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Transcript of ETHICAL DECISION MAKING Chapter Five Visit for the latest in business news stories.
ETHICAL DECISION MAKING
Chapter Five
Visit http://wileymanagementupdates.com/ for the latest in business news stories.
Copyright © 2012 John Wiley & Sons
Chapter 5
Learning Objectives
Describe individual characteristics that impact ethical beliefs, sensitivities, intentions, and behaviors
Analyze the processes by which general ethical beliefs and sensitivities lead to the formation of specific ethical intentions
Apply a systematic rational ethical decision-making framework to arrive at a moral conclusion
Facilitate a negotiation between competing ethical perspectives
Recognize warning signs that an unethical decision is approaching
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
James Rest has developed a four-componentmodel sequentially showing that an individualis likely to behave morally if he or she:1.Is aware that an ethical dilemma has arisen2.Forms a moral judgment3.Develops motivation to do something about it
and4.Is a person of high moral character
Chapter 5: Collins, Business Ethics
Exhibit 5.1 Decline from Ethical Belief to Ethical Action
In general, ethical beliefs generate ethical intentions and result in ethical behaviors. But there is typically a drop off going from one step to the next.
Insert Exhibit 5.1
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
The gap between ethical belief and ethical intent in Exhibit 5.1 can be caused by not wanting to create a negative relationship with the coworker
Another big gap exists between “should” and “did”
Why did a large percentage of managers who claimed they would report the cheater not follow up on the ethical intention?
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
Individual Characteristics (A)Individual factors that have the largest impacton ethical decision making are:1.More education2.More work experience3.Religion4.Reasoning at a higher level of moral
development5.A higher score for deontology or idealism6.A lower score for relativism, teleology,
economic orientation, or Machiavellianism
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
Ethical Beliefs and Sensitivities (B)A belief is a mental state that guides behaviors
Ethical sensitivity refers to an individual’s awareness that a particular situation raises ethical concerns
Ethical beliefs and sensitivities are the result of a host of individual characteristics, such as age, education, moral development level, or work experience
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
Ethical Intuitions (C)Ethical intuition is a quick insight
independent of any reasoning process about right and wrong
Professor Jonathan Haidt concludes that many ethical decisions are the result of intuitive reactions rather than deep reflection
Chapter 5: Collins, Business Ethics
Exhibit 5.4 Liberal and Conservative Ethical Intuitions-What Matters Most
Insert Exhibit 5.4
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
Theory of Planned Behavior (D)According to Icek Ajzen’s theory of planned
behavior, formulating an intention to act ethically is a function of a person’s attitudes toward the behavior, subjective norms, and perceived behavioral control
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
Issue’s Moral Intensity (E)Moral intensity refers to issue-related factors,
rather than individual or organizational factors, that are likely to determine the magnitude of a person’s moral approval or disapproval
According to business ethics scholar Tom Jones, an issue’s moral intensity is likely to vary based on six factors
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
The six factors:1. Magnitude of consequences2. Social consensus3. Probability of effect4. Temporal immediacy5. Proximity6. Concentration of effect
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
Organization Characteristics (F)O’Fallon and Butterfield, in their extensive
review of the business ethics research literature, found four organizational characteristics associated with ethical behaviors Codes of Ethics Ethical Climate/Culture Organization Size Rewards and Sanctions
Chapter 5: Collins, Business Ethics
Ethical Behavior Model
Ethical Intentions (G)An ethical intention is determining
mentally to take some action that is morally appropriate
But even if an intention to act ethically is solidified, an individual still may not follow through on the ethical intention
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
Rational Ethical Decision Making (H)After an initial intention is formed, some
people pause and apply a more rational approach to ethical decision making
Rational ethical decision-making frameworks help individuals analyze the ethical basis of their decisions and actions
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
Rotary International’s Four-Way Test:
Of the things we think, say, or do,1.Is it the TRUTH?2.Is it FAIR to all concerned?3.Will it build GOODWILL and BETTER
FRIENDSHIPS?4.Will it be BENEFICIAL to all concerned?
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
Raytheon’s Ethics Quick Test:Is the action legal?Is it right?Who will be affected?Does it fit Raytheon’s values?How will I feel afterwards?How would it look in the newspaper?Will it reflect poorly on the company?
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
A Systematic Rational Ethical Decision-Making Framework
Insert Exhibit 5.5
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
The Six Ethical Theories
Insert Exhibit 5.6
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
The “Trolley Problem”: A series of three ethical dilemmas developed by moral philosophers that highlight the tension between utilitarianism and deontology
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
The six ethical theories parallel Lawrence Kohlberg’s six levels of moral reasoning
As shown in Exhibit 5.9 (next slide), moral reasoning in Stages 1 and 2 reflects egoism, Stage 3 moral reasoning reflects social group relativism, Stage 4 moral reasoning reflects cultural relativism, stage 5 reflects utilitarianism and deontology, and Stage 6 reflects deontology and virtue ethics
Chapter 5: Collins, Business Ethics
Exhibit 5.9 Kohlberg’s Stages of Moral Development and Ethical Theories
Insert Exhibit 5.9
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
Rushworth Kidder and his colleagues have found strong
consensus among five values, or virtues, that are common
worldwide
Insert Exhibit 5.10
Chapter 5: Collins, Business Ethics
Rational Ethical Decision Making
Each ethical theory raises important issues for the decision maker to consider, and each theory has strengths and weaknesses
Applying the seven questions (see next slide) to the most salient ethical dilemmas will likely reveal that each decision option has strengths and weaknesses, and ethical trade-offs might be required
Chapter 5: Collins, Business Ethics
Exhibit 5.11 Critical Thinking Decision-Making Process Table
Insert Exhibit 5.11
Chapter 5: Collins, Business Ethics
Persuading Others
A manager’s failure to engage employees who apply different ethical theories can damage employee morale and result in unethical behaviors and lawsuits
Insert Tips and Techniques “Achieving Ethical Consensus”
Chapter 5: Collins, Business Ethics