Criteria for Good Decision Making

How do you know when you have made a good decision?

Decision Making Steps1. Stop & reflect

2. Clarify your objectives

-What do you want to achieve?

3. Gather information from other sources - Review Credo & Business policies for guidance

4. Develop a list of options

5. Consider the impact (pros & cons) of each option

6. Make your decision

7. Monitor the impact & modify as needed

Ethical & Effective Decisions

• Is it a good decision if you comply with ethical principles but fail to produce a desired result?

• Is it a good decision if you achieve a result but you had to compromise ethical principles?

We are morally responsible for the consequences of our

choices.

Not choosing and not acting are also choices

Perspectives: Various Ways of Examining Ethical Issues• Personal Character• Cost/Benefit• Human Value • Fairness• Common Good

Personal Character Perspective

• Focuses on attitudes and values that enable us to act in ways that develop human potential.

• Examples: trustworthiness, respect, responsibility, fairness, caring, good citizenship.

• From this perspective, what is ethical is what demonstrates and develops moral character in ourselves and our communities.

Six Pillars of Character- Decision Making Filters

• Will my actions promote Trust?• Am I treating people Respectfully?• Am I being Responsible, Fair and Caring?• Am I being a Good Citizen?

This checklist can dramatically improve the ethical quality of decisions.

Cost/Benefit Perspective

• Focuses on the consequences that actions or policies have on the well-being of all persons directly or indirectly affected by the action or policy.

• From this perspective, of any two actions, the more ethical one will produce the greatest balance of benefits over harms.

Human Value Perspective

• Each person has a fundamental right to be valued and treated as a free and equal, rational person capable of making his or her own decisions.

• From this perspective, the Golden Rule is the definition of ethical behavior

Fairness Perspective

• Fairness requires consistency in the way people are treated.

• From this perspective, ethical behavior treats people the same unless there are relevant differences between them.

Common Good Perspective

• The community is comprised of individuals whose own good is bound to the good of the whole.

• From this perspective, what is ethical is what advances the common good.

• The good community builds a balance between individual & group obligations

Case Studies • Analyse & discuss :

– How Bad is Bad? – Issues of Sickness – Recruitment

• Reference the decision making criteria, the 6 pillars of character & the perspectives

• Explain the reasoning behind your decisions &

the process you used to arrive at your choices

More Good Tests

• How would the decision look on the front page of the newspaper?

• How would you like it if it were done to you?

• What does your “gut” tell you to do?• What would the person you most admire

do?• Could you explain your actions before a

committee of professional peers?

And More….• Have you used your management as a

sounding board?• What would the Legal Department say

about this decision?• What would you do if your children were

watching? What would you want your child to do in the same situation?

Consider different perspectives!

Which of these perspectives have you used so far in the Case

Studies?• Personal Character• Cost/Benefit• Human Value • Fairness• Common Good

Case Studies • Analyse & discuss :

– The Limits of Fair Competition– Dealing with Dissent

• Reference the decision making criteria, the 6 pillars of character, the perspectives & the process

• Explain the reasoning behind your decisions & the process you used to arrive at your choices

Personal Accountability

• Look at the Credo & think of a situation where you took action to address an issue or challenge & the result had a positive impact on one of the stakeholder groups.– Impacted on either patients, customer,

supplier, fellow employee, community or shareholder.

“Watch your thoughts; they lead to attitudes.

Watch your attitudes; they lead to words.

Watch your words; they lead to actions.

Watch your actions; they lead to habits.

Watch your habits; they lead to character.

Watch your character; it determines your

destiny.”

Back Up Slides

The Tylenol Tampering Incidents: What Happened

• In 1982, seven people in the Chicago area died after swallowing Extra-Strength Tylenol capsules laced with cyanide.

• No one was ever convicted of the crimes.

• The capsules had been tampered with after they left J&J’s manufacturing facilities.

• In 1986, a woman in New York died after taking an Extra-Strength Tylenol capsule that had cyanide added to it.

• Again, the tampering had occurred after the product left J&J’s manufacturing facilities.

• One more contaminated bottle was found in a store a few miles from where the first one was purchased.

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The Tylenol Tampering Incidents: How J&J Responded

• In 1982, we immediately recalled and destroyed all Tylenol capsules.

• We cooperated completely with regulatory and law-enforcement agencies, and kept the public fully informed during every step of the investigation.

• A little over a month later, we put Tylenol Extra Strength capsules back on the market.In 1986, once again, we immediately recalled and destroyed all Tylenol capsules.

• We again cooperated completely with regulatory and law-enforcement agencies, and kept the public fully informed during every step of the investigation.

• This time, J&J stopped selling Tylenol in capsule form. But we also went a step further, and stopped selling any over-the-counter medications in capsule form.

• We began selling a Tylenol “caplet” that was essentially a capsule-shaped tablet.

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Our Credo and the Tylenol Tampering Incidents

How did J&J’s credo based decisions affect our...

• Customers?• Employees?• Community?• Shareholders?

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Credo Decision-Making Process

• A decision-making process is a reminder to slow down and deliberate; to consider– The consequences– The constituencies (stakeholders)– The options

Seven-Step Process1. Stop and reflect: Is there an

ethical issue at the personal, interpersonal, Company, or community level? Take time to get your bearings.

2. Clarify goals: What do you want to accomplish, short- and long-term? Which do you consider most important? How will this issue and each potential resolution affect your highest-priority objectives?

3. Get and evaluate information: What assumptions are affecting your personal perception? How credible is the source of your data? What is expert opinion, and what is just a conjecture?

Our Credo

4. Develop a list of options: What are your alternatives? Broaden your perspective by talking with others you trust.

5. Consider consequences: Identify stakeholders. Which perspectives are applicable? Which option:

– would demonstrate strong personal character? – would lead to the greatest benefit at least cost?– best values individuals?– treats all parties in a fair and just manner?– best promotes the common good?

6. Make the decision: Choosing a course of action requires moral courage - an attribute essential to...

Ethical Awareness

Ethical ReasoningEthical Action

Ethical Awareness

Ethical AwarenessEthical Reasoning

Ethical Action

CredoLeadership

Credo Values

Credo Leadership

7. Monitor and modify as needed: If the choice is not producing the intended results or is causing unintended and undesirable results,

• Reassess the situation

• Make new decisions from among the choices now available

• Continue to strengthen your ability to make Credo-based decisions through feedback from others and self-appraisal