SLC 300 (601) Fall 2024 Leading with an Ethical Perspective

The Principles of Managment article explores the decision-making process, emphasizing its importance in management and identifying different decision-making models used within organizations. Although decision-making is essential to management, studies reveal that about half of managers’ decisions ultimately fail, underscoring the need for improved decision-making strategies (Ireland & Miller, 2004). The article differentiates between programmed and nonprogrammed decisions: Programmed Decisions: Routine decisions that recur frequently, leading to “decision rules” (e.g., giving a free dessert to dissatisfied customers). Nonprogrammed Decisions: Unique, complex decisions that require careful thought and information gathering (e.g., McDonald’s offering healthier menu options). Decision-making is further divided into strategic, tactical, and operational levels. Strategic decisions set the organization’s overall direction, tactical decisions focus on implementing strategies, and operational decisions manage daily functions. The article integrates ethical questions as a crucial part of decision-making. It suggests assessing decisions by asking if they are fair, align with organizational rules, and lead to positive self-reflection (Blanchard & Peale, 1988). The relevance of these frameworks today is evident in complex, high-stakes decisions, such as those involving corporate responsibility, data privacy, and crisis management. This article’s insights on decision-making underscore the importance of balancing efficiency with ethics, a priority for today’s managers in an increasingly complex business environment.

This article discusses the growing focus on ethics within organizations, spurred by scandals like insider trading, defense contractor issues, and high-profile resignations. In response, many corporations have adopted codes of ethics, while academic interest in ethics has led to expanded research and courses, notably in business ethics journals and textbooks. Despite this, theoretical and empirical studies on ethical decision-making within organizations remain limited. The few existing models come primarily from psychology and marketing, with scholars like Trevino (1986), Rest (1986), and Ferrell & Gresham (1985) each offering distinct frameworks. For example: Rest’s Model (1986): A four-component process that includes recognizing a moral issue, making a judgment, setting moral intent, and acting accordingly. This model focuses on individual moral development. Trevino’s Person-Situation Model: Emphasizes that ethical decisions are influenced by a person’s moral reasoning and situational factors, like workplace culture. Ferrell & Gresham’s Marketing Model: Considers how individual factors (values, knowledge) and organizational factors (peer influence, corporate policies) affect ethical decision-making in marketing contexts. The article also introduces an “issue-contingent” model that suggests moral issues vary in intensity, influencing the decision-making process. It posits that moral intensity—the impact a decision has on others—is a significant component in understanding ethical behavior. This discussion is particularly relevant today as organizations and society grapple with complex ethical issues, like corporate accountability, privacy, and social responsibility. With increased public scrutiny, this model underscores the importance of building both ethical awareness and robust ethical frameworks within organizations.

For my module #6 Dual Journal Entry post #12 I decided to do my reaction reflection discussing the “Academy of Management” article in module #6’s readings by Thomas M. Jones.

text to self: After reading this paper about Jones’ model I really focused on the concept of moral intensity throughout the reading. As it brought to mind how individuals usually react much much differently to ethical dilemmas in their own lives. This theory resonates in everyday situations where personal motivation to act ethically might be swayed to not depending on an individuals perception of the situation. Everyone goes through these situations on a day to day basis, for example every time I drive and get screwed over by someone else’s driving capabilities haha.

text to text: This article reminds me of multiple other readings we have had over these past few modules as Jones’ approach builds on existing models that we have previously learned about the last couple of weeks. He emphasizes the nature of the issue itself, which is a fact that a lot of previous models we have learned about typically tend to ignore. For example Rest’s model focuses on recognizing moral issues and acting on moral intent but does not address how different situations may affect the level of ethical concern that is brought to a situation and or a persons actions.

text to world: Jones’ model has broad implications on organizational ethics and societal structures as a whole seen globally today. It brings focus on issues like corporate responsibility, environmental impact, and the ethical actions of businesses and leaders. His emphasis on moral intensity underlines why companies need to establish structures that increase the importance of ethical considerations seen globally today. For example applying Jones’ model to college admissions highlights how moral intensity factors (such as social consensus on fairness and proximity to the affected students) could shape decision-making processes for administrators, potentially driving more equitable policies.

For module 6’s Dual Entry Journal Post #11 I decided to take a deeper look into the article we read for our Hot Topic discussion for this module “Parents’ Crossed a line’ in U.S. college scandal, prosecutor tells jury” by Nate Raymond.

text to self: As I am currently a Junior at NCSU I and all my peers have gone through the tedious college admissions process most likely in highschool for most of us. This process is not only tedious but nerve racking, costly, and not guaranteed. To think that some kids who did not take school seriously and lack the personal drive to have academic success had a free pass through their parents wealth, status, and or influence truly is a sad sight to see for ethics.

text to text: This story by Nate Raymond reminds me deeply of a news article on world news nightly with David Mur when he discussed the rising rates of scandalish college acceptances that have been consuming Americas college admissions nation wide throughout the Covid-19 Pandemic. David discussed the uniqueness of the Covid-19 pandemic laid a foundation for wealthy individuals to sway admissions to forge students into colleges’. This lack of integrity in the system undermines the entire process of getting into college as you must work to get into the college and this work is supposed to develop the needed skills that a tuff college curriculum instates.

text to world: This is not just a problem in the college admissions process but is practiced worldwide by other institutions in other areas. After establishing the effect of problems like this as they completely contradict the process of the institution. We can see that when ethics are not upheld situations get bad as the damage from one unethical decision is like a cancer for the institution it usually only grows and gets worse as time goes on. This is a shining example of why ethics and leadership are so intertwined, ethics need to be upheld at the forefront of anything. If a leader has unethical practices that negatively impact anyone or anything than they are not the best leader they can be.

Playing Favorites? Hospital Boards, Donors Get COVID Shots article raises concerns regarding the distribution of COVID-19 vaccines, particularly emphasizing how certain hospital officials and major donors received preferential treatment.

Some members of hospital boards and significant donors gained early access to COVID-19 vaccinations, often receiving shots before frontline workers and vulnerable populations. This scenario presents a few dilemmas. By allowing boards and donors to bypass the vaccination queue, these leaders have compromised the trust in healthcare institutions, undermining the ethical standards they are meant to uphold.

The article highlights a clear violation of fairness and justice. Vaccine distribution should prioritize those most at risk, such as healthcare workers and elderly individuals. Favoring donors and board members not only exacerbates existing inequalities but also diminishes the moral credibility of the healthcare system.

The actions discussed in the article point to a need for more accountability among hospital leaders. By failing to adhere to established guidelines for vaccine distribution, these leaders neglected to consider the ethical implications of their choices, potentially inviting public outrage and diminishing trust in healthcare institutions.

When certain people, like hospital board members and donors, receive vaccines first, it shows a lack of fairness, accountability, and integrity. This situation reminds leaders in healthcare and other areas of the need to make ethical decisions and focus on the well-being of everyone rather than personal or organizational interests. As we face ongoing ethical challenges, a strong commitment to ethical leadership is vital for rebuilding trust and ensuring fair practices in public health and other fields.

References

Bynum, R., Smith, M. R., & La Corte, R. (2021). Playing favorites? Hospital boards, donors get COVID shots. Associated Press.

Leaders who embody qualities of inspiration, trust and cultivate positive organizational cultures. The case of LuLaRoe illustrates how the absence of ethical leadership can result in exploitation and financial harm for those involved in a business model described as a “pyramid scheme.”

In the lawsuit brought against LuLaRoe by Washington State Attorney General Bob Ferguson, the company is accused of employing a deceptive business model that misled sellers into believing they could achieve substantial profits through selling clothing. In reality, many consultants faced financial difficulties, weighed down by unsold inventory and debts incurred from their investments in the company. This scenario stands in stark contrast to the principles of ethical leadership. The allegations of deception and exploitation underscore significant ethical violations, particularly the absence of transparency and accountability.

Ethical leaders take responsibility for their actions and their effects on others. The lawsuit reveals that LuLaRoe failed to assume accountability for the financial losses suffered by its consultants, instead fostering an environment that prioritized profit over individuals. This absence of accountability is a significant factor that sets ethical leadership apart from the practices in this case.

Ethical leadership emphasizes the well-being of all stakeholders. The business model of LuLaRoe, as outlined in the lawsuit, prioritizes the company’s profits at the expense of its consultants, resulting in substantial financial difficulties for many involved. This conflict of interests undermines the fundamental principles of ethical leadership.

The lawsuit highlights the importance of maintaining ethical standards in business and the potential consequences of failing. Upholding ethical leadership is crucial not only for the success of an organization but also for protecting individuals’ rights and well-being in the marketplace.

References

Jones, C. (2023). LuLaRoe was little more than a scam, a Washington State lawsuit claims. USA TODAY.

The Boeing scandal is a case study in engineering ethics, exposing the severe consequences of prioritizing profit and market share at the expense of safety and responsibility. The hurried release of the 737 MAX ultimately compromised passenger safety for financial gain. Boeing’s failure to ensure safety shows a breach of its duty to the public. This failure emphasizes the importance of following moral duties and principles.

This case emphasizes important leadership values like integrity, accountability, and transparency. Ethical leadership demands a steadfast commitment to maintaining safety standards and nurturing a culture where employees feel empowered to express their concerns without fear of retribution. When leaders prioritize ethical considerations, they cultivate an environment that values the well-being of all stakeholders.

In social media applications, ethical considerations must encompass user privacy, data security, and the risk of manipulation. Developers face balancing innovation with ethical responsibility as these platforms accumulate substantial personal data. Neglecting principles in the development of big data can result in consequences, including breaches of user trust, exploitation of various communities, and the risk of discrimination stemming from biased algorithms. Therefore, it is important to establish comprehensive ethical guidelines and practices to safeguard users and ensure that technology serves the greater good.

References

Boeing. (2020). Boeing 737 MAX: Safety and regulatory updates. Retrieved from Boeing Website.

Gelles, D. (2019). Boeing’s 737 MAX crisis: A timeline of events. The New York Times. Retrieved from https://www.nytimes.com

Uber’s primary candidate for CEO withdraws at the last moment. This situation provides insights into ethical leadership within corporate governance and decision-making.

The withdrawal of GE’s former chief raises concerns regarding the integrity of the selection process and the circumstances leading to his decision. His abrupt withdrawal may indicate a lack of confidence in the company’s strategic direction or a disconnect between his values and those of Uber, which has grappled with significant ethical challenges in recent years.

Ethical leaders are responsible for their actions and decisions, establishing a culture of accountability within their organizations. The article notes that the timing of the candidate’s withdrawal coincided with a critical vote, suggesting a possible disconnect between the leadership’s intentions and the organization’s needs. This situation highlights the significance of leaders being accountable to their stakeholders and the wider community, as their decisions can carry far-reaching consequences.

The situation described in the article reflects broader issues within Uber’s organizational culture, particularly in light of prior controversies surrounding the company. The withdrawal of a candidate at a pivotal moment signals potential instability and raises alarms about the ethical framework guiding the company’s leadership practices.

An ethical leader in this context would prioritize cultivating a culture of open dialogue, where candidates and stakeholders feel safe expressing their concerns and decisions are made collaboratively rather than in isolation. This approach enhances the decision-making process and strengthens the organization’s commitment to ethical standards, fostering greater organizational resilience.

By examining integrity, accountability, and transparency, we can understand the challenges organizations face when maintaining standards, particularly during times of change. As Uber works to improve its leadership issues, the company must adopt a more ethical approach to choosing its leaders and managing its governance. This will help rebuild trust and improve its operations.

References

Fingas, J. (2017, August 27). Uber’s key CEO candidate backs out at the last minute.

I found this article insightful, even though it was quite long. I appreciated that it began by emphasizing the first step in the decision-making process: recognizing that you’re facing a moral dilemma. Once that’s identified, the next step is understanding the nature of the dilemma and deciding how to resolve it. I found it particularly interesting that the article discusses how people often struggle to identify moral dilemmas due to “moral intensity.” According to the article’s Proposition 1, issues with high moral intensity are more likely to be recognized as moral issues than those with low moral intensity. I completely agree with this point! I would also add that issues with low moral intensity not only tend to go unrecognized as moral dilemmas but also make people less likely to see themselves as moral agents. This tendency contributes to what’s known as the bystander effect, where individuals are less likely to intervene in a situation that doesn’t directly impact them. When moral intensity is low, people might feel less accountable or assume someone else will step in, resulting in inaction. This article effectively highlights the link between moral awareness and action, showing how moral intensity can influence whether individuals see a situation as requiring ethical consideration and intervention.

Source:

Thomas M. Jones. Ethical Decision Making by Individuals in Organizations: An Issue-Contingent Model. The Academy of Management Review, Vol. 16, No. 2 (Apr., 1991), pp. 366-3. Published by: Academy of Management. http://www.jstor.org/stable/258867

In my experience as a lifeguard, I can see how the intuitive decision-making model applies. This model refers to arriving at decisions without conscious reasoning and is often used by experts who face high-stakes situations, such as fire chiefs, pilots, and nurses. These professionals don’t typically sort through a list of options; instead, they identify cues in the environment, recognize patterns, and draw upon their experience to make quick, effective decisions.

As a lifeguard, I’ve been trained to respond similarly. We’re required to know precisely what to look for and how to perform life-saving procedures based on immediate observations. Since so much of our work is about responding intuitively, proper training is critical. I’ve practiced numerous life-saving scenarios during training, preparing for every potential emergency that might occur at the pool. Additionally, we’re required to recertify every two years, ensuring we retain the skills and knowledge to recognize and respond to a crisis swiftly. Although I’ve never had to make a real rescue in my five years as a lifeguard, I’ve practiced these scenarios hundreds of times. Through these repeated exercises, I’ve developed an intuitive understanding of how to assess situations quickly and act without needing to consciously analyze every step. This ability to recognize patterns—such as spotting subtle signs of distress—enables me to respond instinctively, much like the experts described in research on intuitive decision-making.

Source: Principles of Management. Pages 478-479. University of Minnesota Libraries Publishing. 2010.