The Words

Morality, from Latin moralis (custom). Actions are moral if they are good or worthy of praise.

Ethics, from Greek (custom). The formal study of moral standards and conduct.
Goal: construct a general basis for deciding what is moral.

The Words
Values, overview of approaches in various disciplines and major influence on a person's behaviour and attitude

Which Can be Moral or Immoral?

Which Can be Moral or Immoral?

Which Can be Moral or Immoral?

Can ethics be taught?

Prior research shows that students are affected in a positive manner by classes that include ethics education. Teddy Roosevelt said, To educate a person in mind and not in morals is to educate a menace to society.

What is ethics?
Ethics: a branch of philosophy which is the systematic study of reflective choice (decision problems), of the standards of right and wrong (moral principles) by which it is to be guided, and of the good or bad (consequences) toward which it may ultimately be directed. An ethical problem occurs when you must make a choice among alternative actions and the right choice is not absolutely clear. Often that choice affects the well-being of other persons.

Steps in Ethical DecisionMaking

1. Define all the facts and circumstances: e.g. Who, what, where, when, and how?
2. Identify the people (stakeholders) affected by the situation; What are the stakeholders rights and obligations? 3. Identify the alternative decisions and consequences.

4. Make the decision.

Problems
Consequentialist ethics: Choose actions that lead to desirable outcomes.

The process: 1. Choose goal(s). 2. Reason about a plan to get as close as possible to the goal(s), 3. Subject to some set of constraints.

Which?
How? Which?

How Do People Actually Decide?

Avoid making a mistake by doing nothing.

Examples:

How to Choose
Choose actions that lead to desirable outcomes.

Chose actions that are inherently good rather than ones that are inherently bad.

About how many high school students do you think cheat on exams?
a. 10% b. 25% c. 50% d. 75% e. 100%

In a recent Wall Street Journal article, Psychology professor Steven Davis says that cheating by high school students has increased from about 20 percent in the 1940s to 75 percent today. Students say cheating in high school is for grades, cheating in college is for a career.

Expected Value
Choice

decision1

decision2

decision3

Expected Value
Choice

decision1

decision2

decision3

payoff1

payoff2

payoff3

payoffn

Expected Value
Choice

decision1

decision2

decision3

prob1

prob2

prob3

probn

payoff1

payoff2

payoff3 expectation3

payoffn expectationn

expectation1 expectation2

Expected Value
Choice

decision1

decision2

decision3

prob1

prob2

prob3

probn

payoff1

payoff2

payoff3 expectation3
o

payoffn expectationn

expectation1 expectation2

Expected Value(decisioni) =

ooutcomes[ Decisioni ]

payoff prob

Rational Choice

choice arg max( ExpectedValue(d ))

d Decisions

choice arg max(

dDecisions oOutcomes[ d ]

payoff prob )
o o

Rational Choice
Choice

college

lottery

decision3

.00000001

.99999999

$10M - $1

$0 - $1

Expected Value(lottery)

= $9,999,999*10-8 - $1 *.99999999 = - $.90 = ($1.2M $100,000)/100,000 = $11.00

Expected Value(college)

Do you not often make decisions consciously or unconsciously based upon maximizing expected value?
Get flu shot Study for a test Wash hands after touching doorknob Drive faster than a speed limit Watch before crossing a street

Problems with the Categorical Imperative

If rules are absolute, what happens when they conflict?

Questions to Consider for Ethical Decision Making

Are there legal concerns? Is it right? (If you know its wrong, dont do it!) Does it comply with company values? Does it comply with the principles of your profession (for accountants, GAAP)? Would you be embarrassed by your decision if others knew about it? Who else is affected by this (others in the company, customers, etc.)?

Questions to Consider for Ethical Decision Making

Are you willing to take sole responsibility for this decision? Is there another course of action that does not create an ethical dilemma? How will it look in the newspaper? Do you think a reasonable person would agree with your decision? (Ask an appropriate person.)

The reputation of a thousand years may be determined by the conduct of one hour.
Japanese proverb