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Ethical decision Making Process in Business includes:

-ethical issue intensity
-individual factors
-organizational factors(corporate culture, opportunity)

Ethical Issue Intensity

-is the perceived relevance or importance of an ethical issue to the individual, work group, and/or organization
-reflects the ethical sensitivity
-triggers the ethical decision process

Moral Intensity

relates to a person's perception of social pressure and the harm the decision will have on others

Individual Factors

-people often base their decisions regarding ethical issues on their own values and principals of right or wrong
-women are generally more ethical than males
-education, nationality, age are other individual factors

Locus of Control

relates to individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements, can be external or internal

A personal moral compass..

is not sufficient to prevent ethical misconduct in an organizational context

Corporate Culture/Rewards for meeting performance goals

-are the most important drivers for ethical decision making
-Equipping employees with skills that allow them to understand/resolve ethical dilemmas will help them make the right decisions

Kohlbergs Model of Cognitive Moral

1. Punishment and obedience
2. Individual instrumental purpose and exchange
3. Mutual interpersonal expectations, relationships, and conformity
4. Social system and conscience maintenance
5. Prior rights, social contract or utility
6. Universal ethical principles

Kohlbergs Model: 3 levels of ethical concern

1. Concern with intimate interests and with rewards and punishments
2. Concern with "right" as expected by the larger society or some significant reference group
3. Seeing beyond norms, laws, and the authority of groups or individuals

Importance of Kohlbergs Model

-shows individuals can change or improve their moral development
-supports management's development of employees' moral principals
-The best way to improve employees' business ethics is to provide training for cognitive moral development

Duties of Personal Integrity

-responsive honesty
-responsibility not to mislead
-constructive honesty

Responsive Honesty

-telling the truth when asked
-responding fully to direct questions

Constructive Honesty

-duty to inform of possible problems
-duty to inform of actions that could be misconstrued

Traits that reflect Lack of Integrity

-failure to tell the truth
-failing to separate company from personal property
-failure to keep promises

White Collar Crime

-"crimes of the suit" do more damage in monetary and emotional loss in one year than the "crimes of the street" over several years

Technologies aid in WCC

-WCCs are committed at lower levels
-peer influence is a cause of WCC
-some businesspeople have personalities that are inherently criminal

Focus of the FSGO

is that all organizations should develop effective ethics and compliance programs

Public Expectations of Professionals

Discipline over members

Why managers lack personal integrity?

-lack of awareness
-unethical corporate and industry norms
-Perceived inconsistency with moving to top
-Failure to perceive defining moments
-Failure to recognize slippery slope

Business Ethics

-involves value judgments and collective agreement about acceptable patterns of behavior
-Ethical decision making in business does not rely strictly on the personal values and morals of individuals
-organizations take on a culture of their own, which have a significant influence on business ethics

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