Ethics:
Lots of Rocks and Hard Places
A Presentation To
Association of Government Accountants
Michael Poulton
Dickinson College
Types of Ethical Approaches
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Ego systems
Utilitarianism
Ethical Formalism
Rights
Justice
Egalitarian
Libertarian
Social Contact
Ethic of Caring
Stakeholder
Virtue ethics
Egoism
• Do whatever creates “happiness”
– Not merely things that “feel good”
– Things that makes us feel good about our lives
• Self-interest paramount
• Self-interest collectively will benefit all
• Rational reconciliation of self-interest conflicts will
benefit all (Adam Smith)
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Problems:
What does “happiness” mean?
Can we really resolve self-interest conflicts?
Can we always be that rational?
How does self-interest influence our decision-making?
Utilitarianism (teleological)
(Mill/Bentham)
• Looks at the rightness or wrongness of the
consequences of action
• An act is neither good (a utility) or bad (a disutility),
only the results can be measured(JS Mills and J
Bentham)
• The good solution is one that benefits, in total, the
greatest number of individuals
Problems:
• The “good” may sacrifice some individuals
• Who gets what portion of the “good”?
• How do you measure benefits and costs?
Ethical Formalism (deontological)
(Immanuel Kant)
• Motives of an act more important than consequences
• Do things because it is our “duty” to others to do them
• Universality of principal is necessary
• Each human is respected
• Each is free to chose if an act is moral or not
Problems:
• Situations differ. Can the universal really apply?
• Can consequences be ignored?
• What about cultural or perceptual differences?
Justice Approach
• The administration of that which is “just” in terms of
reward or punishment
• Distributive justice – how a society distributes is blessings
and burdens
• Compensatory justice – how do we compensate those
who have been wronged
• Retributive justice – how to we punish or penalize those
who do wrong?
Problem:
• Can the application of justice always be equal?
• Do motivations mean anything?
• What about mitigating circumstances?
Rights Approach
• Rights do not come from reason, but are rights to
which we are all inherently entitled
• Moral rights cannot be changed by politics
• Negative rights – exercise rights w/o undue influence
from the state or anyone
• Positive rights – someone has to protect the rights we
all have – equal treatment
Problem:
• Are these rights truly universal?
• Who defines what those rights are?
• What if a sovereign state denies rights? Then what?
Egalitarian Approach
(John Rawls)
• All individuals are equal and have equal claim to all
of societies goods and services
• Rawls – “Veil of ignorance” in applying justice
independent of race, wealth, etc.
– each person must have the same liberty possessed by all
others
– social and economic inequalities are accepted only if they
benefit everyone
Problem:
• Can the problems of utilitarianism be resolved this
way?
• Can the “veil of ignorance” ever be realizes?
Libertarian Approach
(Robert Nozick)
• Only “right” is to be left alone plus
– right of acquisition
– right of transfer
• Freedom from coercion from whatever source,
government or otherwise
• No other freedom is recognized
Problem:
• Are we so heartless? Is it really dog-eat-dog?
• What about natural differences in people?
• How to we handle the social aspects of our lives and
how do we pay for them?
Social Contract
(Donaldson and Dunfee)
• Business has a “social contract” to supply the goods
and services people want
• Only legislation can change the contract
• Integration of the social contract theory by:
– Application of universal, globally applied hypernorms
that must be recognized
– Respect for local community norms
Problem:
• Can this be applied to every problem?
• Who defines the contract? hypernorms? are they
truly universal?
• Wouldn’t a virtuous person do this anyway?
Ethics of Caring
• Origins in Buddhist and Feminist Ethics
• We are all connected
• We all have an obligation to care about the
plight or suffering of others
• To ignore others is to ignore ourselves
Problem:
Can we really be responsible for all
suffering?
Can we always be in a position to respond?
Can one pick and choose what one cares
about?
STAKEHOLDER APPROACH TO ETHICS
(Kenneth Goodpasture)
COMMUNITY
VIA
SEC
OSHA
EPA
FDA
LAW, GOVERNMENT
REGULATION
EMPLOYEES
INDUSTRY
CUSTOMERS
FINANCE INST
?
SUPPLIERS
BUSINESS ACTIVITY ?
SHARED VALUES
CORPORATE
LEADERSHIP
VIA
STOCKHOLDERS,
LABOR MARKETS,
FINANCIAL MARKETS
MARKETS AND PROFITS
Ethics of Virtue (Aristotle)
• Traits that a good person should possess.
• Not an ideal of how we ought to behave, but rather
what we do is an integral part of our nature.
• We are what we do in various ethical situations
because of who we are.
Problem:
• Who decides what “virtuous” is?
• What do we do in specific circumstances?
• How do we define what is a good or bad act?
• What is the basis for morality, here?
US Boy Scout Oath
A Scout is:
TRUSTWORTHY
LOYAL
HELPFUL
FRIENDLY
COURTEOUS
KIND
OBEDIENT
CHEERFUL
THRIFTY
BRAVE
CLEAN
REVERENT
Girl Scout Oath
I will do my best to be
honest and fair,
friendly and helpful,
considerate and caring,
courageous and strong, and
responsible for what I say and do,
and to respect myself and others,
respect authority,
use resources wisely,
make the world a better place, and
be a sister to very Girl Scout
Israeli Scout Oath
A Scout is:
- trustworthy
- loyal to his people, his country and his language
- a useful member of society, loves work, and helps others
- a friend to everyone, and brother to all scouts
- is polite
- loves nature and protects it
- is obedient
- never loses hope
- thrifty
- is pure in his speech and deeds.
Chinese Scout Oath
A Scout will exhibit always:
Honesty
Loyalty and filial devotion
Helpfulness
Loving kindness
Courtesy
Justice
Responsibility
Cheerfulness
Industriousness and thrift
Courage
Cleanliness
Public spirit
Japanese Scout Oath
A scout is faithful
A scout is friendly
A scout is courteous
A scout is kind
A scout is cheerful
A scout is thrifty
A scout is courageous
A scout is thankful
Waffen Schutzstaffel (SS)
Loyalty
- Unparalleled and wholehearted
- Dedicated to a life full of care, full of responsibility, full of work
Obedience
- Orders are sacred
- You cannot expect obedience, if you are not obedient yourself.
Bravery
- Our bravery can never be questioned
Truthfulness
- If we keep agreements, we must keep them
- If we make a promise, it must be kept
- A promise is sacred.
An Accountant should exhibit:
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Integrity
Objectivity
Professional Competence and Due Care
Confidentiality
Professional Behavior
Independence
An accountant should reject the threats of:
• Self-interest
• Advocacy
• Familiarity
• Self-review
• Intimidation
An Ethical Framework
Socrates Visits Wall Street:
A (post-meltdown) Dialogue on Ethics and Leadership
Thomas I. White
Copyright 2011
Every art and every inquiry, and similarly every
action and pursuit, is thought to aim at some
good; and for this reason the good has rightly
been declared to be that at which all things aim.
Aristotle - The Nicomachean Ethics 1094a (Book I, Ch. 1)
What do we want to achieve? What’s the aim?
BETTER LIFE
How can we achieve a good life for everyone?
BETTER LIFE
DIVIDE UP THE WORK
How do we divide up these jobs to achieve this better life?
BETTER LIFE
DIVIDE UP THE WORK
BUSINESS
GOVERNMENT
EDUCATION
SCIENCE
MEDICINE
RELIGION
ARTS
What do these divisions give us? What do we mean by a “better life”?
BETTER LIFE
KIND OF LIFE
DIVIDE UP THE WORK
BUSINESS:
WORKOBS MAKING MONEY
GOVERNMENT:
EDUCATION:
SCIENCE:
MEDICINE:
RELIGION:
ARTS
ORDER, PROTECTION , ACCOUNTABILITY, JUSTICE
GAIN AND SHARE KNOWELEDGE, SKILLS
FIND NEW FRONTIERS AND CREATE NEW THINGS
HEALTH
WAYS TO RAISE OUR SPIRITS OR COPE
CREATE THINGS OF BEAUTY
Is the point of a governmernt ? What is its purpose?
BETTER LIFE
KIND OF LIFE
FAIRNESS
DIVIDE UP THE WORK
BUSINESS:
GOVERNMENT:
EDUCATION:
SCIENCE:
MEDICINE:
RELIGION:
ARTS
MAKING MONEY GOODS, SERVICES
ORDER, PROTECTION, ACCOUNTIBILITY , JUSTICE
KNOWELEDGE, SKILLS
FIND NEW FRONTIERS AND CREATE NEW THINNGS
HEALTH
WAYS TO RAISE OUR SPIRITS AND COPE
CREATE THINGS OF BEAUTY
What is a “good”? What is “money”?
BETTER LIFE
KIND OF LIFE
FAIRNESS
DIVIDE UP THE WORK
PRODUCING GOODS, SERVICES THAT WE WANT
BUSINESS:
GOVERNMENT: ORDER, PROTECTION , ACCOUNTIBILITY , JUSTICE
EDUCATION: KNOWELEDGE, SKILLS
SCIENCE:
FIND NEW FRONTIERS AND CREATE THINGS
MEDICINE: HEALTH
RELIGION
RAISE OUR SPIRITS AND COPE
ARTS
WAYS TO CREATE THINGS OF BEAUTY
What other things besides fairness should better life consist of?
BETTER LIFE
KIND OF LIFE
FAIRNESS,
DIVIDE UP THE WORK
BUSINESS: ,
GOVERNMENT:
EDUCATION:
SCIENCE:
MEDICINE:
RELIGION:
ARTS:
PROVIDING GOODS, SERVICES THAT WE WANT
ORDER, PROTECTION, ACCOUNTIBILITY , JUSTICE
GAIN AND SHARE KNOWELEDGE, SKILLS
FIND NEW FRONTIERS AND CREATE NEW THINGS
HEALTH
RAISE OUR SPIRITS AND COPE
WAYS TO CREATE THINGS OF BEAUTY
RESPECT,
TREATING
OTHERS THE
WAY YOU’D
WANT TO BE
TREATED
What else should we expect?
BETTER LIFE
KIND OF LIFE
DIVIDE UP JOBS
BUSINESS: MAKING MONEY, PROVIDING GOODS, SERVICES THAT WE WANT **
GOVERNMENT:
ORDER, PROTECTION. ACCOUNTABILITY, JUSTICE
KNOWELEDGE, SKILLS
EDUCATION:
SCIENCE:
FIND NEW FRONTIERS AND CREATE NEW THINGS
HEALTH
MEDICINE:
RELIGION:
RAISE OUT SPIRITS AND HELP US COPE
ARTS:
WAYS TO CREATE THINGS OF BEAUTY
FAIRNESS,
RESPECT,
TREATING
OTHERS THE
WAY YOU’D
WANT TO BE
TREATED
DO NO HARM
TREAT OTHERS
APPROPRIATELY
“Ethical Yardstick”
What’s an important way for any organization to treat
others?
- DO NO HARM
- TREAT OTHERS
APPROPRIATELY
-KEEP PROMISES TO:
Clients
Employees
Employers
Individuals
- DO NO HARM
- TREAT OTHERS APPROPRIATELY
- KEEP PROMISES TO:
Risk trust
Clients
Employees: Biggest risk
Customers: Consumer sovereignty
Vendors:
Equitable dealings
A Basis for Corporate Values
KIND OF LIFE WE WANT / A DECENT LIFE
ETHICS
DO NO HARM/PREVENT HARM
+
TREAT OTHERS APPROPRIATELY
+
KEEP OUR PROMISES
THINGS ANY MANAGER MUST ASK EVERYDAY ----- DO OUR ORGANISZATIONAL ACTIONS MATCH OUR VALUES ?
-- ARE WE TREATING EVERYONE FAIRLY AND APPROPRIATELY ?
-- IS ANYONE BEING HURT AS A RESULT OF WHAT WE DO ?
-- WHAT IS THE RISK OF DOING HARM IN THE FUTURE, THAT IS, HAVE WE
THOUGHT ABOUT THE SECONDARY, EVEN TERCIARY CONSEQUENCES OF WHAT WE
ARE ABOUT TO DO?
-- ARE WE KEEPING OUR PROMISES
-- DO WE REWARD ETHICAL BEHAVIOR?
So, what to we do if we witness something
unethical, illegal or just unfair?
A Definition for Our Times
“ . . the capacity to do what one judges as
ethically called for in spite of one’s instinctive
reaction to the perceived dangers and
difficulties in which such an action will result.”
Moral Courage
• Courage = the capacity to cope with fear
• Recognizing/accepting the fear of the loss of
what we have
– Our lives
– Livelihood
– Peer acceptance
– Prestige
– Authority
– Self-respect
Lex parsimoniae
We are human and, therefore, fallible with our
bounded rationality, should we try to chose the
most complicated possible solution. Thus, when
faced with complicated or even conflicting
alternatives in an ethical situation, we should
apply Occam’s Razor and chose the simplest one.
The simplest ethical alternative is to simply do
one’s duty.
A Credo
It is one’s duty to be an active participant,
personally and at work, in social discussions
defining the “good life” for everyone and do all
that is necessary to achieve it, giving full
consideration to the notions of justice, fairness
and human rights. It is also one’s duty to have
the moral courage to lead the way or help in
any way you can to stop whatever you consider
unjust, unfair, unsustainable or inherently
cruel. But if you find that you are unable help,
then personally and professionally do no
additional harm to anyone or anything.
The End
Thanks