Ethics Chap 002

7/28/2019 Ethics Chap 002

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Ethical Decision-Making: Personal

and Professional Contexts

McGraw-Hill/IrwinBusiness Ethics: Decision-Making for Personal Integrity& Social Responsibility Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 2



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Chapter Objectives

After exploring this chapter, you will be able to:

1. Describe a process for ethically responsible decision-making

2. Apply this model to ethical decision points.

3. Explain the reasons why “good” people might engage inunethical behavior

4. Explore the impact of managerial roles on the nature of our

decision-making.



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An Ethical Decision-Making

Process:Click to explore each element

Determine the facts

Identify the ethical issues involved

Identify stakeholders and consider the situation from their point of view

Consider the available alternatives – also called “moral imagination”

Consider how a decision affects stakeholders, comparing and weighing

the alternatives, based on:

Consequences

Duties, rights, principles

Implications for personal integrity and character

Make a decision

Monitor outcomes



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Determine the Facts

Making an honest effort to understand the situation, to

distinguish facts from mere opinion, is essential.

Knowing the facts and carefully reviewing the circumstancescan go a long way to resolving disagreements at an early

stage.

The sciences, and perhaps especially the social sciences, can

help us determine the facts surrounding our decisions.

How would this apply to the Opening Decision Point (the I-

Pod)?




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Identifying Ethical Issues

We need to recognize that “business” or “economic” decisions and

ethical decisions are not mutually exclusive. Just because a decisions is

made on economic grounds does not mean that it does not involve ethical

considerations as well. Being sensitive to ethical issues is an important characteristic that needs

to be cultivated in ethically responsible people.

We also need to ask how our decisions will impact the well-being of

the people involved.

To the degree that a decision affects the well-being — the happiness,

health, dignity, integrity, freedom, respect — of the people involved, it is a

decision with ethical implications.



Identifying Stakeholders

"Stakeholders" in this general sense includes all of the groups and/or

individuals affected by a decision, policy or operation of a firm or

individual.

Considering issues from a variety of perspectives other than one’s own,and other than what local conventions suggest, helps make one’s

decisions more reasonable and responsible.

To the contrary, thinking and reasoning from a narrow and personal point

of view virtually guarantees that we will not have understood the

situation fully.

Making decisions from a narrow and personal point of view likewise

guarantees that we likely have made a decision that does not give due

consideration to other persons and perspectives.



Consider the Available

Alternatives

Creativity in identifying options – also called “moral

imagination” – is one element that distinguishes good people

who make ethically responsible decisions from good people

who do not.

It is important not to consider only the obvious options with

regard to a particular dilemma, but also the much more subtle

ones that might not be evident at first blush.



Compare and Weigh The

Alternatives

Create a mental spreadsheet that evaluates the impact of each alternative

you have devised on each stakeholder you identified.

Perhaps the most helpful way to accomplish this task is to try to place

oneself in the other person’s position. Understanding a situation from another’s point of view, making an effort

to “walk a mile in their shoes,” contributes significantly to responsible

ethical decision-making.

Weighing the alternatives will involve predicting the likely, the

foreseeable, and the possible consequences to all of the relevantstakeholders.

A critical element of this evaluation will be the consideration of ways to

mitigate, minimize, or compensate for any possible harmful

consequences or to increase and promote beneficial consequences.



Compare and Weigh the

Alternatives: Some options

But consequences or justifications are not the only means for comparing

alternatives. Some alternatives might concern matters of principles,

rights, or duties that override consequences.

Within business settings, individuals will often have specific dutiesassociated with their position. A purchasing manager for a large retail

store has a duty associated with her role that directs her to avoid conflicts

of interest in dealing with suppliers.

Are there duties associated with company rules, professional codes of

conduct, business roles, or legal duties involved?

Perhaps there is guidance available in specific circumstances from these

sources or others.



Compare and Weigh the

Alternatives: Some options

One additional factor in comparing and weighing alternatives requires

consideration of the effects of a decision on one’s own integrity and

character.

Understanding one’s own character and values should play a role indecision-making.

A responsible person will ask: “What type of person would make this

decision?” What kind of habits would I be developing by deciding in one

way rather than another? What type of corporate culture am I creating

and encouraging? How would I, or my family, describe a person who

decides in this way? Is this a decision that I am willing to defend in

public?”



Making the Decision,

then Monitor it

It is time to make the decision.

An accountable decision requires the ability to offer a

justification or reason to support the decision. As a first step

in making ethically responsible decisions, one must be

prepared to offer reasons to support the decision.

To be accountable in our decision-making, we have a

responsibility to evaluate the implications of our decisions, tomonitor and then learn from the outcomes, and to modify

our actions accordingly when faced with similar challenges in

the future.


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Why do “Good” People engage

in “Bad” Acts?

Sometimes, of course, people can simply choose to do

something unethical.

We should not underestimate the real possibility of immoral

choices and unethical behavior.

Sometimes, well-intentioned people fail to choose ethically.

This does not mean that these unethical decisions or acts are

excusable but that the individuals who engage in the unethical behavior may have done so for a variety of reasons.

As it turns out, there are many stumbling blocks to

responsible decision-making and behavior. . . .



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Explaining “Bad” Acts?

Cognitive or intellectual stumbling blocks: As suggested by the model of

ethical decision-making outlined above, a certain type of ignorance can

account for bad ethical choices.

Limitations: We sometimes only consider limited alternatives. When faced with a situation that suggests two clear alternative

resolutions, we often consider only those two clear paths, missing thefact that other alternatives might be possible.

Responsible decision making would require that we discipline ourselves

to explore additional methods of resolution. Simplified decision rules are most comfortable to us: Having a simple

rule to follow can be reassuring to many decisions-makers.

Using a simple decision rule might appear to relieve us of accountabilityfor the decision, even if it may not be the best possible decision.





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Ethical Decision-Making in

Managerial Roles

Social circumstances can make it easier or more difficult to

act in accordance with one’s own judgment.

Within business, an organization’s context sometimes make it

difficult for even the best-intentioned person to act ethically,

or it can make it difficult for a dishonest person to act

unethically.

Responsibility for the circumstances that can encourageethical behavior and discourage unethical behavior falls to the

business management and executive team.







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Chapter Two Vocabulary Terms

After examining this Chapter, you should have a clear

understanding of the following Key Terms and you will

find them defined in the Glossary:

Accountability

Ethical decision-making process

Perceptual differences

Personal and professional decision-making

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Ethics Chap 002

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