Evaluate the options by asking the following questions: Which option best respects the rights of all who have a stake? - Step 6: Implement the decision. We may not even agree on what is a good and what is a harm. With the increasing globalization of business, many managers find themselves in an international environment full of ethical challenges, facing greater numbers of stakeholders, foreign languages and cultures, and high-level issues such as corruption, money laundering, human rights abuses, substandard workplace conditions, environmental impact, respect for local cultures, and more. People follow the behavior of others, particularly those in positions of power and prestige. Managing Business Ethics - Linda K. Trevino 2016-09-13 Revised edition of the authors' Managing business ethics, [2014] . Market integrity in business transactions: restrictions on political payments and bribery assume that these inject non-market considerations into business transactions. Max H. Bazerman. If you are author or own the copyright of this book, please report to us by using this DMCA Aiming in that direction can move us toward increasing what I call maximum sustainable goodness: the level of value creation that we can realistically achieve. ), Moral Development and Behavior: Theory Research and Social Issues. Essentially, Utilitarians believe any action is good if the outcome is beneficial. (The Justice Lens), Which option will produce the most good and do the least harm for as many stakeholders as possible? Since 1970 to 2013 there are four literature review on ethical decision making is available, given by Ford and Richardson (1978), Terry W. Loe, Linda Ferrell, and Phylis Mansfield 1992-1996, Fallen and Butterfield, 1996- 2003, Jana.L.Craft 2004-2011, Kevin Business and Society 34(2): 119147, Patterson D. M. (2001) Causal Effects of Regulatory, Organizational and Personal Factors on Ethical Sensitivity. College of Business: Ethical Decision-Making Models" (1996). Journal of Business Ethics 43(4): 389394, Deal T. E., Kennedy A. Consider two questions posed by the psychologist Daniel Kahneman and colleagues: Their research shows that people who are asked the first question offer about the same amount as do people who are asked the second question. 58 Volume I, No. The process described in the model is drawn from Janis and Manns [1977, Decision Making: A Psychological Analysis of Conflict Choice and Commitment (The Free Press, New York)] work describing the decision process in an environment of conflict, choice and commitment. This is not surprising given that teaching is a moral activity that is heavily values-laden. Social learning, stage of cognitive moral development (CMD), and locus of control (LC) were hypothesized to influence ethical decision making. What facts are not known? Ethical decision-making is normative in nature, and ethical decisions are not solely driven by the goal of profit maximization. Well never reach it, but it can inspire us to create more good, increasing well-being for everyone. Shaun Taylor's presentation: Geoethics Forums (PowerPoint 2007 (.pptx) 380kB Jun11 14), given at the 2014 Teaching GeoEthics workshop, provided a simple model to help students engage Ethical Decision-Making that includes a) the context/facts of the situation, b) the stakeholders, c) the decision-makers, d) these inform a number of alternate choices, e) that are mediated through the evaluation . The philosopher and psychologist Joshua Greene has developed a parallel two-system view of ethical decision-making: an intuitive system and a more deliberative one. The cars computers will have to make difficult decisions: When a crash is unavoidable, should the car save its single occupant or five pedestrians? Previous research has produced contradictory results on whether and how "experience" relates to ethical decision making in the workplace. But to the extent that you care about others and society at large, your decisions in negotiation should tilt toward trying to create value for all parties. Which is more important to you: your salary or the nature of your work? (Sims 2005, pp.651-662). The authors start from the assumption that most people wish to behave ethically. Ethical Systems 1. Not knowing how we would benefit (or be harmed) by a decision keeps us from being biased by our position in the world. With detailed references to historical crises (e.g., the financial collapse), they immerse their readers in the nitty-gritty of how individuals and organizations respond to ethical dilemmas and catastrophic circumstances. Allocating tasks among employees offers managers other opportunities to create value. An interactionist model of ethical decision making in organizations is proposed. Strategic: business needs a healthy society because only a healthy society can produce a productive workforce and the rules that make business transactions possible. The authors discuss principles for the implementation and evaluation of ethics communications, including mission or values statements, organizational policy, codes of conduct, ethics training, and systems to resolve questions and report ethical concerns. Organized to be flexible, the books sections stand alone and may be taught in any sequence. More recently behavioral ethicists in the social sciences have offered research-based accounts of what people actually do when confronted with ethical dilemmas. Some work involves frequent moral conflict. Your losses to the occasional opportunistic opponent will be more than compensated for by all the excellent relationships you develop as an ethical negotiator who is making the world a bit better. Most of us are ethically inconsistent as well. It is influenced by the characteristics of individuals (e.g., personal differences, cognitive biases) and by the characteristics of organizations (e.g., group pressures, culture). He proposes strategies for engaging the deliberative one in order to make more-ethical choices. (1990) Bad Apples in Bad Barrels: A Causal Analysis of Ethical Decision Making Behavior. This paper reviews the major theories, studies and models concerning ethical decision making in organizations. It is helpful to identify what ethics is NOT: If our ethical decision-making is not solely based on feelings, religion, law, accepted social practice, or science, then on what basis can we decide between right and wrong, good and bad? If the goal is simply to maximize value, the automobiles should be programmed to limit collective suffering and loss, and the people in the car shouldnt be accorded special status. The ethical decision-making process. Could this decision or situation be damaging to someone or to some group, or unevenly beneficial to people? 5) and the Integrated ethical decision-making model which was derived from the combination of the different ethical decision-making models strengths (Park, 2012, p. 140). The chapter includes analysis of many of the more memorable business ethics cases (e.g. 1. People issues: the ethical problems that occur when people work together. 1. Milgram) and diffusion of responsibility applies to organizational behavior and management. Enron, the AIG bailout, Exxon Valdez). There are still problems to be solved, however. The first step involves recognizing the ethical nature of the situation at hand, a task that activates specific parts of the brain associated with emotional processing. The ethical decision-making process proceeds from Ethical Awareness to Ethical Judgment to Ethical Behavior. If youre familiar with negotiation strategy, you appreciate that most important negotiations involve a tension between claiming value for yourself (or your organization) and creating value for both partiesenlarging the pie. The second strategy involves adapting what the philosopher John Rawls called the veil of ignorance. Ethical decision-making style: people prefer prescriptive ethical theories based on our tendencies toward idealism (concern for others welfare) or relativism (emphasis on situation-dependency). The main barriers that are included in ethical decision-making are social responsibility, clash of interests of different parties, corruption, safety of the customer when using company's products, groupthink, whistleblowing etc. Organizations have a comparative advantage when they can produce and sell goods and services at a lower cost than competitors do. 1. Have I identified creative options? You counterpropose your favorite pizza joint. The authors introduce basic management concepts to promote ethical employee behavior, assuming (1) managers want to be ethical, (2) managers want their subordinates to be ethical, and (3) managers experience will offer insight into the unique ethical requirements of the job. Precious' case presents an intricate and delicate ethical dilemma that touches on the physical and sexual abuse of a minor. These strategies include building trust, sharing information, asking questions, giving away value-creating information, negotiating multiple issues simultaneously, and making multiple offers simultaneously. 6. During dinner your partner proposes that you watch a documentary; you counterpropose a comedy; and you compromise on a drama. Primary contributors include Manuel Velasquez, Dennis Moberg, Michael J. Meyer, Thomas Shanks, Margaret R. McLean, David DeCosse, Claire Andr, Kirk O. Hanson, Irina Raicu, and Jonathan Kwan. Some ethicists begin by asking, How will this action impact everyone affected?emphasizing the consequences of our actions. Think about how you can influence your colleagues with the norms you set. Chapter 5: Ethics as Organizational Culture Journal of Business Ethics 51(2): 167173, Hegarty W. H., Simms H. P. Jr. (1978) Some Determinants of Unethical Decision Behavior: An Experiment. It was last revised on November 5, 2021. The authors cite specific examples for each. You must be truthful with your employer and management and responsible in the use of corporate resources, including its finances and reputation. For example, we may not all agree on the same set of human and civil rights. Otherwise honest people may view deception in negotiation with a client or a colleague as completely acceptable. Many view it as an economic idea; I think of it as a guide to ethical behavior. This illustrates the limitations of our ethical thinking and suggests that improving ethical decision-making requires deliberately making rational decisions that maximize value rather than going with ones gut. 2. Trevino, L.K. And claimants are asked who else knows about the loss, because people are less likely to be deceptive when others might learn about their corruption. My approach to improving ethical decision-making blends philosophical thought with business-school pragmatism. . Trevino's person-specific interactionist model Trevino's (1986) model postulates that ethical decision-making within an organisation is based on the interaction of cognitions, individual moderators and situational moderators, as illustrated in Figure 10.1. This document is designed as an introduction to thinking ethically. We probably also have an image of what an ethical . Judgment under uncertainty: Heuristics and biases. 1. Over recent decades, the field of ethics has been the focus of increasing attention in teaching. The survey does not address other decision-making apparati, e.g., game theory. She has an absolute advantage on technical issues, but her comparative advantage is in dealing with external constituencies, and more value will be created when she focuses her attention there. Strangely, people are willing to answer these questions even without knowing how much salary theyd need to forgo to have more-interesting work, or how much more space they could have if they lived five miles farther from work or school, and so forth. Contact your companys ethics officer or ombudsman. The effects of moral identity on moral behavior: An empirical investigation of the moral individual. We all have an image of our better selvesof how we are when we act ethically or are "at our best.". This study proposed and tested a multiple-influences causal model of ethical decision-making behavior. Leaders can do far more than just make their own behavior more ethical. Pragmatic: business must use its power responsibly in society or risk losing it. J Bus Ethics 73, 219229 (2007). These principles lead to standards that are used in ethical decision-making processes and moral frameworks. Think creatively about potential actions 9. It alerted me to the existence of a developed academic literature on the subject of ethical decision-making models. Check your gut Here are six of them: Some suggest that the ethical action is the one that best protects and respects the moral rights of those affected. 628, Kohut G. F., Corriher S. E. (1994) The Relationship of Age, Gender, Experience and Awareness of Written Ethics Policies to Business Decision Making. Jossey-Bass, San Francisco, CA, Sheidahl T. K. (1986) Ethical Dilemmas in Managerial Accounting. Managers should use these cues to promote ethics. But which community? California Management Review 41(4): 4564, Ferrell O. C., Gresham L. G. (1985) A Contingency Framework for Understanding Ethical Decision Making in Marketing. 5) identify the obligations. They are more likely, for instance, to save more lives with scarce resources (say, medical supplies), because they allocate them in less self-interested ways. Her Primary areas of research are accounting education and accounting ethics. These virtues are dispositions and habits that enable us to act according to the highest potential of our character and on behalf of values like truth and beauty. 2. Finally, they offer advice for workers to manage up and across in team situations. Management Accounting 64: 3441, Sims R. L., Gegez E. (2004) Attitudes Towards Business Ethics: A Five Nation Comparative Study.
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