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August 2009
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WelcomeGreetings!
 
      
Most of us consider ourselves ethical, yet ethical behavior continues to challenge organizations.  This months article explores ethical decision making.   
 
See the article below:  to learn more about ethical decision making or contact us about our Magnify Personal Leadership program which helps managers explore their personal approach to ethics and leadership.  
 
Please forward to others who may be interested in contributing or joining our monthly newsletter.    
 
James Gehrke
 
August's Article
ArticleWhat My '74 Ford Pinto Teaches Us About Ethical Leadership
 
by James Gehrke
 James Gehrke    
 
Since my first car was a Ford Pinto, I have always been interested in the case study of the Ford Pinto.  For those of you not old enough to remember, the Pinto had a slight defect in the design of the gas tank, causing it to explode when the car was involved in even small rear end collisions!  The case provides an interesting study into approaches to ethical decision making.

There are three possible approaches to make when making ethical decisions; a consequentialist approach, a deontological approach and a psychological approach. In a consequentialist approach, the decision maker would base their decision by focusing attention on the consequences of their action (Trevino and Nelson, 2005, p. 89). In the deontological approach, the decision maker would base their decision by focusing on what is right or wrong based on common values and rights of individuals and/or groups (p. 91). A decision maker basing their action on a psychological approach may vary their actions based on the level of their of cognitive moral development (p. 115).

In the Ford Pinto case, an individual who took a consequentialist approach could easily make the decision which Ford did and produce the car despite the possibility of having the gas tank explode on low speed rear-end collisions. Furthermore, they would likely agree with Ford that the car did not need to be recalled once it was on the market. A decision maker using the consequentialist approach would look at the consequences for the broadest number of individual and groups as possible and make their decision based on doing the least harm and the most amount of good to all. Since the data showed that there were no more accidents with the Pinto than with other vehicles and the company's stakeholders would greatly benefit from keeping the costs low and bringing the car to market as fast as possible; they easily could have decided that the most benefit would come from going ahead with the design since there would be many who would benefit and likely no more than what existing standards permitted would be harmed.  This is what Ford did despite numerous explosions and deaths. 

On the other hand, a decision maker using the deontological approach would easily have decided not to move ahead with production and/or to recall the car once it was on the market since this individual would base their decision on a set of moral values and/or the a code of individual rights.  They would likely argue that the car should not be produced because it would be ethical wrong to knowingly hurt defenceless individuals or because a small group of people harmed or killed.  Unless the rights of these individuals could be protected, the decision would be not to produce the car, or if it was already on the market, the decision would be to recall the car and make the necessary repairs. 
 
The results of a decision of an individual following a psychological approach could vary depending on several influencers.  An individual, for example, may have agreed to move forward with the sale of the Pinto and/or not to recall it from the market because they may have been highly influenced by others in the company. Because of this influence they may have feared punishment from management or they may have hoped that by supporting the majority opinion that they would have been rewarded in some way. Even if the individual wanted to strive for the best possible behavior for themselves and the company, they might still not have decided to redesign the Pinto's tank because they could have been highly influenced by the majority of decision makers in the company and not felt strong enough to go against their will.  There are others who may have felt strong pressure to follow the "letter of the law," which Ford was complying with.  Therefore, they would have felt no legal reason for making the design change.  Only if they had a highly developed feeling of moral obligation might they have felt the need to go against the trend within the company in order to uphold the rights of the minority "regardless of the majority opinion (p. 115).
 
A closer review of our own approach to ethical decisions is important for individuals and for companies in order to avoid other similar personal and organizational disasters. 

 
By the way, I survived my 1974 Ford Pinto! I was never rear-ended!

 
References:
Trevino, L., and Nelson, K., (2005). Corporate social responsibility and managerial ethics. Hoboken, NJ: John Wiley and Sons, Inc.

Magnify Leadership and Development Training Solutions:
ProgramsMagnify Personal Leadership
      Managers often struggle with ethical decisions.  Part of the challenge is that managers are often so involved in the day-to-day challenges of managing the business that they never stand back and evaluate what their own approach to ethical decision making.      
     
     This session provides several facilitator lead activities that help individuals explore their personal approach to leadership.  Just about any manager, facilitator, teacher, coach, or anyone else in a position of influence can be considered a leader.  Perhaps the common denominator in defining who is and who is not a leader is whether the individual has influence over another individual or group.  When we consider this, all of us have the potential to influence and lead.  However, how effective we are as leaders is another question.               
 
     The Bible tells us to judge the goodness of a tree by whether it bears good or bad fruit and that "a good man out of the good treasure of his heart bringeth forth that which is good; and an evil man out of evil treasure of his heart bringeth forth that which is evil."  The same evaluation works for leaders.  Do they have positive or negative influence on others?  By observing great leaders of the past and present, certain basic qualities can be identified of great leaders.  This workshop is designed to provide participants opportunities reflect on their own personal approach to leadership in order to improve their positive influence on those they lead.    
 
     Participants in this 2 to 3 day workshop will:    
 
1.  Discover the traits of leaders in order to identify their key core values they will use as a base for their leadership platform. 
 
2.  Determine what mark they want to leave on those the lead and influence. 
 
3.  Create and practice delivery of a succinct message that explains their core values and where they want to lead their teams.  
 
4.  Investigate and practice key qualities of servant leadership 

 
Click here if you are interested in this or other Magnify L&D training workshops

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-  Magnify Team Effectiveness:  Creating a Team Environment

Half to one First Line Management Development Skills workshops include: 
 
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About James Gehrke and Magnify Leadership and Development 
LogoMagnify 
 
is a training consulting company with global experience in management/leadership and communication skills and sales force effectiveness training.  We provide our clients with customized service and the individual attention in ways that larger training firms cannot provide.  We design and deliver customized workshops for clients and back up that training experience with individualized feedback and coaching so that participants can apply the concepts learned more effectively to their jobs; improving performance, productivity and bottom-line results.    
 
     Our vision is that our efforts will help to 'magnify' the natural ability that exists in individuals, helping them to maximize their full potential, increasing their value as leaders and professionals in the organizations were they work and serve.  We will not be the largest training company, but by offering customized training solutions and by developing a global network of proven subject matter experts, trainers and coaches, our clients all over the world, will value us as the best.  We will provide a stellar training experience that has been tailored to our client's needs, providing lasting value to their organizations and improving their bottom line.  
 
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     James has over 25 years of experience working for some for the world's leading Corporations.  He headed Pfizer's Learning and Development for all of Europe, Canada, Africa and the Middle East where he was instrumental in the development of a global management curriculum and other training initiatives to enhance organizational effectiveness for over 30,00 employees.  He has worked on high level cross functional teams addressing issues such as Field Force Effectiveness, Change Leadership, Leader Behavior Development, Executive Coaching and many others.  James also has extensive experience in Sales, Sales Management and Training. 
       
     Since founding Magnify Leadership and Development, James has developed, facilitated and coached dozens of leadership and management development training programs for dozens of organizations worldwide.  James is bilingual and can facilitate and coach in both English and   Spanish.            

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