MORAL LEADERSHIP IN BUSINESS.

Decision Making in Business Ethics

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Introduction

Persons are bound to decision making concerning the business atmosphere daily. Being

an organization’s employee normally mandates one to operate within moral models or rather

frameworks when it comes to decision making (Mathias, T. A, 2018). Business ethics defines

the standard behavior organizations can tolerate from their employees. Robust decision making

and business morals can as well enhance organizations to venture into perfect business prospects.

The study seeks to answer the question, why are moral principles vital for decision making in

organizations? Furthermore, the study depicts an example of a case study concerning the topic of

discussion.

Facts

To begin with, making decisions in business ethics normally needs organizations to

single out a specific ethical standard, which always refers to unalike things to diverse

individuals. As businesses develop and diversify, new employees are recruited and they may not

possess equal ethical standards as the ones who have been working in the entity before. A

diversification in morals normally gives a different look at how persons undertake the decision

making procedure (Mathias, T. A, 2018). Organizations always apply the company’s operation

statement to develop a model to assist in personal principled business decision making.

Types

There exist five kinds of moral standards: down-to-earth, moralities, equality or justice,

mutual good as well as virtue. A utilitarian or down-to-earth moral is a standard that tries to do

excellent good and minimize the danger for every individual. The rights method offers protection

and obeys the ethical privileges of individuals jammed by decisions. The equality method
Decision Making in Business Ethics 3

attempts to avail fairness amongst every individual whereas the mutual good approach majors on

making the society as a whole a better place for everyone. The virtue focuses on tactic areas on

the vital virtues appropriate for encouraging personalities for the organization.

Functions

Corporate morals are an instrument business put in place to ascertain bosses,

administrators or supervisory officers act accordingly in particular organizational circumstances.

Moral resolution-making tries to stimulate the company entirely, instead of allowing a single

person to gain from decisions made by the business (Ross, K. R, 2017). Persons who recurrently

decide their gains may develop lawful accountabilities for a business that results in liquidation.

Discussions

It never takes overnight to realize a business environment. Businesses may need to

squander time as well as finance to offer training and endorsing business morals amongst

workers and bosses. Companies may as well find putting in place a moral-decision making

approach might result in the destructive reactions from bosses or workers. Fighting the negative

feedback might be a problematic fragment of executing business morals (Márquez, F. P.,

Marugán, A. P., & Papaelias, M, 2018).

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Related Case Study

The CEO of Starbucks and the Practice of Moral Leadership

Background

Kevin Johnson encountered a management test the minute the two black men got arrested

in a Philadelphia Starbucks one-year-old as the CEO of Starbucks. The guys had an appointment

with their business associate, though they never bought an item as they were awaiting their

colleague. The stockpile boss requested them to vacate and they never cooperated making an

explanation that they were to have a meeting with someone. The boss called the police is that

they never vacated and the guys got arrested.

A white lady who was also seated at the scene of rest took a video of what was taking

place and the video went viral after a short while. The following day there was a riot in response

to the arrest and Johnson had to have the manager stand aside and immediately called for staff

training concerning moral business conducts and further made an apology regarding the incident.

Relevance of Case

The case helps in depicting a practical application of ethical decision making in a

business place. This is vital as it equips the learner with the knowledge on how to put in place

workplace morals for the benefit of an organization. It also helps the students in knowing the

policies that should be considered when coming up with organizational policies (Casey, K,

2007). The organizes a learning approach on how Johnson handles the case right from sacking

the manager, making an apology, calling for staff training, meeting the two men to deliberate on

what they have to improve on as well as how he seeks for advice on specific areas.
Decision Making in Business Ethics 5

Stakeholders involved and their concerns

The case presents the presence of CEO John whose concern is to ensure the business

retains its reputation. He ensures this by making necessary apologies and applying appropriate

ethical values to ensure the issue is solved and the organization’s goal of developing Starbucks

into an environment that is both safe and friendly to every person. Besides, the case outlines the

store manager as well whose concern is to generate sales and feels that no one should be

spending on the premise without placing an order and decides to call the police to help him get

the two guys out of the place. Furthermore, there is the presence of the other patron whose

concern was the reason for the two men’s arrests. This is evident in the case where she enquired

from the manager and the police why the guys were being arrested. Also, the two guys are

evident that people fail to disobey orders at some point which is ethical in the workplace as it

interferes with the rights approach that entitles individuals to protect and obey the ethical rights

of individuals (Casey, K, 2007).

Case Analysis and evaluation of alternatives for the stockholders

The Starbucks’ case presents several scenarios that some of them undermine moral

behaviorism in the workplace as well as depicting how ethical decision making is of great

importance in a business step-up. To begin with, the store manager conducts himself unethically

by failing to apply the principle of fairness and goes ahead to call the police despite the two

guy’s explanation of their being present at the Starbucks. The store manager ought to have put in

place the fairness principle which seeks to avail equality (Hvastová, J, 2017).

Secondly, we encounter Johnson who fires the manager before attempting an

investigation on why the manager had to make the decision he made. Here the CEO would have
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used the utilitarian approach which renders the manager a minimized harm following his action.

The manager’s failure to embrace ethical practice at work indicates a lack of adequate

knowledge by the Starbucks employees hence calling for an immediate call of training through

seminars and even if necessary the involvement of outside experts who can come up with new

ideas to improve their mission statement (Hvastová, J, 2017).

Conclusion and recommendations

In conclusion, it is of great importance to put in place the use of moral decision making in

the business environment as this is a crucial tool in the determination of an organization’s

success. Besides, it is recommended that organizations may involve expert consultants,

conferences, or different approaches to educate workers on how to develop decisions in a

business moral. The suggested external sources should as well be able to equip organizations

with mission review of their existing tasks and provide counseling on means to advance their

operations to put in place a tangible moral code in their business activities. However much

expensive the expert bodies may be, they normally assist in creating an ethical commercial

atmosphere.

References
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Casey, K. (2007). Two allies, one mission: Foreign visitor helps Korean veterans while learning

how the U. S. cares for its veterans. PsycEXTRA Dataset. doi:10.1037/e609632007-006

Hvastová, J. (2017). Moral decision-making of business managers. New Trends in Process

Control and Production Management, 199-204. doi:10.1201/9781315163963-38

Mathias, T. A. (2018). Ethical Decision Making in India. Human Action in Business, 311-328.

doi:10.4324/9781351292405-21

Márquez, F. P., Marugán, A. P., & Papaelias, M. (2018). Introductory Chapter: An Overview to

the Analytic Principles with Business Practice in Decision Making. Decision Making.

doi:10.5772/intechopen.80220

Ross, K. R. (2017). The Second WCC-CWME Consultation on Missional

Formation. International Review of Mission, 106(1), 188-194. doi:10.1111/irom.12175