Jorge Polanco

Business Ethics and Corporate Social Responsibility

RIT Saunders College of Business
MBA Program
08/23/2016
Homework 2
A Note on Human Behavior - Character vs Situation
According to some authors people make bad judgments because emotional reactions get
in their way. Many people agree with this statement and have experienced how feelings
can override their values and judgments.
In contrast to this belief, author Daniel Kahneman highlights two types of thinking:
System 1 and System 2. The first one is a quick and intuitive thinking. The other one is a
more slower and analytical thinking.
When we relay on System 1, we think on an intuitive way which could undermine our
ethical judgment. This can happen when we are under stressful situations or when we are
dealing with complex and unfamiliar issues. In my opinion there are moments where it is
normal to relay on System 1, but there are situations that require a more careful approach
and thinking. Things like time pressure or multi- tasking can lead us to rely on a System 1
thinking, in a organizational environment, this could raise the chances of mistakes.
Even when managers will face moments when the will need a System 1 thinking, System
2 is the more reliable kind of thinking. It is a more deliberative, and more logical kind of
thinking, that allow managers to analyze what steps to take in any situation.
Character vs Situation for managers
People with good character do the right thing without deliberation, according to Aristotle
and Confucius, but nowadays experts have criticized that conclusion, mainly because
study results show that situation plays a big role in ethical decision-making.
This is really important for managers and leaders. They are in charge guiding people
while in a sometimes stressful environments, so they need to hold their character not
letting the situation overcome them, that way they will be able to take ethical decisions.
Leaders are also an example to their staff so they need to maintain a rational behavior.
According to scholars there are four connections among character, ethics and leadership:
Awareness: Being able to recognize the ethical aspect of a situation.
Judgment: Being impartial while dealing with ethical issues.
Action: Acting ins a consistent way with ethical judgments.
Ethical Leadership: The ability to influence others to act.

Jorge Polanco
Managers need to be focused on not letting situations influence their ethical thinking and
decision taking, that way they could influence others and help them know how to handle
ethical situations.