Ethics week 2 notes
Ethics week 2 notes BUSM 390
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This 3 page Class Notes was uploaded by Kalli Wyatt on Saturday September 10, 2016. The Class Notes belongs to BUSM 390 at Brigham Young University taught by Aaron Miller in Fall 2016. Since its upload, it has received 3 views.
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Date Created: 09/10/16
dilemma— roots mean 2 values. Nash Equilibrium: an equilibrium point in a combined activity where no person can improve his outcome without another person changing his position • unethical behavior damages trust— that’s what the prisoner’s dilemma represents • encourages retaliation • destroys value — increases transaction cost between party a and party b— because of a lack of trust ◦ lawyers ◦ securities ◦ regulators ◦ warranties ◦ duplication ◦ delay *having good ethics encourages cooperation. Tit-for-tat (game theory) encourages cooperation. “we live first in a world of personal exchange— trading favors and friendship and of building reputations based on trust and trustworthiness in small groups and families.” “the long invoice of unethical behavior" • asset shrinkage • security costs • consumer distrust • employee distrust • ect.. There are other ways to think about ethics beyond consequence of our choices. “In business, as in all other human endeavors, we must be prepared to pay the cost of ethical behaviors" understanding, justifying, and modeling ethical behavior is hard. • reputation comes as we make hard ethical choices ◦ i.e. joe paterno ▪ “success is perishable and often outside of our control. In contrast, excellence is something that’s lasting, dependable, and largely with in a person’s control.”— Joe Paterno • “I felt constrained to make it because of the effect of these matters on our values and the possible misperception that there can be tradeoffs in these areas.” -alcoa email. There can be no trade offs when it comes to ethics. ◦ i.e. Joe Paterno didn’t do enough to make sure good ethics carried out. There can be no trade offs. You can’t be morally ethical 99% of the time, and let one slide. ▪ we need to be able to handle the ethical choices we are good at as well as the hard curve balls that we aren’t used to handling • how can you justify ethical behavior if you are cynical about ethical behavior? ◦ it starts with our ability to persuade people. How the class is going to be structured: Utilitarianism (consequentialism) • John Stewart Mill ◦ greatest happiness for the greatest number of people ◦ most ethical are the ones that create the most happiness for the most people ◦ cost-benefit analysis criticisms to utilitarianism: • how do you measure happiness? • how do you guarantee cause and effect? • how do you justify substantial harm to one for minor benefit many? (Social Contract) • based on Utilitarianism thinking • Thomas Hobbes —> Leviathan ◦ society is a leviathan… a giant monster that nobody can defeat ◦ life in nature is “solitary, poor, nasty, brutish, and short.” —> life with out social demands. There would be no way for us to collaborate reliably. ◦ social relationships make life mutually beneficial for all ◦ social contracts sacrifice independence to reduce the negative impacts of nature ▪ waiting in line ▪ public education ▪ cross walks criticisms about (social contract): • what if the social contract is unwritten? • why be a party to the contract if you receive no benefit? • if you don’t want to be a party, what duty do you owe to anyone?