MGT 16 Notes - Robert Campbell PDF

Title MGT 16 Notes - Robert Campbell
Author Amanda Somo
Course Business Ethics
Institution University of California San Diego
Pages 26
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Robert Campbell...


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MGT 16 Lecture #1 4.3.18 The (Honest) Truth About Dishonesty—How We Lie to Everyone-Especially Ourselves” Dan Ariely, HarperCollins, ISBN 978-0-06-218361-3. Got em What were the facts in this case?

 T FOR THURSDEY: ASSIGNMEN In the case of the Titanic WHAT do we THINk we kKnow happened that led to death of those people WHAT HAPPENED? ● Miguel ○ There weren't enough lifeboats for all passengers ○ Struck an iceberg ○ Perhaps “person on board responsible for watching icebergs notified everyone but they turned the wheel the wrong way, because ship rudder wheel thingP ○ 1500 people died ○ 4 hulls could completely fill and not affect buoyancy -> “unsinkable” ○ At least 5 hulls were ruptured ○ Leyland liner Californian had been less than 20 miles away at the time of the accident but had failed to hear the Titanic‘s distress signals because its radio operator was off duty. (I CALL THIS ONE NO ONE SAY IT SNAKES) ○ ruptured at least five of its hull compartments. These compartments filled with water and pulled down the bow of the ship. Because the Titanic‘s compartments were not capped at the top, water from the ruptured compartments filled each succeeding compartment, causing the bow to sink and the stern to be raised up to an almost

vertical position above the water. Then the Titanic broke in half, and, at about 2:20 a.m. on April 15, stern and bow sank to the ocean floor ○ ○ Because of a shortage of lifeboats and the lack of satisfactory emergency procedures, more than 1,500 people went down in the sinking ship or froze to death in the icy North Atlantic waters. Most of the 700 or so survivors were women and children. ○ Titanic was originally designed to hold 32 lifeboats, but only carried 20 in order to make the deck appear “less cluttered” ○ Total capacity 3300, only had lifeboats for 1178 ○ The captain was on his retirement trip and had ignored about 7 iceberg warnings from the crew and continued at his speed to get the Titanic to its destination on time ■ White Star Line wanted to be competitive with other companies and aimed for a 6-day crossing. TITANIC could not afford to slow down ○ The belief that the ship was unsinkable was, in part, due to the fact that the Titanic had sixteen watertight compartments. However, the compartments did not reach as high as they should have done. The White Star Line did not want them to go all the way up because this would have reduced living space in first class

Lecture #2 4.5.18 ●

What is ethics about? ○ Ethics is something about ■ Right vs  wrong ■ Just vs unjust ■ Fair vs unfair ■ Legal vs  illegal ■ Good vs  bad ■ Helpful vs Harmful

■ ■ ●



Brave vs  cowardly What is good for the individual/few vs  what is good for the majority

Class Map ○ Where are we going? What will we learn? How will we learn it? ○ Ethics at work - double entendre on one hand… ■ Making “right” decisions while working… on the other… ■ How ethics “works”; how to derive power and properly use authority via ethical choices ■ Having logical structure to an argument ○ 3 Most important skills learned in college ■ Critical thinking (structured reasoning) ● Includes fact finding, analysis, judgement, and rhetoric ■ Writing (clearly, concisely, and persuasively) ■ Speaking (clearly, concisely, and persuasively) ○ Analysis of Real Cases ○ 7-Step Decision Model RMS Titanic Case Study ○ A Night to Remember (1957??) 1. Lifeboats a. Insufficient number b. In compliance with law i. Under category of mail carriage so the lifeboats was based off tons not passengers, favorable taxation ii. “Royal Mail Ship” c. Lifeboats removed for design elements, d. Ismay, ships designer, disguised himself with a shawl and survived bitch ass… aka ziad… yikessssss 2. 16 Water-Tight Compartments a. Any breached compartment could be locked down in order stop the rest from filling, could take 5 being breached and still float b. At least 6 were breached when hit c. had 12 ft tall compartments, rather than the required 16 ft d. Needed to make room for the grand staircase 3. 4 smokestacks, 3 working and 1 for airventing a. Angled backwards in order to look faster b. Competed with Kunard by being luxurious, since it wasn’t the fastest 4. Not a double-hulled ship a. Weak steel with high sulfur content b. Overlapping steel panels held together with steel and iron rivets 5. Rivets a. Iron + Steel b. There was a demand for Steel rivets

i. ii. iii. iv.

● ● ●

Demand could not be met because there was a national coal strike INSUFFICIENT coal to make steel rivets Iron rivets used in place to help finish ship on time Testing was made with steel and iron rivets in national geographic 1. NOT a critical variable 2. TITANIC was NOT a weak ship

6. Don’t get the facts from one source ETHICS = RELENTLESS pursuit of the truth Next Class: ○ What difference did the water-tight compartments in the big picture of the sinking ■ They were watertight only horizontally, and their walls extended only a few feet above the waterline, so when the boat began tipping water spilled into other compartments ○ Do more research on management of the boat

LECTURE #3 4/10 Management of the Ship ● No lifeboats drills. Captain canceled lifeboat drill ○

Drill was held on a sunday (it conflicted with church service) so captain canceled it because he was religious

● ●



Crew not fully trained to operate Titanic, due to large demand for boat operators that required them to hire workers directly off of other ships Crew and passengers were untrained in the safety protocol, caused many errors in trying to launch the lifeboats ○ Had to be lower by hand from each side while boat was tipping Had warnings about icebergs but ignored them and kept going full speed in order to maintain pace and arrive in NY on time, or early ○ Captain trusted the lookout in the front of the ship, was a clear night and could warn of danger ■ Two lookouts 22 and 25 years old, were without binoculars ● Did not have binoculars because: ○ David Blair had the key to unlock the binoculars but he was fired from the crew shortly before sailing ○ Didn’t believe they needed them anyways because the ship was unsinkable and it was a calm, clear night ● They did not see the iceberg but noticed the absence of stars ● Tried to turn left (portside) but due to the size and speed of the ship it was too hard to turn in time



Almost missed the iceberg completely but there was a “shelf” just below the waterline that sliced open 6 watertight compartments ● 37 seconds between sight of the iceberg and contact ○ Had there been 45, it would’ve missed the iceberg ○ Had it been 20, it could’ve survived the head on collision ● Titanic fired signal flares but were ignored by the nearby Californian, captain received message but didn’t act and when back to bed ○ Telegraph operators had to wake up captain, who didn’t believe message because they didn’t do their job earlier, and because the Titanic was “Unsinkable” ■ What an L TRUE ■ Stayed afloat 2 and ¾ hours ■ Human body could survive in water for 30 min ● Message was received by Carpathia, couldn’t arrive until 4 hours later ● None of the lifeboats tried to go back to save more people off the Titanic due to fears about being pulled down with the boat or capsized by people climbing on the boat “Unsinkable” ● Gained the reputation as a result of one journalist’s article calling it unsinkable

LECTURE #4 4/12 CASE #2: COSTA CONCORDIA 2012 costa Concordia, hit a rock, ended up killing 32 people. ● Lifeboat drill was postponed till day 3 because boat was picking up multiple groups of people ● Ship was 2-4 miles off course, causing it to crash into rock formation. ● Why was it off course? He was showing off to his girlfriend how close he could get to the island ● In the rush to provide information (journalism), initial information is almost all wrong. ie. news interview. ● Captain claimed the only reason he jumped ship was because he tripped and fell into a lifeboat, puts blame on his subordinates and believes he did nothing wrong, calling himself a hero ○ Sentenced to 128 months in jail(10 years) (4 months per death) ● Local town took in the survivors ● Leads to drops in cruise prices lol the demand curve shifted econ baybe Next assignment Case #3 WE HAVE TO DO IT RIGHT THIS TIME GUYS Only best students are gonna be prepared Musica clue SEA THE USA IN UR”---+\”

LECTURE #5 4/17

ETHICS FOCUSED DECISION MODEL 1. Determine the facts a. Resist Immediate judgement call b. Gather all facts for multiple points of view c. Check multiple sources d. Differentiate between facts and assumptions i. Fact: indisputable statement ii. Assumption: wants to be a fact e. “Follow the Money” who makes money based upon which choices? 2. Identify Ethical Issues Involved a. Looking at ethical dimensions i. Right v Wrong ii. Just v Unjust iii. Legal v Unlegal iv. Help v Harm v. Individual v Greater good 3. Identify ALL the Stakeholders a. Stakeholder: group or people with well being at stake b. Who (Groups) and how many? c. How might I be biased? How are certain stakeholders related to me? i. Always disclose how you may be related to a stakeholder 4. Delineate (and/or create) Alternative Courses of Action a. Generate at least 2 different courses i. Do nothing or do something b. Imagine one “wild” scenario (how creativity is sparked) c. Metabolife example i. Mike Ellis, former Chula Vista PD, could afford home in Rancho Santa Fe with friend Mike Blevins 1. Caught making Meth, Blevins went to Jail ii. Metabolife 356 included 99 and 9/10ths percent was 2 ingredients, paid for with 15g’s from Bradley 1. Caffeine, like drinking 3 cups of coffee instantly (also taken 2 pills every 4 hours) 2. Ephedra iii. Became the most popular diet pill in america 1. Sold by vendors in mall kiosks, etc. at first, then grew and were sold in big box stores 2. Market pill with high profile testimonials in local areas i.e Mayor, Ted Lightner (accomplished sportscaster) iv. Failed to pay back federal taxes

1. As an “S” corporation, the profits and losses were reported on the three owner’s income tax statements, therefore, a loan to Metabolife was a loan to those three 2. Had no collateral, so nobody wanted to give them a loan to be able to pay back the taxes 3. eventually collateralized the “Metabolife” trademark 4. Owner’s didn’t accept the only deal they got, eventually Bradley went to jail for tax evasion, Blevins and Ellis went to jail for possessing firearms 5. Assess How the Alternatives will Affect Stakeholders (ROWS AND COLUMNS) (TABLES BABY) a. Envision the results of each alternative decision/course of action b. Determine the beneficial versus harmful consequences c. Consider  the law i. U.S. Judicial codes d. Recognize your own potential “conflict of interest” 6. Seek Guidance Who would you talk to, why would you talk to them a. Close friends b. People you respect c. Knowledge sources i. Subject matter experts ii. Reference librarians iii. Authors iv. Researchers v. Professors vi. Pastors 7. Make a Decision; Act; Monitor the Outcome(s) a. Make a choice b. Do something constructive c. Be prepared to DEFEND your choice with logical, persuasive arguments d. “All Solutions Just Create Different Problems” -- Follow up and Correct CASE #3 CHEVROLET CORVAIR ●

(NON PROVEN RESEARCH) 1953 CHEVY CORVAIR Designed by General motors



manufactured by Chevrolet for model years 1960–1969. It was the only American-designed, mass-produced passenger car to use a rear-mounted, air-cooled engine.



Unsafe at Any Speed: by Ralph Nader The Designed-In Dangers of the American Automobile by Ralph Nader, published in 1965, is a book accusing car manufacturers of resistance to the introduction of safety features such as seat belts, and their general reluctance to spend money on improving safety



It also deals with the use of tires and tire pressure being based on comfort rather than on safety, and the automobile industry disregarding technically based criticism.



models that had a swing-axle suspension design which was prone to "tuck under" in certain circumstances. To make up for the cost-cutting lack of a front stabilizer bar (anti-roll bar), Corvairs required tire pressures which were outside of the tire manufacturers' recommended tolerances. The Corvair relied on an unusually high front to rear pressure differential (15psi front, 26psi rear, when cold; 18 psi and 30psi hot), and if one inflated the tires equally, as was standard practice for all other cars at the time, the result was a dangerous oversteer.[3] Despite the fact that proper tire pressures were more critical than for contemporaneous designs, this was not clearly stated to Chevrolet salespeople and Corvair owners. According to the standards laid down by the relevant industry body, the Tire and Rim Association, the pressures also rendered the front tires overloaded when there were two or more passengers on board.

CORVAIR FACTS Background:



General motors was the most profitable car manufacturer at this time, led the car industry over Ford and Chrysler ● European cars meant for european highways, small and nimble to get through narrow mountain roads ● Chevrolet Tasked with convincing the people to go for a car not similar to the behemoth at all ● With rising gas prices, people wanted smaller cars similar to the european cars ● 50,000-60,000 died per year on US highways during 60’s ● Currently 25,000, but rising due to cell phone use ● Improvements in driver education with classes ● Eisenhower saw the roads of Germany during WW2, how efficient they were, and worked to improve US cross country roads once he became president FACTS 1. Engine in rear a. No drive shaft, allows floor to be flat for passengers, more room for rear passengers

b. In rear in order to give consumers the idea that the car would be able to gain traction in bad weather, because they thought that a small car under 2 tons like the europeans wouldn’t be able to get traction 2. Un-padded dashboard a. Aluminum dashboard that was pointed like a blade at the driver b. If left out in sun the dash got very hot 3.

Lecture 4.24.18 Chapter 1 ● When all factors considered there are motivations that render final decisions ○ Want to view ourselves as honest honorable people ○ WE WANT TO FEEL GOOD ABOUT OURSELVES AS HUMAN BEINGS (true) ■ It’s the break ● In general, many people seem to cheat a little, while very few, if any, cheat a lot ● People are more likely to steal objects rather than currency ○ EX: coca cola v. money in the dorm fridges ○ Moral reminders are often heavily valuable in honest behavior ● People didn’t take advantage of people with disabilities ○ Tomato vendor offers better tomatoes to blind TA than to the seeing TA ○ Reasons: ■ Feel good about yourself to help someone else out ■ To make up for feeling bad earlier, want to feel good / reset the “ethical bar” Chapter 2 ● Golf ○ It’s up to you to score yourself, self policed ○ Found that people felt better about giving themselves a favorable spot by pushing the ball with a club rather than direct contact ○ Removed to human element, introduced a barrier, rationalized behavior ○ Mulligans more likely on first hole rather than 9th ● MIT ○ Pledge, power of reminders, ○ Made students write out a pledge not to cheat, decreased cheating ○ Honor code, need reminders to be current and often, rather than front loaded in a two week course (ex. Princeton) highkey his shoes are swaggy ● IRS ○ Signing the pledge not to lie on taxes at top of form, decreased lying ○ Signing it at bottom let you cheat all the way through the form and led to more cheating ● Insurance Companies



Didn’t take action when Dan told them to have miles accurately reported

Lecture 4.26.18 come to my show pls Chapter 3 ● Case of dentist? ○ Conflict of interest when we have our own desires, may not even be self aware of conflicts of interests ● Disclosure ○ Estimator example ○ Disclosure doesn’t mean the person receiving that information will remain neutral, doesn’t relieve your responsibility ● Dermatologist ○ Tattoo on face for paper ● Psychological effects ○ Gifts, advertisements, etc. influence ethics by owing favors ● Calling academics in as experts ○ Power of imprinting ● Imprinting ○ Can be used for good or evil ○ Psychological influence by convincing yourself or others of convictions through repetition ○ Any time is better than none Chapter 4 ● Ego depletion ○ Resisting temptations so that you’re worn out by the end ○ Effect of fatigue on decision making ○ Judges are willing to grant parole after being rejuvenated (morning or after break) ● Temptation ○ Rational decision makers must succumb to temptation occasionally CORVAIR CASE CON’T Ralph Nader - “Unsafe at any speed” ● Sold millions of copies ● Corvair ○ Due to suspension style, the wheels would tuck under the car in order to keep traction, but caused massive oversteer and destabilized the car on turns, prone to flipping over







GM hired detectives to try to discredit Nader, try to learn more about him and crush his argument ○ One man v. a whole industry ○ GM tried to get dirt on a young author rather than disprove his claims ○ When they couldn’t find anything, would try to send prostitutes to Nader to get him in compromising positions ○ These detectives were found out by a young security guard, flipped case into “David v. Goliath” In senate, President Johnson: ○ Over a labor day weekend 29 died in Vietnam, 614 died in car accidents. 1.5m people died from 1900-1966 in car crashes, more than 3 times all the American deaths in wars over the same time Covair CON’T ○ Rear end heavy due to engine and rear passengers ■ Empty space in front ○ Tire pressure was different (rear 26 PSI, front 15 PSI) ■ Almost all other cars had equal tire pressure for all tires ■ Chevy didn’t educate owners or service stations on this difference in pressure ■ By having all tires all filled up, then they acted like balloons due to the suspension ○ Smell ■ Engine smells would go out the back and due to drafting it would just be sucked back through the vents ○ No anti roll bars ■ Due to costs the bars were scrapped, originally included ○ Engine ■ Made of Aluminum block and Steel cylinders ● Warp at different stages/levels of heat ● Pistons did not fit in aluminum block ■ Moving engine made an aluminum frame the only defense against head on collision ○ Front end ■ Due to aluminum frame and empty space in front, the front would crumple and drive the dashboard into the neck of front passengers ■ Steering column was a single pipe that would be driven into the driver ○ Seat Belt ■ Research showed that those who stayed in the car during a crash had a higher chance of living ■ Seat belts (as an option) were only across the waist, so the force of the crash wasn’t distributed evenly and caused some cutting in half of bodies

Lecture 5.1.18 its gonna be may Chapter 5 ● Fake Merchandise ○ Campbell Ex: Hyundai Genesis v. Bentley ○ Using knock off brands makes you think of others as more dishonest ○ People have a lower honesty threshold if they wear fake merchandise ○ Ego Depletion - Fake Merchandise ■ Self esteem increased by wearing knockoff brands and appearing better off than you really are, rationalize it ■ What the hell effect: slippery slope ● Starts off as one act, but loosens ethical bar and can eventually lead to criminal activity ○ Self Signaling -> Imprinting ■ How we perceive ourselves ● Does it matter whether you’ve purchased the fake merchandise or if it has been given as a gift? ○ NO CH.5 inferences ● Commiting one dishonest act- “loosens” the ethical bar. We rationalize our decisions and put it under the bar. ● Humans tell at least 11 lies a day

Chapter 6 ●



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Self Deception -> Imprinting ○ Telling yourself something over and over again in order to convince yourself of something being ethica...


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