Essay on "Business Ethics Do You Think That People"

Essay 9 pages (2736 words) Sources: 10 Style: APA

[EXCERPT] . . . .

Business Ethics

Do you think that people are susceptible to these dynamics as Messick and Bazerman suggest? Do you have any examples of personal experience? If they are correct, what should we do about it? Are there any systems an institution could put in place to check decision-making?

Messick and Bazerman (1996) assert that "unethical business decisions may stem not from the traditionally assumed trade-off between ethics and profits or from a callous disregard of other people's interests or welfare, but from psychological tendencies that foster poor decision making, both from an ethical and a rational perspective (Messick and Bazerman, 1996)." In this summation the authors are asserting that withical decision making is product of psychological tendencies. Decision making does indeed have a great deal to do with the manner in which we think and within the context of business these psychological tendencies may impact decision making more than the incentive of profitability.

The authors also contend that these tendencies can be identified and confronted so that the ethicality and success of decision making can be increased. In addition the authors focus on three theories that are used by executives in the decision making process. These three theories include theories about the world, theories about other people, and theories concerning self. Theories about the world are associated with the beliefs or standards individuals have concerning the way that the world functions. The theory of the world that one holds influences the decision making process. Theories about the world could indeed effect the decision making process of an executive. For instance, if the executive believes in the spiritual principle that states 'you reap what is sown', they may make a decision based on how they believe that the world or the laws of the universe work.

The second theory that is purported to influence the manner in which we make decisions is the theories we hold about other people. This theory involves out perception of how we differ from others. Others may be inclusive of a significant number of people including employees, regulators and competitors. The authors insist that our beliefs concerning others have an affect upon our judgment and the decisions we make concerning other people. In most business settings decisions that are made based on these beliefs are evident. For instance, some people do not get promoted because mangers who make promotion decisions think poorly of the employee or have preconceived ideas bout them because of how they speak or dress.

The authors also assert that theories about self have a profound impact upon our decision making. According to the authors "theories about ourselves lead us to unrealistic beliefs about ourselves that may cause us to underestimate our exposure to risk, take more than our fair share of the credit for success (or too little for failure), or be too confident that our theory of the world is the correct one. If most of the executives in an organization think that they are in the upper 10% of the talent distribution, there is the potential for pervasive disappointment (Messick and Bazerman, 1996)." The idea that our ideas about self influence decision making is also accurate. Most people, myself included, has experienced working for someone who only sees things from their perspectives and does not take into consideration the needs and feelings of others.

Even though people are susceptible to the dynamics that Messick and Bazerman, it is apparent that many managerial decisions are still made on the basis of what will be the most profitable. This type of decision making is seen across industries and throughout the world. For instance, the current economic crisis was created in large part by the decisions that financial institutions such as banks and mortgage companies made to place profitability above common sense and ethics. That is, many financial institutions were so caught up in the financial benefits that they received from issuing mortgages that they did not thoroughly consider the ramifications of giving mortgages to people who could not afford them. This type of behavior is evidence that many decision makers within the sphere of the business world still make decisions that are propelled by the prospect of profitability.

I think that the ability to change people's decision making process from one based on the psychological impulses discussed by th authors to a process that is more objective independent upon the decision maker. In some instances if the manner in which people are making decisions is brought to their attention they can adjust their way of thing so that the decisions they make are less bias. However, others may make these decisions on a level that is so subconscious that they will not have the capacity to change their decision making process.

One of the systems that organizations can put in place is the development of careful screening processes when hiring for managerial/executive position. Such a screening process would be able to closely identify candidates that are capable of making objective decisions. Te best way to handle the situation is to reduce the likelihood of it occurring in the first place. This is the advantage that such a screening would provide.

2)Describe one of the paradoxes of the standard account of whistleblowing described by Davis. Explain why he thinks it is a paradox and how he thinks his account remedies the paradox. Say whether or not you think he is correct by reference to a real example.

According to Michael Davis's article entitled Some Paradoxes of Whistle Blowing, there are three Paradoxes associated with Whistleblowing. These paradoxes include the paradox of burden, the paradox of missing harm and the paradox of failure. For the purposes of this discussion we will focus on the paradox of missing harm.

The standard theory of whistleblowing asserts that in order for whistleblowing to be morally permissible the whistleblower must report unethical activities so that considerable harm can be prevented. That is, whistleblowers feel the need to expose what they know about the management of a business when that management is acting in a ways that are not ethical. According to Davis the term hard can encompass a broad number of actions. He also explains that in some cases whistle blowing occurs in situations where the ethical violations include such actions as deception, injustice and waste. However under the auspices of the standard theory of whistleblowing these things do not represent considerable harm.

Davis further argues that in most cases whistle blowing is not about the prevention of serious physical, psychological or financial harm. The author explains that in some instances what is referred to as whistleblowing is not actually whistleblowing. He presents an example of the Challenger explosion stating that one of the employees for NASA told his superiors the night before the shuttle blew up that it might blow up given the damage done to the vehicle. However, his superiors ignored him and the shuttle blew up. Davis asserts that this was not whistleblowing because the conversation about the danger that the shuttle was in was held privately amongst NASA employees. By the time that the public even knew that he had voiced these concerns the shuttle had already blown up and there was not more harm or danger. However, Davis does point out that this employee did in fact keep further harm or danger from occurring by voices his concerns about safety following the Challenger explosion. In addition the employee also kept the record from being falsified.

Davis asserts that the Complicity theory of whistle blowing is more accurate and resolves the paradoxes created by the standard theory of whistle blowing. The complicity theory asserts that moral complicity in and of itself is a type of wrongdoing. This wrongdoing causes harm. As such the complicity theory is better because it inherently avoids the paradox of missing harm. Davis also explains that the theory of complicity is better because it "invokes a more demanding obligation than the ability to prevent harm does. We are morally obliged to avoid doing moral wrongs. When, despite our best efforts, we nonetheless find ourselves engaged in some wrong, we have an obligation to do what we reasonably can to set things right (Davis)." Simply, Davis believes that the avoidance of this paradox lies in the embracing of the complicity theory as a way of explaining whistle blowing in general. The complicity theory is more accurate because it makes complicity the foundation of wrongdoing instead of making the actual actions of the decision maker the foundation of the wrongdoing. The complicity theory is broader and therefore serves as a better theory to apply to whistleblowing and also serves as a remedy for the paradox of missing harm that occurs with the standard theory of whistleblowing.

Davis explanation for the remedying of the paradox seems accurate. The Complicity theory seems to be more encompassing in its definition of what wrongdoing is and how it effects a business and society as a whole. This paradox can be seen in a real example of… READ MORE

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