Economists have often modelled human decision makers as completely rational. According to this model, rational people know their own preferences, gather and accurately process all relevant information, and then make rational choices that advance their own interests. However, Herbert Simon won a Nobel Prize in economics by pointing out that people are rational, but only boundedly so in that they seldom gather all available information, they often do not accurately process the information that they do gather, nor do they necessarily know what it is that will make them happy. People are rational, but boundedly so.
If the last fifty years of psychological research has proven anything, it's that the situational often dominates the dispositional. That is to say, our disposition or desire to be good people can be overwhelmed by psychological or organizational factors that we may not even be aware of. These factors adversely affect ethical decision making as well as economic decision making, meaning that people are boundedly ethical as well as boundedly rational.
The basic notion, as spelled out by Professor Ann Tenbrunsel and her colleagues, is that systematic and predictable organizational pressures and psychological processes cause people to engage in ethically questionable behaviors that are inconsistent with their own preferences. Various factors cause us to make unethical decisions that we later regret.
For example, although most of us want to act ethically, we also wish to please authority figures. Therefore, if our boss asks us to do something unethical, we may do it without even realizing our mistake because we are focusing on pleasing the boss rather than on the ethical dimensions of the issue facing us.
To take another example we also have a natural desire to be "part of the team" at work. Therefore, if a questionable action advances the team's interests, as we perceive them, we may act unethically because, again, we are focusing upon achieving the team's goals rather than adhering to our own ethical standards.
Most of us want to act ethically, and are certain that we will because we just know we're good people. But most of us are also overconfident regarding our own ethicality. This can lead to complacency that causes us to make decisions containing ethical dimensions without reflecting deeply.
2. Task: Watch the following videos:
3. Activity
Based on the videos that you watch above, answer the following questions
• Do you think that acting ethically is just a matter of wanting to badly enough? Why or why not?
• What kinds of situational factors can you think of that might make it difficult for a well-intentioned person to always do the right thing?
• Can you think of a time when you did not live up to your own ethical standards? What caused you to depart from your own standards?
• Can you think of an example of a friend who acted unethically? Or someone in the news lately? Without making excuses for them, can you explain why they might have made bad ethical decisions even though they are generally good people?
• Do you think it's possible to be completely rational when making ethical decisions? Why or why not?
Attachment:- BLAW_Question.docx