1. 1 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Fairness PILLAR FOUR

2. 2 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Fairness and Justice Fairness and justice are twin concepts concerned with processes and consequences. They establish moral standards for decisions that affect others. Fair and just decisions acknowledge and deal with concepts such as equity, equality, openness, impartiality, and consistency.

3. 3 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute How Fairness Is Applied We tend to think and speak in terms of fairness when we deal with individual behavior and interpersonal relationships. We talk about justice and equity in the context of broader social issues and institutional obligations to individuals.

4. 4 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Fairness and Justice The central idea of both fairness and justice is the same. While justice is the more formal philosophical term, fairness is the more common usage and more consistent with the language used by young people and educators. Thus, in CHARACTER COUNTS! we use only the term fairness.

5. 5 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Fairness and Justice Even though the underlying concepts of fairness and justice are simple — almost intuitive — applying them in real life proves very difficult.

6. 6 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Fairness Fairness implies adherence to a standard of rightness or lawfulness without reference to one’s feelings or inclinations. It also implies freedom from prejudice or impartiality for or against any side.

7. 7 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Power and Fairness The moral obligations arising from the core ethical value of fairness are almost always associated with the exercise of power to render judgments that bestow benefits or impose burdens.

8. 8 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute What Is Fairness? Fairness is concerned with actions, processes, and consequences that are morally right, honorable, and equitable.

9. 9 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute What Is Fairness? Fair decisions are made in an appropriate manner based on appropriate criteria. The virtue of fairness establishes moral standards for decisions that affect others.

10. 10 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Two Aspects of Fairness Process – How we make decisions. The moral obligation is to make decisions fairly. This is called procedural fairness. Results – What we decide (the substance of the decision). The consequences or benefits should be fair. The moral obligation is to make fair decisions. This is called substantive fairness.

11. 11 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Procedural Fairness Fairness requires that during decision making, a fair, just, and equitable result is reached. The rights, interests, and perspectives of all stakeholders must be considered. Decisions should be made and appear to be made carefully, honestly, and objectively with the knowledge that even a process of the greatest integrity does not always produce certainty.

12. 12 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Procedural Fairness Requires... Fair notice Impartiality Fact-gathering Fair hearing

13. 13 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Procedural Fairness Requires... 1. Fair Notice Determine whether the person accused had fair notice that the conduct was wrong. This is important in the case of technical violations such as accepting improper gifts or using company assets. If the person knew or should have known about the proper standards of conduct, further action is fair. If the person was unaware or couldn’t have known, fairness may call for nothing stronger than a warning.

14. 14 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Procedural Fairness Requires... 2. Impartiality Be sure you’re a fair and impartial judge. You suspend judgment until all the information is in. You set aside any conclusions you may have made and clear your mind of prejudice (prejudging) or predispositions about the person or issue involved.

15. 15 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Procedural Fairness Requires… 3. Gathering Facts Be thorough without being compulsive. Are there ambiguities that can be clarified? If you’re making comparisons, do you have sufficient information concerning the most important factors? Is there any way of confirming your suspicions or the accused’s claim of innocence without unduly embarrassing that person? (A significant injustice could result simply from disclosing your suspicions to others.)

16. 16 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Procedural Fairness Requires… 4. Fair Hearing Allow the person accused an opportunity to tell his or her side of the story. Confront the accused with your suspicions and the facts to back them up. The “right of confrontation” is a fundamental prerequisite of fairness in personal and business relationships. What’s worse than being accused without a chance to stand up for yourself? The person should be allowed to explain, and you must listen with an open mind.

17. 17 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Substantive Fairness Results – What we decide (the substance of the decision). The moral obligation is to make fair decisions. This is called substantive fairness.

18. 18 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute The Fairness of Decisions The wide variety of approaches to fairness means that for every decision there will be people who claim it’s unfair.

19. 19 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute The Fairness of Decisions Generally, those who consider themselves winners in a decision will consider the result just. Those who see themselves as losers will consider it unjust.

20. 20 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Three Rules About Fairness of Decisions First, since disagreement and criticism are inevitable, we must content ourselves with doing our best to reach a fair judgment based on personal conscience and ethically justifiable standards of fairness. If you need to be liked or approved of by everyone, avoid accepting responsibility that requires tough choices. Charges of unfairness come with the territory.

21. 21 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Three Rules About Fairness of Decisions Second, be clear about the criteria of fairness you’re using and let others know — ideally, ahead of time — what those standards are. It is helpful to everyone if you know and disclose what you think is relevant and irrelevant, and how you rank various factors. A fair decision has to weigh deficiencies. With so many potentially relevant factors, any decision will be arbitrary unless there is some orderly way to sort and rank the issues.

22. 22 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Three Rules About Fairness of Decisions Third, the procedures used to weigh a decision must be and appear to be fair. In many cases, a judgment is defended primarily in terms of the process used to reach it. In effect, one can argue that a fair process always yields an ethically justifiable result.

23. 23 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Substantive Fairness A fair result is one where people receive what they’re due and deserve (distributive justice). However, there is no single standard of determining what people deserve. In fact, competing theories of justice generate different results.

24. 24 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Perspectives on Justice Small fish: “There’s no justice.” Medium fish: “There’s some justice” Big fish: “The world is just.”

25. 25 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Six Theories of Substantive Fairness Merit – People are entitled to whatever they can earn or acquire based on skill, talent, or hard work. Need – People are entitled to what they need, and it’s the responsibility of a just society to see that this happens. Might – Power is the basic determinant of what a person deserves. Might makes right. Equality – People are entitled to equal shares of whatever is available. Seniority – People are entitled to benefits such as jobs and compensation based on how long they ‘ve been working for an organization. Effort – People are entitled to benefits in proportion to the effort they expend.

26. 26 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Theory of Merit A person is entitled to whatever he or she can earn or acquire based on skill, talent, or hard work. Persons with little skill, talent, or hard work are not entitled to anything (though as a matter of charity and caring, those who have earned benefits may give to the less capable).

27. 27 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Theory of Need A person is entitled to whatever he or she needs. In a just system, everyone will have what they need. It’s the responsibility of a just society to see that this happens. Excess above one’s needs can be distributed by any other theory of justice.

28. 28 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Theory of Might A person is entitled to whatever he or she can acquire irrespective of merit, need, or effort. Power is the basic determinant of what a person deserves. Might makes right.

29. 29 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Theory of Equality A person is entitled to an equal share of whatever is available irrespective of merit, need, power, or effort.

30. 30 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Theory of Seniority A person is entitled to benefits such as jobs and compensation based on seniority (how long he or she has been working for an organization irrespective of merit, need, power, or effort).

31. 31 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Theory of Effort A person is entitled to benefits in proportion to the effort he or she expends irrespective of merit, need, or power. People who try hard are entitled to as much as those who have greater skill or talent.

32. 32 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Avoiding Unfair Conduct So many factors can go into the notion of a fair judgment that often we don’t know what’s truly fair. We do, however, know what’s unfair. Our first obligation should be to avoid being unfair.

33. 33 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Basic Rules of Unfairness It is unfair to make a judgment favoring or discriminating against individuals based on improper factors. Although many forms of discrimination are against the law, they also offend our basic concept of fairness. It’s unfair to deny a person a job or promotion because of race, religion, gender, or any other factor that does not have a material bearing on the ability to perform that job.

34. 34 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Basic Rules of Unfairness Legally Mandated Favoritism. Affirmative action policies designed to increase the ratio of minorities and women in certain jobs creates a form of favoritism. Likewise, former military service adds points to one’s score on civil-service exams. The rationale for such policies is to correct historic patterns of discrimination. This denial of equal opportunity is intended to achieve greater social justice.

35. 35 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Basic Rules of Unfairness It’s unfair to handle similar matters inconsistently. It’s unfair for parents, teachers, employers, or others to treat similarly situated individuals differently. Treat all people equitably based on their merits and abilities, and handle all similar situations consistently.

36. 36 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Basic Rules of Unfairness One of the reasons similarly situated individuals are treated differently is that decision makers think they’re being consistent because of extenuating circumstances. When it’s possible, extenuating factors should be explicitly acknowledged as part of the decision and even incorporated into a statement of policy so the judgment criteria are available to all.

37. 37 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Basic Rules of Unfairness Never blame or punish people for something they’re not responsible for, but appropriately sanction those who violate moral obligations or laws.

38. 38 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Basic Rules of Unfairness It’s unfair impose punishment that is disproportionate to the offense. The nature of punishment should be proportionate to the offense. The punishment must demonstrate we’re serious about the offense and that it’s subject to cultural mores. In some countries, it’s acceptable to cut off the hand of a thief. Motives are also important. Intentional violations and unintentional mistakes should be considered differently.

39. 39 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute Basic Rules of Unfairness Don’t take unfair advantage of people’s mistakes or ignorance.

40. 40 The Six Pillars and Making Ethical Decisions © 2007 Josephson Institute You’re an employer who for budget reasons has to let go of one employee. What is fair? Able is your newest employee. He’s young, unmarried, and is your best producer. He gets more work done effectively than any other employee. Nettie is a competent worker of four years, a single mother with three small children at home. She needs the job the most. Oldham has worked for the company the longest (18 years) and is two years away from a pension. Tryhard is a good producer with a terrific attitude. He’s the hardest worker you have. Nepo is a competent employee and the son of one of the owners of the company.