Title: Governance and Ethics (within decision making)
1Governance and Ethics (within decision making)
2Objectives of material
- How should Managers behave?
- Who should Managers be responsible to?
- Governance and Governance and ethics, (the
business dimensions for concern) - Code of Governance and ethics
- The rise of the green agenda and ethical business
- Environment complexity
3Ethical Issues Faced by Managers
- Bribery
- Conflicts of interest
- Environmental protection
- Fairness
- Fraud
- Honesty in research and testing
- Public safety
4Definitions of Governance and Ethics
- Governance and ethics is the study of the
characteristics of morals - The moral choices that are made by each person in
their relationship to others - Engineering Governance and ethics is the rules
and standards governing the conduct of engineers
in their role as professionals
5A Definition of Ethics
-
- A mans ethical behavior should be based
effectually on sympathy, education, and social
ties no religious basis is necessary. Man would
be in a poor way if he had to be restrained by
fear of punishment and hope of reward after
death. - Albert Einstein (1879-1955)
6Governance and Ethics Provides Framework for
Decision Making
- The concepts are not aimed at making the decision
maker a good person or a bad person - Ethical problems are complex
- The choice between right and wrong is often
complex and overshadowed - Analytical tools need to be applied to break the
question down to its core elements - The correct decision is often obvious at the
rudimentary level
7Governance and Ethics Across the World
- General philosophy behind Governance and ethics
is non-religious - Human societal experience
- Not for Greeks see Ulysses
- Location or tradition independent
- What is considered to be unethical in one
location will be considered unethical in another - Ethical behavior doesnt change just because of
local circumstance
8Similar to other Management Disciplines
- No unique correct solution
- Range of answers with some better than others
- Apply a large body of knowledge to the problem
- Involve the use of analytical skills
9Moral Theory
- Utilitarianism
- Produce the most overall utility
- Duty Governance and ethics
- Duties should be performed regardless of outcome
- Rights Governance and ethics
- Moral rights can not be violated
- Virtue Governance and ethics
- Good character traits (virtues) vs. bad character
traits (vices)
10Utilitarianism
- Risk-benefit analysis and cost-benefit analysis
- Ultimately tied together
- Can seem to ignore the needs of the individual
- The needs of the many outweigh the needs of the
few or the one - Spock from The Wrath of Khan - Outcome prediction is key to application
- Act utilitarianism and rule utilitarianism
- Act utilitarianism only outcome counts
- Rule utilitarianism must stay within boundary of
law even if outcome is limited Because of
unintended consequences
11Duty and Rights Governance and Ethics
- Good Consequences for Society as a whole are not
the only moral consideration - Duty Governance and ethics
- Ethical actions can be written as a list of
duties - Be honest, dont cause suffering, be fair, etc.
- Rights Governance and ethics
- People have fundamental rights
- Life, liberty, and the pursuit of property
(happiness) interesting change
12Duty and Rights Governance and Ethics (cont.)
- Opposite sides of the same coin
- Duty Governance and ethics people have certain
duties one of which is to protect the rights of
others - Right Governance and ethics people have
fundamental rights that others have a duty to
protect - Problems
- Conflicts between ones rights and anothers
- Doesnt account for the overall good of society
very well
13Virtue Governance and Ethics
- Fundamentally interested in determining what kind
of people we should be - Virtue is often defined as moral distinction and
goodness - Actions are deemed right if they support good
character traits - Personal morality should not be separated from
business morality - Virtuous behaviors should extend from personal
life into his or her business life
14Personal vs. Corporate Morality
- A company cannot be a moral agent
- Legal authority is diminished
- As a pseudo moral agent they should however be
held to the same standard as individuals - A corporation cannot do whatever it pleases
- Must respect right of others
- Demonstrate same virtues that we expect of
individuals
15Which Theory to Use?
- Many times the different theories lead to the
same conclusion (THE GREEN ISSUE) - A chemical plant releasing toxins into watershed
- Utilitarianism vs. Rights
- Some cases lead to conflicting conclusions
- Duties and rights Governance and ethics
conclusion weighted more heavily - One life lost effect
- Rationalization of 55 mph vs. 65 mph speed limits
- Right to smoke, drink and take drugs vs societal
effects
16Analysis of Issues in Ethical Problems
- Factual
- What is actually known about a case
- May be unclear and controversial
- Conceptual
- Meaning or application of an idea
- What constitutes a bribe vs. a gift?
- Moral
- Usually obvious when factual and conceptual issue
resolved - If the gift was a bribe, then it clearly was
unethical
17Overcoming Controversy
- Reaching Some Acceptable Agreement through
Compromise - Factual
- Factual issues can often be resolved with
research to determine the truth - Conceptual
- Agreement on the meaning of terms and concepts
- Not always possible - best level playing field
- Moral
- Agreement on which moral principles are pertinent
and how they should be applied
18Ethical Problem-Solving Methods
- Six Steps to a Responsible Decision
- Adapted from the University of Michigan
Engineering Governance and ethics Web Page
19Six Steps to a Responsible Decision
- 1. Goals
- Summarize the goals of your project in one or two
sentences, ideally around 40-60 words. - 2. Players (stakeholders)
- List all the players who are affected by or have
an interest in your project - Rank each one as a major/average/minor player
- provide a brief explanation (one or two
sentences) of how each player is affected or
their interest in your project
20Six Steps (cont.)
- 3. Facts and Standards
- Collect information on the engineering facts as
well as the engineering safety and regulatory
standards that have bearing on the decisions you
will be making on this project - 4. Ethical Dilemmas
- Before you begin and as you continue to work on
your project, draw up a comprehensive list of
ethical dilemmas you will confront
21Six Steps (cont.)
- 5. Solutions
- Explain how and why you propose to resolve the
ethical dilemmas identified in Step Four - 6. Double-check
- Review your most controversial decisions from the
perspective of players who's interests your were
not able to satisfy, an appropriate engineering
society ethical code, and the reaction of
friends, family, and project advisor
22Professional Codes of Governance and Ethics
- Professional society charters typically include a
code of Governance and ethics - Provides a framework for ethical judgment
- Some codes are enforceable
- Medicine and Law
- Codes of engineering societies
- Generally unenforceable
- May help bolster an individuals position when
confronting an ethical issue imposed by a
superior - Few engineers aware of the codes
23National Society of Professional Engineers
- Code of Governance and ethics and pledge
- As a Professional Engineer, I dedicate my
professional knowledge and skill to the
advancement and betterment of human welfare. - I pledge
- To give the utmost of performance
- To participate in none but honest enterprise
- To live and work according to the laws of man and
the highest standards of professional conduct - To place service before profit, the honor and
standing of the profession before personal
advantage, and the public welfare above all other
considerations. - In humility and with need for Divine Guidance, I
make this pledge. - Adopted by National Society of Professional
Engineers, June 1954
24The Role of Codes in Law
- Can a professional society and its code help you?
- Support of professional society gives credence to
ethical cases in court - Validates the engineers concerns but may not
keep the engineers job
25Some Study Questions
- The basis for choosing a particular way for
implementing a decision is not governed merely by
considerations of conventional logic or
rationality. Decisions are also likely to involve
considerations of justice and fairness as
perceived by various stakeholders and by
considerations of personal Governance and ethics
or morality as perceived by different persons. - Making decisions is by and large what project
managers do. How well (or effectively) they make
such decisions will be based on the criteria of
behavioural history, situational beliefs,
personnel and ethical values, social and
occupational norms, personality, and
environmental constraints. - If we wish to encourage ethical risk taking, we
must be prepared to accept and recognise that
people will fail from time-to-time. Having
absolute success without experiencing failure is
almost impossible in business.