Sunday, February 23, 2014

Ethical Testing Models... A Lot of Choices!

This week, I read about “making ethical decisions”. The article is available via the Santa Clara University School of Applied Ethics (http://www.scu.edu/ethics/practicing/decision/). The article discusses different approaches and tools for deciding right and wrong, including five tests: utilitarian, rights, fairness, common good, and virtue.

Each of the tests provide an evaluator an in-depth view of the concept of deciding right and wrong, based on the approach they wish to use.  What is your end goal?  What type of resolution are you trying to obtain? Which test is best? For my blog this week, I will discuss each of the tests, what defines them, the strengths and weaknesses of each, and other thoughts as they come up!

The utilitarian approach, aka “best outcomes test”, addresses ethical decision making where the consequences or outcomes ultimately determines right and wrong; the correct choice is the one that creates

the most good for the most people… or, creates the least harm for the most people. Every person’s choice receives equal consideration, regardless of their position, power, or need. What I would see as a weakness of the utilitarian approach is that it is built on compromise. An outcome may not always lead to the best decision possible, but it does result in what I would consider to be the “best average” decision for all. A best outcomes approach would yield decisions that consider both sides on a basis of equality.

The rights approach is comprised of three different tests: rights, exceptions, and choices. Each test takes a different viewpoint in its application, which I find confusing. The rights test views right and wrong as it is based on what a person considers themselves entitled to, or what is termed a “human right”. It provides a way of recognizing people for their intrinsic value (how they feel about themselves), as well as their extrinsic value (how others perceive them). A right is considered to be something that is necessary for one’s self worth, dignity, freedom, or well-being. The exceptions test, aka the “extra slack” test, takes the rights test a bit further by asking us to look into ourselves “are we making an exception for ourselves that we would not for others”?  Basically, if we make an ethical decision, would it be ethical if everyone made the same decision? How would the world be if everyone did what we did? The choices test works on the pretense that everyone should have the choice to decide what the best decision is for them. People would be free to make choices based on what their priority is, and their priorities have no more or less value than any other person’s. The strength of the rights test is that it is a very common and accepted topic, and there is a good chance that people support individual rights. The weakness of the rights test is that the thought of human rights is completely subjective and is influenced by culture, location, and time. Your view of human rights is probably different than mine!

The fairness and justice test looks at right and wrong differently, based on who you are and what you have accomplished. It considers that what is right is dependent on the criteria of efforts, accomplishments, contributions, needs, contracts, seniority, relationship or in‐group status. If you worked harder on a task or project, then you should be entitled to a larger reward then one who did not contribute as much. The strengths of the fairness and justice test is that it awards high achievers and punishes poor performers. The weakness with the fairness test is that what is considered higher efforts, contributions, and needs vary greatly from person to person. This test leaves a lot of room for discussion and debate.

The common good test places the focus of right and wrong on the idea of whether the results of a decision causes more good and less harm to a specific situation.  While the common good test shares aspects of the utilitarian test, it possesses a narrower focus and is not concerned with making a decision that results in the greatest good or the least amount of harm as a whole, but on a small part of that particular situation. The strengths of the common good test is that it forces groups to realize that success can be dependent on externalities and cannot be controlled, and that decisions must be made with a consideration to the effects
placed on those externalities. The weakness of the common good test is that, like the other tests…  is subject as to what is considered the best answer, or in this case, the one that is best for the common good.

The virtue test is based on making the choice that represents the type of person, or organization, you want to be.  When you make a decision for your organization based on the virtue test, you select the choice that presents the organization exactly as intended. The strength of the virtue test is that it focuses on the organization and the how they want portray themselves, encouraging ethical behavior among its members. The weakness of the virtue test is that humans do not act in a consistent manner, and this lack of consistency will reflect in inconsistent ethical decisions.

Which of these tests are the best for you and your organization?  My belief is that it is completely dependent on the situation. When you are confronted with an ethical dilemma, determine which test model best fits the situation.

Have a great week!

Sunday, February 16, 2014

Passion and the need for an open government

This past week, I studied transparency, whistle-blowing, and dissent in public administration. In addition, Dr. E. assigned us Letter from a Birmingham Jail as written by Dr. Martin Luther King Jr. in April, 1963. This week’s blog entry might seem a little disjointed to the reader, as I am going to discuss two different topics.  First, I will give my thoughts on Dr. King’s letter and how aspects are sadly still alive today. Second, I will discuss transparency in government. My original blog was going to be focused on transparency, but Dr. King’s letter moved me to write on it as well, so please bear with me.

         I have to admit that I have never read any of Dr. King’s letters, but when I read Letter from a Birmingham Jail, I could not stop.  Dr. King’s writing is so eloquent, powerful, and moving to me.  The letter
itself addresses the problems that occurred during the civil rights movement in the 1960’s, and addresses what was, and in many ways, still is to some degree, wrong with our society. Dr. King’s biggest disappointment was not only with those who proponents of segregation, but also with those who supported integration, but chose not to act on their support.

         The words that struck my heart solidly was Dr. King’s exclamation that “we will have to repent in this generation not merely for the vitriolic words and actions of the bad people, but for the appalling silence of the good people” (King Jr., 1963). This really got me thinking about today’s society, and the complaining that people do for the sake of complaining.  People become frustrated with government decisions and actions taken (or lack thereof), but generally their complaints are never followed through with any action.  What does complaining do if it doesn't lead to action? Nothing. I see inaction in the workplaces. I see inaction in our homes. I see inaction in our marriages.  This adds up to inaction in our society. It used to be that if something was broke, people would pitch in and fix it. Today, if people try to pitch in and fix a problem, there are more standing idly by and complaining about how the fix is now the problem, and how better it would have been if they would have fixed it.  If that is the case, please stand up and act!
I have thoroughly loved this class, as well as writing this blog.  It has brought out the idealist in me!  I have worked in government now for almost twelve years.  I have seen the worse as well as the best aspects of government.  I can honestly say that every chapter I have read in Combating corruption, encouraging ethics: a practical guide to management ethics has spoken to me, and sadly enough, I have been able relate real-world examples to each subject.

          In my job, transparency in government means that my books are open for public viewing (as they should be).  This includes our budgeting process our financial reports, even individual transactions can be viewed if the public requests it.  But, transparency does not only mean that our books are open, to me it also transcends into many other aspects of government through the sunshine laws that have been put into place. “Sunshine laws make meetings, records, votes, deliberations and other official actions available for public observation, participation and/or inspection” (Investopedia, 2014). An example of my government’s work towards transparency can be found in the publishing of our annual financial report, or CAFR, which can be
found at http://www.co.benton.or.us/finance/documents/benton_county_cafr_2012.pdf, our annual list of expenditures, available at: http://www.co.benton.or.us/finance/documents/transparencyreportFY2012-13.pdf, and our biennial budget document, which is available at http://www.co.benton.or.us/budget/documents/1315/documents/AdoptedBudgetDraftone-Finalwithblanksandfootersrevised8-7-2013wlinks.pdf.

          An excellent example of government transparency can be found on a program titled “dashboard” that is available on the City of Albany, Oregon website at http://www.cityofalbany.net/departments/finance/budget-information/about-the-dashboard. The City of Albany provides this excellent tool that will allow a citizen to perform lookup functions of the City’s financial activities. “The Albany Dashboard is a new tool in providing up-to-date financial and performance data to the residents of Albany” (City of Albany, 2014).

          Transparency does not only open the door to financial statements, but also to meeting minutes and calendars. Our County’s Board of Commissioners conduct their meetings in a transparent environment that allows for public viewing with in person or to read via published minutes. The only exception to the requirement for open meetings is in the case of “executive sessions”. Executive sessions are closed meetings where sensitive information (such as the hiring/firing of public officials, labor negotiations, etc) can be shared and discussed between the governing body. In Oregon, an executive session can be announced at the beginning of a public meeting so that the general public understands that a portion of a normally public meeting will be held privately.  An example of the schedule of meetings is available at: http://www.co.benton.or.us/boc/meetings.php. Another great tool  for transparency is available through the City of Corvallis, Oregon at http://www.corvallisoregon.gov/index.aspx?page=69.  Here you can find videos of the City Council meetings from 2008 to present day.  This gives the citizens of Corvallis a great option if they are interested in what is going on in their government, but either forgot or cannot attend the meeting at the scheduled time and place.
       
          Is transparency of good thing?  Of course it is.  “Political scientists maintain that nontransparent institutions, low-paid public servants, and a shortage of independent and well-functioning market mechanisms are antecedents of corruption” (Luo, 2007, p. 75). Essentially, transparency helps make government accountable for their actions while minimizing the fostering atmosphere for corruption.

That is all for now.  Have a great week, and go be part of the solution!

References

City of Albany, O. (2014). About the Dashboard. Retrieved from City of Albany, Oregon Government:       http://www.cityofalbany.net/departments/finance/budget-information/about-the-dashboard

Investopedia. (2014). Sunshine Laws. Retrieved from Investopedia US: http://www.investopedia.com/terms/s/sunshinelaws.asp

King Jr., D. M. (1963, April 16). Letter from a Birmingham jail. Retrieved from Historical Text Archive: http://historicaltextarchive.com/sections.php?action=read&artid=40

Luo, Y. (2007). Understanding fraud, waste, and corrupt practices. In W. L. Richter, & F. Burke, Combating corruption, encouraging ethics: a practical guide to management ethics (pp. 75-78). Lanham: Rowman & Littlefield Publishers, Inc.


Saturday, February 8, 2014

A noble lie is still lying, cheating, and deceit

This week my ethics class studied lying, cheating, and deception.  I particularly enjoyed studying this chapter because I think it addresses all of the things that are wrong in the public sector. Please do not misinterpret my words; I do not think that all government lies, cheats, or deceives their constituency. The overwhelming majority of government is committed to providing the best services possible with the funds they are provided.

One of the readings discussed “The Nobel Lie”.  This is a term where a lie or act of cheating or deceit is
carried out for the potential to reach a larger, better goal. Sissela Bok (2007) discusses:
 “I have shown how lies in times of crisis can expand into vast practices where the harm to be averted is less obvious and the crises less and less immediate; how white lies can shade into equally vast practices no longer so harmless, with immense cumulative costs; and how lies to protect individuals and to cover up their secrets can be told for increasingly dubious purposes to the detriment of all” (p. 105). 
Bok continues to offer the idea that when a white lie is combined with deceit to avoid harm, the duty to protect one’s secrets, and the quest for public good, it can result in potentially dangerous decision making and deceit.

A later reading touched on falsifying documents in the quest for the greater good. A contracting officer for the Department of Defense is trying to release a quarter of a million dollars of equipment held in customs. The officer has a time-sensitive notarized document that will release the equipment, but will expire, rendering it void. Out of desperation, the officer contacts his legal counsel asking for advice.  Legal counsel coerced the officer to falsify the document by cutting and pasting a new expiration date onto the document. The
officer submits the falsified document, the equipment is released from customs, and the officer receives praise for his outstanding work in avoiding additional delays. The officer felt that falsifying the document was the only way to avoid further delay, it wasn't going to hurt anyone, and the only people who knew of the unethical act were him and the legal counsel who assisted him. Do you think that the officer’s actions were immoral?  While nobody was hurt by his actions and he had the best of intentions, his ethics fell short when he falsified the document. Decisions like this shape who we become while it desensitizes our conscience, blurs lines, and makes future unethical decisions much easier to make. My theory is this: making the wrong decision for the right reason is still the wrong decision!

Both of these readings spoke volumes to me, and reminded me of the lying, cheating, and deceit that was associated with some of the recipients of the Troubled Asset Relief Program (TARP). An example I would consider as TARP recipient fraud is Goldman Sachs, who received TARP funds only to use $2 billion (yes, billion!) to buy back company stock shares, resulting in an increase in the per-share price of their stock. At the time, Lloyd Blanldein, the CEO for Goldman Sachs, owned just under 2 million shares of his company’s stock. Additionally, after receiving TARP funds, Goldman Sachs after reported profits of $2.3 billion dollars, then paid out over $4.8 billion dollars in bonuses. Hmmm. Another example of TARP abuse can be found with Citigroup, where the bank had corporate losses in 2008 totaling over $27 billion dollars. The same year, Citigroup paid bonuses of over $5.3 billion dollars while receiving over $45 billion dollars in TARP funds. If the TARP funds equated to stock shares, the American taxpayers would own about one third of the corporation.

To aide in accounting for TARP fund misuses, Washington DC created a new department titled the Special Inspector General for the Troubled Asset Relief Program, aka “SIGTARP”. According to the SIGTARP website, they consider themselves to be “a sophisticated, white-collar law enforcement agency, was established by Congress in 2008 to prevent fraud, waste, and abuse linked to the $700 billion Troubled Asset Relief Program (TARP)” (SIGTARP, ND). One concern have is that the government used additional taxpayer dollars to create an agency to monitor and report on the misuse and abuse of taxpayer dollars that were given to banks, investment corporations, and automobile companies? Quarterly, SIGTARP releases a report to Congress on their findings related to the progress of TARP recipients paying back their loans, as well as an evaluation of the program as a whole. This is sort of a progress report.  The report from this past quarter, SIGTARP reported that while some TARP recipients are 1 to 2 quarters behind on their payments, 3% of the recipients are nearly 2 years behind on making any payments on their government loan.

How does this relate to lying, cheating, and deception? Currently, there are 103 TARP recipients with a total outstanding balance due of over $17 billion dollars to the US government (ProPublica, 2013). Seventeen billion taxpayer dollars that could be used for its intended purpose: to provide essential services for our
citizenry.




References

Bok, S. (2007). The noble lie. In W. L. Richter, & F. Burke, Combating corruption, encouraging ethics: a practical guide to management ethics (pp. 105-107). Lanham: Rowman & Littlefield Publishers, Inc.

ProPublica. (2013). Bailout Tracker. Retrieved from Pro Publica: http://projects.propublica.org/bailout/list/losses

SIGTARP. (ND). Welcome to SIGTARP. Retrieved from The Office of the Special Inspector General for the Troubled Asset Relief Program: http://www.sigtarp.gov/Pages/home.aspx