Making Ethical Making Ethical DecisionsDecisions

CUNY Graduate School of CUNY Graduate School of JournalismJournalism

August 27, 2012August 27, 2012

What is ethics?What is ethics?

Ethics refers to principles that define Ethics refers to principles that define behavior as right, good and properbehavior as right, good and proper

Such principles do not always dictate Such principles do not always dictate a single “moral” course of action, but a single “moral” course of action, but provide a means of evaluating and provide a means of evaluating and deciding among competing optionsdeciding among competing options

Ethics is about putting principles into Ethics is about putting principles into actionaction

Josephson Institute of Ethics, Making Sense of Ethics.Josephson Institute of Ethics, Making Sense of Ethics.

SPECIAL SPECIAL RESPONSIBILITYRESPONSIBILITY JOURNALISTS must maintain a JOURNALISTS must maintain a

higher standardhigher standard

As a publisher and As a publisher and broadcaster, we strive to be a broadcaster, we strive to be a trusted voice in our trusted voice in our communitiescommunities

A Simple Framework A Simple Framework For Ethical Decision-For Ethical Decision-makingmaking Why is this bothering me?Why is this bothering me? Who else matters?Who else matters? Is it my problem?Is it my problem? What do others think?What do others think? Am I being true to myself?Am I being true to myself? The Responsible Manager: Practical Strategies for Ethical Decision Making, Michael Rion, The Responsible Manager: Practical Strategies for Ethical Decision Making, Michael Rion,

Human Resource Development Press, Amherst, Ma. 1989.Human Resource Development Press, Amherst, Ma. 1989.

Why is this bothering Why is this bothering me?me? Does it involve dishonesty?Does it involve dishonesty? Do you think it’s illegal?Do you think it’s illegal? Does it involve special treatment of Does it involve special treatment of

some but not others?some but not others? Does the decision-maker have a Does the decision-maker have a

conflict of interest, a personal conflict of interest, a personal incentive?incentive?

Does the explanation for the behavior Does the explanation for the behavior involve facts or is it a justification?involve facts or is it a justification?

Is it a questionable shortcut to a Is it a questionable shortcut to a corporate goal?corporate goal?

Steps to Better Steps to Better DecisionsDecisions Stop and ThinkStop and Think Clarify GoalsClarify Goals Determine FactsDetermine Facts Develop OptionsDevelop Options Consider ConsequencesConsider Consequences ChooseChoose Monitor and ModifyMonitor and Modify Source: Michael Josephson, Making Ethical Decisions (November 2002).Source: Michael Josephson, Making Ethical Decisions (November 2002).

WorldComWorldCom

According to the indictment: To meet According to the indictment: To meet the expectations of Wall Street analysts, the expectations of Wall Street analysts, the CFO and CEO directed the the CFO and CEO directed the accounting department to book entries accounting department to book entries in the company’s accounting ledger that in the company’s accounting ledger that increased revenue. CFO pleads guilty, increased revenue. CFO pleads guilty, CEO charged with an $11 billion fraud. CEO charged with an $11 billion fraud.

HealthSouthHealthSouth

When HealthSouth’s earnings fell When HealthSouth’s earnings fell short of expectations, CEO Richard short of expectations, CEO Richard Scrushy directed his accounting Scrushy directed his accounting department “to fix it,” by artificially department “to fix it,” by artificially inflating earnings. The net result inflating earnings. The net result was a $175 million reduction in was a $175 million reduction in earnings and a Sarbanes-Oxley earnings and a Sarbanes-Oxley prosecution.prosecution.

SearsSears

In face of declining revenue, Sears in In face of declining revenue, Sears in 1991 created a sales incentive 1991 created a sales incentive program that rewarded services program that rewarded services advisers for meeting specific service advisers for meeting specific service quotas… shocks absorbers, quotas… shocks absorbers, alignments, break jobs. Management alignments, break jobs. Management never clarified the line between never clarified the line between unnecessary services and preventative unnecessary services and preventative maintenance. The failure cost Sears maintenance. The failure cost Sears $60 million in refunds and settlements.$60 million in refunds and settlements.

Lynn Sharp Paine, Managing for organizational integrity, Harvard Business Review on Corporate Ethics Lynn Sharp Paine, Managing for organizational integrity, Harvard Business Review on Corporate Ethics (1994).(1994).

NewsdayNewsday

In order to meet circulation goals, In order to meet circulation goals, Newsday officers violated ABC rules. Newsday officers violated ABC rules. Other employees failed to report Other employees failed to report known violations or intentionally known violations or intentionally looked the other way. looked the other way.

Newsday Newsday consequencesconsequences $90 million in reserve to pay $90 million in reserve to pay

claims from third parties allegedly claims from third parties allegedly injured by the misstated injured by the misstated circulationcirculation

Analysts estimate reduction of Analysts estimate reduction of stock prices by $2 to $4 per stock prices by $2 to $4 per share.share.

15 people terminated15 people terminated

Four JustificationsFour Justifications

It’s not “really” illegal or immoral.It’s not “really” illegal or immoral. It’s in the company’s best interest.It’s in the company’s best interest. Although immoral or illegal, no Although immoral or illegal, no

one will find out, anyway.one will find out, anyway. The company will condone it even The company will condone it even

if immoral and illegal because of if immoral and illegal because of profit.profit.

Source: Saul W. Gellerman, Why Good Managers Make Bad Ethical Choices, Havard Business Review (1986).

Two OthersTwo Others

Everyone knows about it already Everyone knows about it already and it is accepted.and it is accepted.

If I do something about it, I If I do something about it, I jeopardize my own job.jeopardize my own job.

Even More Even More JustificationsJustifications If it’s Necessary, it’s EthicalIf it’s Necessary, it’s Ethical If it’s Legal and Permissible, it’s ProperIf it’s Legal and Permissible, it’s Proper It’s Just Part of the Job or I was Doing it for It’s Just Part of the Job or I was Doing it for

YouYou It’s All for a Good CauseIt’s All for a Good Cause I’m Just Fighting Fire with FireI’m Just Fighting Fire with Fire It Doesn’t Hurt AnyoneIt Doesn’t Hurt Anyone It’s OK if I Don’t Gain Personally or I’ve Got It’s OK if I Don’t Gain Personally or I’ve Got

it Comingit Coming I Can Still be ObjectiveI Can Still be Objective Source, Michael Josephson, Making Ethical Decisions (November 2002).Source, Michael Josephson, Making Ethical Decisions (November 2002).

Who else matters?Who else matters?

Responsibility to stake holdersResponsibility to stake holders How do Ethical Values relate to How do Ethical Values relate to

stake holders? stake holders? – StockholdersStockholders– Customers/Readers/ViewersCustomers/Readers/Viewers– EmployeesEmployees– SuppliersSuppliers– CommunityCommunity

Is It My Problem?Is It My Problem?

Do no harm!Do no harm! Is there a difference between Is there a difference between

obligation and good deed?obligation and good deed?– Has the problem occurred or Has the problem occurred or

worsened under your watch? worsened under your watch? – Would honest communication have Would honest communication have

lessened the severity of the problem?lessened the severity of the problem?– Can you prevent problems by Can you prevent problems by

proactive acceptance of an obligation?proactive acceptance of an obligation?

Kew Gardens Kew Gardens PrinciplesPrinciples Need - Is there a clear problem to Need - Is there a clear problem to

resolve?resolve? Proximity - Am I close to the situation?Proximity - Am I close to the situation? Capability – Is there something that I Capability – Is there something that I

can do to help?can do to help? Last Resort – Is there anyone else Last Resort – Is there anyone else

likely to help?likely to help?

Source: Michael Rion, The Responsible Manager: Practical Strategies for Ethical Decision Making, Source: Michael Rion, The Responsible Manager: Practical Strategies for Ethical Decision Making, Human Resources Development Press (1989).Human Resources Development Press (1989).

What do others think?What do others think? Can you solicit other perspectives?Can you solicit other perspectives?

– HRHR– LegalLegal– Marketing Managers Marketing Managers – Purchasing ManagersPurchasing Managers– Sales ManagersSales Managers– AccountingAccounting– ColleaguesColleagues

Am I being true to Am I being true to myself?myself? Character Makes a DifferenceCharacter Makes a Difference

““But rules cannot substitute for But rules cannot substitute for character.”character.”– Alan GreenspanAlan Greenspan

““Conviction is worthless unless it is Conviction is worthless unless it is converted into conduct.”converted into conduct.”– Thomas Carlyle, Scottish historian and Thomas Carlyle, Scottish historian and

authorauthor

Five things a journalistFive things a journalistShould never do (My Should never do (My List)List) Misrepresent to get a storyMisrepresent to get a story Break the law to get a storyBreak the law to get a story Fail to consider the subject of the Fail to consider the subject of the

storystory Have a personal subject matter Have a personal subject matter

agendaagenda Fail to be scrupulous about the Fail to be scrupulous about the

factsfacts

What’s your list?What’s your list?

Food LionFood Lion Cincinnati Enquire/ChiquitaCincinnati Enquire/Chiquita Dale Earnhardt’s picturesDale Earnhardt’s pictures

– Danny Rolling’s picturesDanny Rolling’s pictures– Casey Anthony’s picturesCasey Anthony’s pictures

Fox News? New York Times? WSJ?Fox News? New York Times? WSJ? Rape Victim’s nameRape Victim’s name

ReferencesReferences

Noel M. Tichy, Andrew R. McGill, The Ethical Noel M. Tichy, Andrew R. McGill, The Ethical Challenge, John Wiley & Sons (2003)Challenge, John Wiley & Sons (2003)

Harvard Business Review on Corporate Ethics, Harvard Business Review on Corporate Ethics, Harvard Business School Publishing Harvard Business School Publishing Corporation (2003)Corporation (2003)

Michael Rion, The Responsible Manager: Michael Rion, The Responsible Manager: Practical Strategies for Ethical Decision Practical Strategies for Ethical Decision Making, Human Resource Development Press Making, Human Resource Development Press (1989)(1989)

Barbara Ley Toffler, Tough Choices: Managers Barbara Ley Toffler, Tough Choices: Managers Talk Ethics, John Wiley & Sons (1986).Talk Ethics, John Wiley & Sons (1986).

Josephson Institute (Josephson Institute (www.charactercounts.org) )