Monday, January 11, 2010

Running up the Score


A Houston high school basketball team recently beat an opponent something like 150 to 25. The game and score were widely report by local television. Is it unethical to run up the score in this manner and what is the business equivalent?

Author and lecturer Rushworth Kidder outlines three ways to look at this or similar situations. The first way is called Ends Based Thinking, which determines ethical behavior based on an evaluation of whether the action generates the greatest good for the greatest number. So if the consequences of running up the score are acceptable to the majority of the people involved, then it is ethically OK. As we know from history and frequently witness, the product of group-think and the potential tyranny of the majority do not make the behavior ethical. We recognize that the greatest good and greatest number depend on the perceiver.

The second is called Rules Based Thinking, implying that if there is no rule against a behavior, then it is ethical. So if running up the score does not violate the rules, then it is ethical. People will and should argue that Kidder’s philosophy lacks a clear, logical, moral imperative because consequences of actions or behaviors do matter without regard to the current rule. Further, in many areas there may not be established rules – or the rules may not be ethical (i.e., many sports programs at typically younger age groups have “Mercy Rules” that would prevent running up the score).

The last idea is Care Based Thinking that relies on the concept that if an action is fair to both parties, then it is ethical. The fundamental characterization of fairness in is the Golden Rule – Do to others what you would like them to do to you. This standard is found in every major religion around the world. This idea is the key to the basketball example – the concept or idea of mentally putting yourself on both sides of the relationship or transaction (relationships are much easier for someone to visualize and understand the Golden Rule, however, our global, fast paced economy is really about transactions which have a much more difficult time with the Golden Rule) makes this a paramount resolution tool. Before going for the extra score, ask yourself: Would you want the score to be run up on you or your team?

Adam Smith made the following well-known statement – “Everyone is left perfectly free to pursue his own interest his own way and to bring his industry and capital into competition with those of any other,” he wrote, “so long as he does not violate the laws of justice.” Kidder has given us three ways to think about the business equivalent of running up the score – practices that overcharge or under serve customers, mistreat employees or suppliers, or gouge owners or investors.

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