business ethics
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Business Ethics. The Case of the Dirty, Rotten Windows. Presenters. Clancy Martin, PhD Assistant Professor of Philosophy Wayne Vaught, PhD Associate Professor of Philosophy and Medicine - PowerPoint PPT PresentationTRANSCRIPT
• Clancy Martin, PhD– Assistant Professor of Philosophy
• Wayne Vaught, PhD– Associate Professor of Philosophy and Medicine
• Professors Martin and Vaught teach courses in ethics for the College of Arts and Sciences, the Bloch School of Business (Martin) and the School of Medicine (Vaught) at UMKC. They worked together to create the Center for Applied and Professional Ethics at UMKC and appear monthly on the Walt Bodine Show (for UMKC’s local NPR station) as the Ethics Professors.
Central Characters
Ken: Director of FacilitiesChris: Administrative Assistant, FacilitiesGwen: Chief Financial OfficerYou: Financial Officer
• Midwestern University is an old, large, land-grant institution.
• The director of facilities is preparing to hire contractors to replace deteriorating wooden windows and flooring in several older academic buildings.
• The Chief Financial Officer is good friends with a local general contractor (W. R. Best Construction) and has asked the Director of Facilities to throw business toward the contractor for large projects.
W.R. Best has been contracting with Midwestern University for several years.
To ensure that W.R. Best receives the job, the director of facilities has on several occasions asked Chris fax a list of specs to W.R. Best.
In the “open bidding” process, W.R. Best submits their bid with specs that ensure they receive the bid.
• Honesty/Transparency– Is the director of facilities engaging in
dishonest business practices?• Loyalty– W.R. Best long relationship with Midwestern– They have consistently performed well
• Conflicts of Interest– Is the relationship between Gwen and W.R.
Best inappropriate?– Should she avoid making endorsements of
contractors?– Is there ever a justification for nepotism?
Morality and Ethics
Moralitystems from latin: moresmeans character, custom, habitfrequently used in reference to shared beliefs about the norms of right and wrong.
Ethicsstems from greek: ethosmeans character
frequently used in reference to the systematic study of moral values and beliefs.
Sources of Moral Reasoning
• Religion– Reflects the basic tenants of religious faith.
• Culture/Community– Reflects commonly shared moral values
• Codes of Professional Conduct– Reflects guidelines for professional conduct.
• Moral Theory– Basic Ethical Theories and Principles
Basic Ethical Theories
• Utilitarianism– Greatest good for Greatest Number
• Deontology– Good defined in terms of moral duties
• Virtue theory– Emphasis on moral character
• Ethics of Care– Emphasis on preserving relationships
Consequentialist/Utilitarianism
• Bentham/Mill• Emphasis is on the consequences of an action• Primacy given to maximizing
pleasure/minimizing pain• Greatest good for the greatest number• Act v. Rule Utilitarianism
Immanuel Kant
Emphasis on Moral Duty/Obligation
Good Will: Only thing good without qualification
Categorical Imperative: Rational Direction of the Good Will
Principle of Universal Legislation
An individual must ask if a general rule can be derived such that every person similarly situation would be compelled to do the act in question.
Treat others as ends, not as means only.
Kant and Mill Contrasted
Millgood defined in terms of pleasures and painsseeks to maximize greatest good for greatest numberUtilitarian Calculus
Kantgood defined in terms of one’s moral dutiesseeks to follow universal moral principlesCategorical Imperative
Virtue Theory
• Aristotle– Teleological in Orientation
To understand good, one must understand purpose
– Golden Mean
• Alasdair MacIntyre– A virtue is an acquired human quality the
possession and exercise of which tends to enable us to achieve those goods which are internal to practices and the lack of which effectively prevents us from achieving any such good.
Understanding VirtuesUnderstanding Virtues
Aristotelian VirtueAristotelian Virtue– Golden MeanGolden Mean
For Aristotle, a virtues are character traits For Aristotle, a virtues are character traits that represent a median point between two that represent a median point between two vices, which are the extremes of the virtue vices, which are the extremes of the virtue in question.in question.
– Virtue of CourageVirtue of CourageCourage is a virtue as it represents Courage is a virtue as it represents behavior at a median between the vices of behavior at a median between the vices of cowardliness and foolhardiness. cowardliness and foolhardiness.
Examples of CourageExamples of Courage
Firefighters and Police OfficersFirefighters and Police Officers– Success in such fields as law Success in such fields as law
enforcement and firefighting require enforcement and firefighting require courage.courage.
Cowardly behavior: Abandoning post.Cowardly behavior: Abandoning post.
Foolhardy behavior: Rash behavior- running Foolhardy behavior: Rash behavior- running into a burning building without proper into a burning building without proper equipment or assessment of situation. equipment or assessment of situation. Places others at risk.Places others at risk.
Courageous behavior: Facing danger while Courageous behavior: Facing danger while following protocol, following safety following protocol, following safety regulations.regulations.
Ethical Considerations
• Honesty/Transparency– Is the director of facilities engaging in
dishonest business practices?• Loyalty– W.R. Best long relationship with Midwestern– They have consistently performed well
• Conflicts of Interest– Is the relationship between Gwen and W.R.
Best inappropriate?– Should she avoid making endorsements of
contractors?– Is there ever a justification for nepotism?
• Ensure Objectivity in Bidding Process.– Openness/Transparency
• Integrity
• Personal Responsibility
• Authenticity
You and Chris (Administrative Assistant in Facilities) are good friends.
As the financial officer in charge of accounts for Facilities, you notice that W.R. Best often receives the bid for large projects.
In a conversation with Chris, she tells you about faxing specs to W.R. Best before the bidding process.
Having attended an ethics lecture at a national meeting for financial officers, you come to the conclusion that such practices are morally dubious.
You contact the director of Facilities to relay your concerns.
You suggest that they refrain from such practices in the future.
This is the way we have conducted business with W.R. Best for some time.
We have never had a problem with this before.
I trust W.R. Best to do a good job and his prices are fair.
He is friends with the CFO.This isn’t any of your concern.
After some consideration, you feel uncomfortable with the practice and feel you should do something further.
You make an appointment to speak with the CFO.
The CFO says that this is an issue best handled by the Director of Facilities.
You need to see yourself as a team player.
You are having drinks with a friend outside the university after work.
You explain the conflict you are having over the bidding process.
Your friend things this is a good story, and has a friend who is a reporter.
One afternoon, a reporter contacts you and asks about the practice of open bidding for contractors at Midwestern University.
The reporter asks if you know of contractors receiving privileged information to ensure that they receive the job.
What do you do?
Several years have passed since the issue with the reporter.
You have since received a promotion.
You learn that there will be several lay-offs due to financial constraints but have been instructed not to disclose the information.