Ethical Decision Making

ETHICAL DECISION MAKING By Rafia Ayub

Ethical Decision making • In organization decisions are made by individuals or by committees. • Therefore discussion of business ethics will transform into ethics of individuals who makes the decision.

Factors affecting decisions 1. 2. 3. 4.

Personal traits Organizational traits Ethical principles Decision making process

Requirements of Ethical Decision Making • Ethical commitment: The personal resolve to act ethically, to do the right thing.

• Ethical consciousness: the ability to perceive the ethical implications of an action.

• Ethical competency: ability to engage in sound moral reasoning & develop practical problem solving strategies.

DIFFERENTIATING IN BETWEEN; • • • • •

ETHICS MORALS PERSONAL ETHICS VALUES LAWS

Ethics a system or code of conduct based on moral duties & obligations which indicate how we should behave: it deals with the ability to distinguish right from wrong & commitment to do right.

Morals Refers to what is good & right in character & conduct. • i.e. our personal belief system and how this affects our interactions with others in all aspects of our life • Determined within a broad context of a culture or society

Values Core beliefs which guide or motivate attitudes & actions. • Reflect who we are and our belief system • Are elaborated through relationships • Are shaped by our nature-nurture influences

Laws Are the agreed-on rules of a society that set forth the basic principles for living together as a group • Dictate minimum standards of behavior that society will tolerate

1. Personal traits • Ego strength / self-confidence • Locus of control

1. Organizational Traits • Organizational Culture • Organizational Goals

Organizational culture It is the set of shared values and norms that control the organizational members interactions with each other and with suppliers, customers and people outside the organization. • • • •

the ways the organization conducts its business, treats its employees, customers, and the wider community, the extent to which autonomy and freedom is allowed in decision making, developing new ideas, and personal expression how power and information flow through its hierarchy the strength of employee commitment towards collective objectives.

3. Ethical Principles • • • • • • • • •

Honesty Integrity Fidelity Fairness Caring for others Respect for others Responsible citizenship Pursuit of excellence (quality): Accountability

4. Decision Making Process • • • • • •

Identify desired outcomes Define the Problem Examine Difficulties and Obstacles Develop Alternative Solution Select Best Solution Identify Reactions/Rewards