Ethical issues in risk management for business  (Page 9/9)

Exercise two: risk perception

• Choose one of the cases presented above in the Introduction to this module.
• Describe those who fall into the public stakeholder group in this case. (See the above definition of "public")
• Identify the key risks posed in your case..
• Describe how the public is likely to perceive this risk in terms of the following: voluntariness, perceived benefits, control, unknown factors and dread factors.
• Given this perception of the risk, is the public likely to find it acceptable?

Exercise three: risk communication

• You are a representative from one of the private business involved in the above case
• Your job is to communicate to the public (whose risk perception you studied in exercise two) the risk assessment data you have collected on the project in question
• Develop a strategy of communication that is based on (a) legitimate risk comparisons and analogies, (b) that is non-paternalistic, (c) that responds to the manner in which the public is likely to perceive the risk(s) in question, and (d) is open to compromise based on legitimate public interests and concerns.

Exercise four (optional)

• Carry out exercises two and three using either the Milagro Beanfield War town meeting or the union meeting from Silkwood .
• Pretend you are Charlie Bloom and are charged with outlining the various risks that accompany the Devine Recreational Facility. The rest of the class, your audience, will play the role of the different stakeholders. These could include the (1) townspeople (owners of local businesses such as Ruby Archuleta's car body shop and the general store owner, Nick Real), (2) farmers (such as Joe Mondragon), (3) local and state law enforcement officers (such as Bernabe Montoya and Kyril Montona), (4) Ladd Devine Recreation Center employees (such as Horsethief Shorty who leads the construction crew), (5) local government officials (such as mayor Sammy Cantu) and state government officials (including the governor), and Ladd Devine himself.
• Give a short presentation. Then respond to questions and commentaries from your classmates who are working with the different roles outlined above.
• Take a vote on whether to go ahead with the Ladd Devine project.

What did you learn?

Business and risk

Appendix

Bibliography

• Covello, V.T., Sandman, P.M. and Slovic, P. (1991) "Guidelines for Communicating Information About Chemical Risks Effectively and Responsibly," in Acceptable Evidence : 66-92.
• Cranor, C.F. (1993) Regulating Toxic Substances: A Philosophy of Science and the Law . Oxford University Press: London.
• Fingarette, H. (1971) Criminal Insanity . University of California Press, Berkeley, CA: 171.
• Mayo, D.G., Hollander, R.D., Editors. (1991) Acceptable Evidence: Science and Values in Risk Management . Oxford University Press: London.
• Mayo, D.G. (1991) "Sociological Versus Metascientific Views of Risk Assessment," in Acceptable Evidence . Oxford University Press: London: 249-280.
• Slovic, P. (1991) "Beyond Numbers: A Broader Perspective on Risk Perception and Risk Communication," in Acceptable Evidence : 48-65.
• Perrow, C. (1984) Normal Accidents: Living with high-risk technologies . Basic Books, NY,NY.
• Reason, J. (1990/1999) Human Error Cambridge University Press: London.
• Sagoff, M. (1985) Risk-Benefit Analysis in Decisions Concerning Public Safety and Health . Kendall/Hunt: Dubuque, Iowa.
• Sagoff, M. The Economy of the Earth: Philosophy, Law, and the Environment . Cambridge University Press: London.
• Sandel, M.J. (1982/1998) Liberalism and the Limits of Justice, 2nd Ed . Cambridge University Press, London.
• Shrader-Frechette. (1991) "Reductionist Approaches to Risk," in Acceptable Risk . 218-248.
• Thompson, P.B., (1999) "The Ethics of Truth-Telling and the Problem of Risk." Science and Engineering Ethics 5(4): 489-510.
• "Glossary" Online Ethics Center for Engineering 1/31/2006 6:57:46 PM National Academy of Engineering Accessed: Saturday, December 27, 2008 www.onlineethics.org/CMS/glossary.aspx

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