Ethics Happiness and the Good Life From the

Ethics, Happiness, and the Good Life: From the Ancient Greeks to Modern Times 1

Learning Objectives • Understand the historical beginnings of the concept of ethics, from the Ancient Greeks and the Enlightenment • Appreciate the relationship of ethics, happiness, and leading a fulfilled life • Grasp how ethical decisions are sometimes fraught with error, ambiguity, and complexity —Being Wrong? And Ethical Fading • Discuss real-life ethical dilemmas 2

Historical Background of Ethics • Socrates— 470 B. C. E. -- 399 B. C. E. 3

Socrates • Considered the “Father of Philosophy” • Argued that the “unexamined life is not worth living” • Taught a method of inquiry and critical thinking—re-examine your belief system regarding ethics—dig deep • One of the first to explore ethics and virtuous living 4

Historical Background of Happiness • Aristotle— 384— 322 B. C. E. —full use of your powers along lines of excellence 5

Aristotle • In Nicomachean Ethics, he argued that happiness consists of achieving, through one’s whole life, all the things—health, wealth, virtue, knowledge, friends—that lead to the perfection and enrichment of human life. • Ethics--integral part of the happy and virtuous life. 6

Aristotle and Happiness • Happiness is the only thing that humans desire for its own sake, unlike riches, honor, health or friendship. It is the highest good—and rare. • Happiness--different from momentary pleasure. • Pursuit of happiness--worthwhile goal. To achieve this, individuals needs to act morally and be willing to place the interests of others ahead of their own. 7

Aristotle and Ethics • “Ethos” is the Greek word for character • Ethical behavior? It is a pathway for attaining happiness/contentment. • Doctrine of the Mean • Right course of action depends on details of situation, rather than by applying a strict law. • High ethics--a skill acquired through practice, such as learning a musical instrument. 8

Immanuel Kant and the Categorial Imperative 9

Immanuel Kant • Prussian-German Philosopher of the Age of Enlightenment (1724 -1804) • Central figure in modern philosophy • Duty to overall health of society • The supreme principle of ethics and morality revolves around the “categorical imperative. ” 10

Categorical Imperative—Ethical Behavior for Society • “Act according to the maxim whereby you can, at the same time, will that it should become a universal law. ” Concept of Universality. • Do not steal, or trespass on, your neighbor’s property. Keeps property rights intact. • Otherwise, disintegration of property rights and the rule of law. • Mark of unethical behavior: one makes an exception for oneself. 11

Kant and Happiness Ethics is initially divorced from happiness Pleasure not always good Happiness cannot be the principle of morality People don’t know what will make them happy. This would require omniscience. • Kant links morality with becoming “worthy of happiness. ” • Satisfaction with oneself—end result • • 12

John Stuart Mill & Happiness • English philosopher— 1806— 1873 13

Utilitarianism • Utilitarianism—an action is right if it promotes happiness---the greatest happiness of the greatest number should be the guiding principle of conduct. • But majority of society could dictate outcomes (e. g. , adulterers were stoned to death in many countries) 14

Victor Frankl • Austrian neurologist and psychiatrist • 1905 -1997 15

Victor Frankl • Survivor of Auschwitz and other concentration camps 16

Victor Frankl • Two fellow patients in the concentration camp • Man’s Search for Meaning • Happiness--not something we should pursue directly. • A purpose larger than oneself—with a focus on ethics and morality and the seeking of meaning. • Approach: take the person out of themselves and puts their life in a broader perspective • With this path, happiness and ethical behavior naturally ensue 17

Beliefs, Being Wrong and Ethics “ It infuriates me to be wrong when I know I’m right. ”-- Molière, French Playwright (17 th Century) 18

Beliefs • Belief—Old English word “to hold dear” • We fall in love with our established beliefs. • We are so emotionally invested in our beliefs that we cannot recognize them as anything but inviolable truth. • Provides us the comforting illusion that our environment is stable and knowable • Even our memories are “accurate”—quote 1 • Confirmation bias • Our model of reality is reality itself 19

Being Wrong, Blind Spots, and Ethics • • • Why is it fun to be right? Being wrong--inescapable part of being alive “I was wrong but. . . ” “Mistakes were made (but not by me)” Tacit assumption--we are right about nearly everything. Others are wrong--they are ignorant, a little slow, or worse. 20

Being Wrong, Blind Spots, and Ethics • Errors are like cockroaches • Lake Wobegone effect-”superiority illusion”---a little experiment—EYES CLOSED!!!! • Marriage– share of the housework • Asymmetrical information • Competent and incompetent people 21

Blind Spots and Albert Speer • Nazi Germany’s Minister of Armaments— 1905 -1981 22

Speer Quote • Quote 2 • “I did not query. . . I did not question. . . I did not speak. . . I did not investigate. . . I shut my mouth. . . I closed my eyes. ” • The sins of omission. Classic example of ethical blind spot and ethical fading. 23

Being Wrong and Ethics • Henry Lee Lucas— 1936 -2001 24

Investigation of Henry Lee Lucas • Matricide in 1960 & imprisonment--10 years • 1983 arrest • Confession spree—perhaps up to 300 murders all over the country—an amazing confabulator • Lucas Task Force—”cleared” 213 previously unsolved murders as a result of confessions • Investigators discredit Lucas’ claims—false confessions 25

Crime Spree 26

C. P. Ellis • 1927— 2005 • American Segregationist turned civil rights activist 27

C. P. Ellis and Ann Atwater 28

Ethics and Poverty Inc. —Be Willing to Challenge One’s Beliefs • For example--Political beliefs • Certainty of being right—Financial Aid story— Haiti, Rwanda, and the Democratic Republic of Congo • Unintended consequences 29

Ethical Business Dilemmas--Causes – Pressure from management—Enron – Conflicting values between 2 or more people in organization – Negotiation tactics – Unrealistic expectations of employees – Ambition and discrimination—financial pressure or hunger for recognition 30

Ethical Fading • Occurs when the ethical aspects of a decision slowly become obscured. Ethical degradation. • People may focus on some other aspect of a decision (e. g. , profitability, achieve goals). • “Should” self dominates during prediction & recollection phase • “Want” self dominates during critical action phase 31

Ethical Fading • People tend to see what they are looking for • Self deception • Ethics is like the tax code—system where people are looking for loopholes & shelters. 32

Modern Day Business Examples • Enron and Arthur Anderson—conflicts of interest abound in the business world • Increase share price--#1 priority • Remember all stakeholders—(ERM) 33

Modern Day Business Examples • Reduce claim payments? Bombarding claim adjusters with average claim payment metrics and tying this into performance reviews • Forty open claims for adjusters 34

Takeaways • Ethics training in companies—assign a devil’s advocate • Realistic expectations of employees • Grasp complexity of ethical decisions—factors may or may not be absolute; recognize you could be wrong • Question and dig deeper when in doubt— Remember Socrates! 35

Takeaways (cont’d) • Watch out for ethical fading—look at the big picture • Consider consequences of one’s actions, particularly during the critical action phase • Confer with trusted and admired colleagues who are removed from situation • Remember the relationship between ethics, happiness, and the good life 36

Ethics and Happiness—Albert Schweitzer • German theologian, humanitarian, philosopher, and physician “Ethics is the activity of man directed to secure the inner perfection of his own personality. ” 37

Socrates Again • Socrates would argue that the ensuing result is happiness—a state which fulfills a person’s search for meaning. 38

International Risk Management Institute, Inc. IRMI. com 39 Copyright 2020, International Risk Management Institute, Inc.

Q&A Rob Olson, CPCU, CRIS, ARM Senior Research Analyst International Risk Management Institute Rob. O@irmi. com www. irmi. com 40