This lecture is part of a business law course focused on ethics and leadership. This is the student's first introduction to implicit bias and heuristics.

1. Introduction to Unconscious Bias
June 5, 2017
Karen M. Landolt, J.D.

2. Learning Objectives
 Understand two assumptions:
1. Most people want to do the right thing
2. Economic actors can choose the proper ethical path when
they put their minds to it (act intentionally)
 Understand heuristics – what they are and how
they can impede ethical decision-making
 Learn how to rationally recognize and resolve
ethical dilemmas
 Recognize limits in our decision-making and
judgment processes that might lead to unethical
decisions without full realization

3.  Heuristics = mental shortcuts used to ease
the cognitive load of making a decision.
 “rule of thumb,”
 “educated guess,”
 “common sense,”
 “intuition”
Moral Heuristics

4. Limitations of Human Judgment
 Beware of the following traps that can
impede ethical decision making

5. Biases: Obedience to Authority
Egil “Bud” Krogh – the Head “Plumber” in the Watergate scandal, didn’t
question if it was wrong – it was just what the President wanted.

6. When you are the boss, do you get to define ethical
behavior?
Biases: Obedience to Authority

7. E is the experimenter, S is the subject (at the controls
of the electronic apparatus, and A is the confederate
(actor) responding to the actions of S.
The mental anguish suffered by subjects of the
Milgram experiment is sometimes cited as a reason
why American universities instituted strict controls on
experiments involving human subjects.
The Milgram Experiment

8. Confirmation Bias
 Our own tendency to choose evidence
that supports our existing beliefs.
 We seek out confirmation whilst avoiding
anything that detracts from our belief.

9. Confirmation Bias
“What the human being is best at
doing is interpreting all new
information so that their prior
conclusions remain intact.”
— Warren Buffett

10. Confirmation Bias
Willard V Quine and J.S. Ullian:
…The desire to have been right…is the
pride that goeth before a fall. It stands in
the way of our seeing we were wrong,
and thus blocks the progress of our
knowledge.

11. Overconfidence
 68% of the faculty at the
University of Nebraska rated
themselves in the top 25% for
teaching ability.
 93% of U.S. students estimated
themselves to be “above
average” drivers.
 84% of Frenchmen estimate that
they are above-average lovers
 I am more ethical than my
peers = 85%

12. Huff Post: Test Your Overconfidence
 As noted by Andrew Macken, a senior
analyst at Montgomery Investment
Management, Michael Mauboussin,
author of The Success Equation, has
posted an online test that permits you to
assess your own level of confidence.
 Macken indicates that more than 700
people have taken this test. Their
accuracy rate in responding to the
questions posed is 60.5 percent, but their
confidence level is 70 percent.
http://confidence.success-equation.com/

13. Rationalization
 "Rationalization" is a backward flow from
conclusion to selected evidence.
 describe something in a way that explains
it and makes it seem proper

14. Self-Serving Bias

15. Self-Serving Bias
 Tendency to accept that which helps us and
reject that which hurts us
 We look for examples that reinforce our
beliefs

16. Self-Serving Bias
 We tend to attribute their successes to dispositional
factors, and their failures to situational factors.
 For example: “I did well on the test because I am
smart,”
 “I did poor on the test because I didn’t get enough
sleep.

17. Cognitive Dissonance
 We don’t like inconsistency or contradictions.

18. Loss Aversion
 Famous Serena Williams Quote:

19. Loss Aversion
 We don’t like to let go of our stuff ex:
paying to store stuff you don’t even use.
 People like making money, but they
HATE losing money

20.  Misjudging effect of situational factors
Fundamental Attribution Error

21. Dishes: A Tale of Two Roommates

22.  Think about a time you succumbed to
Fundamental Attribution Error.
 Jot down your thoughts.
 Turn to your neighbors and discuss.
 What are questions you could ask
yourself or someone else before
committing this error?
Pre-Scripting

23. Action: Develop a Moral Identity

24. Monitor Your Own Overconfidence

25.  Denial of responsibility
 Denial of injury
 Denial of victim
Monitor Your Own Rationalizations

26. Acting Courageously

27. Ethical Pre-Scripting
 To whom am I responsible?
 For what am I responsible?
 What is fair treatment of stakeholders?
 What are the minimum
responsibilities?
 What are the ideal role expectations?
 *Q’s from Markkula Center for Applied Ethics

29. Advocating Effectively
Offer viable solutions