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role of business in upholding/undermining collective values, Asch line…
role of business in upholding/undermining collective values
Ethical Breakdowns - BAzzarman
Example 1) Ford Pinto Company: Decide Not Recall because production line is ready to go, even after the engineer discovered the issue.
unethicality Reasons
cost-benefit analysis only - "ethical-fading" phenomenon
incentive to sales people: sales not profit. Rewarding system wrong.
Bill Clinton focused radically on the national ownership rate, leading to the 2008 financial crisis.
Motivated Blindness
why did credit rating agencies vouched for demonstrated risky security? Because they are paid by the companies they rate, laxest rating services means best shot winning new client.
simply knowing conflict of interest exists is not enough, but actions to remove conflicts of interest when possible.
Example 2: Barry Bonds broke the MLB home-run record. steroid use was widely known to be common in baseball. More home-run = more profit, not fully investigated at all.
Moral Blindness - personal conflict of interest affect our statements and stands
Indirect Blindness
Merck Used an intermediary small pharmaceutical company to hide the cost for cancer drug that increased tenfold. Reason: Preferrable headline.
Study shows we are more lenient to when cost is hidden by a third party.
Production outsource to cheap labor countries that leads to poor quality, but also avoids the blame
billable hours are manipulated led to overbilling
Slippery Slope of cooking the frog in a warm water. E.g.) Accountant
Ethics Unwrapped, Concepts Unwrapped
Moral Muteness
“please-o-holic” and a trusted business adviser differentiation.
You don't tell the client what they want to hear.
obscure their moral committments communication
rationalization of not speaking up.
ethics is bad for business. No business setting.
competing goal.
Harold Takooshian research: staged car break-ins. Lesson: Witnessing wrongdoing does not automatically lead to intervention.
Incentive Gaming
“gaming the system,” refers to when we figure out ways to increase our rewards for performance without actually improving our performance.
Conflict of Interest
Conflict of interest arises when we have incentives that conflict with our professional duties and responsibilities in ways that harm others and society.
Conformity Bias
One dissenter matter. Confirmity is broken.
Obedience to Authority
Incrementalism
Obedience: Milgram experiment electric shocks, authority
Science of Moral Decoupling - Harold Yu
he gap between what a company professes and what it practices. It’s called decoupling.
Enshittification of ChatGPT and all other AIs started being cute and innocent, then double/raise the price.
J&J pulled back Tylenol bottle with Cyanide at all cost, Canonized corporate ethics in business schools.
Ortho Evra approved, Estrogen birth control pill, scientist added a "correcting factor" to deceive FDA. Lead to heart attack
Enron:
Enron's story destroyed the firm, accounting standard
QUOTE: The AI labs have written the most Credo-like documents. OpenAI’s charter, still posted after its restructuring, declares that its “primary fiduciary duty is to humanity.” Anthropic incorporated itself for “the long-term benefit of humanity.”
I believe the people who wrote those lines meant them. But remember that Enron’s board waived its own ethics code in about an hour. A charter you can waive is a market slogan. A mast is a promise with rope on it. You tie yourself before the singing starts, while your hands still obey you.
Quote: the scoreboard detaches from whatever it was invented to measure.
Moral decoupling meaning: People can separate their moral evaluation of behavior from their evaluation of performance.
Tech & Responsibility Philosophy, Hans Jonas
imperative of generational responsibility under technology power, because it scales tenfold impact of behaviors.
future ppl are still morally relevant
Heuristics of fear
: imagining the worst plausible consequences can help us recognize responsibilities that optimism might hide.
Asch line experiment
Ill-Conceived Goals
Merck + Ovation