BU288 Lecture Notes - Lecture 22: Role Conflict, Corporate Social Responsibility, The Slippery Slope
BU288 Lesson 22: Ethics in Organization
Ethics
-Code of moral principals and values that governs the behaviours of a person or group with
respect to what is right or wrong
-Ethical values set standards as to what is good or bad in conduct and decision-making
Ethical Principles/Decision Criteria
-Utilitarian: Behaviour is ethical if it delivers the greatest good to the greatest number of people
• Focus on outcomes; ends justify the means
-Rights: Behaviour is ethical if it respects the fundamental rights shared by all human beings
• E.g. Charter of Rights and Freedoms (free speech, due process, etc.)
• Problems: If we all have rights, what happens when these rights come into conflict
o E.g. Free Speech – does that mean we can say whatever we want or are there
limits
-Justice: Behaviour is ethical if it’s fair and impartial in its treatment of people
• Impose and enforce rules fairly
Ford Pinto Case
-Pinto was a Ford car from 1971-1980
-During design and production, crash tests, gas tank always ruptured in crashes over 25 miles/hr
-Ford did a cost-benefit analysis while analyzing the defective gas tank design – wanted to know
if it was cheaper to fix the problem or to pay compensation to victims
-According to Ford’s estimates, compensation would be $49.5 million per year while alterations
to cars were $137 million per year
-After families sued, Ford found out that the cost-benefit analysis submitted to the government
was wrong – cost of fixing each car wasn’t $11, but only $1
-What decision criteria were used?
• Utilitarian approach: Cost and benefits
-What issues does this raise?
-What other issues should have been considered?
Advantages and Disadvantages
-Utilitarian:
• Promotes efficiency, productivity
• Ignores right of some individuals
• Difficult to apply to values that can’t be easily quantified (e.g. health, life, employment)
-Rights:
• Protects individuals from injury consistent with freedom and privacy
• Creates overly legalistic environment
• Hinders productivity and efficiency
-Justice:
• Protects interests of under-represented and less powerful
• Encourages sense of entitlement
• Difficult to agree on the definition of ‘fairness’
find more resources at oneclass.com
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Document Summary
Code of moral principals and values that governs the behaviours of a person or group with respect to what is right or wrong. Ethical values set standards as to what is good or bad in conduct and decision-making. Utilitarian: behaviour is ethical if it delivers the greatest good to the greatest number of people: focus on outcomes; ends justify the means. Rights: behaviour is ethical if it respects the fundamental rights shared by all human beings: e. g. Charter of rights and freedoms (free speech, due process, etc. : problems: if we all have rights, what happens when these rights come into conflict, e. g. Free speech does that mean we can say whatever we want or are there limits. Justice: behaviour is ethical if it"s fair and impartial in its treatment of people. During design and production, crash tests, gas tank always ruptured in crashes over 25 miles/hr.
