ETHICAL DECISION MAKING

Chapter Five

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Copyright © 2012 John Wiley & Sons

Chapter 5

Learning Objectives

Describe individual characteristics that impact ethical beliefs, sensitivities, intentions, and behaviors

Analyze the processes by which general ethical beliefs and sensitivities lead to the formation of specific ethical intentions

Apply a systematic rational ethical decision-making framework to arrive at a moral conclusion

Facilitate a negotiation between competing ethical perspectives

Recognize warning signs that an unethical decision is approaching

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

James Rest has developed a four-componentmodel sequentially showing that an individualis likely to behave morally if he or she:1.Is aware that an ethical dilemma has arisen2.Forms a moral judgment3.Develops motivation to do something about it

and4.Is a person of high moral character

Chapter 5: Collins, Business Ethics

Exhibit 5.1 Decline from Ethical Belief to Ethical Action

In general, ethical beliefs generate ethical intentions and result in ethical behaviors. But there is typically a drop off going from one step to the next.

Insert Exhibit 5.1

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

The gap between ethical belief and ethical intent in Exhibit 5.1 can be caused by not wanting to create a negative relationship with the coworker

Another big gap exists between “should” and “did”

Why did a large percentage of managers who claimed they would report the cheater not follow up on the ethical intention?

Chapter 5: Collins, Business Ethics

Exhibit 5.2 Ethical Behavior Model

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Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Individual Characteristics (A)Individual factors that have the largest impacton ethical decision making are:1.More education2.More work experience3.Religion4.Reasoning at a higher level of moral

development5.A higher score for deontology or idealism6.A lower score for relativism, teleology,

economic orientation, or Machiavellianism

Chapter 5: Collins, Business Ethics

Exhibit 5.3 Individual Characteristics

Insert Exhibit 5.3

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Ethical Beliefs and Sensitivities (B)A belief is a mental state that guides behaviors

Ethical sensitivity refers to an individual’s awareness that a particular situation raises ethical concerns

Ethical beliefs and sensitivities are the result of a host of individual characteristics, such as age, education, moral development level, or work experience

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Ethical Intuitions (C)Ethical intuition is a quick insight

independent of any reasoning process about right and wrong

Professor Jonathan Haidt concludes that many ethical decisions are the result of intuitive reactions rather than deep reflection

Chapter 5: Collins, Business Ethics

Exhibit 5.4 Liberal and Conservative Ethical Intuitions-What Matters Most

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Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Theory of Planned Behavior (D)According to Icek Ajzen’s theory of planned

behavior, formulating an intention to act ethically is a function of a person’s attitudes toward the behavior, subjective norms, and perceived behavioral control

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Issue’s Moral Intensity (E)Moral intensity refers to issue-related factors,

rather than individual or organizational factors, that are likely to determine the magnitude of a person’s moral approval or disapproval

According to business ethics scholar Tom Jones, an issue’s moral intensity is likely to vary based on six factors

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

The six factors:1. Magnitude of consequences2. Social consensus3. Probability of effect4. Temporal immediacy5. Proximity6. Concentration of effect

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Organization Characteristics (F)O’Fallon and Butterfield, in their extensive

review of the business ethics research literature, found four organizational characteristics associated with ethical behaviors Codes of Ethics Ethical Climate/Culture Organization Size Rewards and Sanctions

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Ethical Intentions (G)An ethical intention is determining

mentally to take some action that is morally appropriate

But even if an intention to act ethically is solidified, an individual still may not follow through on the ethical intention

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Rational Ethical Decision Making (H)After an initial intention is formed, some

people pause and apply a more rational approach to ethical decision making

Rational ethical decision-making frameworks help individuals analyze the ethical basis of their decisions and actions

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Rotary International’s Four-Way Test:

Of the things we think, say, or do,1.Is it the TRUTH?2.Is it FAIR to all concerned?3.Will it build GOODWILL and BETTER

FRIENDSHIPS?4.Will it be BENEFICIAL to all concerned?

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Raytheon’s Ethics Quick Test:Is the action legal?Is it right?Who will be affected?Does it fit Raytheon’s values?How will I feel afterwards?How would it look in the newspaper?Will it reflect poorly on the company?

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

A Systematic Rational Ethical Decision-Making Framework

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Rational Ethical Decision Making

The Six Ethical Theories

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Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

The “Trolley Problem”: A series of three ethical dilemmas developed by moral philosophers that highlight the tension between utilitarianism and deontology

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Insert Exhibit 5.7

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

The six ethical theories parallel Lawrence Kohlberg’s six levels of moral reasoning

As shown in Exhibit 5.9 (next slide), moral reasoning in Stages 1 and 2 reflects egoism, Stage 3 moral reasoning reflects social group relativism, Stage 4 moral reasoning reflects cultural relativism, stage 5 reflects utilitarianism and deontology, and Stage 6 reflects deontology and virtue ethics

Chapter 5: Collins, Business Ethics

Exhibit 5.9 Kohlberg’s Stages of Moral Development and Ethical Theories

Insert Exhibit 5.9

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Rational Ethical Decision Making

Rushworth Kidder and his colleagues have found strong

consensus among five values, or virtues, that are common

worldwide

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Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Each ethical theory raises important issues for the decision maker to consider, and each theory has strengths and weaknesses

Applying the seven questions (see next slide) to the most salient ethical dilemmas will likely reveal that each decision option has strengths and weaknesses, and ethical trade-offs might be required

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Exhibit 5.11 Critical Thinking Decision-Making Process Table

Insert Exhibit 5.11

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Persuading Others

A manager’s failure to engage employees who apply different ethical theories can damage employee morale and result in unethical behaviors and lawsuits

Insert Tips and Techniques “Achieving Ethical Consensus”

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Ten “Ethical Hazard Approaching” Signs

Michael Josephson describes 10 common rationalizations for unethical acts

Insert Exhibit 5.12

Chapter 5: Collins, Business Ethics