Business Rthics Abroad
Moral Competence –
Individual & Organizational
Working Internationally
January 15th, 2014
© Jan Lok
own picture
structure
1. Case 1
2. Ethical Theories
3. Case 2
4. Personal Moral Method
5. Pitfalls
6. Case 3
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Case Business Ethics 1
Cindy graduated in 2008 from CHE (bachelor of BA) and was working in a
sales position in a growing tech company in Utrecht. The staff (22 FTE)
consists of people from 8 different countries. She worked very closely with
her team and had a good rapport with them. She was the only woman on
the team, but she still felt at ease with her colleagues. Part of her job
involved traveling across the Europe and going to meetings and events
outside of work with her team and other sales people from different
organizations. During certain non-customer, internal events, she noticed
that some of her married Italian co-workers were bringing women other
than their wives. Although she was uncomfortable with the situation, she
wanted to keep her distance so as not to become too directly involved
with her co-workers and their personal decisions. She had knowledge of
what was going on but didn't think it was her place to intervene.
One day, at an office party, the wife of one of her co-workers approached
her. She wanted to know exactly what was going on during these trips.
Cindy was frustrated to be put in this situation by her co-workers and she
didn't know what to say. Should she put herself in the middle of a
coworker's marriage and tell the truth about the situation? Is there another
option? She didn't want to damage the team and be looked at as an
outsider. She knew that she was not involved at all in these behaviors, but
she still felt very uneasy about the situation.
How should Cindy react in this situation? |
Is it Cindy's place to step in and say anything, or should she stay out of the
situation all together? With so many different loyalties, between her coworker, her own values, her co-worker's wife, and her job, what is most
important in this situation?
Cindy is 27 years
young. She has
always been an
ambitious woman
and became even
more focused on
the job since she
broke up with her
friend, six months
ago. That was a
very sad thing and
a financial disaster
because of the
mortgage on their
home. She now
owns the house but
suffers huge debts.
Her co-workers
were very empathic
during the time of
the break up after
the emotional
breakdown she had
at the office.
Her team manager
is a kind of no
nonsense guy, who
just shows interest
in targets & results.
Gladly enough,
she’s able to make
it happen.
Ethical Theories
1.
2.
3.
4.
Utilitarianism
Deontology
Virtue Ethics
Relational Ethics
Utilitarianism
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Consequences
Pleasure and pain
Bentham and Mill
Pros & cons
Calculations
Drawbacks
Deontology
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Duty
Intentions
Immanuel Kant
Categorical imperative
Golden rule
Pros & cons
Drawbacks
Virtue Ethics
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Balance
Golden Mean
Aristotle & McIntyre
Learning perspective
Pros & Cons
Drawbacks
Relational Ethics
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The Other; the face
Relational within situational
Immanuel Levinas
Pros & cons
Drawback
Theories & Business Ethics
1. Utilitarianism
–
Common sense
2. Deontology
–
Hypothetical imperative
3. Virtue Ethics
–
(normative) Practices
4. Relational Ethics
–
Chain ‘management’
Theories & Culture
1. Utilitarianism
–
Often ethnocentrism
2. Deontology
–
Paradox with ‘universal’
3. Virtue Ethics
–
Useful i.c.w. practices
4. Relational Ethics
–
Challenge in relation micro, meso, macro
Theories & Christianity
1.
2.
3.
4.
Utilitarianism
Deontology
Virtue Ethics
Relational Ethics
• Case 2: A Lack of Outrage
• Larry is a young port engineer who works energetically for his shipping company,
overseeing repairs and related projects. He is proud when put in charge of a multimillion-dollar repair order for one of his company's ships. The repairs are
contracted out to a major shipyard, and everything goes smoothly until the end of
the project. When Larry is handed the bill, he realizes it has been inflated by
about one-third of total project costs.
• Larry is shocked. He has never been confronted by such an apparently corrupt
practice before. After delaying the "sign off" for a couple of days, he approaches
his boss, points out what is going on, and explains why he cannot sign off. His boss
asks for specifics, which Larry readily supplies.
• A meeting is arranged between shipyard and shipping company officials, who go
over the disputed items. They agree the shipping company is being overbilled by
millions of dollars. To Larry's surprise, there is little reaction from either side of
the table. Nor is there any definitive, ethical stance from his company.
• The meeting is adjourned until the next day, when shipyard officials offer to split
the difference. Both parties turn to Larry for approval, who explains he cannot sign
off on the adjusted bill, either. Again, the meeting adjourns with no apparent
reaction, and Larry is left in a daze.
• By the time of the third meeting, Larry begins to piece things together. Apparently
his superiors respect his integrity. They are following orderly procedures to arrive
at a final bill. But he cannot help noticing their lack of outrage and conviction.
What drives them to such a compromise? What could make such a fine company
turn a blind eye to such practices?
Needed…
Personal
Moral
Method
An example of a moral method
1.
2.
3.
4.
5.
6.
7.
8.
9.
What’s your first reaction / intuition?
What’s the core dilemma?
What are the facts?
Who are the stakeholders?
How are the different ethical theories involved?
How do I perceive this dilemma with my Philosophy of
Life?
What are the alternatives?
What’s my decision?
Do I really do it?
Pitfalls in moral reasoning
http://typeaparent.com/wp-content/uploads/2012/08/Social-Media-and-Blogger-Ethics.jpg
1. Unjust reduction to facts
http://akroot313.andrewkeir313.netdna-cdn.com/wp-content/uploads/cash-register.jpg
2. Supposed subjective character of
moral norms
http://static.someecards.com/someecards/usercards/1346537944622_3692660.png
3. Cultural restriction of moral norms
http://ethicsinpr.wikispaces.com/file/view/cultural%20relativism%20cartoon.png/453231810/cultural%20relativism%20cartoon.png
4. Confusion of ethics and law
http://t2.gstatic.com/images?q=tbn:ANd9GcQiNca5mCBdkbyEZXBf_C4qu_18i19kRLFqNXY1D6u6h1K0YBDu
5. Confusion of strategy and ethics
http://t0.gstatic.com/images?q=tbn:ANd9GcTAzLH-AkHyIN5mo7KbkKObNL2qaxv9Lt0s3fSb5dZCmB3kd07OkQ
6. Unjust reduction of corporate
responsibility to personal responsibility
http://research-methodology.net/wp-content/uploads/2013/10/Approaches-to-CSR.jpg
7. Unjust pushing off of responsibility
to other level
http://sceneenough.files.wordpress.com/2011/08/request__pushing_off_cliff_by_awsomegaby-d2y8voy.jpg
8. Inequality in relationship
Moral Competence
http://typeaparent.com/wp-content/uploads/2012/08/Social-Media-and-Blogger-Ethics.jpg
Moral Competence – Individual level
• See MCI at Site
• Moral Intelligence can be separated from
Cognitive, Emotional, Tactile forms of
Intelligence.
• Moral Intelligence can be recognized as specific
part of brain activity
“I think of a hero as someone who understands the degree of
responsibility that comes with his freedom” - Bob Dylan
Developing Moral Intelligence
Conditions - Personal
• Will & ability to reflect
• Will to grow
• Will to act consistently
Conditions – Organizational
• Learning organization
• Open culture (trust)
• Mutual dependency
• Assessing (recruitment, appraisal, promotion)
• Training
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–
–
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Awareness (mirroring)
Reflection
New behavior
Unlearn
• Role modeling
• Knowledge sharing
– Good practices
– Bad practices
http://www.pluggd.in/art-of-unlearningthe-must-have-trait-for-entrepreneurs-297/
Tools
But… how to combine organizational and
individual responsibility? 1
Solutions & Risks
1. Ostriches model (ignoring)
a) Being sued
b) Uncertainty within org
c) Conflicts
2. Power (the boss divides responsibility by
order, also afterwards)
a) Arbitrariness
b) Dependency
c) Subversive behavior
But… how to combine organizational and
individual responsibility? 2
3. Job descriptions
a)
b)
c)
d)
Eliminates innovative culture
Windows of opportunity keep closed
Risk avoiding
Some employees do all the extra tasks
4. Stewardship
a) Condition: culture of discipline
b) Depending on national culture (value of
independence, autonomy)
Case 3
• You work for a Danish company that builds tunnels. Your organization owns and maintains a number
of self-developed cutting machines (so-called tunnel boring machines or moles) that can cut tunnels
at the rate of at least 100 meters a day, and at the same time build the walls of a circular tunnel.
The company is very successful, because it is able to work fast while keeping disruption to
neighboring structures very low, especially in urban environments. Its corporate culture can be
characterized as a Guided Missile culture. The company is known nationally and internationally for
its honesty and transparency in decision making. Of course, the company works in international
contexts; among others, it's active in Istanbul (Turkey) to construct extensions of existing metro
tracks.
• Because of an increase in the number and complexity (both from a business and political
perspective) of projects, the CEO has decided to create a new director level position. The position
requires extensive business expertise, a thorough understanding of the tunnel boring industry and a
broad (inter)national political network.
• Two candidates remain after the final interviews and assessments (the other candidates simply do
not fit the position because of a lack of experience). The first is Kristian Larsen, a male external
candidate with a great business and political background. The second candidate is Hodaya Gottlieb,
a female candidate from within the company, who also has the required skills, networks and
knowledge. She grew up in Israel and has lived there until a few years ago, when she moved to
Danmark and started working for the company. Her Israeli culture, however, has not left her. She
still finds hierarchies important, focuses on the person and not on the task at hand, is usually more
neutral then affective, and is more specific then diffuse.
• After due consideration, the Vice President for Human Resources decides to offer the position to
Kristian. Kristian considers the offer for several days, but ultimately declines the offered position.
• The Vice President then meets with Hodaya, and offers her the position. Upon hearing the offer,
Hodaya pauses. She looks the VP straight in the eye and asks, “Was the job offered to the other
candidate first?”
• How do you, as Vice President, respond to the question of Hodaya?