2005-03 KMGroup- With Notes

7/28/2019 2005-03 KMGroup- With Notes

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Ethical Issues:

in Virtual Environments Managing Knowledge

Dr. And rea Hornett Penn State

Knowledge Management Group of Philadelphia

– March Meeting 2005,

UNISYS Corp.



Today’s Format & Flow

1. Round-Robin of experiences / ethical

dilemmas with audience participation-Mapping experiences vis a vis the variousethical paradigms

2. Review of trends in ethics & KM

3. Speculations about the future…



Differing Views on Ethics:

Ethics: Standards of moral conduct;

judgments about whether human behavior

is right or wrong.(Source: Hackman & Johnson, 2002, Leadership)

Ethics: live a good life, act justly as well as

decide and judge rationally our actions

and our forms of living and working.(Source: Cane, 1994, Financial Times)



The Dictionary Says

―A discipline

dealing with good and evil

and with moral duty.‖



Can we talk?

Round Robin

of Ethical Issues



Different Ethical Paradigms

. ―Us‖

Moral Development

Kohlberg

Situational Values

Rest’s Model

―Shoulds‖

Normative

Kant; Aristotle; Hobbes

Light of Day

Trends:

Competing Values

Of Multiple

Obligations /

Competing Duties

―Me‖

Values Clarification

(Rokeach)

One’s Own Values



Ideas from my students’

interpretations

Accountability? No connection of actions

to consequences and vice versa.

Lying about it when caught worse than

unethical acts (HBR – Miss Manners).

Many values >ethics, especially getting

ahead and taking care of family

Winners (aka Leaders) deserve more than

others. The Alphas get the toys.



Effective Ethics Program:

1. Establish corporate standards & procedures

(S & P).

1. Appoint at least one high level individual to

oversee compliance.

2. Require all to participate in training or at least

read about the S & P.

3. Implement monitoring & auditing systems.4. Enforce the standards – detect & prevent.



Legal Compliance

The tip of iceberg:



Gestalt Principles – Help to explain

the phenomena – anesthetizedPrinciples that Heighten

Awareness

Perception Principle- data is clearly

and sharply focused vs.

background state

Co-Existence Principle – data that isopposite but counter-balancing

(heart vs. mind).

Realization Principle – data that is

intimately personally perceived vs.

present but unrecognized

(perhaps foggy) data

Present Principle – Data that is dealt

with in the ―here-an-now‖ vs. past

or future data.

Principles that Anesthetize

Perception

Blind-Faith Principle – uncritical

acceptance of another person’s

values

Shifting-Responsibility Principle-Making another person

responsible for your behavior.

People-Pleasing Principle –

Continuous ―buying into‖ another

person’s value system in order to

be identified with that person.

Diversion Principle – The ―warding

off‖ of the main issue to a

peripheral or insignificant issue.



Criteria of Heightened Ethical

Awareness & DiscernmentPrinciples that Heighten

Awareness

Perception Principle- data isclearly and sharply focused vs.background state

Co-Existence Principle – data thatis opposite but counter-balancing (heart vs. mind).

Realization Principle – data that isintimately personally perceived

vs. present but unrecognized(perhaps foggy) data

Present Principle – Data that isdealt with in the ―here-an-now‖vs. past or future data.

Implications for the Management Aspects of Ethical DecisionMaking & KM:

Question Data – check/recheck


Ask for implications

Identify trends

Note: 1st is Six Sigma; Second isMcKinsey 7 S; final two areSYSTEMS Thinking.



Necessary but not sufficient

Need ethical discernment in DM, not just legal

compliance

Decision making cultures that reduce anesthesia

And….hit a moving target…

Increase in globalization and virtual nature of

decision environments increase both the amountand the nature of ethical dilemmas.



KM lives in Virtual World

Ubiquity of computers and networks raises

new issues and increases complexity ->

Copyright infringement

Corporate assets for personal use: email,

Internet searches

Privacy & use of data on individuals Extend company ethics to vendors…?



A Gap

―There is often a gap between ethics in the

workplace and the sense of what is right

and wrong in the family or with friends.‖

At work vs at Home

[Source: Hodel-Widmer & Luthi, ETHICOMP.]



Why the Gap?

What is Work Like?

5 Factors:

Peer Pressure

Conflict Avoidance

Market Factors

SpeedEnvironments



1. Peer Pressure

Peer pressures at work tend to create

conforming behaviors, less freedom /

liberty than at home. No data on how

working from home may change this (or not).



2. Competition

Paradoxically, competition generatesconflict avoidance.

Competitive pressures both within and

outside work environments tend to createbehaviors that avoid open conflict (littledialogue around values).

Lack of fully collaborative electroniccommunications serves to further limitsuch dialogue.



3. Market Forces

Market pressures at work tend to create

cultures of action (not reflection, a key

ingredient in ethical discernment).



4. Speed

Increase in speed of transactions and

decrease in personal interactions moves

accountability from persons to systems

(making accountability more ambiguous).



5. Environments

Organizational environments create

internal organizational dynamics. These

organizing mechanisms respond to the

relative variability and instability of thecorporation’s environment.



Organizing Mechanisms

derive from environmental factors^|

V

A Networks Virtual OrganizationsR

I

AB

I

L Markets HierarchiesIT

Y

|

o ---- ---- ---- ----- I N S T A B I L I T Y > ----------------------------------



Assumptions:

Virtual forms will proliferate due to increasinglevels of complexity and variability inenvironments.

Therefore, managing across geographic andorganizational boundaries will be critical.

Therefore, knowledge management strategiesare also critical.

The temporary, morphing/modulating nature of virtual organizations poses unique ethicalissues.



Some Current Scandals &

Organizational Type

Network

WorldCom, Qwest,

Global Crossing

Quattrone / First

Boston

Virtual

Enron

Arthur Anderson

Martha Stewart

Market

Krispy Kreme

Health South

Hierarchy

TYCO

Adelphia

Parmalat

Boeing



Unique Ethical Issues in

Virtual & Network Situations

Enron created virtual companies to absorbloses while the parent company (a tradingcompany, not an energy company)

appeared profitable and growing. Telecom companies (WorldCom, Global

Crossing) booked assets to both partnersin swap deals creating virtual tradewinners and no losers in a zero sumgame.



Prospective Ethical Issues in

Virtual Organizations A virtual enterprise is created for a specific market opportunity. After

the goal is completed, some partners create a new virtualorganization with competencies acquired from the joint project. Isthat ethical?

Is it ethical that one firm works at the same time in two virtualorganizations if each of the partners are competitors?

Who is the responsible / accountable party in a virtual partnership if there is no single legal entity?

Virtual firms can allocate projects to lower cost countries withunregulated working conditions - Off-shoring is essential virtual.

Source: Mario Arias Oliva, The ETHICOMP E-Journal vol.1.



To the Contrary

Virtual organizations actually offer

opportunities for a more ethical, more

equitable society and corporate

environment.

And, virtual organizations are more

democratic – always a good thing.



Virtual = Team = Ethical Values

Virtual organizations offer community,

excellence, integrity, respect for the individual

Lead to > character, profile, and a positive

climate and culture for the company. Distance is irrelevant therefore a new kind of

collaboration is possible. Time is compressed

and memory is electronically available.

Source: Thomas B. Hodel-Widmer &Ambros P. Luthi, ETHICOMP Journal



More Benefits

Because everybody can ―speak‖ at the same time in asynchronouscomputer meetings, fewer ideas are forgotten and more ideas are born.The participants do not have to follow the meeting permanently withouthaving the time to form their opinion.

In computer-supported meetings there is no dominance of team members

due to position or other qualities. There is no monopolizing of a discussionby certain team members because of their position, their character or other reasons.

Teams with communication –supporting systems recognize errors, problemsand dead ends in ideas more quickly.

Teams with information supporting system have more information at their disposal than teams without such systems. Therefore, they can makebetter decisions.

Source: Hodel-Widmer & Luthi



Show of Hands

Virtual environments

are more ethical

Virtual environments

foster unethical

behaviors



Different Ethical Theories

―Me‖


Rokeach

One’s Own Values

Taught to MBAs

―Us‖

Moral Development

Kohlberg OD

Situational Values

Rest’s Model

―Shoulds‖

Normative

Kant; Aristotle; Hobbes

Light of DayLegal Compliance Training

Trends:

Competing Values

Of Multiple

Obligations /

Competing Duties



Map Your Experiences

..

Map Your Experiences

―Me‖ ―Us‖

―Shoulds‖ Trends:

Competing Values

Of Multiple Obligations /

Competing Duties



Scandals &

Organizational Type: What’s Your Type?

Network

WorldCom, Qwest,

Global Crossing

Quattrone / FirstBoston

Virtual

Enron

Arthur Anderson

Martha Stewart

Market

Krispy KremeHealth South

Hierarchy

TYCO

Adelphia

Parmalat

Boeing

---V— A—R—I— A—B—I—L—I—T—Y

I

N

S

T

A

B

I

L

T

Y

^



Thank You!

I appreciate the opportunity to explore a

wiggly worm that is nowhere near the

hook.

Many thanks to UNISYS for the venue.



Notes – Page 1



Notes – Page 2



Notes – Page 3



Notes – Page 4



Notes – Page 5



Resources:

Randy Cohen: The Good, The Bad & TheDifference {ethicist from NY Times}

Marianne M. Jennings, A Business Tale

{Speaking at AstraZeneca today}.

Ethicomp – a Journal of research on ethicalissues affecting computerized functions andcommunications.

Wheeler & Sillanpaa, The Stakeholder

Corporation, 1997. http://www.aicpa.org/sarbanes/index.asp

newsletter ―Ethically Speaking‖

http://www.aicpa.org/sarbanes/index.asp

http://www.aicpa.org/sarbanes/index.asp

Documents

2005-03 KMGroup- With Notes