5. Ethical Decision Making
Terms in this set (54)
the ability to perceive whether a situation or decision has an ethical dimension
The first step in ethical-decision making is to recognize than an ethical issue requires an individual or work group to choose among several actions that various stakeholders inside or outside the firm will ultimately evaluate as right or wrong.
Ethical issue intensity
relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization.
relates to individuals' perceptions of of social pressure and the harm they believe their decisions will have on others.
Gender (individual factor)
in many aspects, there are no differences between men and women, but when differences are found, women are generally more ethical than men. Woman rely on relationships, where men rely on justice or equity
Education (individual factor)
the more____________ or work experience people have, the better they are at making ethical decisions.
Nationality (individual factor)
the legal relationship between a person and the country in which he or she is born. Culture differences may contribute to differing value systems.
This is becoming more regionally, for instance instead of saying I am German they may say I am European.
Age (individual factor)
employees with more experience have greater knowledge to deal with complex industry specific ethical issues, where young managers are far more influenced by organizational culture than are older managers
Locus of control (individual factor)
relates to individual differences in relation to a generalized belief about how you are affected by internal versus external events or reinforcements.
Those who believe in this see themselves as going with the flow because that is all they can do.
believe they control the events in their lives by their own effort and skill, viewing themselves as master of their destinies and trusting in their capacity to influence their environment.
Corporate Culture (Organizational Factor)
a set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share.
Consists of corporate codes of ethics, top management actions, ethical policies, coworker influence, and the opportunity for unethical behavior
ethical culture (Organizational Factor)
reflects whether the firm also has an ethical conscience
a function of many factors, including corporate policies on ethics, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior
the more of this, the less likely employees are to make unethical decisions.
Significant Others (Organizational Factor)
Those who have influence in a work group, including peers, managers, coworkers, and subordinates
Have more influence on daily decisions than any other factor
Help on a daily basis with unfamiliar tasks and provide advice and information formally and informally
Obedience to Authority (Organizational Factor)
helps explain why many employees resolve business ethics issues by simply following the directives of a superior.
An aspect of influence that significant others can exercise
describes the conditions in an organization that limit or permit ethical or unethical behavior.
It results from conditions that either provide rewards or fail to erect barriers against unethical behavior
Can be eliminated by establishing formal codes, policies, and rules that are enforced. Relates to the employee's immediate job context
immediate job context
where they work, with whom they work, and the nature of the work.
how organizational decision makers SHOULD approach an issue.
revolves around the standards of behavior within the firm as well as within the industry
HOW organizational decision makers approach ethical decision making
Framework for Understanding Ethical Decision making In Business
Spheres of Influence (Ethical Issue Intensity)
have the greatest influence on decisions in the workplace
Business Ethics Evaluations and Intentions
An individuals intentions and the final decision regarding what action he or she will take are the last steps in the ethical decision making process
Critical Thinking plays a key role
last step in the decision making process
Guilt (or uneasiness)
the first sign that an unethical decision has occurred
the ability or authority to guide and direct others toward achievement of a goal, has a significant impact on ethical decision making.
Have the ability to motivate others and enforce the organization's rules and policies as well as their own viewpoints.
The most successful do not rely on one style but alternate their technique based on the characteristics of the situation.
need both knowledge and experience to make decisions. Strong ______must have the right kind of moral integrity.
attempt to create employee satisfaction through negotiating, or "bartering" for desired behaviors or levels of performance.
strive to raise employees' level of commitment and to foster trust and motivation.
leadership is best suited for organizations that have higher levels of ethical commitment among employees and strong stakeholder support for an ethical culture.
Strong Personal Character
1st habit of highly moral leaders and ethical leadership is highly unlikely without it
Passion to Do Right
2nd habit of highly moral leaders and explains that ethical leaders are the glue that hold ethical concepts together
3rd habit of highly moral leaders and explains that Ethical leaders anticipate, plan, and act proactively to avoid potential ethical crises
Consider Stakeholders interests
4th habit of highly moral leaders and explains that Ethical leaders must consider the interests of and implications for all stakeholders, not just those that have an economic impact on the firm. Ethical leaders have the responsibility to balance stakeholder interests to ensure that the organization maximizes its role as a responsible corporate citizen.
5th habit of highly moral leaders, and explains that ethical leaders exemplify the companies policies
6th Habit of Highly Moral Leaders
1.Foster openness, freedom to express ideas, and the ability to question conduct
2.Encourages stakeholders to learn about and comment on what a firm is doing
3. Will not be effective unless they are personally involved in the key decisions that have ethical ramifications
Competent Managers who Take a Holistic View of the Firm's Ethical Culture
7th habit of Highly moral leaders and explains that ethical leaders view ethics as a strategic component of decision making
An ethical organizational culture is shaped by________________. Without top level support for ethical behavior, the opportunity for employees to engage in their own personal approach to ethical decision making will evolve.
represents employees' perceptions about the extent to which work environments support ethical behavior
is the set of important assumptions about the organization and its goals and practices that members of the company share
Maybe difficult to define easily; but it can often be sensed almost immediately
Cultures can be weak or strong (strong cultures can have a great influence on how people think and behave)
Clues to Culture
Mission statements and official goals
The stories people tell
Symbols, Rites, and Ceremonies
1. Demands immediate compliance
Leadership dependent on order, obedience, and precision.
Creates emotional bond; organization of harmony; the peace maker
leaders who encourage group discussion and decision making through consensus building
lead by high performance example
A leadership style where the leader encourages and supports the followers to meet their goals
Good personal Values
found to decrease unethical practices and increase positive work behavior
the number of years in a specific job, occupation, and/or industry.
beliefs that everyone could accept
Veil of Ignorance
thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be
Liberty Principle (equality principle)
each person has basic rights that are compatible to the basic liberties of others
the economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least advantaged members of society. This means that the most ethical course of action is one that increases the benefits of those that are the least well off. Actions that harm disadvantaged members of society should be avoided.
Own Values and Principles
Education and Work Experience
Locus of Control
Obedience to Authority