This chapter looks at a series of business ethics and social responsibility cases within the framework of stakeholders, both primary and secondary. The authors offer eight steps to integrate these three types of analysis: (1) Gather the Facts, (2) Define the Ethical Issues, (3) Identify the Affected Parties, (4) Identify the Consequences, (5) Identify the Obligations, (6) Consider Your Character and Integrity, (7) Think Creatively about Potential Actions, and (8) Check Your Gut. A culture can be strong, with widely shared standards, or it can be weak, with strong subcultures guiding behavior in different ways. (1990) Bad Apples in Bad Barrels: A Causal Analysis of Ethical Decision Making Behavior. The inviolability of national sovereignty: multinationals must respect the host countrys economic and social development and its cultural and historical traditions. There are different types of justice that address what people are due in various contexts. 7 Steps of Ethical Decision Making. Check your gut As readers of Kahnemans book Thinking, Fast and Slow know, we have two very different modes of decision-making. (For further elaboration on the justice lens, please see our essay, Justice and Fairness.). Ethical Decision-Making Model Summary According to Theodore P. Remley, Jr., and Barbara Herlihy in Ethical, Legal, and Professional Issues in Counseling, once the proper set of codes of ethics has been determined, the counselor must consider how these principles can be applied to the dilemma to express a counselor's commitment to professional . 1) gather the facts. The Sacklers have made large donations to art galleries, research institutes, and universities, including Harvard, with money earned through the family business, Purdue Pharma, which made billions by marketingand, most experts argue, overmarketingthe prescription painkiller OxyContin. The development of organizational culture requires a long viewas much as 6 to 15 years. 5. For example, we may not all agree on the same set of human and civil rights. 4. Because they are responsible for the decisions of others as well as their own, they can dramatically multiply the amount of good they do by encouraging others to be better. Managers should use these cues to promote ethics. History has shown that divorcing business from ethics runs huge risks. Hall, Rinehart, and Winston, New York, pp. Chapter 6: Managing Ethics and Legal Compliance Journal of Business Ethics 6(3): 265280, Carson T. L. (2003) Self-Interest and Business Ethics: Some Lessons of the Recent Corporate Scandals. This paper surveys the dominant models in the literature of positive Ethical Decision-Making Models (hereafter, EDMMs): an area in the academic sub-discipline of business ethics. Having a method for ethical decision-making is essential. With help of students and managers, the material was tested in universities and corporations. Ethical: responsible executives have an ethical duty to care about multiple stakeholders because it is the right thing to do. As a decision-maker, to help you understand when to use some common decision-making models, examine the definitions and steps below: 1. Dr. Giapponi teaches courses in management, organizational behavior, and strategy. Academy of Management Review, 11, 601-617. The model combines individual variables (moral development, etc.) Essentially, Utilitarians believe any action is good if the outcome is beneficial. 1. According to the common good approach, life in community is a good in itself and our actions should contribute to that life. 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. This chapter addresses typical ethical problems individuals face at work as well as their costs. Home. Journal of Macromarketing 10(1): 4765, Singhapakdi A., Vitell S. J. Chapter 1: Introducing Straight Talk about Managing Business Ethics: Where Were Going and Why It also suggests how people can try to identify their values and voice them. After publishing a paper on ethical behavior, for example, I received an email from a start-up insurance executive named Stuart Baserman. If we behave unethically out of self-interest, were often unaware that were doing soa phenomenon known as motivated blindness. 44 West 4th Street KMC7-150 It is not an algorithm to arrive at a determinate answer in all . Selecting the right job, house, vacation, or company policy requires thinking clearly about the trade-offs. It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. This document is designed as an introduction to thinking ethically. Determine the ethical problem, gather information about it, identify the parties involved, assess the opposing viewpoints, and then come to a decision. - 103.57.208.84. This article (a) proposes an issue-contingent model containing a new set of variables called moral intensity; (b) using concepts, theory, and evidence derived largely from social psychology, argues that moral intensity influences every . (Our essay elaborating further on the care ethics lens is forthcoming.). 3. Trevino, & Weaver, 2000; Frey, 2000; Singhapakdi et al., 1996) as significant predictors of An ethical decision is one that stems from some underlying system of ethics or a . Ethical Systems Interview (March 2015) 2. Unlike the utilitarian lens, which sums up and aggregates goods for every individual, the common good lens highlights mutual concern for the shared interests of all members of a community. Virtue ethics asks of any action, What kind of person will I become if I do this? or Is this action consistent with my acting at my best?, (For further elaboration on the virtue lens, please see our essay, Ethics and Virtue.). The model combines individual variables (moral development, etc.) The effects of moral identity on moral behavior: An empirical investigation of the moral individual. Relying on a managerial approach, they define ethical behavior in business as consistent with the principles, norms, and standards of business practice that have been agreed upon by society. Evidence shows we are motivated by economic and moral concerns. 628, Kohut G. F., Corriher S. E. (1994) The Relationship of Age, Gender, Experience and Awareness of Written Ethics Policies to Business Decision Making. Evaluate the options by asking the following questions: Which option best respects the rights of all who have a stake? SAM Advanced Management Journal 59(1): 3239, Loe T. W., Ferrell L., Mansfield P. (2000) A Review Of Empirical Studies Assessing Ethical Decision Making In Business. How did my decision turn out, and what have I learned from this specific situation? In: Lindzey G., Aronson E. (eds), The Handbook of Social Psychology. These two ethical decision-making model steps are identical to each but differ on the detailed instruction on how the steps are to be done or used in actual case. 3. Both are needed for well-functioning organizations and societies. Although the autonomous-vehicle case represents a tougher ethical decision than most managers will ever face, it highlights the importance of thinking through how your decisions, large and small, and the decisions of those you manage, can create the most value for society. By 2018 OxyContin and other opioids were responsible for the deaths of more than 100 Americans a day. Trevino's model uses Kohlberg's stages of moral development in the cognition . College of Business: Ethical Decision-Making Models" (1996). The decision maker assumes the role of a generalized member of society, and reasoning relies on a conception of the social system as a consistent set of codes and procedures that apply equally to all members of society. We tend to spend too little time on the latter task. Journal of Marketing Research 30(1): 7890, Janis I. L., Mann L. (1977) Decision Making: A Psychological Analysis of Conflict Choice and Commitment. Ethics refers to standards and practices that tell us how human beings ought to act in the many situations in which they find themselvesas friends, parents, children, citizens, businesspeople, professionals, and so on. The model is enhanced by the inclusion of content variables derived from the ethics literature. The location of your home or its size? Automobile manufacturers need to reckon with such difficult questions in advance and program their cars to respond accordingly. Journal of Marketing 49(3): 8796, Ferrell O. C., Gresham L. G., Fraedrich J. P. (1989) A Synthesis of Ethical Decision Models for Marketing. models of ethical decision making should include some consideration of the . During dinner your partner proposes that you watch a documentary; you counterpropose a comedy; and you compromise on a drama. Management Accounting 64: 3441, Sims R. L., Gegez E. (2004) Attitudes Towards Business Ethics: A Five Nation Comparative Study. The list of moral rightsincluding the rights to make one's own choices about what kind of life to lead, to be told the truth, not to be injured, to a degree of privacy, and so onis widely debated; some argue that non-humans have rights, too. Individuals are socialized into an organizations culture, but they may also internalize values that accord with their own beliefs, making for a very smooth transition. - Step 4: Evaluate the alternatives (consult PLUS filters) - Step 5: Make the decision. Preserving your reputation is essential. In this paper we present a revision of the Ethical Matrix specifically tailored to decision . Duties and principles (deontology): focus on correct action, rights or a categorical imperative. These nudges not only reduce fraud and make the insurance business more efficient but also allow Slice to benefit by helping people to be ethical. The authors present several ways in which individuals differ in their judgments: Cognitive moral development: discussion of Kohlbergs six-stage model of moral cognition. Contact your companys ethics officer or ombudsman. Participants in our study were asked whether it was morally acceptable for oxygen to be taken away from a single hospital patient to enable surgeries on nine incoming earthquake victims. 4. Essay by ammons123 , University, Master's , A , November 2014. download word file, 3 pages 0.0. Keywords Immanuel Kant, Age of Enlightenment, Ancient Greek philosophy, Applied ethics, Africana philosophy. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Press Copyright Contact us Creators . Even if you are committed to another philosophical perspective, try to appreciate the goal of creating as much value as possible within the limits of that perspective. Among the more elusive benefits of ethics are trust (essential in a service economy) and values (ones core beliefs about what is important, what is valued, and how one should behave across a wide variety of situations). 5. 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? Making good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of a course of action. Among the issues are: So car companies that didnt prioritize the passenger would be in a weaker competitive position than those that didand car buyers might well opt for less-safe cars that are driven by humans. Journal of Applied Psychology 64(3): 331338, Hunt S. D., Vasquez-Perraga A. Hence, from an ethical perspective, its model and many of its decisions whether beneficial or not, have an ethical and moral standpoint to it. The chapter includes analysis of many of the more memorable business ethics cases (e.g. The Forester-Miller and Davis essay presents a five-step paradigm for making ethical decisions. Time is a scarce resource, and squandering ityour own or othersonly compromises value creation. The cars computers will have to make difficult decisions: When a crash is unavoidable, should the car save its single occupant or five pedestrians? They can include privacy, discrimination, harassment (sexual and otherwise), and simply how people get along. Trying to create more value requires that we confront our cognitive limitations. A better understanding of the process will help managers develop policies that enhance the likelihood of ethical behavior in their organizations. Utilitarianism is the theory that ethics are based on outcomes. 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). Journal of Business Ethics Consequentialism (teleology): utilitarianism can be practical but cumbersome to calculate. Precious' case presents an intricate and delicate ethical dilemma that touches on the physical and sexual abuse of a minor. 4a - Utilitarianism; 4b - Standard implicit - An action is morally right if . Furthermore, manufacturers could reasonably argue that people would be less likely to buy a car that doesnt prioritize their lives. Human rights and fundamental freedoms: this principle is based on belief in the inherent worth of every individual and the equality of rights of all human beings, but it often stands in conflict with national sovereignty (e.g. The more novel and difficult the ethical choice we face, the more we need to rely on discussion and dialogue with others about the dilemma. However, roles can also support ethical behavior (e.g. - Step 1: Define the problem (consult PLUS filters) - Step 2: Seek out relevant assistance, guidance and support. The chapter concludes with an example of how to globalize an ethics program, drawn from United Technologies Corporation. The first problem is that we may not agree on the content of some of these specific lenses. Using this model helps avoid unethical alternatives and unattractive consequences. Roselie McDevitt. issues because of ideological reasons or because methodological problems are considered difficult to surmount. 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. An Interactive Expert System Based Decision Making Model for the Management of Transit System Alternate Fuel Vehicle Assets. Indeed, my recent empirical research with Karen Huang and Joshua Greene shows that those who make ethical decisions behind a veil of ignorance do create more value. Of course, if our goal is to create as much value as possible, a difference in the number of birds should affect how much we choose to pay. https://doi.org/10.1007/s10551-006-9202-6. Journal of the Academy of Marketing Science 19(1): 3742, Stead W. E., Worrell D. L., Stead J. G. (1990) An Integrative Model for Understanding and Managing Ethical Behavior in Business Organizations. Business Ethics Quarterly 6:461476, McDevitt R., Van Hise J. 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. 7) thinking creatively about potential actions. (The Common Good Lens), Which option leads me to act as the sort of person I want to be? 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. The authors begin with a focus on the difficulties faced by the individual expatriate manager, such as: (1) the difficulties of foreign business assignments, (2) the need for structure, training, and guidance, (3) foreign language proficiency, (4) learning about the culture, (5) recognizing the power of selective perception as influenced by culture (e.g. 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. More recently, this divide between good and bad is evident in the behavior of the Sackler family.
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