Ethics MSOL CSU – Flashcards

-Employees are the end to the means. "Employees are a means to an end" is not permissible -Kant- "Human beings have a dignity that machines and capital do not have." -Corporate managers cannot manage in the "most efficient manner" without violating the respect for persons principle. -Humans have autonomy and are thus capable of self governing, therefore capable of taking responsibility. -Autonomous beings are not "simply subject to the laws of nature", but rather can make their own laws. -Moral agency - gives people dignity. derived from freedom and ability to make laws

-Producing Service: The Emotional Style of Offering the Service Is Part of the Service Itself Emotional labor vs. physical labor - the flight attendant vs. the boy in the wallpaper factory. Transition from jobs that produce a tangible product to a one of providing a service. The flight attendant hid fatigue and emotion for the contentment of the passengers. -being paid to to be courteous Emotional Labor - requires one to induce or suppress feeling in order to sustain the outward countenance that produces the proper state of mind of others

-Today's Risks/threats- power vacuum following collapse of cold war powers filled by coalitions of warlords or local bullies that do not recognize neutral parties and interpret acts as political, exposing employees to possible attacks. -How to Be Safer-education programs to lessen threats of disease, cultural training and preparing employees for attacks and first aid. -Simmering -How much responsibility do companies have for employee's safety in dangerous places? Use of locals and experienced employees who understand how to deal with the threats in dangerous regions.

-The competitive nature of modern business climate creates pressure for those involved to utilize bluffing to maintain an advantage with their competitors. As long as this bluffing does not break any rules or regulations that are established at the moment of the bluff, it cannot be deemed unethical. Analogies: -Poker: Everyone in the game expects bluffing= fair and ethical -Pleading Not Guilty: by admitting to being guilty the defence is at a disadvantage -Bluffing in interviews: Due to the highly competitive nature of the market, it is ethical that the applicant falsifies statements that they believe are not truly important to the nature of the job they are applying to if it provides them some advantage -We don't make the laws: The government has already created regulations, why should we have to ethically self govern if we aren't breaking the law?

-Bowie argues that Carr's poker analogy should not be applied to business -Bluffing/Deception undermines trust in relationships (eespecially collective bargaining agreements) -Collective bargaining is cooperative not competitive

-Feedback •Information on a Person's Behavior •Information on What Impact That Behavior Can Have on Others -Types of Feedback •Evaluative •Interpretive •Descriptive -Effective Feedback •Useful Content •Timeliness •Clarity and Accuracy -Tips on Providing Feedback This article explores a consultant's method to give feedback which involves helping another person to consider changing his or her behavior. In order to do so, one must give descriptive feedback—describing, as specifically as possible, what we have actually observed the individual doing. Then present the factual information, without judging the rightness or wrongness of the behavior (Evaluative) and without trying to figure out why the person may have behaved that way (Interpretive). The consultant must present information in such as way that it will reach the intended person and take affect. Tips for feedback include: useful content; timeliness; clarity and accuracy and one should remember that: Negative feedback is misunderstood much more readily than positive feedback; positive feedback that is too general has little impact; keep impersonal; tailor to the person; use humor when appropriate; and sometimes subtlety works best.

-Bullshit is not a lie, but phony information, not whole truth. Bullshit is stalling or pretending to know the answer when you really don't -Lying is a deliberate act to avoid the truth and its consequences (proposition that one must know the truth in order to lie) -Bullshitters are "creative" and can think on their feet, author shows almost respect for the "art"

-Lies Betrayed by Thinking Clues -Lying About Feelings -Feelings About Lying •Fear of Being Caught •Deception Guilt

-The Misunderstanding of Trust- takes the form of dangerous rationalization. If one trusts, then nothing needs to be said and it is bettere if nothing is said.. This causes the problem that trust cannot be discussed. Mentioning trust to another person is viewed as an indication of distrust. -Trust as an Emotional Skill- trust, like love finds its significance in the bonds it creates and can be cut short when betrayed or foolishly given. -Simple Trust- naive trust, trust that is not yet challenged i.e. the faith of a well brought up child. Blind Trust- stubborn, obstinate, possibly even self-deluding. -Basic Trust- consists of a sense of physical and emotional security which most of us happily take for granted, most blatantly violated in war and acts of random violence. -Authentic Trust- trust reflected upon, its risks and vulnerabilities understood, with distrust held in balance. Does not exclude or deny distrust but rather accepts it. -Trust is the opposite of control -Trust is dynamic, must be built and maintained -Guilt is an internal feeling, shame is an external recognition of guilt or wrong-doing

-Planning a Life - Luck or Fate? -Value Questions -Question Yourself on what is most important and what will sacrifice for happiness -Sets framework for importance of balancing "home" and "work" lives and keeping perspective

-Function of a good man is an activity which follows rational reason and which performs appropriate virtue. (Virtue ethics) -Happiness is something final and all other things are not final. -We learn morality from others beginning at an early age and through reason and logic we learn right and wrong. -Limitation is having the ability to rationalize post-fact what is right and wrong

-Proper Administration of Wealth -Separation of "haves" and "have nots" is a necessary byproduct of capitalism and benefits society as a while since encourages competition and innovation (utilitarianism) -The Use of Great Fortunes -Rich should be able to administer their wealth as they see fit since it will be more efficient and prevent squandered charity or misappropriations -One should only help those who can help themselves

-Greed: Inordinate love of money and material possessions, and the dedication of oneself to their pursuit -Paradox of Greed: through its aim to increase our pleasure through the purchase of goods/services it often comes at the expense of pleasure and happiness. Money & Possessions do not satisfy. -Capitalists often equate to happiness to wealth and freedom from restraint -Greed in America is disguised as "financial success, economic security, the good life, having it all" -Seen as good until it results in criminal behavior, extreme disruption of personal or family life (physical/emotional/relational, psychological health....) ** Man who would not take a vacation... got divorced ** Man who was not satisfied with wealth and hedonistic pursuits.... moved to vermont farm

-Coherence -Integrity and Importance -Integrity, Friendship, and the Olaf Principle -Having some principles and values will not violate -Defeasibly (sacrificable) vs Identity-Conferring (Core Value) Commitments -Greatest danger is in rationalizing the violation of integrity to prevent conflict vs admitting wrong doing and need to hold to values

-The Uses of Impersonal Interests •Relaxation •Sense of Proportion -Leads to better decision making -Happiness and "Greatness of Soul" -Mans mind will mirror the greatness of the world

Article focuses on "Managing earnings" (adjusting #s to change earnings reports to meet the expectations of shareholders and analysts). They usually start small and get out of hand, costing shareholders millions of dollars. Corporations do it since they know if they don't predict their earnings accurately their stocks will plummet ("Cult of Consistent Earnings"). SEC is attempting to crack down on violators and increase oversight, but they have met opposition. -Expectations as the Fundamental Reason for "Managing Earnings" -"Making numbers" has led to corporations cutting corners to get ahead; "Cult of Consistent Earnings" -The Fundamental Problem with Earnings-Management -Obstacles in Pursuing Corporate Criminals

Mind-boggling corporate structures, pressure to keep earnings looking good for Wall Street, and negligent board directors all contributed to the wave of scandals. Culture of "good-times keep rolling resulting in excessive CEO compensation. This pressure plus the complexity of the businesses being audited coupled with a faster demand for information led accountants with a much more difficult job where "you were always trying to come up with approximately the right answer instead of the right answer." Boards failed in oversight. "It really isn't about ethics, it's do your job." Unfairly Scapegoated? -Difficult Accounting Due to Complex Business Structure -Ethics in financial profession has declined due to organizational and corporate growth and the demand for knowledge -CEOs are focused on near-term maximization of profits De Wine's Consultant's Craft : If accountants are the consultants of the organization, they owe it to the organization to give a fair and accurate report.

-Financial Markets •Unfair Trading Practices •Fair Conditions •Financial Contracting -Financial Services •Fiduciaries and Agents •Sales Practices •Financial Services Firms -Financial Management •Balancing Competing Interests •The Level of Risk •Hostile Takeovers

-3 Ethical Arguments Against Insider Trading (all can be rationalized, and made legal) •Fairness, Property Rights in Information, Harm -Is There Anything Wrong with Insider Trading? •Good:Information is Positive, Profit by Creating Inside Information •Bad: Free Riders, Deflect Employee Attention to Major Changes Within Company, allows employees and managers to profit even with failure of the business... lack of reason to look out for business interests. -Best argument against according to Moore: loss of trust in fiduciary relationship - would cripple american system. Lack of trust that they are doing the best thing for you with your money and not them.

-Finance cannot be rational because it is not human -Deception by banks on how they packaged the mortgages- is this ethical? It boils down to whose responsibility it is to control Bank lending and type of mortgages -Banks knew that the loans that they were creating were wrong and would eventually lead to decline (government knew but did not feel responsible → Ethical?) -$6 Billion dollar debt on future generations that need to handle past mistakes- ethical for past generations to create such burden for future generations (a good point brought up in class about this article)

-Constraints on Justice-Can any man can be so virtuous that he could resist the temptation of being able to perform any act without being known or discovered. -Morality is only a social construction the source of which is the desire to maintain one's reputation for virtue and justice. Hence, if that sanction were removed, one's moral character would evaporate.

We differ from animals in that we can barter and exchange with others utilizing our innate talents and dividing labor to create more unlike the animal that is alone in individuality. Man does not help one another on benevolence alone. Instead he must involve the others self love--the others interest--in his own. That is how barters and exchanges come about. Due to this division of labor, men of develop different talents and genius. He asserts that the difference between men's natural talents is not large but results from the habit, custom, and education. -Self-Love -Differences in Talents -The Effects of the Differences in Genius and Talent -Introduces the ideas of division of labor and comparative advantage as the keys to maximizing the allocation of resources (Humans are the only creatures that do this)

-Economic justice vs. cost savings. -An aggressive article against Wal-Mart labor practices. Latin-American countries that have small job opportunities and them giving in to Wal-Mart and their "cut cost" practices. -Is it "just" for Wal-Mart to pay employees (in other countries) .40 cents an hour because the country needs their jobs? The utilitarian approach states that wal-mart does the most good for the most amount of people. Wal-Mart employs so many people and does more good than harm. Wal-Mart's practices are based on the laws of the country they are doing business in. Is it exploitation of cheap labor to provide cheap products to the masses? Are people a means to an end (Bowie)?

-A person can choose where they work does not justify ill-treatment from employers. Meaning if a person chooses a low-end job should they be allowed to be treated poorly (freedom of choice but not many viable options) -Self enslavement: willing to be a "slave" to obtain life necessities (food/shelter/protection) -Exploitation-using one's power over others to determine what people need and what they should be willing to trade to have their needs filled

-The "Initial Situation" -The Two Principles of Justice 1)Equality in the assignment of basic rights and duties - Liberty principle 2)Social and economic inequalities are just only if they result in compensating benefits for everyone, especially the least advantaged members of society -difference principle. -Guaranteeing Justice -The General Conception of Justice -Government has a hand in the distribution of justice.

-Absolute poverty and the Obligation to Assist. -Absolute poverty in the world- lack of sufficient income in cash or kind to meet the most basic biological needs for food clothing and shelter. Absolute Poverty: life at very margin of existence -Absolute affluence: income beyond what is required to meet the basic needs of life -He gives the drowning child example and if something is in our power to prevent w/o sacrificing anything of comparable moral significance, we should do it.

-In capitalist society, justice is shown in the form of rewards based on individual input to the economy -Social Justice - Government should be more active; a protest against the capitalist distribution = redistribution and income equality -In "Theory of Moral Sentiment" Smith argues rich should reinvest. Capitalism isn't soulless because human beings recognize social responsibilities to each other -There is no just society - capitalism is a workable conception of justice

-The Immoral Consequences of Morally Inspired Efforts -In the Great Society "Social Justice" Becomes a Disruptive Force -Discussion on how social justice is anti-capitalism and tends to make the market move backwards towards socialism, which is inherently flawed Danger of social groups and seeking the justice of the group, as it prevents those outside the group from being seen as just Emergence of special interest groups and their attempt to force their inner-group values and "justice" on the Greater Society. Touches on the idea of entitlement and "social liberalism" and individuals/groups establishing what they think they deserve. Supports above note about moving backwards towards socialism.

Argues that the unequal distribution of wealth in America is a result of capitalism and industrialization Chance and luck are the driving forces behind the rich getting richer, and makes it harder for the poor to succeed Used a computer model to prove that chance results in inequalities and widens over time