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Ethical decision Making Process in Business includes:
-ethical issue intensity
-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
relates to a person's perception of social pressure and the harm the decision will have on others
-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
-responsibility not to mislead
-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
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
-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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