Tag: The Ethics Sage

The Ethics Sage – What does it take to make Ethical Decisions in the Workplace?

On By southwerkIn business ethics

It is my pleasure to publish a posting from The Ethics Sage. As always, I recommend you visit his site and sign up as a follower so you will be notified of each of his postings. I consider him a most capable colleague in the field of business ethics and hope you visit his site often.

James Pilant

The Ethics Sage
The Ethics Sage

What does it take to make Ethical Decisions in the Workplace?

I often discuss ethical decision making in my Accounting Ethics class because accountants and auditors are part of the internal organization structure and have an important role in preventing and detecting misconduct (i.e., occupational and financial statement fraud). I typically start by discussing virtue ethics that posits ethical people possess certain character traits that pre-dispose them to do the right thing when conflicts arise or ethical dilemmas exist. I favor virtue ethics because it provides a basis for evaluating the decision as ethical, which traditional philosophical reasoning methods do as well, and also it can be used to evaluate the ethics of the person making the decision. In other words, ethical decisions and decision-makers reflect honesty, integrity, fairness, due care, and responsibility and accountability in decision making.

One model I draw on to support the discussion is James Rest’s Model of Moral Development. In 1983, Rest proposed a four-stage model of the ethical decision-making process that links to the cognitive processes that individuals use in ethical decision making; that is, it depicts how an individual first identifies an ethical dilemma and reasons through what is the right thing to do, and then continues through her intention and finally courage to act ethically. Here is a brief outline of the model.

Moral Sensitivity

The first step in moral behavior requires that the individual interpret the situation as moral by noticing the moral features of the decision. A moral person ought to have a certain preference about how to behave and then ought to behave in accordance with that preference. Moral features are built around consideration of how our actions affect others and whether we respect the rights of others in decision making.

Moral Judgment

Moral judgment entails finding the ideal solution to an ethical dilemma. It starts with cognition, the process of acquiring knowledge and understanding through thought, experience, and the senses. It continues by making assumptions and emphasizing some things over others. Typically, philosophical reasoning methods help in the process. An integral part of virtue ethics is the application of practical wisdom, gained through years of experience and developing good habits.

Moral Motivation

Moral motivation reflects the degree of commitment to taking the moral course of action, valuing moral values over other values, and taking personal responsibility for moral outcomes. Moral motivation reflects an individual’s willingness to place ethical values (e.g., honesty, integrity, trustworthiness) ahead of non-ethical values (e.g., wealth and fame) that relate to self-interest. A whistleblower who acts out of moral intent is willing to accept the risk of retaliation in order to follow her ethical beliefs.

Moral Character

Individuals do not always behave in accordance with their ethical intention. The whistleblower may know what the right thing to do is but lack the moral courage to do it. Rest describes moral character as persistence in completing a moral task, having courage, over-coming temptation, and implementing processes that serve a moral goal. A person with a strong ethical character is more likely to carry out ethical intentions with ethical action than one with a weak character because she is better able to withstand pressures from higher-ups in the organization to overlook wrongdoing.

Here are some tips in making ethical decisions in the workplace.

1. Consider how your actions affect others. All decisions have stakeholder effects and ethical people consider how those parties will be affected if I they decide to do one thing or another.
2. Do no harm. Your actions and decisions should never harm another party. One exception is whistleblowing where the greater good may dictate that a decision-maker should report wrongdoing whenever the action of one party harms others (i.e., investors and creditors). A good example is fraudulent financial statements where, under certain circumstances, the accountant or auditor should blow the whistle on fraud by contacting the SEC.
3. Make decisions that are universal. That is, ask yourself whether you would want others to resolve the conflict by taking the same action you are about to take for similar reasons in similar situations. If the answer is ‘yes,’ then your actions have universal appeal. Universality requires that your decisions respect the rights of others.
4. Reflect before deciding. As a final step, think about how you would feel if your actions and decisions appear on the front pages of a newspaper. Would you be proud to defend them; explain them to loved ones; follow-up with ethical behavior in the workplace?

The reason virtue ethics is an excellent tool of ethical decision-making is no matter how “good” an individual wants to be, in the workplace competing forces come into play such as loyalty to one’s supervisor or the organization. It takes a person of courage – integrity – to place the good of others (i.e., public interest) ahead of one’s own self-interest and that of one’s employer. Virtue ethics recognizes that the person must be honest, trustworthy, and fair-minded, and so on for the decision itself to reflect these characteristics.

The Ethics Sage blogs can be found at: http://www.ethicssage.com/

and  http://www.workplaceethicsadvice.com/.

 

The Ethics Sage Calls for Ethical Reasoning Skills

On By southwerkIn Editorial

The Ethics Sage Calls for Ethical Reasoning Skills

Steven Mintz, the Ethics Sage is calling for ethical reasoning skills to be added to teaching in the United States. It is an idea that carries real merit and deserves your consideration. Please read.

James Pilant

The Ethics Sage
The Ethics Sage

 Developing the Reasoning Skills through Education to Create a More Ethical Society – Ethics Sage

Late in life Adam Smith observed that government institutions can never tame and regulate a society whose citizens are not schooled in a common set of virtues. “What institutions of government could tend so much to promote the happiness of mankind as the general prevalence of wisdom and virtue? All government is but an imperfect remedy for the deficiency of these.” In other words, Smith knew that virtue, or traits of character as espoused by the ancient Greeks, are essential to making our free market economy work and deliver prosperity under our capitalistic system.

Now we learn that the College Board will overhaul the SAT in 2016. Saying its college admission exams do not focus on the important academic skills, there will be fundamental changes in the exam including ending the longstanding penalty for guessing wrong, cutting obscure vocabulary words and making the essay optional. The latter is disturbing at a time when both college professors and recruiters are criticizing the lack of writing skills of today’s college graduates.

I’m disappointed that the College Board chose not to use the opportunity to introduce ethical reasoning skills. It is the one way we have a chance, as a society, to reverse the declining work ethic that threatens our economic leadership position in the world.

via Developing the Reasoning Skills through Education to Create a More Ethical Society – Ethics Sage.

From around the web.

From the web site, Prime Network.

http://primenetwork.wordpress.com/2012/12/13/academic-dishonesty-and-ethical-reasoning/

Honesty and integrity are vital attributes of any physician or health-care worker, since our work involves dealing with vulnerable people who have to put their trust in us and our judgements.

They are also necessary integral parts of the academic basis for our professional practice – our science must be correct, and we must know what we are doing and be competent at it. Sadly however there is ample evidence to suggest that academic dishonesty remains an area of concern for academic and professional bodies. There is also burgeoning research in the area of moral reasoning and its relevance to the teaching of pharmacy and medicine, including how it is linked to academic honesty.

A just-published paper from the University of Auckland in New Zealand explored academic dishonesty and ethical reasoning in 433 pharmacy and medicine students.1 A questionnaire eliciting responses about academic dishonesty (copying, cheating, and collusion) and their decisions regarding an ethical dilemma was distributed. Multivariate analysis procedures were conducted. The findings suggested that copying and collusion may be linked to the way students make ethical decisions. Students more likely to suggest unlawful and inappropriate solutions to the ethical dilemma were also more likely to disclose engagement in copying information and colluding with other students.

Perhaps somewhat charitably, the authors say, ‘These findings imply that students engaging in academic dishonesty may be using different ethical frameworks’, and that ‘employing ethical dilemmas would likely create a useful learning framework for identifying students employing dishonest strategies when coping with their studies. Increasing understanding through dialogue about engagement in academic honesty will likely construct positive learning outcomes in the university with implications for future practice.’

Steven Mintz Has Written a Textbook

On By southwerkIn business ethics
The Ethics Sage
The Ethics Sage

Steven Mintz Has Written a Textbook

My friend, Steven Mintz, has a new textbook. Below is a segment of the review. Please share my pleasure at the accomplishments of a colleague.

James Pilant

Steve Mintz Accounting Ethics Textbook Reviewed – Ethics Sage

From a review by W. Steve Albrecht in the Journal of Business Ethics, March 2014

One of the book’s great strengths is its excellent cases. The first seven chapters include 10 cases each, many of them famous ethical cases where accountants, executives, and corporate directors have been sued or held liable for their decisions and actions. I have personally been an expert witness in several of the cases covered in the book and so I studied the authors’ treatment of these cases in detail. Their write-ups were always accurate, presented in an interesting manner and provided great references for further study by students. The accuracy of the cases led me to follow up on several of the references cited in the chapters which I also found helpful. My conclusion after reading the book, examining in detail some of the cases and reading the 20 discussion questions per chapter was that this book would work equally well as a stand-alone ethics text or as an excellent supplement in auditing, corporate governance, financial reporting, or other business and accounting classes.

via Steve Mintz Accounting Ethics Textbook Reviewed – Ethics Sage.

From around the web.

From the web site, Cal Poly.

http://www.cob.calpoly.edu/faculty/steven-mintz/

Dr. Mintz enjoys an international reputation for research and teaching ethics in business and accounting. He has published two textbooks the most recent publication is Ethical Obligations and Decision Making in Accounting: Text and Cases. Dr. Mintz has published dozens of research papers in the areas of business ethics, accounting ethics, corporate governance and international accounting. Dr. Mintz teaches courses on accounting ethics and international accounting.

Dr. Mintz develops ethics training programs for organizations. He also develops and teaches continuing education courses in ethics for CPAs. His courses are used in twenty-states to meet their continuing education requirements for re-licensing.

Dr. Mintz is a widely sought out speaker at ethics and academic conferences. He has presented at: The Board of Director and Corporate Governance Research Conference in Henley, England; Global Finance & Research Conference in London; The Institute of Chartered Accountants in Trinidad & Tobago; Association of Asian-Pacific Accountants in Bangkok, Thailand; and the Asian International Business Association in Shanghai, China.

Dr. Mintz writes two popular blogs on ethics issues in business and society (ethicssage.com) and workplace ethics (workplaceethicsadvice). He has been interviewed by the NY Times for his expertise on workplace ethics.

The Ethics Sage Explains the Ethics of Giving

On By southwerkIn Capitalism
The Ethics Sage
The Ethics Sage

Steven Mintz, the Ethics Sage, has written a post on charitable giving. He has very kindly offered me the opportunity to put it up early. As always, I am privileged to be a party to his writing and his continued drive for ethics. (His web site is here!)

James Pilant

Global Survey: U.S. Now #1 in Charitable Giving: American Exceptionalism Lives On

The Ethics of Charitable Giving and the Goodness of Americans

The United States now ranks the highest in terms of charity in a comprehensive global survey conducted by Charities Aid Foundation  (CAFAmerica), a member organization of the United Kingdom based Charities Aid Foundation International Network of Offices, providing charitable financial services to individuals, global corporations, charities, and foundations.  The 2011 survey reflects an increase from fifth place (2010) to first place.

According to those surveyed, two out of three Americans said they donated money to charity (65 percent), more than two out of five volunteered their time (43 percent) and roughly three out of four helped a stranger (73 percent).

This is an impressive example of the goodness of the American people and one reason why the U.S. is a beacon of hope for so many in need of help to survive, to better themselves, and to thrive in an increasingly global competitive economy.

For the past five weeks I have blogged about the decline of ‘American Exceptionalism.’ From excessive and senseless violence, to fraud and corruption ingrained in our systems of government, to a declining work ethic and level of competency that goes along with it, to a perpetually troubled education system that is failing so many kids, to our inability to effectively establish an immigration reform program, the U.S. has remained stagnant and developed ineffective approaches to solving the most important problems of our time, especially those that deal with quality of life issues that are a symbol of an exceptional society.

This is why it is so heartening to me that the U.S. is the most giving nation in the world. Clearly, this is a sign of an exceptional society. From the Bill Gates’ and Donald Trumps’ to middle class Americans, to low-income people, the U.S. has a long record of helping others to pick themselves up by the bootstraps and provide a foundation to improve one’s lot in life.

We certainly do this for our own citizens. Think what you may of unemployment insurance, SNAP (i.e., food stamps), Medicaid, and other government assistance, these are programs that demonstrate the humanity Americans have as citizens towards their fellow citizens in need of a helping hand.

Returning to the CFA report “World Giving Index (WGI) 2011”, the second through fifth countries are all English-speaking — Ireland, Australia, New Zealand and the United Kingdom. The four new countries in the top 20 compared to the 2010 WGI report are Thailand, Morocco, Nigeria and Liberia. Of these, Liberia has enjoyed the biggest rise from 39th to 14th place, although Morocco’s increase from 33rd to 12th is equally notable.  Other major shifts in the rankings include the rise of the United Kingdom from eighth to fifth, and Thailand’s neighbor Laos moving to tenth place. Perhaps not surprising, although somewhat concerning given their rapid economic development in the past twenty years, China, Russia and India are among those near the bottom of the list. 

The WGI report is based on over 150,000 Gallup polling interviews with members of the public in 153 countries. The 2011 report looks at three aspects of giving behavior of individuals in the preceding month, asking if they have donated money to a charity, volunteered time to an organization, or helped a stranger. The U.S. has shown a steady increase in each of the three measures over the past year, ranging from four percentage points ‘volunteering time’ and to eight percentage points ‘helping a stranger.’ It is this even progress across all three measures that underlie the country’s rise to the top of the Index.

Charitable giving does have an ethical component to it. Aristotle and Aquinas assessed it using such factors as the object of the action, the circumstances of the action, and the end of the action.  Aristotle believed that the act of charity is a virtuous one if it is done for its own sake and not some external reward. Using the example of giving to charity, exercising the virtue of charity (or generosity) requires that the giving be done for the sake of giving. In other words, the charitable act should be done because of the commitment to aid others and the way it makes one feel inside, not for the sake of getting a tax break.

What about those who give because their religion demands it? Here, we need to examine why the religion holds such a position. Typically, it is for good reasons – to help others and express our humanity towards others. No doubt peer pressure works in these cases.

Immanuel Kant, the German philosopher and central figure in modern philosophy, claimed that what matters morally is the good will and not what the good will accomplishes. Reasoning from that premise, if a person wills the moral law, then that is what matters. Whether the person accomplishes anything practical or not is not relevant to the ethics of the matter. In the case of a charity, what would presumably matter is that a person will in the appropriately good way and the consequences would not matter morally. This would certainly match the idea that what matters in a charity is that this will be shown by focusing on minimizing overhead and maximizing what goes to the charitable cause.

From a utilitarian perspective, what matters is not the intention of the giver, rather it is the consequences of one’s giving. If a large portion of one’s giving never gets to those in need, but is swallowed up by bureaucracy in administering the charity, then a utilitarian might reason the ends of giving and helping others do not justify giving freely of one’s own resources.

So, in this journey I have identified one very important reason why the U.S. is an exceptional nation. While it is true our government gives generously to many countries, there almost always is an ulterior motive for the giving making it less than a virtuous act. Our motive may be to win friends and influence people, or gain help in monitoring and controlling terrorism, or for us to help develop a country economically so its markets expand; business opportunities increase for American capitalists; and low-cost alternatives to needed products emerge to the benefit of the American consumer.

It is not government aid that makes us exceptional. In this season of joy and wonder we should remember that our charitable nature is linked to giving by the average citizen. This is the heart and soul of America – the essence of our giving spirit. We do so out of goodness, caring, compassion, and to help in the effort to wipe clean the image of starving people with little food and water to sustain themselves. This is the exceptionalism of America.

Ethics Sage — December 6, 2013

From around the web.

From the web site, Little Laos on the Prairie. (Which is just a fun site!)

http://littlelaosontheprairie.wordpress.com/2012/09/08/charitable-giving-the-lao-american-way/

How and why do the Lao choose to give?

Have a ‘sue kwan’ blessing for your first born and the Lao will come in droves. Your aunts, uncles, cousins and cousin’s cousins will shower you with lump sums of money and food. Have a fundraiser for a charitable cause like say, UXO removal, and maybe one or two Lao will show up with a few bucks to donate here and there. Beyond the excuse of being constantly broke, it’s the current reality of Lao American giving. It’s not to say that the Lao are terrible charitable givers, but it raises the discussion about what, how and why do Lao Americans give in the first place.

Dad said the true soul of Lao people consists of two main characteristics: humility and generosity. The Lao will cherish a single grain of rice under the most difficult financial times, yet they will tell you they don’t need any pity saving (or as some will call it “vow keu” aka they’re just pretend-saying that they don’t need saving, but really they want you to save them in some significant way).

The Lao in need don’t just need your money. They want a sustainable way of improving their livelihoods. Show them. Teach them. Provide them with resources and training. You’ll see how they pave the path towards prosperity on their own terms.

The Ethics Sage Responds to the Post: Maybe It’s Time For A Movement – A Movement That Moves Beyond Doing Good To Doing Right (via First Friday Book Synopsis)

On By southwerkIn business ethics

Steven Mintz

The Ethics Sage, Steven Mintz, comments on an earlier post.

Yes. We can do what is difficult but the first step is recognizing there is a problem. I haven’t seen that from any of our leaders and it’s certainly not discussed in the media. The work ethic and hunger for learning that once existed no longer is there. We have become a soft nation; too many have had it too good for too long. It used to be young people were motivated to succeed at least in part to have it better than their parents. Since they have been given everything they need and want, what’s left? The problem is exacerbated by our instant access culture. Press a button and you have what you want. Go on the Internet and download what you need. We are not a doing society anymore. We are a let others do it for us society. It has taken its toll and those of us who are trying to educate young people are constantly frustrated by the prevailing mentality of students — tell me what I need to know to get the highest grade or best job. I don’t have any answers because I don’t think many people recognize the problem or, if they do, it’s easier to just make believe it doesn’t exist.

Good Words. I, too, see a lack of leadership on moral issues. But we really can’t have a national dialogue without enforcement of the law against the financial sector. When we read daily of the profits of investment bankers against a back drop of investigative reports showing their culpability in financial disaster, it is difficult to tell anyone that high ethical standards are important. Just the opposite. The great investment banks live for profit without any consideration of any moral or ethical principle. They are willing to participate in the destruction of democracies, economies and the, occasional, forest; if it makes money.

In the next life they will be punished. I find that cold comfort when their actions are solid evidence that an immoral corporate culture can make you rich.

These people do not deserve their money. They do not deserve the high opinion in which they are held. They do not deserve the influence they have over the lives of others.

 

James Pilant

They do deserve salaries in proportion to what they produce, not a comical casino profit insured from blunder by the government, but salary based on value produced. Those among them who have committed crimes, prison sentences and confinement in real prisons with real prisoners. These captains of investment deserve to be rated according the their actual accomplishments and abilities not held up as examples to steer youth into ruthless pursuit of gain.

 

The culture I want rewards people based on their merits and at the very least values the common brotherhood of all human kind.

James Pilant

Honesty/Ethics in Professions (via Ethics Sage)

On By southwerkIn Government Failure1 Comment

From Professor Steven Mintz, The Ethics Sage taken from his post, Honesty/Ethics in Professions.

What should we make of such rankings? I think it reflects the fact that the public is smarter than politicians seem to believe. Bankers, for example, went from a ranking of 37% for high or very high ethics in 2006 down to 23% in 2010. Bankers are now tied with TV reporters. That seems about right. Each group seems to want to put their spin on a story whether it’s the supportability and relative safety of mortgage loans that led to the financial crisis or how one side of the political spectrum portrays the other as the evil incarnate.

The bottom line is the public has lost all respect for the political process that is driven by lobbyists who cozy up to members of Congress by acting as used car salespeople to promote their cause all the while advertising that that they are trying to help the public.

Professor Mintz argues that these poll numbers indicate that the public has lost all respect for the political process. I agree.

However, I would like to add that the public has virtually no way of taking any effective action whatever their feelings.

There is little chance of being elected to office in the United States without money usually a great deal of it. Most Americans cannot make the kind of contributions that makes them a player in political campaigns. Those few that can give that kind of money have different interests than most Americans. So, what most Americans want done will not be done while what a minority of Americans want will be done.

It seems hopeless to even try to think of how to change the system.

The influence of money in elections is not decreasing, it is increasing. The total costs of the 2006 congressional campaigns were about two and one half billion dollars. The 1998 races were a billion dollars less.

The two party system makes it difficult to run as a candidate with non-traditional views. Look at it as a consumer. Essentially we have two flavors of political thought that no one really likes and the way the system is set up we can’t have another flavor. Political thought is homogenized into a form non-threatening to major donors. You can only make one of two choices in an election both of whose party organizations are devoted to fund raising.

If that wasn’t bad enough, political thought is also marketed by the enormous media empires. Their influence is manifested in a common political view expressed by pundits in print or on television. Overwhelmingly the most influential are concentrated around a New York – Washington zone of media coverage. Sometimes referred to as the beltway, this small group generally determines what is politically acceptable and politically possible.

Another factor in public dissatisfaction is the power of international finance and global corporations. Although corruption and a casino mentality produced a financial cataclysm in 2007, a disaster that leaves us with ten percent unemployment even now, these giant organizations were never called to account but in fact rewarded with hundreds of billions of dollars in loans, trillions in financial guarantees and the privilege of borrowing from the Federal Reserve at zero percent interest. There have been no criminal prosecutions and their profits (and bonuses) have increased.

Because influence is concentrated with those who make large campaign contributions, most Americans have negligible influence in the government. Their concerns and needs do not appear important either to the government or media.

Day after day goes by with the government acting on issues critical to the interests of the donating classes and beltway philosophy.

This day by day continuous grinding repetition of political powerlessness creates a majority of Americans who hate the political system and consider the participants to be marginally better than criminals.

James Pilant

Steven Mintz Responds To My Post – $250,000 And Poor

On By southwerkIn business ethics1 Comment

Steven Mintz
Steven Mintz also known as The Ethics Sage commented on my earlier post about a Internet publication’s post about the difficulty of living on a quarter of a million a year.

James, I agree with your sentiments. The divide between rich and poor with a growing middle class is expanding rapidly. I wouldn’t classify all billionaires as greedy. The pursuit of self-interest is always a factor and often at the cost of others as too often occurs in corporations. There are, however, a few good people that either use their money to better society, improve our educational system, help those who can’t help themselves, and even fight world hunger and illiteracy. We know of Warren Buffet and Bill Gates in the business world who have started foundations for these purposes. They seem to be trying to do the right thing. The jury is still out on Mark Zuckerberg, founder of Facebook, who has pledged to donate a significant amount of his money. Oprah Winfrey comes to mind and her charitable efforts as well as using personal gravitas to improve conditions around the world. Perhaps we can include someone like Angelina Jolie who seems genuinely concerned about the unfortunate circumstances of way too many people in other countries. That said, you are absolutely right that the fabric of our nation has changed and not for the better. The middle class get squeezed more and more. The sad part is nothing has be done, even with the financial crisis, to address these issues and I fear nothing will be done because of the influence and desire of those with the billions to continue the trend and the willingness of our Congressional leaders, many of whom are already wealthy (or hope to be so after leaving office)to support the obsessively rich because they hope to join their ranks some day.

I recommend you add The Ethics Sage to your favorites.

James Pilant

Steven Mintz Comments On My Post – “Business Confidence Ratings”

On By southwerkIn business ethics, Capitalism, ethics, Philosophy of Business

Steven Mintz commented on one of my posts. The comment is below. I pass on comments from time to time, and my suspicion is that I will have the pleasure of doing so many times in this gentleman’s case. He has his own web site.

I just saw the movie “Inside Job” that explores the failures in the banking industry and how it created the financial services-driven recession in 2008. I highly recommend the movie to learn more about how and why the banking and financial services industry was able to bring down the economy. After seeing the movie I wonder why the bank confidence level isn’t even lower!

I have recommended the film myself. Here is the trailer –

http://www.youtube.com/watch?v=n9dOw37mWq0

You should read Steven Mintz, he knows his subject. He fights for ethics. He calls his site, The Ethics Sage.

James Pilant