1 Moral Challenges in OrganizationsOS230 Organizational Ethics Week 1

2 Housekeeping Thomas Davoren, (Announcements) Office Hours – Before class and by appointment Two Quizzes (2-3 page papers) Two Homework based in-Class Presentations Long Paper (10 pages) Presentation (10 minutes - PowerPoint) Discussion Board Participation Absences and Late Assignments Calendar of Due dates in Course Documents Syllabus – weight distribution of grade 30%– Participation (discussion boards, attendance). 20% – Weekly Individual Assignments/Homework/Class Preparation 20% - Quizzes 30% – Final Projects (Paper and PowerPoint) Your Final Paper – A gray area Ethical Dilemma at work or in news with application of model and justification for your decision using research Week 7 Critical Class – Presentation Night Introduce Yourselves on BB DB, Week 1 link

3 When did we need Ethics We needed ethics once there was more than one way to accomplish a task. Two challenges of modernity are: Pluralism (the prevalence of competing points of view on matters of fundamental belief and value) Uncertainty (the difficulty of determining which of the competing views is right from within any one view)

4 Aristotle What is the Wisdom or Sophia?What is the purpose or the good? Humans seek happiness How about Rapists and Pirates? Relativism? As society became more complex, more global, there was a need to modernize philosophical thinking Four Paths or Theories of the project of modernity

5 1. David Hume (d. 1776) and the Sentimentalist option, The challenge of RelativismRelativism thought to mean no view of values is better than another (Vulgar Relativism) Sentimentalists Appeal to not only reason but to human feelings desires and sentiments. All knowledge comes through experience. Hume feels sympathy and benevolence are common human traits and can be the basis for common human morality (provided that the person is a “right-thinking person” who would otherwise shun cruelty, treachery and dishonesty.) Shared by economist Adam Smith [free trade proponent] who felt sympathy and beneficence would curb marketplace dangers and assist the “invisible hand.” Hume was not naïve and he was aware of the two sides of human nature. Diversity and Relativism had gone too far when Nazi’s claimed at trial they were doing their duty in their society. BUT Social scientific research indicates that humans generally desire approval from peers, social acceptance, admiration for their accomplishments, sympathy and affection, friendship, and community and roots. As a consequence, persons may satisfy their social needs for approval and acceptance by others within their own group while acting immorally toward outsiders.

6 2. Immanuel Kant (d. 1804) and the Appeal to Reason, Categorical Imperative or RationalismOpposed the sentiment of Hume, advocated stern morality or duty that stems from reason Science and Math reside in the experience of our senses. Human action goes beyond the math/science world into metaphysical world Society evolving from faith based to science based understanding Insight comes from practical deliberation going beyond our individual desires Duty is what we should do unequivocally Can’t lie even to save a life. Instead of don’t lie because you want to be trusted, you don’t lie … period. Certain acts are wrong in themselves, not because they have consequences. You punish someone because it is deserved and not necessarily to deter future misconduct. 2nd formulation – Principle of Humanity [IMPORTANT ETHICAL CONCEPT] you treat others as an end (to respect their desires) and never as a means (to subordinate their purpose to yours)

7 3. Jeremy Bentham (d. 1832) and John Stuart Mill (d3. Jeremy Bentham (d. 1832) and John Stuart Mill (d. 1873) and Utilitarianism Considered contrasting to Kantianism Actions are judged right or wrong solely on consequences (as opposed to Kant’s “in and of themselves”). Principle of the Greatest Happiness to Greatest Number Sprung from the reform movement of social institutions (esp. the CJ and punishment system) in the 18th Century You can lie to save a life You can only punish to deter, not as retribution – no “eye for an eye” His views on flogging … Mill posited higher and lower pleasures. Better an unsatisfied Socrates than a satisfied pig Difficult to compute the greatest good for greatest number. How do you calculate a happiness level for every action? Can you sacrifice a single innocent to benefit many others? Modern utilitarians focus on the rightness of the rule rather than the rightness of the act.

8 4. John Locke (d. 1704) and Thomas Hobbes (d4. John Locke (d. 1704) and Thomas Hobbes (d. 1679) and the Social Contract Discussed by Plato, Influenced the French and American Revolutions, it experienced a revival in the 1960s and 1970s State of nature – poor, nasty, brutish and short Hobbes and enlightened self interest just like reciprocal altruism in biology. Does not account for the more powerful exploiting the less powerful How to enforce the covenants? – absolute sovereign Others said sovereign not necessary as long as all agreed to rules Locke redefined to include a basic agreement on things such as life liberty and the pursuit of happiness as long as your not infringing on the rights of others A means of finding agreement and common ground without warfare (especially in the aftermath or the protestant reformation)

9 Golden Rule You shall love your neighbor as yourself ReciprocalYou should treat others as you would like others to treat you Reciprocal You should not treat others in ways that you would not like to be treated Aristotle said, “An individual cannot regard his own bell-being apart from others” So, is it proactive motivation against wrong action? OR guidance toward an ethically correct action? The latter; It comes up in situations where a decision is needed.

10 What is Ethics About? Ethics is about how we behave concerning the standards we hold ourselves to. Ethics is about how we treat each other, even those we don’t know.

11 Ethics is … Not about feelings or conscience Not the same as religionHelpful but not sufficient Not the same as religion Does not provide complex guidance Not just following the law Though the law should be ethical Not following “what everyone else does” We need to define a shared standard Not the use of technology or science Just because we can manipulate genetics – should we?

12 Ethics is … About how we act as individualsAbout how we structure our organizations and their work About how we structure our society, our laws and our systems. About how we integrate it into our business and organizations

13 Does it have to be illegal to be unethical?Examples

14 Legal BUT Unethical Behaviorsdishonesty, withholding information, distortion of facts misleading or confusing communications or positioning or advertising exploitation of weakness and vulnerability, coercion or inducement excessive profit or greed anything liable to harm or endanger people not specifically regulated – NB level of negligence breach of the Psychological Contract - the expectations between people in a relationship - employer/employee or relationships between organizations avoidance of blame or penalty or payment of compensation for wrong-doing secrecy and lack of transparency - resistance to reasonable investigation harming the environment or planet unnecessary waste or consumption invasion of privacy or anything causing privacy to be compromised nepotism (the appointment or preference of family members) alienation or marginalization of people or groups conflict of interests (having a foot in two or more competing camps) breaking confidentiality causing suffering of animals lack of compassion and humanity BTW, Is embezzlement always a crime? When it involves taxpayer money When it is a publicly traded company When a person with standing makes a complaint

15 Lead Like Everyone is WatchingVideo A simple rule to assist you in acting ethically.

16 An Ethics Case A non-profit is formed and a consortium of members agree to a loose confederation – perhaps a credit union or purchasing conglomerate or a franchise It is agreed that all members will have to vote on an investment An executive director is chosen because he professes that he embraces this republican spirit of seeking consensus from all the members and the membership elects him because that is exactly what they want. The members want to grow the business but they want to be consulted before major decisions since these are bad economic times. The members want a supermajority vote to affirm any decisions About 3 years later during which there was minimal but steady growth, an investment opportunity arises. The opportunity promises a substantial reward in the future - the business will have a virtual monopoly over their existing geographic area. The cost of the investment is substantial and will take all the assets of the new organization and there will be a future debt liability for some time to come. The sale is conditioned on a fast move. The executive director does not have time to convene the membership. The seller needs the money. The executive director learns from a trusted source the deal will fall through if he does not decide to move quickly The seller is having second thoughts The business has the seed money to get the deal started What should the executive director do? What factors should the executive director consider?

17 What are you using to evaluate and decide?Fill in slide …

18 Louisiana Purchase

19 Belief System and Ethical BehaviorThomas Jefferson and James Madison were Republicans George Washington and John Adams Hamilton were Federalists Constitutional Convention (1787) to repeal the Articles of Confederation (1777) before the nation split into factions Federalists generally won but there was quite a bit of ambiguity Federalists won on strength of Washington’s personality Jefferson and Madison sought to undermine Federalists Jefferson and Madison and Adams knew purchase was unconstitutional Jefferson went ahead anyway – end justifies the means. Livingston said Napoleon going to change his mind Jefferson inadvertently removed the ambiguity of the Constitution and firmly established the superior power of federal government – something he campaigned against Adams no longer president, kept quiet publicly France was powerful and if they occupied the area – it would present a threat Ethics, core beliefs and values Adams lost the election rather than go to war with Britain as the public demanded – Goal was to do what's right for country, not his political goals to get re-elected

20 ~~The Conspiracy Argument over two-party system - should it exist? The creation of two-party system went on to be one of their most lasting contributions to political thought (from a presentist view), but at the time, lots of fighting about it. Jefferson led the charge to create political party, while claiming he was doing nothing of the sort. Madison converted to the Republican camp -- he went from the leader of the ultra-nationalists at the Constitutional Convention to the leader of the opposition that challenged the legitimacy of everything. (So Republican camp was more anti-federalist.) One reason is the creation of the national bank, Hamilton's pet project. Its power terrified Madison. So, Jefferson and Madison of Republican party reacting to Federalist domestic party, chiefly Hamilton's financial plan. But, bank and other things prevailed, so Republican party lost some battles. Jefferson went back to his farm and stayed out of politics for a few years. Meanwhile, Madison started laying groundwork for his presidency. Election of 1796 solidified the roles of two political parties. Adams elected, and Jefferson pledged support to the opposing Republicans, not to friendship of Adams. Era of partisanship had begun. The Purchase Louisiana purchase was a triumph on par with winning independence and adoption of constitution. For little money it had doubled the size of the country. Purchasing Louisiana and dropping atomic bomb are two big executive decisions in American history (Jefferson and Truman, respectively). Jefferson, ironically, was on record for opposing energetic projections of executive power -- and this was quite the monarchical act! The tragic part of the purchase was it moved the country into immediate debate over slavery and thus inexorably toward civil war. France had controlled Louisiana. Jefferson bought it from Napoleon. Slave population in the area en route to New Orleans was 500k+, and they slaughtered French troops bound for New Orleans. Even 40k well trained French troops are no match for 500,000. So, troops never made it to New Orleans, and Napoleon -- much to others' dismay -- wanted to sell it. One of Jefferson's rationales: "By enlarging the empire of liberty, we multiply its auxiliaries, and provide new sources of renovation, should its principles at any time degenerate in those portions of our country which gave them birth." After purchase what to do with the land and current occupants - Indians - presented a problem. And should slavery be permitted there? In the end, they chose to oust Indians and permit slaverly - too bad. Hindsight history is usually not history at all, but most often a condescending game of one-upmanship in which he living play political tricks on the dead, who are not around to defend themselves. To accuse Jefferson of failure in refusing to place the abolition of slavery in Louisiana on the political agenda would seem to commit the presentist fallacy in its most blatant form, imposing our own hindsight wisdom on a president trapped in his own time and no more capable of envisioning the Civil War than we are predicting the effects of global warming. Jefferson would have supported freeing the slaves if they were to be expatriated.

21 There’s More Lewis and Clark ExpeditionFor public consumption -It was to explore the purchase Real Mission – To find westward river to pacific and finish the manifest destiny Jefferson assigned his trusted secretary Meriwether Lewis American Creation: Triumphs and Tragedies at the Founding of the Republic, by Joseph J. Ellis

22 ~~Spirit of 76 How to deal with the Indian population. Next to the failure to end slavery, the inability to reach a just accommodation w/ the Native Americans was the greatest failure of the revolutionary generation. General consensus supported staged removal. They started reinterpreting various treaties to justify massive expansion. Nathaniel Greene was the moral conscious for the Spirit of 76, He felt this wrong Jefferson saw Louisiana Purchase as once and for all Indian removal from East of Mississippi Eventually resulted in the Indian Removal Act of 1830 under Andrew Jackson. Decided on One big treaty to Creek tribe. After the war ended in 1783, the Muscogee learned that Britain had ceded their lands to the now independent United States. Alexander McGillivray led pan-Indian resistance to white encroachment, receiving arms from the Spanish in Florida to fight trespassers. The bilingual and bicultural McGillivray worked to create a sense of Muscogee nationalism and centralize political authority, struggling against village leaders who individually sold land to the United States. He also became a wealthy landowner and merchant, owning as many as sixty black slaves. He played all sides -Spanish, British and American. America could not afford a multi-front war In 1786, Muscogee decided to wage war against white settlers on Muscogee lands. War parties attacked settlers along the Oconee River, and Georgia mobilized its militia. McGillivray refused to negotiate with the state that had confiscated his father's plantations BUT President George Washington sent a special emissary, Col. Marinus Willet, who persuaded him to travel to New York City, then the capital of the U.S., and deal directly with the federal government. In the summer of 1790, McGillivray and 29 other Muscogee chiefs signed the Treaty of New York, on behalf of the 'Upper, Middle and Lower Creek and Seminole composing the Creek nation of Indians,' ceding a large portion of their lands to the federal government and promising to return fugitive slaves, in return for federal recognition of Muscogee sovereignty and promises to evict white settlers. It didn’t work – too many settlers, not enough troops or political will to enforce.

23 Atul Gawande

24 ~~Atul Gawande Healthcare worker responsibility to reduce infectionBetter – Doing it Right Healthcare worker responsibility to reduce infection What works - Hand Washing is the best way to reduce or eliminate patient infections in hospitals Why don’t they do it Top Down Communication They don’t do it Bottom up Eliminate the Hierarchy Do the right thing Remind others to do the right thing It’s OK Rank should have no role in doing or reminding to do the right thing In many intellectual debates there is no clear “bad guy” to calibrate our moral compasses with. Is contemporary medicine focused too much on scientific and technological breakthroughs. Many problems our patients present with today can be treated with existing technology. Protocol may not be allowed in our jurisdiction or the equipment is too difficult to procure. He terms these errors of ineptitude.

25 ~~Ethical Responsibility to Tell the TruthCase Medical student has symptoms, cat scan reveals tumor – 50/50 survival Surprised tumor so big, Remembers in-patient procedure 4 years earlier with CXR CXR found tumor present and referred by radiologist for FU Attending and surgeon noted all was well – but it wasn’t, it was a mistake. When a doctor makes a mistake, they don’t tell the patient because they will be sued A patient suspects a mistake is made when a nurse says, Oh my, that shouldn’t have happened OR This is not what we expected OR some other reason The patient makes an inquiry and is stonewalled Patient has no choice but to hire an attorney Lawsuit for answers becomes the only option Attorney looks through the record and looks for two things Was there negligence Did substantial damages occur Patient and Lawyer get rich while getting answers But all the patient wanted was answers Practitioner is obligated to give answers What went wrong? Now studies show practitioners who fall on the sword are less likely to be sued. But what is their ethical obligation – they should be doing that anyway. They owe this to the patient Fear of Lawsuits is a legitimate concern Efforts to curb medical torts has consistently failed in Congress and State Legislatures But is that cause for violating their responsibility?

26 One Possible Solution …Aviation Safety Reporting System Model

27 ASRS Reporting System NASA and FAA created the ASRS Aviation Safety Reporting System (1975) The program’s purpose is to identify human factors that contribute to errors and mistakes so correction and improvement can be made to the National Aviation System. The system is a voluntary one that involves reporting any incident or situation where aviation safety was compromised. Available to Pilots, Air Traffic Controllers, flight attendants, mechanics, and ground personnel. ASRS provides immunity from enforcement actions by the FAA when you meet certain requirements. Otherwise the only time NASA learned of something is when something bad happened. If you are a pilot who left their assigned altitude, you certainly wouldn't report it because you could get in trouble. FAA agreed to waive fines and penalties for unintentional violations of federal aviation statutes and regulations when reported using the NASA form.

28 Exceptions to Immunity(1) When the violation is intentional (2) When the violation is criminal (3) If you were found guilty of a FAR violation in the preceding five years But "What if I used the NASA Form within the past five years and the FAA did an investigation, said I was at fault, but did not penalize me?" No Joy. Filling out a NASA Form doesn't mean that the FAA won't do an investigation, it means they simply aren't going to penalize you. They may say you were at fault and are guilty, but that's are far as it goes. However, it still counts against you for using the NASA Form again. (4) When the report was not submitted within 10 days (5) When there is an accident involving death, serious injury or substantial aircraft damage This sounds worse than it is. Accident and Incident are two different things. For example, a wheels up landing is not a significant event as defined by the FAA. (6) When the violation is a result of lack of qualifications if someone steals a plane and takes off without a license.

29 FBI targets Conn. town led by fox-hunting farmerNew Milford lawyer Paul Garlasco, who won the Freedom of Information case that revealed the fund’s recipients in 2009, had been at odds with Stuart over a piece of mountain ridge-top property Garlasco bought in Bridgewater. Garlasco alleges that Stuart asked to buy the property from him at a reduced price and threatened otherwise to make it impossible for him to build a house on the land, which lies near Stuart’s home and the fox-hunting club. ‘‘Nothing happens in town without his say so,’’ said Garlasco, who said he has provided information to the FBI. Garlasco said boulders were placed at the entrance to his property at the height of the dispute and he is still fighting for a permit he needs to begin construction. The federal warrant authorizing the July 11 raid on Town Hall called for the seizure of documents including invoices, contracts, Stuart’s tax returns and Burnham Fund records. The FBI and the office of the U.S. attorney for Connecticut have declined to comment. Stuart, a Democrat elected as first selectman in 1982, is not unaccustomed to misconduct allegations. Critics for years have taken court actions without seriously damaging Stuart, who has repeatedly won re-election despite controversies over his governing style and his involvement in town land transactions. A selectman, Loy Wilkinson, wrote a letter in 2005 asking federal prosecutors in Hartford to investigate the use of Bridgewater Land Trust assets by Stuart’s farm and fox-hunting club. In the AP interview, Stuart said his work on land preservation has been for the benefit of future generations, not the hunting club. ‘‘Preserving the land is for the people of this town, people who are going to live their lives here, our kids and our grandchildren,’’ Stuart said. Bridgewater resident Pamela Hochstetter, 62, said Stuart deserves credit for keeping development at bay. She said he has been known for his ‘‘bravado’’ but it is upsetting to think the FBI may suspect criminal wrongdoing. ‘‘I know he has strong-armed people and occasionally intimidated them, but I can’t imagine him deliberately committing a crime,’’ Hochstetter said outside the Bridgewater Village Store. Some worry what will come of the FBI raid. Attorney Randall Carreira, who clashed with Stuart a decade ago over his use of land trust assets, once found a cow leg outside his office. At the time, he alerted state police, but he now laughs it off as ‘‘Bridgewater’s version of ‘The Godfather.'’’ He said the appearance of the FBI could lead to the disruption of many lives in town. ‘‘I don’t think people understand the potential ramifications of this,’’ he said. ‘‘It could just go away, or five years later, something could happen.’’ BRIDGEWATER, Conn. (AP) — The fallout over an FBI raid in a rural town that’s been led by the same fox-hunting selectman for nearly 30 years is revealing deeply rooted bitterness beneath the well-landscaped surface. Bridgewater First Selectman William Stuart, a farmer, accuses enemies of spreading falsehoods to investigators out of personal grudges. Critics accuse him of running the western Connecticut town like an autocrat and using his control of vast parcels of land, including fields used by his fox-hunting club, for his personal benefit. Some who crossed him say they have faced intimidation tactics such as a severed cow leg left outside a doorway. Stuart, 68, said in an interview with The Associated Press that he assumes he is a target of an investigation and denied any wrongdoing. He said the small town, in the green hills of Litchfield County, is in the best financial shape of any in Connecticut and his enemies are pursuing vendettas. ‘‘This hurts Bill Stuart. It hurts my health. It hurts my pride. It hurts my reputation,’’ he said. ‘‘But it hurts my town. It does a job on the town.’’ Bridgewater, an hour’s drive from New York City, has a median household income of close to $100,000. The last dry town in Connecticut, it counts actress Mia Farrow among its 1,800 residents and has been home to other luminaries including director Mike Nichols and his wife, Diane Sawyer. One of the town’s most bitter feuds has centered on a fund created in the 1920s with money from a retired sea captain to help the needy. The Burnham Fund, which today is worth about $300,000, was controlled until recently by the first selectman, who was accused by critics of channeling disbursements to friends and allies. The fund’s handling is being investigated by the state’s attorney general.

30 We Expect …. That we can TRUST our business and political leadersThat they will do the right thing at the right time for the right reason We know very little except …. That he better be able to defend his actions as being in the best interest of the electorate he serves.

31 Next Week Week 1 DB board closes Tuesday midnightReview Week 2 Assignments, reading and DB on BB There is a quiz due (short paper) prior to our week 2 class There is a homework listed in Week 2 for presentation in Week 3

32 Questions Next Week - Models