The document provides guidance on making ethical and effective decisions using a 7-step process: 1) stop and reflect, 2) clarify objectives, 3) gather information, 4) develop options, 5) consider impacts, 6) make the decision, and 7) monitor impacts. It also discusses 5 perspectives to examine issues from: personal character, cost/benefit, human value, fairness, and common good. The 6 pillars of character are trustworthiness, respect, responsibility, fairness, caring, and citizenship. Case studies are presented to apply the decision-making process and perspectives.

1. Criteria for Good Decision
Making
How do you know when you have
made a good decision?

2. Decision Making Steps
1. 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

3. 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?

4. We are morally responsible for
the consequences of our
choices.
Not choosing and not acting are
also choices

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

6. 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.

7. 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.

8. 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.

9. 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

10. 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.

11. 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

12. 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

13. 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?

14. 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!

15. Which of these perspectives
have you used so far in the Case
Studies?
• Personal Character
• Cost/Benefit
• Human Value
• Fairness
• Common Good

16. 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

17. 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.

18. “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.”

19. Back Up Slides

20. 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.
10

21. 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.
11

22. Our Credo and the Tylenol
Tampering Incidents
How did J&J’s credo based decisions
affect our...
• Customers?
• Employees?
• Community?
• Shareholders?
12

23. 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

24. Seven-Step Process
1. 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?

25. 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

26. 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?

27. 6. Make the decision:
Choosing a course of
action requires moral
courage - an attribute
essential to...
Ethical Awareness
Ethical Reasoning
Ethical Action
Ethical Awareness
Ethical Awareness
Ethical Reasoning
Ethical Action
Credo
Leadership
Credo Values
Credo Leadership

28. 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