{"id":36,"date":"2023-04-13T20:03:32","date_gmt":"2023-04-14T00:03:32","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/ethicalmanagementanddecisionmaking\/?post_type=part&p=36"},"modified":"2025-02-28T12:50:54","modified_gmt":"2025-02-28T17:50:54","slug":"resources","status":"publish","type":"part","link":"https:\/\/pressbooks.bccampus.ca\/ethicalmanagementanddecisionmaking\/part\/resources\/","title":{"raw":"Resources","rendered":"Resources"},"content":{"raw":"Ethics Book<\/strong>\r\n\r\nhttps:\/\/openstax.org\/books\/business-ethics\/pages\/8-2-accommodating-different-abilities-and-faiths<\/a>\r\n\r\n \r\n
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Ethical Decision-Making<\/h1>\r\n

Right vs. Wrong - Issue<\/h2>\r\n

Case Study<\/h3>\r\nAngela works at an office where information is shared among colleagues and everyone shares their ideas openly. Today at the office meeting the team was assigned to think of a workplace scenario and bring it to the meeting the next day. When the next day arrives Angela realizes she forgot about the assignment and did not prepare, but she remembers her colleague Audrey sharing what her scenario was going to be at the last meeting. Angela decides to go first and blurts out Audrey's original scenario, leaving Audrey blank when her turn comes. In this situation, there is a clear decision on what is right and what is wrong.\r\n

Right vs. Right - Dilemma<\/h2>\r\n

Case Study<\/h3>\r\nIn 1958 Dick founded a successful distribution business, Affiliated Steam Equipment Co., in Alsip, Illinois. Dick has 1 son - Rick, and two daughters. As of 1993 Rick was the only active or interested child in the business. He had worked in the company for 15 years, and for all practical purposes had been running it for the last six. Rick, 44, was ready to take over full control and ownership, but Dick, at 81, wasn\u2019t ready to turn it over without some assurances.\r\n\r\nThe father named certain conditions connected with a sale, including some continuing income, financial performance criteria, and several perks he had enjoyed. He considered these minimal reward for 40 years of hard work, and would not sell to his son or anyone else without them. Dick also wanted to make sure that all three of his children would be treated equally in his estate plan, which might necessarily include transferring some stock to his daughters.\r\n\r\nRick, at his age, was not willing to continue building the business unless he had assurance of complete ownership. He could see the writing on the wall: He would dedicate his time and energy to building the business, only to pay twice by later having to buy out the shares held by his non-active siblings. He was not willing the pay his two sisters for what he alone had built, yet he also believed in fair treatment of everybody in his father\u2019s estate plan. As a buyer, he felt that a fair sale price was sufficient reward for the seller of any business, and that the proceeds would create the liquidity needed to support equal distribution of his father\u2019s estate.\r\n\r\nWho is right?\r\n\r\nhttps:\/\/www.familybusinessmagazine.com\/ethical-dilemmas-right-vs-right<\/a>\r\n

Influences on Ethical Behaviour<\/h2>\r\n

Individual Factors<\/h3>\r\n

Factors<\/h4>\r\n

Level of Control for Manager<\/h4>\r\n

Issue Intensity<\/h3>\r\n

Factors<\/h4>\r\n

Level of Control for Manager<\/h4>\r\nCase Study - Identify the Issue Intensity for this scandal.\r\n\r\nIn September 2016, Wells Fargo announced that it was paying $185 million in fines for the creation of over 2 million unauthorized customer accounts. \u00a0It soon came to light that the pressure on employees to hit sales quotas was immense: hourly tracking, pressure from supervisors to engage in unethical behavior, and a compensation system based heavily on bonuses.\r\n\r\nWells Fargo also confirmed that it had fired over 5,300 employees over the past few years related to shady sales practices. CEO John Stumpf claimed that the scandal was the result of a few bad apples who did not honor the company\u2019s values and that there were no incentives to commit unethical behavior. The board initially stood behind the CEO but soon after received his resignation and \u201cclawed back\u201d millions of dollars in his compensation.\r\n\r\nFurther reporting found more troubling information. Many employees had quit under the immense pressure to engage in unethical sales practices, and some were even fired for reporting misconduct through the company\u2019s ethics hotline. Senior leadership was aware of these aggressive sales practices as far back as 2004, with incidents as far back as 2002 identified.\r\n\r\nThe Board of Directors commissioned an independent investigation that identified cultural, structural, and leadership issues as root causes of the improper sales practices. The report cites: the wayward sales culture and performance management system; the decentralized corporate structure that gave too much autonomy to the division\u2019s leaders; and the unwillingness of leadership to evaluate the sales model, given its longtime success for the company.\r\n\r\nhttps:\/\/www.scu.edu\/ethics\/focus-areas\/business-ethics\/resources\/wells-fargo-banking-scandal\/<\/a>\r\n

Organizational Culture<\/h3>\r\n

Factors<\/h4>\r\n

Level of Control for Manager<\/h4>\r\nCase Study - Would having good organizational culture make the situation different? How would it?\/How would it not?\r\n\r\nOne year after becoming CEO of Starbucks, Kevin Johnson faced a leadership test when two black men were arrested in a Philadelphia Starbucks. \u00a0The men were waiting to meet a business associate, but they didn\u2019t purchase anything while they were waiting. The store manager asked them to leave, and they refused, explaining that they were there to meet someone. The manager called the police because the men refused to leave, and the police arrested them.\r\n\r\nAnother patron at Starbucks\u00a0recorded the arrest\u00a0on her cell phone, and it quickly went viral. In an interview after the arrest, the woman who took the video mentions that she had been sitting there for a while, and she wasn\u2019t asked to leave even though she didn\u2019t order anything. \u00a0Additionally, the video shows the business associate of the black men show up during the arrest, and he asks the manager and the police what the men had done wrong. The general public and those who witnessed the arrest labeled it as discriminatory and racist.\r\n\r\nThis happened on a Thursday and the following Monday, Johnson said that the manager no longer worked at the store. \u00a0The arrests led to\u00a0protests and sit ins\u00a0at the Philadelphia Starbucks the days following the event.\r\n\r\nIn his apology\u00a0statement\u00a0and\u00a0follow up video\u00a0release shortly after the arrests, Johnson said, \u201cThe video shot by customers is very hard to watch and the actions in it are not representative of our Starbucks\u00a0Mission and Values. Creating an environment that is both safe and welcoming for everyone is paramount for every store. \u00a0Regretfully, our practices and training led to a bad outcome\u2014the basis for the call to the Philadelphia police department was wrong.\u201d\r\n\r\nBefore the incident, Starbucks had no companywide policy about asking customers to leave, and the decision was left to the discretion of each store manager. Because of this flexible policy, Starbucks had become a community hub--a place where anyone could sit without being required to spend money. Johnson mentioned this community in his apology when he said Starbucks works to create an environment that is \u201cboth safe and welcoming for everyone.\u201d\r\n\r\nAlso in his apology, Johnson outlined the investigation he and the company would undertake. The apology detailed actionable steps Starbucks leadership would follow to learn from the situation, including meeting with community stakeholders to learn what they could have done better. \u00a0Johnson took full responsibility for the actions of his employees, and he acknowledged that Starbucks customers were hurt by the arrests. Johnson acknowledged that employees needed more training, including about when to call authorities, and that the company needed to conduct a thorough analysis of the practices that lead to this incident.\r\n\r\nAfter issuing his apology, Johnson went to Philadelphia and met with the two men face to face to involve them in dialogue on what Starbucks needed to do differently.\r\n\r\nhttps:\/\/www.scu.edu\/leadership-ethics\/resources\/the-ceo-of-starbucks-and-the-practice-of-ethical-leadership\/<\/a>\r\n

Structural Components<\/h3>\r\n

Factors<\/h4>\r\n

Level of Control for Manager<\/h4>\r\n

Decision-Making in Varying Levels of Uncertainty (Cynefin)<\/h2>\r\n

Balanced Stakeholder Approach to Ethical Decision-Making<\/h2>\r\n

What is it?<\/h3>\r\n

Why is it important?<\/h3>\r\n

Special considerations to make (EDI and D\/I)<\/h3>\r\n

Role of Managers in Ethical Decision-Making<\/h2>\r\n

Ethical Decision-Making - Individual Factors<\/h1>\r\n

Overview Framework<\/h2>\r\n

Stages of Moral Development<\/h2>\r\n

Common Ethical Frameworks for Ethical Decision-Making<\/h2>\r\n

What are they<\/h3>\r\n

Pros and Cons<\/h3>\r\n

Level of Values Development<\/h3>\r\n

Level of Conviction of Values<\/h3>\r\n

Locus of Control<\/h3>\r\n

Gender Influence<\/h3>\r\n

Educational Influence<\/h3>\r\n

National Influences<\/h3>\r\n

Cultural Influences<\/h3>\r\n

Understanding EDI and Individual Factors<\/h3>\r\n

Understanding D\/I and Individual Factors<\/h3>\r\n

Role of Managers to Ethical Decision-Making in Relation to Individual Factors<\/h3>\r\n

Issue Intensity<\/h1>\r\n

What is it?<\/h2>\r\n

Definition<\/h3>\r\n

Components<\/h3>\r\n

Influences on Issue Intensity<\/h2>\r\n

Workplace<\/h3>\r\n

Family<\/h3>\r\n

Worldview\/religion<\/h3>\r\n

Legal system<\/h3>\r\n

Professional body or community<\/h3>\r\n

Understanding Issue Intensity with the Various Influences<\/h2>\r\n

Understanding EDI and Issue Intensity<\/h3>\r\n

Understanding D\/I and Issue Intensity<\/h3>\r\n

Role of Managers to Ethical Decision-Making with Regards to Issue Intensity<\/h2>\r\n

Organizational Culture<\/h1>\r\n

What is Organizational Culture?<\/h2>\r\n

Components<\/h3>\r\n

Importance of Components<\/h3>\r\n

Factors that Strengthen Organizational Culture<\/h3>\r\n

Organizational Culture Factors that Influence Ethical Decision-Making<\/h2>\r\n

Culture Strength<\/h3>\r\n

Cultural Traits that Encourage Ethical Decision-Making<\/h3>\r\n

Understanding Organizational Culture with the Various Influences<\/h2>\r\n

Understanding EDI and Organizational Culture<\/h3>\r\n

Understanding D\/I and Organizational Culture<\/h3>\r\n

Role of Managers to Ethical Decision-Making through Organizational Culture<\/h2>\r\n

Structural Components<\/h1>\r\n

What is Organizational Structure and How Does it Affect the Organizational Members?<\/h2>\r\n

Aspects (table for org design)<\/h3>\r\n

Influences on components<\/h3>\r\n

Role of Organizational Culture in the Application of Structural Components<\/h3>\r\n

Structural Components that Influence Ethical Decision-Making<\/h2>\r\n

Access to necessary information<\/h3>\r\n

Organizational Design Influences<\/h3>\r\n

Hierarchical\/siloed<\/h4>\r\n

Formal vs informal<\/h4>\r\n

Performance Appraisal<\/h3>\r\n

Employee evaluations\/reviews<\/h4>\r\n

Use of rewards<\/h4>\r\n

Use of discipline<\/h4>\r\n

Ethical reporting systems<\/h3>\r\n

Whistleblowing<\/h4>\r\n

Other structural reporting mechanisms<\/h4>\r\n

Understanding structural variables with the various influences<\/h2>\r\n

Understanding EDI and structural variables<\/h3>\r\n

Understanding D\/I and structural variables<\/h3>\r\n

Role of Managers to Ethical Decision-Making through Structural Components<\/h2>\r\n

STUDENT CASES<\/h1>\r\n

Shruti Pandey<\/h1>\r\n<\/div>\r\n
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Case Study Characters & Roles<\/h2>\r\n<\/div>\r\n
\r\n\r\nMain Characters\r\n\r\n<\/div>\r\n
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