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Ethics: Tore Audun Høie Tore - Hoie@vikenfiber - No
Ethics: Tore Audun Høie Tore - Hoie@vikenfiber - No
University College
and Oslo University
Course Goals
Knowledge.
Criticism.
Constructive. Be able to suggest simple ethical guidelines International. Transpose those guidelines to an
international perspective
Application. Use guidelines in daily work
Lecture 1 Introduction
* To motivate employees
* Perhaps demanded by customers
* Sustainability
Why ethics II * The finance crisis * A number of crimes, near-crimes and transgressions * Managerialism (Robert Locke) * Management not contributing to organisation growth/health * Not contributing to society * Money only management * Greed is good * Short term and limited plans
Greed is good. Embrace it. Love it. Live it. In fact, greed may be the one thing that can save us. Dont believe me? Greed was the foundation for this country. The brave souls who risked their life to settle in a new country did so out of self interest. Our forefathers recognized the importance of self-interest in the Declaration of Independence where they emphasized our unalienable right to pursue happiness. Robert Pagliarini blog, Moneywatch 2010
Why ethics III * Self-interest is pervasive economic idea * Not supported by research, as overriding paradigm * Country differences, in Japan a negative personality trait Other personal goals, sometimes more important: * * Family and friends Personal development (e.g. Maslow)
Definition Ethics
Moral philosophy.
Determining rights and wrongs, selecting actions to achieve good results, evaluating motives.
(attempting to summarise several definitions)
The achievement of wisdom, choosing actions that are benefical and acceptable long term; or sustainable. This implies a society focus.
Tore Audun Hie Tore.hoie@vikenfiber.no
Definition Morals
Beliefs and behaviour of group. The group can be:
Forms of ethics 1. Metaethics (what is good? etc) 2. Normative ethics (what should we do?) 3. Applied ethics (how do we apply ethics to work and lives?)
Codes of ethics
* Law
* Journalism * Psychology
Tore Audun Hie Tore.hoie@vikenfiber.no
* Do to others what you want them to do to you. * If you demand from others, demand the same from yourself (perhaps more if you are a leader) * See yourself as the other (good even for design!)
* Empathy
http://www.kevinmd.com/bloghttp://www.kevinmd.com/blog the Gold-in Rule: Do whatever is necessary to bring in the maximum gold, without getting caught
Assymetrical ethics
Instrumental ethics Ethics an instrument for achieving something else. Not based on principles or conviction.
Greenwashing
Philantrophy used as an excuse |
Principle based ethics Based on principles like (from websites): * * * * * We want to deliver first class design We want to be best in our discipline We will contribute to society We consider ecological impact We contribute to environmentalism Preferably followed by action
Compliance ethics Within existing laws, standards, guidelines, morals May need a compliance officer in large organisations - e.g. what does it mean to follow standard? Ensures that organisation does no wrongs, but difficult
The Ethics & Compliance Officer Association (ECOA) is a member-driven association exclusively for individuals responsible for their organization's ethics, compliance, and business conduct programs. The only organization of its kind, its members represent the largest group of ethics and compliance practitioners in the world. The ECOA is credited with formally "founding" the ethics and compliance field in 1991. www.theecoa.org December 2010
Positive ethics * Contributing positively to: Organisation Profession Society Environment and other stakeholders
www.strategie-aims.com
The moralist
The ethicist
Aristotle (384-322)
Tore Audun Hie Tore.hoie@vikenfiber.no
Openness
Publish information Register information Compare information Analyse information Find missing information
Privacy
Personal room, integrity Information may cause harm Info may cause embarrasment Wrong information Wrong use of information
Issues:
Data Protection Data Inspectorate Open Government
Tore.hoie@vikenfiber
Discussion
Wikileaks
Villains or heroes?
* * * * *
Professional duties Employee care Customer care, and supplier responsibilities Environment care Ownership (price, value, opportunities..)
Financing
Exploration * - the list is being extended
Tore Audun Hie Tore.hoie@vikenfiber.no
Conclusion lecture 1
Homework for lesson 2 Look up Pfizer on Internet. What do they do, and how big are they? What does their website say about social responsibility and ethics? Do they mention a recent fine? What were they fined, and why? What happened to the Pfizer CEO, and why? Is it easy to find this information? What is your evaluation of their social responsibility?
The lecture will present some transgressions that are typical of today's business and political environment, and attempt to indicate trends and need for action.
Crimes Greed
Poor quality
Incompetence Other
Philosophical problems
Beliefs (axioms) not clearly expressed Not defining, or defining poorly (example CRM) Belief that microoptimisation gives macrooptimisation Optimisation instead of satisfiation (Herb Simon) Overall effects seldom evaluated (like competence, motivation)
Koordination och informationssystem i fretag och ntverk. PhD thesis. Ulf Melin, Linkping Universitet 2002.
Consequences customer:
Consequences supplier: * Need to know customer values * Need to know own values, and reflect on them * Need to adapt to customer needs, if not in line with own values * Need to inform customer if values unethical or not sustainable I.e. Supplier depends to some extent on customer values
Texas University found inaccuracy problem 2003. Supplier Dell answered that machines were overtaxed.
Tore.hoie@vikenfiber.no
Tore.hoie@vikenfiber.no
Many ethical challenges within ICT Many unreflected projects Knowledge is sometimes incomplete or missing ICT as a knowledge discipline needs refinement Philosophy may have a major positive effect on ICT
Tore.hoie@vikenfiber.no
Damning BP verdict points to cost cuts Years of cost-cutting and lack of investment led to BP's Texas City refinery fire that killed 15 workers, a watchdog has said An ad from 1999:
BP Alaska
Tore.hoie@vikenfiber.no
BP Macondo field
Several decisions regarding drilling, cementing and technology solutions influenced by cost and time considerations.
BP Norway Fire 13 July 2011. Nobody hurt, but work stalled for weeks. Petroleum Safety Authority Norway says reason was poor maintenance, 10 issues were outstanding and not amended. A general problem in the North Sea is ageing equipment.
Tore.hoie@vikenfiber.no
In May 2011 the American Petroleum Institution had the following statement on its website: when spills occur, the United States employs world-leading preparedness planning and response capabilities to minimize environmental harm.
Tore.hoie@vikenfiber.no
Tore.hoie@vikenfiber.no
In a law suit in Australia 2009 it became known that the publisher Elsevier, and the Pharma company Merck had cooperated to publish the Australasian Journal of Bone and Joint Medicine (AJBJM), the journal is apparently dedicated to promote Merck products.
The AJBJM was distributed to 20000 doctors, it is unclear to what extent they believed the journal was authentic. Later 8 further fake journals were found. Elsevier refuses to inform who paid.
Tore Audun Hie
Tore.hoie@vikenfiber.no
Elsevier's viewpooint
Elsevier has officially regretted the incidents, and have apparently reformed:
We are committed to ensuring that advertising, reprint or other commercial revenue has no impact or influence on editorial decisions. (www.elsevier.com january 2011) In addition, Elsevier will work closely with other publishers and industry associations to set standards for best practices on ethical matters, errors and retractions--and are prepared to provide specialized legal review and counsel if necessary.
Tore Audun Hie
Tore.hoie@vikenfiber.no
Merck's viewpoint
The journal promoted Merck's product Vioxx for uses that it was not approved for. This has caused personal problems and perhaps death of patients. Merck failed to share research showing the dangers of Vioxx. Merck lawyer became the new boss.
Book viewpoint:
In
a new book, All The Justice Money Can Buy, former National Public Radio reporter Snigdha Prakash, who was embedded with a team of plaintiffs lawyers for one of those trials, describes legal machinations, strategies and battles that eventually led Merck to reach a $5 billion settlement
Professional viewpoint Merck has been a generous supporter of medical personnel especially nurses.
Tore.hoie@vikenfiber.no
Finance crisis
In 2006 speculators started to withdraw from overheated US housing market. Banks offered better terms, for instance No Income, No Assets loans, later called NINJA loans. Loans were bundled into instruments that were quality controlled by credit rating agencies and sold to other banks.
In 2009 the International Monetary Fund estimated that the cumulative losses of banks and other financial institutions exceeded 4 trillion US dollars
Tore Audun Hie
Tore.hoie@vikenfiber.no
Professional issues
Risk management raised issues, and was overridden due to market and money considerations. Credit rating was paid by customer banks, Auditors apparently did not point to problems Boards did not intervene Bonuses were based on efficiency, ability to handle large amount of loans Financial models did not forecast crisis, and one was called a receipe for disaster
Tore Audun Hie
Tore.hoie@vikenfiber.no
Ethical problems
The overwhelming emphasis on money
The Arab Spring and ethical reflection The Arab People did not have (Ali Kadri 2011, London School of Economics):
* Full sovereignty over natural resources, including selfdetermination and popular participation in development; * The right to work; * Equality of opportunity, which is preceded by equality of condition; * The creation of favourable conditions for the enjoyment of other civil, political, economic, social and cultural rights; * Peace and security are essential elements for the right to development
Tore Audun Hie
Tore.hoie@vikenfiber.no
Background
Some Arab countries have oil. In 2009 it constituted 40% of Arab GDP. Despite the high price of oil 2003-2010 poverty levels rose, income inequality widened and unemployment rates responded poorly to economic growthslightly more than fifty percent of the population subsists at below two dollars per day. (Ali Kadri 2011). The general problem is according to Ali Kadri that the ruling elite derive the benefits, and for their own good, with few trickle down effects. The estimated excess savings are estimated at some five trillion dollars over 40 years, invested abroad, mostly in US treasury bills.
Tore Audun Hie
Tore.hoie@vikenfiber.no
*
*
*
*
Hardball
To play Hardball means being aware of when you are entering the caution zone - that area so rich in possibility, that lies between the place where society clearly says you can play the game and the place where society clearly says you cannot
Fakes are an accepted part of business life and good fakers are to be admired.
General Motors is admired.
Stalk, George & Lachenauer, Rob Hardball. Harvard Business School Press 2004.
Tore.hoie@vikenfiber.no
Ethical view Bordering on the unethical (Financial Times) Close to find-the-loophole management The manager will be busy with law and borderline issues, forgetting strategy (like GM). Extreme emphasis on competition, with quality, risk and ethics not in index. Written by two Boston Consulting Group consultants (but the BCG has changed views according to the website).
Tore Audun Hie
Tore.hoie@vikenfiber.no
Reasons for disaster (engineering) 1. Poor design (not necessarily bad design) 2. Shoddy maintenance 3. Insufficient, illegible or unavailable documentation 4. Incompetent staff, misunderstandings, tiredness 5. Insufficient training 6. No or little testing of disaster situations 7. Failing measurements, or failing to measure 8. Failing communications 9. A non-quality culture, obedience, fear of speaking up 10. Organisation failures 11. Time constraints, sometimes political 12. Budget constraints, cost cutting Chiles, James R. Inviting Disaster. HarperBusiness 2001
Tore Audun Hie Tore.hoie@vikenfiber.no
Tore.hoie@vikenfiber.no
Summing up chapter
* Many transgressions (only few covered here)
* Money considerations very important (Financial Times uses the expression greed in Capitalism in Crisis January 2012) * Risk and safety downprioritized, sometimes ignored
* Professionalism and Reputation apparently not important
Select a food, and describe how you would implement an ICT system. Will this lead to increased or decreased sales? How is this related to ethics?
Tore Audun Hie Tore.hoie@vikenfiber.no
Aristotle:
It is he who knows the whatness of the thing who has understanding in the highest degree
Tore Audun Hie Tore.hoie@vikenfiber.no
Homework for lecture 3 Who was Aristotle? When and where did he live? Name at least two major books that he authored. What life views did he have? What can he teach us? Name at least two other philosophers from the same period, and their influence today