The Ethics Of Crisis Management: A Juxtaposition Of Examples In Cognitive-Decision Making And Framing In Corporate Crisis Management

Ethical decision-making is a cognitive process that must be effectively managed within crisis situations that face corporations on a daily basis.  Two juxtaposed cases are presented that help to define good decision-making in crisis management and bad decision-making.  The two corporations used as case studies are Malden Mills and Enron.

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Teaching corporate crisis management through business ethics education

European Journal of Training and Development ◽

10.1108/ejtd-05-2013-0055 ◽

2014 ◽

Vol 38 (5) ◽

pp. 483-503 ◽

Cited By ~ 6

Author(s):

Sheldene Simola

Keyword(s):

Decision Making ◽

Crisis Management ◽

Human Resource Development ◽

Human Resource ◽

Ethics Education ◽

Ethical Decision ◽

Ethical Decision Making ◽

Warning Signs ◽

Content Type ◽

Corporate Crisis

Purpose – The purpose of this research was threefold, including to provide a four-point rationale for teaching corporate crisis management as a module within a course on ethical decision-making in business and organizations; to provide evaluative data supporting this approach; and to highlight the implications of this approach for human resource development and training. Design/methodology/approach – Thirty-four undergraduates in a required course on ethical decision-making in business and organizations completed pre- and post-course assignments assessing their knowledge about crisis/management, as well as their skills in crisis recognition, evaluation and action planning. Participants also completed a survey on their perceptions of the crisis management module and its placement within the ethics course. Findings – Statistical analyses demonstrated significant knowledge acquisition on crisis/management; significant skill development on crisis recognition, evaluation and action planning; and significantly greater “true positives” and significantly fewer “false negatives” in post-course identification of crisis warning signs. Perceptions of the crisis management module and its placement within the course on ethical decision-making were positive. Research limitations/implications – Although the sample size was relatively small, small samples are associated with a greater risk of failing to detect an effect that is present, rather than the greater predicament of erroneously concluding that an absent effect is actually present. This information, coupled with the fact that the results demonstrated not only statistical significance but also large effect sizes using Cohen’s d, inspires confidence. Nonetheless, additional assessment with larger samples would allow for the possibility of convergent evidence. Similarly, additional assessment within different organizational contexts, including applications in human resource training and development is warranted. Future research should also include assessment of specific underlying teaching strategies and evaluation of whether certain models are associated with greater learning on a broader range of crisis management skills. Practical implications – Programs in business ethics education and training comprise one useful context in which to teach corporate crisis management. The program specified here addresses two training needs previously specified in the human resource development (HRD) literature on crisis management, including identifying specific methods of enhancing recognition or detection of crisis warning signs and also of providing tools and enhancing skills for assessing and containing crisis. Originality/value – Despite the centrality of both ethics and HRD to crisis management, there has been a dearth of research on whether ethics education is a useful context through which to teach this topic. This research addresses this dearth and suggests new avenues for HRD in this respect.

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The Neenan Company: rebuilding from a crisis

The CASE Journal ◽

10.1108/tcj-06-2015-0024 ◽

2016 ◽

Vol 12 (2) ◽

pp. 310-318

Author(s):

Lumina S. Albert ◽

Grace Hanley Wright ◽

Thomas J. Dean

Keyword(s):

Decision Making ◽

Public Schools ◽

Crisis Management ◽

Ethical Decision ◽

Ethical Decision Making ◽

Structure Design ◽

Assessment Tools ◽

Business Practices ◽

Content Type ◽

Structural Problems

Synopsis The Neenan Company is a construction firm based in Fort Collins, Colorado, known for their efforts in pioneering the advancement of the design/build approach to construction. With a history of industry leadership, innovative contracting methods, and ethical business practices, the company now faces management, customer relations, and financial challenges. Serious structural problems were discovered in a number of public schools and other buildings built by the company. Thrown into a whirlwind of shock, Randy Myers, President of the company, must consider how to respond to the crisis, and how to prevent these issues in the future. Written from his perspective, this case provides a platform for considering the challenges that can result from industry innovation, ethical decision-making, and crisis management. Research methodology For the development of this case, the authors interviewed the top management at the Neenan Company: Founder David Neenan, President Randy Myers, and Donna Smith, Vice President of Business Development. The authors also interviewed current employees, previous employees of Neenan, representatives of school buildings built by Neenan, stakeholders, other experts in the construction field and existing customers of the company. The company made internal documents available to the authors, including financial statements and quality control and assessment tools, which were provided by Ryan Dellos, Chief Financial Officer. The authors surveyed financial documents and business documents to analyze pertinent information and data relevant to the case. All the interviews were recorded, coded, and analyzed to include multiple perspectives. Extensive online research was conducted on the construction industry and The Neenan Company which included several news articles and interviews on David and Randy. Additionally, the authors carefully studied the news reports by The Denver Post and other related press materials. Experts from the construction field and financial field provided assistance with data analysis and interpretation. The authors used a variety of academic resources to draw connections between the issues faced by Neenan and concepts discussed in business courses. Relevant courses and levels This case has applications in entrepreneurship, small business management, business ethics, leadership, organizational structure/design, and new venture management courses at both undergraduate and graduate levels. It also contains critical areas of decision-making relevant to an advanced strategic management course. The case can be introduced at any stage of the term, and is specifically relevant to discussions focussing on innovation and growth, corporate social responsibility, ethical decision-making, stakeholder theory, entrepreneurial crisis management, and long-term venture success.

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Moral Imagination And Ethics For The Accounting Professional

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v19i2.2162 ◽

2011 ◽

Vol 19 (2) ◽

Author(s):

Lawrence M. Metzger

Keyword(s):

Decision Making ◽

Public Sector ◽

Ethical Decision ◽

Ethical Decision Making ◽

Code Of Ethics ◽

Moral Imagination ◽

Ethical Conduct ◽

Font Size ◽

Accounting Profession ◽

Accounting Professionals

The accounting professional, whether s/he be in the private or public sector, faces many situations in his/her day-to-day activities that require thoughts and actions that have ethical overtones. One needs only look at the Enron situation to verify this idea. While the accounting profession has long had established codes of ethical conduct, these codes are by no means the be all and end all of ethical decision-making. So while accounting professionals can certainly refer to and use the relevant code of ethics for a particular situation, it is clear that these by themselves are not usually sufficient in depth and detail to solve all but the most straightforward, if there is such a thing, situations. To address most ethical situations calls for thinking far beyond the tenets of a code of ethics. It requires significant intellectual capacities and specific skills. Specifically, it requires moral imagination.

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