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7/24/2019 Ethical Decision Making Process
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ETHICAL DECISION MAKINGPROCESS
Contemporary Managers have to dea !"th#omp$s"ons "n #ompet"t"on and %$s"ness
In the e&"gen#"es o' %$s"ness "t has %e#ome
v"ta that de#"s"ons are eth"#a and rat"ona
Generay "t "s ass$med that empoyees "nthe organ"sat"on ma(e same mannerde#"s"ons "n Home and !or(pa#e
Atho$gh "t "s not poss"%e to meas$re ho!an empoyee ma(e de#"s"ons) ho!ever "t#o$d %e $nderstood to some e&tent* the
'a#tors "nvoved "n de#"s"on ma("ng pro#ess
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ETHICAL MODELS
There are severa theor"es that have %eendeveoped %y ph"osophers over the years
These theor"es o'ten prov"de a %en#hmar( to set
standards and deveop a normat"ve +$dgement There are d"s#repan#"es "n ma("ng +$dgement
$s"ng these theor"es, The reasons are Eth"#a theor"es and the"r reevan#e are not eas"y
$nderstood
-e"ng normat"ve* these theor"es are d"."#$t to p$t topra#t"#e
O' the modes* theor"es %ased on RIGHTS* /0STICE 10TILITARIANISM are prom"nent
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ETHICAL MODELS
R"ghts theor"es
/$st"#e theor"es
0t""tar"an"sm The 2"rt$e Approa#h
The Common Good Approa#h
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RIGHTS THEORIES
Advo#ated %y Imman$eKant* !ho stressed personar"ghts* and Lo#(e3/ohn Lo#(e!"dey (no!n as the 4athero' Cass"#a L"%era"sm* !asan Eng"sh ph"osopher and
phys"#"an5 -oth 'o#$sed on the
ent"tements o' "nd"v"d$a as
persons !"th d"gn"ty and John Locke
ImmanuelKant
7/24/2019 Ethical Decision Making Process
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RIGHTS THEORIES
Ind"v"d$a r"ghts "n#$de 4ree Consent
4reedom o' Cons#"en#e
Pr"va#y 4ree Spee#h
D$e Pro#ess
There "s #ons"dera%e overapp"ng o' ega
and mora r"ghts Lega r"ghts prote#ted %y a!
Mora r"ghts sho$d %e prote#ted %y so#"ety
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/0STICE THEORIES
Th"s pre#ede R"ghtsTheory and #an %etra#ed %a#( to Patoand Ar"stote3d"s#"pe o' Pato5
It advo#ates that a
persons sho$d %eg$"ded %y 'a"rness*
+$st"#e* e6$"ty and
"mpart"a"ty
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/0STICE THEORIES
In the modern 'ormat* ho!ever* "t states thath$man %e"ngs "n some #ases are treated$ne6$ay
It !" %e $n'a"r to treat S0PREME CO0RT /0DGE !"th a da"y7!age earner
A CEO !" %e treated d".erenty than a#as$a !or(er
In Ind"a !e 'a#e s$#h d"emma E,g, Grade III !or(ers d"re#ty appo"nted %y
#ompan"es get h"gher saary than empoyeesre#r$"ted 'rom empoyment agen#"es, 8H9:
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0TILITARIANISM
Hods the v"e! that an a#t"on or de#"s"on "sr"ght "' "t ma&"m";es $t""ty or prod$#es thegreater good 'or the argest n$m%er o'
peope -ased on e#onom"# post$ates and #an %e
tra#ed %a#( to #ass"#a e#onom"sts "(e ADAM SMITH* DA2ID RICARDO* /EREM9
-ENTHEM 1 /OHN ST0ART MILL It empoys a TELEOLOGICAL approa#h and
asserts that %ehav"o$r or a#t"ons sho$d %eeva$ated "n terms o' the"r #onse6$en#es
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THE 2IRT0E APPROACH
A very an#"ent approa#h* advo#ated thateth"#a a#t"ons sho$d %e #ons"stent !"th#erta"n moray a##epta%e v"rt$es that !o$d
pave the !ay 'or '$ deveopment o' h$man"ty 2"rt$es are att"t$des or #hara#ter tra"ts that
ena%e $s to %e and to a#t "n !ays that !o$ddeveop o$r h"ghest potent"a
It stresses the "mportan#e o' eterna v"rt$esthat h$man %e"ngs !o$d a!ays "(e tosho!#ase "n persons !ho !" %e re'erred toas roe modes to others
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THE COMMON GOOD
APPROACH The approa#h s$ggests <The Intero#("ng
reat"onsh"ps o' so#"ety= are gro$nded oneth"#a reason"ng* respe#t and #ompass"on 'or
others 3esp, v$nera%e se#t"ons o' so#"ety5 It a!ays dra!s attent"on to #erta"n
#ond"t"ons E.e#t"ve a! and order
Po"#"ng Heath #are
P$%"# ed$#at"on
Pa#es o' re#reat"on and am$sement
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8HICH APPROACH TO 0SE
A the Theor"es have "ts pros and #ons
It "s d"."#$t to arr"ve at a standard#ond"t"on
It #an %e s$mmar"sed that "' any a#t"on thatmeets at east three #r"ter"a* then "t #an %eta(en as eth"#a 0t""ty
R"ghts /$st"#e
I' an a#t"on meets > #r"ter"a) then !e m$stoo( "nto other over!hem"ng 'a#tors
7/24/2019 Ethical Decision Making Process
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KOHL-ERG?S MODEL O4COGNITI2E MORAL DE2ELOPMENT
It "s ne#essary to $nderstand the#on#ept o' #ogn"t"ve moradeveopment as en$n#"ated %y
psy#hoog"st Lawrence Kohlberg H"s @ stage mode o' #ogn"t"ve
deveopment e&pa"ns !hy peopema(e d".erent de#"s"ons "n s"m"areth"#a s"t$at"ons
Th"s happens 'rom o!er eve toh"gher eve as peopes? (no!edgeand so#"a"sat"on #ont"n$es to deveop!"th t"me
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KOHL-ERG?S MODEL O4
COGNITI2E MORALDE2ELOPMENT The stage o' p$n"shment and o%ed"en#e -ehav"o$r o' sma #h"dren !ho respond to r$es d"#tated
%y parents and #ons"der r"ght and !rong 'rom thep$n"shments they get
The stage o' "nd"v"d$a "nstr$menta p$rpose ande&#hange Ind"v"d$a eva$ates %ehav"o$r on the %as"s o' 'a"rness to
onese', It "s aso #aed stage o' re#"pro#"ty %e#a$se "t "s notdepended on oyaty %$t !hat one gets "n ret$rn
The stage o' m$t$a "nterpersona e&pe#tat"ons*reat"onsh"ps and #on'orm"ty Ind"v"d$as #ons"der the !e %e"ng o' others* tho$gh they
may st" %e mot"vated %y o%ed"en#e to r$es
Peope tend to "ve $p to !hat "s e&pe#ted o' them
7/24/2019 Ethical Decision Making Process
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KOHL-ERG?S MODEL O4COGNITI2E MORAL DE2ELOPMENT
The stage o' So#"a System and Cons#"en#eMa"ntenan#e Ind"v"d$a #ons"ders h"sBher d$ty to so#"ety as the r"ght
th"ng to do
Peope tend to $phod the a! !hen 'a#ed !"th d"emma
The stage o' Pr"or R"ghts* So#"a Contra#t or 0t""ty Ind"v"d$a has %roader v"s"on and deveops a sense o'
so#"a o%"gat"on
Arr"ve at rat"ona de#"s"ons even "' "t "s "ega
The stage o' 0n"versa Eth"#a Pr"n#"pes There are #erta"n $n"versa pr"n#"pes that needs to %e
$phed
8" not #are a%o$t a! %$t #are a%o$t peope and mora"ty
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PERSONAL 2AL0ES AND
ETHICAL DECISION MAKING Tr$st !orth"ness
Respe#t
Respons"%""ty 4a"rness
Car"ng
C"t";ensh"p Page > o' %$s"ness eth"#s and
#orporate governan#e %y A C
4ernando
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4RAME 8ORK 4OR E D M
Ta(e #ho"#es ser"o$sy
Good de#"s"ons %ased on rat"ona"ty
D"s#ernment 3+$dgement %ased on "ns"ght5 and D"s#"p"ne3strength o' #hara#ter5
Re#ogn"se and "dent"'y the ("nd o' eth"#a( "ss$e toresove
Pa$se and Th"n(
Ma(e s$re o' the Goas
Get the 'a#ts r"ght Eva$ate #ho"#es 'rom d".erent eth"#a perspe#t"ves
Cons"der sonse6$en#es
Ma(e a de#"s"on
A#t* then ree#t on de#"s"on ater
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CORPORATE 2AL0ES 1 EDM
In !or( env"ronment* the va$es* them"ss"on and the v"s"on o' the #ompany !"have a greater "n$en#e on an "nd"v"d$a
than one?s o!n moras and eth"#s In #orporat"ons de#"s"ons are made
#oe#t"vey %y gro$ps
Organ"sat"on #$t$re pays a v"ta roe
A #orporate #$t$re #an %e deFned as A set o' va$es* %e"e's* goas* norms and !ays
o' sov"ng pro%ems that an organ"sat"on?sempoyees share and "ve $p to
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CORPORATE 2AL0ES 1 EDM
The eth"#a #"mate o' an organ"sat"on prov"de a#ear #$t "dea a%o$t the '$n#t"on"ng
There !" a!ays %e #erta"n press$re gro$ps
!h"#h tends to %end de#"s"ons It may #ontrad"#t !"th the sharehoder?s "nterests
aso
Corporate governan#e #enters aro$nd "ntegr"ty*a##o$nta%""ty* transparen#y* '$ d"s#os$re o'Fnan#"a and non Fnan#"a "n'ormat"on !"th'a"rness and openness
Ho!ever very hard to a##omp"sh s"n#e there !"%e ant"7so#"a eements try"ng to ta(e advantage