Robert Card (2005)

Ethics, a KEY theme in the Parable of the Sadhu (India)

• Ethical dilemma in the Parable of the Sadhu (India):

• ..
• ..
What´s an ethical dilemma? How do you address an ethical
dilemma (true positive)?
•…
Ethical dilemma
An ethical dilemma exists when an agent (the professional, in this case)
has reasons to undertake two (or more) actions, each of which favors a
different principle, and it is not possible to comply with one without
violating the other (or one of the others).

Ethics: Set of moral norms, notions of good and evil, that govern the
behavior of the person in any area of ​life.
 At a very general level (please do not bring up
specific/technical concepts from the reading), why do we need
a particular analysis on individual ethics within organizations?

• ..
 Why do we need a particular analysis on individual ethics
within organizations?

• A definition of ethics: Set of moral norms, notions of good and

evil, that govern the behavior of the person in any area of ​life.
• In this definition of ethics situational factors (context) appear to
be completely irrelevant.

Conformity: https://vimeo.com/277929528

Individuals and organizations may have different values. If individuals don´t

have strong values they may conform to some set of organizational values.
The organization may or may not provide an environment
that is conducive to taking ethical decisions.

“… individuals do not check their moral values at the door

when they enter the work place.”
The Milgram experiment. What has occurred?
Milgram: “Stark authority was pitted against the subjects' [participants']
strongest moral imperatives against hurting others,”
• When the individual takes actions in an organizational context an “agentic
shift” may occur:
• Autonomous state: Conscious is brought into play. The individual is able to
identify the existence of ethical dilemmas / takes moral responsibility over
his/her actions
• Agentic state (erosion of agency): The individual abdicates his or her own
agency and sees himself as an instrument for carrying out the wishes of
others (stark authority)
(agency is the capacity of individuals to act independently and to make their own free
choices)
Agentic shift
• Why could it be a problem in organizations?
• “ …. even when the destructive effects of their work become patently
clear, and they are asked to carry out actions incompatible with
fundamental standards of morality, relatively few people have the
resources needed to resist authority.” (Like pushing the Sadhu of a
Cliff?)
• In organizations, the erosion of individual agency may be more
pervasive than we would like to recognize.
Systemic error
•…
Systemic error
• The death of Jose Eric Matinez. “The fragmentation of the human act
leads to the fragmentation of responsibility for the action. “ (Card
2005). “The person who assumes full responsibility for the act has
evaporated.” (Milgram 1974)

• In the bureaucratization of organizations, the sense of good and evil,

is lost: corruption, dealing with a local community, etc.

• Who is responsable?
 Truth
Positive Negative

True Positive False Positive

Are you faced with Positive

an ethical dilema?
Negative False Negative True Negative
Conclusions (Card 2005)
• We/individuals tend to abdicate our/their agency within
organizational contexts (agency is the capacity of individuals to
act independently and to make their own free choices.)
• Undertaken actions that may be deemed unethical is, naturally,
problematic for both the individual and the organization
(shared responsibility)
Conclusions (Card 2005)
• Ethical theories are not algorithms that enable carry out ethically /
morally acceptable actions
• Ethics is a process of active thinking -reflection about acts and their
consequences
• Ethics involve asking questions and inquire possible answers and
consequences before making decisions (knowing how to inquire)
• Have the criteria to decide what is negotiable and what is not
according to own principles
What is Card´s recommendation on how to avoid the erosion of individual
agency within an organization?
- ….
What is Card´s recommendation on how to avoid the erosion of individual
agency within an organization?

Outcomes for an effective corporate ethics program:

1. lowers the incidence of unethical/illegal behavior

2. raises the ethics awareness of employees
3. makes it more likely that employees will ask for help in ethical/legal issues
4. increases employee's willingness to give management bad news
5. should increase willingness to report ethics/legal violations to management
6. should be infused into decision-making and make for better employee decision-
making
7. should increase employee commitment to the company.

Values-based orientation aims to define :

1. the organization's values and
2. to encourage employees' commitment to their own ethical aspirations.
In-class excercise – Prepare a PPT
(4-5 slides – don´t forget the names)
How to avoid the erosion of individual agency within an organization?
A/ Evaluate Jhonson & Jhonson´s Credo as a (potentially) effective ethical
code according to Card (2005) (pages 399-400).
https://www.jnj.com/credo/
https://www.youtube.com/watch?v=nlTijmelPCQ

B/ How would you relate the Credo to J&J´s response to the Tylenol crisis? -
in particular to its the decision to recall Tylenol from the shelves
nationawide? (6 mins and 15 sec)
https://www.youtube.com/watch?v=l1R0EnzGB3I
Presentations

Group # 7:

Group # 10:

https://www.youtube.com/watch?v=jtuvgAkKGqM
Conclusions (J&J)
• The Credo aligns individual and organizational values

• The Credo is an ethical code that acted as a crisis plan

 Milgram experiment
Effects of punishment on learning
E: experimenter
T: teacher
L: learner (confederate / actor)

T asks a question
L answers

Error: T inflicts electric shocks to L

Incremental schocks +15 volts
After 300 volts, L goes silent
Min 5.00 -
https://www.youtube.com/watch?v=y6GxIuljT3w

Results: 26 out 40 participants (65%) applied

electric shock of 450 volts