Ethical Decision Making

Ethical Models that Guide Decision Making

Rights Theories : Advocated by Immanuel Kant and Locke and based on the view that ethical decisions should protect the legal and moral rights that an individual is entitled to.

Ethical Models that Guide Decision Making

Justice Theories: Were originally advocated by Greek philosophers and more recently by Rawl, and is based on the view that ethical decisions should result in a situation where all human beings are treated equally, and in case some are treated unequally, it must be based on some defensible reasons.

Ethical Models that Guide Decision Making

Utilitarianism : Advocated by Adam Smith, David Ricardo, Jeremy Benthem and John Stuart Mill, this theory employs a teleological approach to ethics and asserts that behaviour or actions should be evaluated in terms of their consequences.

Ethical Models that Guide Decision Making

The Common Good Approach: It underlines the societal view that life in a community is good in itself and that it is every persons moral responsibility not only to contribute, but also to enrich it.

Ethical Models that Guide Decision Making

The Virtue Approach: It advocates that ethical actions should be consistent with certain morally acceptable virtues that would pave the way for full development of humanity.

Basic Business Decision Making Model

Step 1: Define the problem Step 2: Identify alternatives Step 3: Evaluate the alternatives Step 4: Make the decision Step 5: Implement the decision Step 6: Evaluate the decision

The PLUS Model

P = Policies Is it consistent with my organization's policies, procedures and guidelines? L= Legal Is it acceptable under the applicable laws and regulations? U = Universal Does it conform to the universal principles/values my organization has adopted? S= Self Does it satisfy my personal definition of right, good and fair?

Characteristics of Ethical Decisions in Business

Ethical decisions differ according to an individual's perspective. Individual views the ethical decision in his or her frame of reference or value system. Hence, ethical decision does not have a unique solution, but a multitude of alternatives. Decisions either ethical or unethical have wide ramifications, hence affect the other situations. The consequences of most unethical decisions are ambiguous in nature. For instance, an individual seeking employment in government office bribes the officials. But the individual is uncertain whether he will be provided with the employment. Ethical or unethical decisions depend upon individual actions.

INFLUENCES ON ETHICAL DECISION MAKING

There are three major influences that have an impact on an employees decision making in business his personal moral standards, his workplace ethics and culture, the nature of the issue concerned.

 Most ethical decisions have extended consequences. Most ethical decisions have multiple alternatives. Most ethical decisions have mixed outcomes. Most ethical decisions have uncertain consequences. Most ethical decisions have personal implications.

Features of Decision making process

Goal Oriented Selection of most appropriate course of action Continuous process Intellectual Process Dynamic Process Situational

Classification of Decision
Strategic Decision Tactical or Operational Decision

Personal Values and Ethical Decision Making

For an individual to be considered as an ethical decision maker, he needs to build and develop certain values. Six Pillars of Character:
1. Trustworthiness 2. Respect 3. Responsibility 4. Fairness 5. Caring and 6. Citizenship

Six stage model of cognitive development explains why people make different decisions in similar ethical situations.
1. The stage of punishment and obedience 2. The stage of individual instrumental purpose and exchange 3. The stage of mutual interpersonal expectations, relationships and conformity 4. The stage of social system and conscience maintenance 5. The stage of prior rights, social contract or utility 6. The stage of universal ethical principles

The Process of Making good Ethical Decisions

1.Recognise and identify the kind of ethical issue you need to resolve Recognise the ethical issue, seek answers to questions such as the nature of the issue, the conflict it has raised and how the decision would impact the larger community.

2. Pause and Think Pause for sometime on the ethical issue; think ahead, reflect on the consequences that are likely to follow. 3. Make Sure of Your Goals Be clear on goals, both short-term and long-term, weigh options clearly

4. Get Your Facts Right Gather all facts concerning the issue, Verify the uncertain facts, Get additional information

5.Evaluate choices from Different Ethical Perspectives Make a list of options that attempts to accomplish the goal.

Test each option against various ethical perspectives such as rights, justice, virtue or common good Find out which option will produce the most good and do the least harm to others.

7. Make a Decision Prepare a criteria derived from the facts gathered.

Create a decision criterion including the financial outcome, if any.

Rate the appropriate action against your list of criteria.

Talk to a person whose judgment you respect.

8. Act, then Reflect on the Decision Later Implement the decision Evaluate the consequences.