Chapter 5
Anchoring Bias
The human tendency to rely heavily on the first piece of information received/ reviewed.
Ex. In job interviews when reviewing candidates
Fudge Factor
Human tendency where everyone cheats a little bit to the extent where they still see themselves as a good person.
1. Social Proofing
2. Reciprocity
1. Phenomenon of copying someone else's actions to attempt displaying the correct behaviour in certain social situations.
2. Social norm to have the urge to pay someone back after having received some sort of benefit from that person.
Steps to make a decision
1. Identify the ethical issue
2. Identify the stakeholders
3. Consider Alternatives
4. Evaluate alternatives based on principles
5. Make a decision, implement it
6. Review criteria and consequences
Explain how any two norms, biases, or rationales can be used in a business setting
Ex. Escalation of commitment when employees have low work ethic or they've been there for awhile and are tired or stubborn. Self-interest is how we can work on ourselves while at a corporation and how to stay reputable.
(Lots of combinations between them all these just may be some ones people don't think about)
In group bias
Tendency to favour people with the same similarities/ qualities as you who are in the same group
Ex. Group projects, you may be easier influenced to go with your friends rather other people.
1. Self Concept maintenance
2. Moral Licensing
1. Psychological factor that helps us keep a positive view of ourselves.
2. Human tendency to relax your standards after doing something difficult so you can reward yourself
ex. going to the gym to come home and eat a piece of cake.
Adherence to Authority
Tendency to follow orders, suggestions, and guidelines from someone that we perceive as an authority figure
Ex. Parents, teachers, coaches
Types of dilemmas
1. Technology dilemma
2. Conflict of interest
3. Employee dilemma
4. Customer dilemma
Pick two social norms and explain how they can impact good people doing bad things?
Social proofing because it is someone else's behaviour you are copying and doing it yourself or adherence to authority because that figure may not be truthful or honest but you go along with their insight anyway.
ex. you can pick whichever one you want it is not specific to these two
1. Cognitive Bias
2. Loss Aversion
1. Mental shortcut when interpreting information
2. Easier to avoid a loss than to earn a gain
1. Self Interest
2. Cognitive Dissonance
1. The pursuit of going along with our own actions and behaviours to benefit ourselves.
2. The discomfort we feel when our actions don't line up with our beliefs
Normalizing
The repetition of ideas until they become accepted as a reasonable way of thinking
How to structure the bias to reduce their impact
Figure out guidelines, communicate, rewarding good behaviour and penalizing bad behaviour
Ethical dilemma: SGI is going bankrupt and to save themselves from going out of business they have to increase their insurance prices and sell less of it to get by. Because of this people have weaker car insurance which means less coverage during accidents. Explain what the best option is for SGI do they shut down altogether or continue selling faulty products to the public? Explain
I believe SGI should shut down because it is not fair to put others lives at stake as well as it creates a barrier to entry for another company in the same market. While in the minds of the executives this is a great idea because they are still making money and working which is good for their own self interest but to everyone else they will this situation differently which will have the opposite reaction. SGI should own their decision under their responsibility and stop selling regardless of the bankruptcy sue to safety, but instead partner with existing companies that sell insurance or look to raise money in a charity and share their story with the public. Under serious circumstances regarding someones life it is important to realize all decisions as available alternatives because you never know how your business will turn out.
1. Confirmation Bias
2. Attribution Bias
1. Human tendency to look for reasons that support your actions to prevent further reassessment of behaviour
2. Human tendency to assign certain attributes to another persons character (i.e. success or failure) instead of judging by their situational factor (who they are)
1. Rationalization
2. Comparison
3. Compartmentalization
1. Altering beliefs and justifying actions to reduce the inconsistency.
Ex. Well I only get gas so often so I can drive a ways away today
2. When you compare someones bad behaviour when you do something morally questionable
3. Not letting the bad behaviour become a part of who you are
1. Cultural norms
2. Corporate Culture
1. The accepted behaviours that are expected by individuals in society
2. Shared values, norms and practices that characterize an organization
1. Can you connect all these norms and biases together with your own principles and bring it in to the main question of ethics...
2. What are the two long questions going to be?
1. "Why do good people do bad things"?
2.
a) Ethical dilemma, Mini case
b) Identify influences that exemplify bad behaviour
How would you ensure it is reasonable explain why
Ethical dilemma: Suppose SaskPower is a fully functional corporation has a great reputation but you decide to go against what the company stands for and now you're in trouble and at risk of losing your job. What awesome things you could've done to end up like this and how do you make it better? Explain
This solely reflects the employee but we also must consider what the company may have done to create this behaviour in their employees. It could be that employees feel neglected for hence the company doing so well without addressing these concerns. I believe according to my principle of treat others how you want to be treated should be applied so the individual knows what their doing is wrong so they fix their behaviour going forward and if not I suggest the company does one of the following, fire that employees causing this chaos, pay them less which will bring in more funds for the organization, or put them on a probationary period. I think this is best because it teaches them a lesson and makes you feel better after basing your decision off of your own values and biases that make up who you are as a person working in the company.
Escalation of commitment
Human tendency to persist with a failing course of action in spite of their being clear information about it already.
Ex. causes can be poor instructions on the management end, or pure stubbornness by the employee.
Eternal Conflict
Refers to friction between our self interest and ethical behaviour. Invites a sort of role play attitude. This as old as human history
1. Social Media
2. Popular media
1. Online platforms that allow users to create, share, and interact with content and connect with others.
2. A broad spectrum of mass communication channels that reach a large audience (i.e. TV, radio, news outlets).
What is the right way to structure an answer how he wants it?
How are you going to answer every question?
The right structure, right definition, and bring in your own principles for some of them and provide examples.