Posted by chris on June 24th, 2009 | No Comments »

Toronto city workers are striking, because they can. City management and union representatives, hopefully, continue to negotiate, because they have to. I am expecting final class assignments devoted to analyzing this situation:

  • what went wrong?
  • how could it have been better?
  • what should they learn for next time?

I always enjoy the perspectives and the biases that come out in the analysis. Likely because he shares my biases, I enjoyed Howard Levitt’s legal perspective on the situation in today’s National Post.

As an additional perspective, my MBA class (Negotiations) this week tried to deal with ethics as practically as possible. With the assistance of some readings, excersises and discussions, we arrived at some criteria that can help inform ethical decision making. (I don’t like to think that it always “depends;” there are some more biases for you!)  One of the criteria was “It is unethical to maximize your own interests with a disregard for shared interests.” You can argue the semantics of any of those words, but the point, as I see it, is look out for number one, but stay attentive to shared interests.

Under this criteria, in nature, a parasitic relationship becomes unethical if it threatens the survival of the host. Does that mean the Bernie Madoff was unethical because he failed to create a sustainable Ponzi scheme? Maybe. Remember, this is one of four criteria.

Do city workers violate this ethical code by holding out for, specifically, sick day banking and pay-back for half a year of sick days upon retirement? I think the answer is, “Yes.” The shared interest is in a sustainable system whereby reasonable tax revenues cover reasonable city services. As Mr. Levitt illustrates, the status quo union agreements have progressed to being unreasonable (evidence by the fact that you don’t see similar benefits in the private sector).

The checks and balances of the private sector are not perfect–and certainly do not guarantee ethical behaviour–but can help. Uncompetitive wage burdens were part of GM going bankrupt. Unions, workers and pensioners live with the consequences. Pushing a business to unsustainability is unethical if your plan is to continue working there (as it appeared to be for many workers) or to bank on retirement income from the company (as it appears for many pensioners).

If today’s City of Toronto workers are in it for anything other than short-term gains, they are not behaving ethically, I will suggest. Anyone who makes such a claim, better have a strong ethical leg to stand on (or had best make it on a blog whose readership is limited to like minds… we will see.)

 

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Posted by chris on April 24th, 2009 | No Comments »

One of my children got an invitation to a birthday party this week. On the invitation was a handwritten addition indicating that my child was invited to sleep-over after that party. We later confirmed that this “after party” was a bit more “exclusive” than that described on the invitation.

You could tell me to lighten up, but I have a fundamental issue with this approach. I envision the conversation (because I have first-hand experience) between the parent and the child.

  • Child: “I want to have sleep over for my birthday.”
  • Parent: “Great. How many kids are you planning on inviting?”
  • Child: “Let me see…. (verbal list of names each prompting a finger to extend). Twelve.”
  • Parent: “You can’t have that many kids to sleep over.”

I can understand the motivation to sidestep a conflict/tempter tantrum. Such forks in the road exist. You can invite twelve people, OR you can have a sleepover. You can’t do both.

But hold on a second. In the spirit of Negotiating… What if we invite a large group of kids to the party, and then keep a select few back to sleepover. Is that not a good compromise? Out of the box, eh?

Not to make too much of a big deal out of this, but I think it is unhealthy to fail to select (or fail to make the child select) “one of the other” from the above options. If pushed to further explain, which I was, my argument extends to the quality of the first party. How much fun can it be if the “sleep-over group” has to keep suppress the “wink-wink-nudge-nudge” temptation of the after party? Isn’t there an inherent risk that the “go-home group” will learn about the after party and feel (rightfully so) like a second-tier friend?

This specific trade-off approaches an ethical question. Select between the two party streams OR do both and be deceitful to at least half of your “friends.” (This is all happening in the context on an ongoing conversation with some fellow Schulich faculty on ethics and decision making among business school students. E.G. Is it wrong to gain competitive advantage through exploiting a legal loophole?)

So, yes, you can “have your cake and sleepover, too.” You may find that this type of “compromise” ends up compromising the integrity of those involved. The risk-return will be an individual call, but I can certainly tell you I will take on a conflict with my child to avoid treading into ethically murky waters.

 

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