Heath Anderson
Assignment 2 Addendum
Q2) The business environment is where the CEO of the Chicago hotel first becomes aware of his
ethical dilemma.
I will assume that CEO of the Chicago hotel is on level one of Kohlberg’s stages of Cognitive
Moral development – the stage of punishment and obedience. People at the level one stage
define what is ethical by literal obedience to what is right and wrong. Physical power defines
what is right and wrong. People at the level one stage engage in unethical activity if they know
that they will not be caught and it will benefit them.
If I assume that CEO of the Chicago hotel is on level one of Kohlberg’s stages, of necessity, he is
also an egoist. Egoism is the philosophy that espouses selfish motives and consequences for the
individual. Furthermore, the CEO of the Chicago hotel is an enlightened egoist – a person that
helps themselves first but also seeks to help others when convenient.
The CEO of the Chicago hotel will then make the decision on whether to use his business
relationship with Sherman to benefit his wife. Instead of helping his wife (someone other than
himself), the CEO of the Chicago hotel may determine his self interests are best served by
maintaining Sherman’s relationship with the hotel as is and not interjecting the topic of the
endowment. However, if the CEO of the Chicago hotel reasoned that by helping his wife he is
ultimately helping himself, he may use the business relationship with Sherman as leverage to
help his wife. Additionally, the CEO of the Chicago hotel acting as an enlightened egoist might
use his business relationship as leverage by reasoning that everyone wins - Sherman wins, the
wife wins, scholarship recipients win but most importantly the CEO of the Chicago hotel wins.
Now, we have to remember that although CEO of the Chicago hotel made this decision by
himself, he was influenced by organizational characteristics such as significant others,
opportunity and culture. While the CEO is at the top of the organization he has definitely been
influenced by somebody before he became what he is today.
Given the fact that the CEO of the Chicago hotel is an egoist, it stands to reason that his fellow
colleagues (significant others) may also be egoists and behave in like manner. The “You scratch
my back, I’ll scratch your back” way of thinking in this case is well within the law.
Opportunity deals with rules and regulations that govern workers in the workplace. He’s the CEO
of the organization and CEOs have to play above the rules sometimes. Plus, those breaking the
rules wouldn’t be punished. Therefore the opportunity is present for the CEOof the Chicago hotel
to act in a questionable fashion.
The culture of the corporation also would be one of factors that fosters unethical activity. What
values does the organization accept and what sort of example would the CEO want to set for the
organization? An example might be a lackadaisical attitude that permeates the corporate
environment. Perhaps there is an anything goes as long as you show results attitude. Without a
doubt the organizational culture could be one that allows the CEO of the Chicago hotel to act
without regards for ethics.