Business Ethics Meeting the little angels and little devils on our shoulders Scott J. Reynolds, Ph.D. Associate Professor of Business Ethics Weyerhaeuser Faculty Fellow

The dilemma

A battle between ends and means Teleology (the study of the ends) –The ends –The consequences –The good Deontology (the study of duty or obligation) –The means –The standards –The right

Teleology “What is moral is that which is good” Good vs. bad, benefits vs. costs Egoism Consequentialism Utilitarianism

John Stuart Mill (1863) –The moral act creates… “The greatest good for the greatest number” –Costs/Benefits Analysis

Utilitarianism Advantages –Maximization of the good –“Easy” decision process –Popular Disadvantages –Measurement –The means –Individual rights

Tell me honestly, I challenge you--answer me: imagine that you are charged with building the edifice of human destiny, the ultimate aim of which is to bring people happiness, to give them peace and contentment at last, but that in order to achieve this it is essential and unavoidable to torture just one little speck of creation, that same little child beating her chest with her little fists, and imagine that this edifice, has to be erected on her unexpiated tears. Would you agree to be the architect under those conditions? Tell me honestly? -- from the Brothers Karamazov

Deontology “What is moral is that which meets a standard” Standards of behavior: rules, principles, guidelines, laws, mores, norms, codes, policies, procedures… Right and wrong Common Morality –Rules of thumb or simple moral codes (Golden Rule, Ten Commandments, Kindergarten Files, maxims, Confucius sayings, HBR articles,…)

Formalism Immanuel Kant (1763) Good will (motives) Rationality Categorical Imperative –Formulation 1: “Everybody or nobody” –Formulation 2: “Don’t use people”

Formalism Advantages –Protects the means –Protects individual rights –Morally more appealing (more noble) Disadvantages –Requires prioritization –Requires interpretation –Inflexible/Impractical

The Tension of Ethical Dilemmas Means vs. ends Rules vs. results The good vs. the right Principle vs. practicality

The Four Corners of Ethics Teleology (Mill/Utilitarianism) Deontology (Kant/Formalism) Do It!?? Don’t Do It!??

Examples of Ethical Dilemmas Marijuana use Capital punishment Abortion War Enron Donald Sterling

The Three Roles of the Four Corners Description –The journalist’s cap Judgment –The judge’s robes Persuasion –The leader’s toolbox

SETA 15 questions with only two options: deontology or teleology Scoring: –1 point for every odd A (questions 1, 3, 5, …) –1 point for every even B (questions 2, 4, 6, …) Scores range from 0 to 15 –0-7 deontology (Kant/formalist) –8-15 teleology (Mill/utilitarian)

Why is this important? Description –To uncover blind spots –To understand multiple positions Judgment –To find your “sound bite” –To generate unconsidered options Persuasion –To create powerful and effective responses –To persuade others –To lead others

Thank you Scott J. Reynolds, Ph.D. Associate Professor of Business Ethics Weyerhaeuser Faculty Fellow Michael G. Foster School of Business University of Washington Seattle, WA