- Actions based on reward/punishment
(Requires leaders presence.)
Identification
-- Actions to become a recognized member
of the group
Internalization
-- Complete belief in the values
Soldiers Learn
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Soldiers Learn
through Observation
Pay attention
to their
leaders
See what the
other soldiers
did and what
happened to
them
Observe other
soldiers
receiving
awards
Recognize our
commitmentto the
unit
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Ten Ways to Enhance Ethical
Leadership1. Establish a code of ethics.
2. Require everyone to verify that they
have read and understand the code.3. Integrate ethics into performance
evaluations.
4. Recognize and reward ethicalbehavior.
5. Establish a confidential ethics hotline.
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Ten Ways to Enhance Ethical
Leadership6. Incorporate ethics questions into surveys.
7. Show and discuss videos that deal with
ethical dilemmas.8. Launch an ethics column in the newsletter.
9. Use on-line menu-driven answers to
questions about ethical problems.
10. Hold open forums on ethics with leaders.
Source: The Canadian Clearing House for Consumer and Corporate Ethics,
www.interactive.york.ca/ethicsan/eem.html, as published in Nancy Croft Baker, Heightened Interest in
Ethics Education Reflects Employer/Employee Concerns, Corporate University Review (May/June 1997),
6-9.
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Practical Exercise
Develop your plan for establishing an
ethical climate.
Ethical Climate Assessment
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Ethical Climate Assessment
Survey
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Unit Climate Survey Materials
Army Research Institute
www.ari.army.mil
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The Self-Interest Model
Hobbes people are self-centered and
egotistical; primary goal is self-preservation
Friedman the act of maximizing return mustconform to the basic rules of the society,
both those embodied in law and those
embodied in ethical custom.
Assumes that people will be decent and thelaw will appropriately punish unethical
behavior.
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The Self-Interest Model, cont.
Purpose maximize return
Contract act within laws and customsof the land
Driving assumption corporate self-interest provides the greatest return tothe greatest number
Primary means tangible efficiencymethods
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Drawbacks of the Self-Interest
Model Self-interest is ethically dysfunctional
Validates self-aggrandizement
Does not create mutually beneficialapproaches
Focuses on results not the means
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Drawbacks of the Self-Interest
Model, cont.Example: Incentive systems
1. sales performance target
2. top management bonuses dependent onmeeting target
3. no one articulates the need for honesty
4. sales persons know that honesty is implied
5. But, the self-centered design of the incentivesystem encourages dishonesty
6. the focus is on the target and the company,not the customer
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Drawbacks of the Self-Interest
Model, cont. Self-interest is not pragmatic
Its priorities do not produce excellence
It filters out others It focuses on making profit not meaning
It limits activities to those that reward self.
Results in mediocrity
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The Covenantal Business Ethic
Examples J&J baby oil (83), Lex (85)
Purpose create delivered value Contract receive a beneficial return in
exchange
Driving assumption service to others
Primary means the creation of
mutually enabling relationships
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Three Conditions of Ethical
Problem Solving
1. Integrating ethical norms with the
pursuit of economic success.2. An other-directed attitude.
3. A business ethic must be capable of
motivating pragmatic and competitivebehavior.
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Describing Ethical Failures
A. The Acute Dilemma situations where
you do not know what is the right or
wrong thing to do.B. The Acute Rationalization situations
where you do know what is the right
thing to do but fail to do it
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Resolving Ethical Problems
The covenantal ethic is theoreticallysound
But we must have tools for putting it intopractice internal and external
External methods laws, punishment,rewards
Detection alone will not deter unethicalbehavior
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The difference between a moral man and
a man of honor is that the latter regrets a
discreditable act, even when it hasworked and he has not been caught.
H.L. Mencken
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Ethical Implications of Bottom
Line Orientation McCoy and the parable of the Sadhu
People ignore serious moral dilemmas
Motivation by profit, high stress, and theexciting is powerful
None stepped up to help because there
were no shared values
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The Bottom Line, cont.
What Value Am I Creating?
Questioning value creation can lessen
the control of the bottom line and willfocus on an ethical response to quality
issues, e.g., the quality of childrens
shoes; Stride Rite versus discountretailer.
Questions to Ask When Grappling with
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Questions to Ask When Grappling with
Roadblocks of the Bottom Line
Who might get hurt besides ourselves?
Am I perpetuating a dishonest and
fraudulent relationship? Whose needs am I considering in my
definition of the problem?
Have I tested the other persons needsdirectly?
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Questions to Ask When Grappling with
Roadblocks of the Bottom Line, cont.
How will this issue affect the companys
reputation?
Is this decision consistent with thevalues we wish to convey by the brand
or company name?
What language am I using to set targetsfor other people?
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Questions to Ask When Grappling with
Roadblocks of the Bottom Line, cont.
If the most desirable consequences cannotbe determined, have I ensured that theprocedural issues of decision making and
implementation are ethical? What value am I creating?
Are we in the right business and market tobegin with?
How will the decision affect the quality of myrelationship with X?
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Questions to Ask When Grappling with
Roadblocks of the Bottom Line, cont.
What if the injured party to intended
beneficiary were my child?
Is my relationship with the end-user one ofempowering or empowerment?
What other motives are driving me beside
the companys bottom line?
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Short Term Traps
Short Term Practices
Not good; must have vision Ford
HP turned down defense contractbecause it would result in large hirings
and large firings
Moral failure lack of vision andreckoning
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Short Term Traps, cont.
Efficiency Corrupts in Three ways
1. Undermines the need for moralthinking
2. Encourages self-delusion
3. Promotes greed
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Ethics and Expediency
Problem 1 Complying with policy when
there is no time; focusing on the short
term
Problem 2 Complying with unethical
people to get the job done
Problem 3 Goodwill at what cost? J&J
and Tylenol
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Ethics and Expediency, cont.
Problem 4Carrying out someone elses
unethical promise
Problem 5 Understanding moral failures Problem 6 Life or death decisions
Problem 7 Layoffs
Q ti t A k h F i
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Questions to Ask when Facing
Short Term Traps
What if I knew there would be a fullaudit of every decision I made two yearsfrom now?
What are the likely consequences of mydecision one year from now? Threeyears from now?
How will this decision affect ourcustomers trust in us?
Q ti t A k h F i
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Questions to Ask when Facing
Short Term Traps, cont.
How would the decision look if it were
repeated twenty times?
How many time have similar outcomeshappened in the past and why?
What if I had ten times as much time in
which to make the decision? Would Irecommend the same thing?
Q ti t A k h F i
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Questions to Ask when Facing
Short Term Traps, cont.
Have I actually tried to stretch the time
frame in which to complete decision
making or implementation? Because of high turnover, many leaders
do not have to live with their unethical
decisions
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Breaking the Ego Barrier
Problem 1 Determining theappropriate sales incentives
Problem 2 Processing uncertaininformation
Problem 3 Failure to face up topotentially damaging information
Problem 4 Dealing with hostilecriticism
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Breaking the Ego Barrier, cont.
Problem 5 Keeping skunkworksethical
Problem 6 Communicating unpleasantinformation upward
Problem 7 Regarding thetechnologically effective but egotistical
team destroyer
Q ti t A k t B k
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Questions to Ask to Break
through the Ego Barrier
What is my intention?
Have I invited and tolerated dissent?
Have I rubbed elbow with subordinates? What have I omitted from my analysis
What if I get caught?
Have I listened to other opinions? Can Itolerate hearing them directly, or only filtered
through company communication channels?
Q estions to Ask to Break
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Questions to Ask to Break
through the Ego Barrier, cont.
Did address the facts? Precisely what
value am I creating?
At whose expense am I creating value?
Have I articulated factual information in as
objective and impartial a way as possible?
Questions to Ask to Break
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Questions to Ask to Break
through the Ego Barrier, cont.
Are my decisions or behavior having a
negative impact on the relationships
involved?
Am I rewarding ego-dominant,
relationship-destroying attitudes in
others?
Have I laughed at myself recently?
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If the corporate environment penalizes orsimply threatens to penalize ethical decisions,many managers will be unwilling to apply these
morals to any other frameworks. If the onlychoice for a manager is private moral norms orcareer suicide, then very few managers willhave the courage to stick to their principles, and
even fewer will be fully aware of how often theycompromise them. Laura Nash, GoodIntentions Aside
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Good managers can be fooled by their
own good intentions, a managerial
problem-solving approach, andsometimes financial success into
complacently accepting a business ethic
that falls short of their private ideals.
Laura Nash, Good Intentions Aside
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Conclusion
Ethical leaders do the right things for
the right reasons all the time, even
when no one is watching. (FM 22-100)
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We need to move beyond refraining to
do wrong
We need to incorporate a CovenantalEthic that promotes the well-being of
others.
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Summary
Action: Apply the Ethical Decision Making
Process as a Commander, Leader, or Staff
Member.
Identified the relationship between
leadership values and decision making;
explained the difference between values
and ethics according to FM 22-100.