The video suggested that questioning authority is the right thing to do when that authority is destroying societal value. individualism vs. collectivism), (6) assumptions of behavioral consistency (how people interact with insiders vs. outsiders), (7) assumptions of cultural homogeneity, (8) assumptions of similarity (the U.S. and Canadian markets are not as similar as one might think), (9) ethics-related training and guidance (to deal with negotiations, payoffs, and bribes), and (10) development of corporate policies for global business ethics (ethical imperialism vs. ethical relativism). 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). This approach starts from the belief that humans have a dignity based on their human nature per se or on their ability to choose freely what they do with their lives. One should use multiple approaches to think carefully about the issues and avoid falling into a solution by accident. NYU Stern School of Business whistle-blower). Because managers are role models for their departments, they must be able to discuss the ethical implications of decision-making and provide advice to employees in an ethical quandary. Requests for reprints should be sent to Linda Klebe Trevino, Department of Management, Texas A&M University, Col-lege of Business . You must be truthful with your employer and management and responsible in the use of corporate resources, including its finances and reputation. The rational decision-making model focuses on using logical steps to come to the best solution possible. 1. Ethics really has to do with all these levelsacting ethically as individuals, creating ethical organizations and governments, and making our society as a whole more ethical in the way it treats everyone. Maintaining that these divergent findings result from underspecified and inconsistent treatments of experience in the business ethics literature, we build theory around experience and its connection to ethical decision making. 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 ethical culture of an organization is a slice of the larger organizational culture that represents the aspects of the culture that affect how employees think and act in ethics-related situations. Rather than try to follow a set of simple rules (Dont lie. Dont cheat.), leaders and managers seeking to be more ethical should focus on creating the most value for society. Both are needed for well-functioning organizations and societies. While most business ethics texts focus exclusively on individual decision makingwhat should an individual dothis resource presents the whole business ethics story. For example, we may not all agree on the same set of human and civil rights. The main purpose of this study is to identify the importance of several variables in the ethical decision making process, propose a model that incorporates the Festinger (1957) Cognitive Dissonance Theory and the Jones (1991) model. An ethical decision is one that stems from some underlying system of ethics or a . Google Scholar. However, it can be difficult to decide which duty, right or principle takes precedence in a clash, and this approach faces troubles when following rules might lead to devastating consequences. He proposes strategies for engaging the deliberative one in order to make more-ethical choices. Cheryl Tromley, Ph.D., is a Professor of Management atFairfield University where she has taught management, organizational behavior, organizational communication, organizationalculture, organization development, and diversity for 19 years. 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. People follow the behavior of others, particularly those in positions of power and prestige. This document is designed as an introduction to making ethical decisions. A major component of the model is based on Kohlberg's cognitive moral development model which provides the construct definition . What are the options for acting? Conversely, using it wisely to increase collective value or utility is the very definition of ethical action. Journal of Business Ethics 40(3): 261274, Morris S. A., Rehbein K. A., Hosseini J. C., Armacost R. L. (1995) A Test of Environmental, Situational, and Personal Influences on the Ethical Intentions of CEOs. https://doi.org/10.1007/s10551-006-9202-6, DOI: https://doi.org/10.1007/s10551-006-9202-6. Employees should participate in the problem diagnosis and planning process. Care ethics is rooted in relationships and in the need to listen and respond to individuals in their specific circumstances, rather than merely following rules or calculating utility. Journal of Macromarketing 10(1): 4765, Singhapakdi A., Vitell S. J. Organizations have a comparative advantage when they can produce and sell goods and services at a lower cost than competitors do. - 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 . New York, NY 10012, https://ethicalsystems.org/wp-content/uploads/2020/04/ES-logo-final-white.gif, Managing Business Ethics: Straight Talk About How To Do It Right, medias long-standing infatuation with corporate villainy, actually dominated by good, solid businesses and people, Evidence shows we are motivated by economic and moral concerns, Tells followers how they should behave and holds them accountable, Openness, Concern for people, Personal morality, Holds people accountable for ethical conduct, Put timebut not passion or energyinto their work, Undermine what engaged coworkers accomplish, May well sabotage company initiatives and employee goodwill. But when we compare multiple options, our decisions are more carefully considered and less biased, and they create more value. Judgment under uncertainty: Heuristics and biases. Ethics is important and beneficial to employees, managers, leaders, industries and society. Use of corporate resources: because you represent your company, your actions can be regarded as those of the corporation. 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. It was last revised on November 5, 2021. Vari Hall, Santa Clara University500 El Camino RealSanta Clara, CA 95053408-554-5319, Ethical Considerations for COVID-19 Vaccination, Hackworth Fellowships Project Showcase 2021, The Ethics of Going Back to School in a Pandemic, Systemic Racism, Police Brutality, and the Killing of George Floyd, COVID-19: Ethics, Health and Moving Forward, The Ethical Implications of Mass Shootings, Political Speech in the Age of Social Media, Point/Counterpoint: Democratic Legitimacy, Brett Kavanaugh and the Ethics of the Supreme Court Confirmation Process, Read more about what the framework can (and cannot) do, For further elaboration on the rights lens, please see our essay, Rights., For further elaboration on the justice lens, please see our essay, Justice and Fairness., For further elaboration on the utilitarian lens, please see our essay, Calculating Consequences., For further elaboration on the common good lens, please see our essay, The Common Good., For further elaboration on the virtue lens, please see our essay, Ethics and Virtue.. In academics, there is a growing effort to promote open science (Nosek et al., Reference Nosek, Alter, Banks, Borsboom . The authors state that ethics can be taught, so organizations must look for systemic causes of unethical behavior. The ethical decision-making process consists of (1) ethical awareness, (2) ethical judgment, and (3) ethical action. Honesty, courage, compassion, generosity, tolerance, love, fidelity, integrity, fairness, self-control, and prudence are all examples of virtues. ), Moral Development and Behavior: Theory Research and Social Issues. Socially responsible business is good business because of (1) the benefit of a good reputation, (2) rewards from socially responsible investors, (3) the cost of illegal conduct, (4) the cost of government regulation, (5) the positive effects of social responsibility on firm performance, and (6) the fact that social responsibility is right in itself. Section III: Managing Ethics in the Organization 1) gather the facts. Everyone has a source of comparative advantage; allocating time accordingly creates the most value. Which is more important to you: your salary or the nature of your work? 58 Volume I, No. (2004) Business Ethics: A Study of the Moral Reasoning of Selected Business Managers and the Influence of Organizational Ethical Climate. Organized to be flexible, the books sections stand alone and may be taught in any sequence. Managing Business Ethics tackles its subject matter both prescriptively and descriptively, treating the people in its examples critically but fairly as entities influenced by complex environments of interlacing and often competing systemic pressures. 4) identify the consequences. Social learning, stage of cognitive moral development (CMD), and locus of control (LC) were hypothesized to influence ethical decision making. 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. 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. Assessing comparative advantage involves determining how to allow each person or organization to use time where it can create the most value. Particular manager behaviors are more effective at increasing engagement and ethical culture, such as interest in employee well-being, communication, accessibility, and consistency. Utilitarianism is the theory that ethics are based on outcomes. (The Utilitarian Lens), Which option best serves the community as a whole, not just some members? Over recent decades, the field of ethics has been the focus of increasing attention in teaching. Chapter 3: Deciding Whats Right: A Psychological Approach Most employees look outside themselves for guidance about how to think and act. Customer confidence issues: these include confidentiality, product safety and effectiveness, truth in advertising, and special fiduciary responsibilities. (The Virtue Lens), Which option appropriately takes into account the relationships, concerns, and feelings of all stakeholders? Should the car prioritize saving older people or younger people? Thus, Trevino (1986) suggests that when the work requires an individual to engage in complex role taking and . Furthermore, manufacturers could reasonably argue that people would be less likely to buy a car that doesnt prioritize their lives. What (if any) follow-up actions should I take. Once two or more people are engaged in a decision and their preferences differ, its a negotiation. Management Accounting 64: 3441, Sims R. L., Gegez E. (2004) Attitudes Towards Business Ethics: A Five Nation Comparative Study. They have suggested a variety of different lenses that help us perceive ethical dimensions. 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. Secondary stakeholders are other individuals or groups to whom the organization has obligations. Equal treatment implies that people should be treatedas equalsaccording to some defensible standard such as merit or need, but not necessarily that everyone should be treated in the exact same way in every respect. 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. - Step 3: Identify alternatives. It is not an algorithm to arrive at a determinate answer in all . Integrity (virtue ethics): consider the actors character, motivations and intentions. Reynolds, S. J. 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 . These principles lead to standards that are used in ethical decision-making processes and moral frameworks. The process described in the model is drawn from Janis and Mann's [1977, Decision Making: A Psychological Analysis of Conflict Choice and Commitment (The Free Press, New York)] work describing the decision process in an . Fairness, benevolence, self-interest, and principles (or rules) may all form the basis for climates that affect employee behavior. As a leader, think about how you can influence your colleagues with the norms you set and the decision-making environment you create. 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. volume73,pages 219229 (2007)Cite this article. with situational variables to explain and predict the ethi- . It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. When practiced regularly, the method becomes so familiar that we work through it automatically without consulting the specific steps. Only by careful exploration of the problem, aided by the insights and different perspectives of others, can we make good ethical choices in such situations. This paper reviews the major theories, studies and models concerning ethical decision making in organizations. 1. This approach suggests that the interlocking relationships of society are the basis of ethical reasoning and that respect and compassion for all othersespecially the vulnerableare requirements of such reasoning. Google Scholar, Bommer M., Gratto C., Gravander J., Tuttle M. (1987) A Behavioral Model of Ethical and Unethical Decision Making. A culture can be strong, with widely shared standards, or it can be weak, with strong subcultures guiding behavior in different ways. To have a fully aligned ethical culture, the systems must all send employees consistent messages that point in the direction of ethical behavior. 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. If so, how? Virtue Approach - We see Aristotle's influence here. These include social justice (structuring the basic institutions of society), distributive justice (distributing benefits and burdens), corrective justice (repairing past injustices), retributive justice (determining how to appropriately punish wrongdoers), and restorative or transformational justice (restoring relationships or transforming social structures as an alternative to criminal punishment). The centrality of the ethical conflict in the accepted notion of "ethical problem" has diverted the attention of moral decision . A better understanding of the process will help managers develop policies that enhance the likelihood of ethical behavior in their organizations. Leave the company. (2011) (public library) Trevino and Nelson have outlined a fairly comprehensive, wise, and practical . 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). ETHICAL DECISION MAKING PROCESS 1. The result can be a suboptimal allocation of resources and less value creation. We develop a model of ethical decision making that integrates the decision-making process and the content variables considered by individuals facing ethical dilemmas. Abstract. Linda Trevio - Ethical Systems. It requires an accurate determination of the likelihood of a particular result and its impact. J Bus Ethics 73, 219229 (2007). 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. The model, illustrated through an HR case example, serves as a . Ethical decision-making model. Discuss the issue with your family. Ethical decision-making in finance is a decision-making ideology that is based on an underlying moral philosophy of right and wrong. Suspecting that women were being asked more often than men to perform tasks like these, Linda asked four of her female colleagues to meet with her to discuss her theory. With that in mind a measurement instrument was developed using the Personal Ethical Threshold (Comer and Vega .
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