The Ethics Game CLIVE SHEPHERD, NOVEMBER 2008

Let’s assume that, before a person makes a difficult decision, they first weigh up what they personally stand to gain or to lose … CLIVE SHEPHERD, NOVEMBER 2008 What I stand to gain What I stand to lose Some material benefit Some material sacrifice An enhanced personal reputation Damage to my personal reputation The pleasure of seeing others benefit from my actions A feeling of guilt if others suffer so I can benefit Sleeping well at night knowing I’ve done the ‘right’ thing The risk that any unethical actions I take will be exposed

Let’s also assume that people differ in the values they place on particular benefits and drawbacks … CLIVE SHEPHERD, NOVEMBER 2008 What I stand to gain What I stand to lose Some material benefit 4 Some material sacrifice 3 An enhanced personal reputation 2 Damage to my personal reputation 2 The pleasure of seeing others benefit from my actions 3 A feeling of guilt if others suffer so I can benefit 1 Sleeping well at night knowing I’ve done the ‘right’ thing 1 The risk that any unethical actions I take will be exposed 4

So, how do we reveal an individual’s values and, as a result, gain an insight into the sorts of decisions they are likely to take? ? CLIVE SHEPHERD, NOVEMBER 2008

First we place them in a credible situation … You are the sales director for the north west region of a company that provides high-interest loans to those with poor credit status. CLIVE SHEPHERD, NOVEMBER 2008

We up the stakes by introducing an element of competition … The region that achieves the highest sales growth for the quarter will achieve a substantial bonus, split among the whole sales team. Your own promotion prospects would also benefit greatly. CLIVE SHEPHERD, NOVEMBER 2008

We start the ball rolling with some decisions that are not too hard to make … You hear a rumour that the south east region may be falsifying the details of some applicants to ensure they meet approval criteria. What should you do? Nothing Inform the press Inform your own manager Take similar action in your own region CLIVE SHEPHERD, NOVEMBER 2008

You hear a rumour that the south east region may be falsifying the details of some applicants to ensure they meet approval criteria.

What should you do?

Nothing

Inform the press

Inform your own manager

Take similar action in your own region

The choices can then be made increasingly difficult, drawing out the individual’s values The national sales manager suggests you relax the credit scoring rules so a higher percentage of applications will be successful. Some members of your sales force have already expressed anxiety about the eligibility criteria. What do you do? Take up the suggestion Express your concerns but still do as suggested Quietly ignore the suggestion Resign your position CLIVE SHEPHERD, NOVEMBER 2008

The national sales manager suggests you relax the credit scoring rules so a higher percentage of applications will be successful. Some members of your sales force have already expressed anxiety about the eligibility criteria.

What do you do?

Take up the suggestion

Express your concerns but still do as suggested

Quietly ignore the suggestion

Resign your position

You finish by presenting the individual with their scorecard, without passing judgement … So how well do you think you did in the circumstances? CLIVE SHEPHERD, NOVEMBER 2008 What went well What went less well You stuck to company policy Another region achieved higher quarterly growth You reduced the risk of the company incurring bad debts in the future You missed out on your bonus You minimised the number of customers who could have been tempted to take out loans they couldn’t afford Your staff also missed out on the chance of a bonus