Becg 2 2


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Becg 2 2

  1. 1. Ethical Decision Making in Organizations
  2. 2. built – in values from school, home, religion…
  3. 3. ethics: rules of conductpracticed in a particular culturemorals: rules of individual behavior Moral dilemmas: disagreementsabout ethical principles in a situation
  4. 4. Factors Influencing Behaviour opportunity Organizational Individual Moral environment Behavior philosophy Organizational behaviour
  5. 5. How are they Made?• End –the outcome sought• Means – the methods employed• Motive- the urge in making the decisions• Foreseeable consequences
  6. 6. The Role of Moral Philosophies in Decision makingMoral PhilosophyA set of principles setting forth what is believed to be the right way to behaveRoleIt is something that is moral conforms to a standard of acceptabilityPhilosophyA study of the general principles of a subject such as morality
  7. 7. Moral Philosophy • Believers in the philosophy seeks the Utilitarian greatest satisfaction for the largest number of individualsMoral Philosophy Humanistic
  8. 8. Suggestions for ethical Decision Making• Top Management can improve behaviour• Codes of ethics improve decision making• Interaction with peers and other colleagues• Control system
  9. 9. The Ethical Organization Courageous charitable People just sensitive magnanimous Not fully Foolishnessresponsible for envy what they did Deviousness
  10. 10. Difficulties in Decision Making Cross –Cultural Contradictions Personal Competitive gain/Dubious pressures Charcter Sources of Ethical Problems Individual Managers values in Values and conflict with Attributes organizational goals
  11. 11. Difficulties in Decision Making• Cross –Cultural Contradictions Some of the knottiest ethical problems occur as corporations do business in other societies where ethical standards differ from those at home• Competitive Pressures When companies are squeezed by severe competition, managers sometimes engage in unethical activities to beat out a competitors
  12. 12. Difficulties in Decision Making• Managers Values and AttributesManagers are the key people to investigate whether a company will act ethically or unethically. As major decision makers and policy makers, that have more opportunities than others to set an ethical time for their company
  13. 13. Difficulties in Decision Making• Individual values in conflict with organizational goalsEthical conflicts in business frequently occur when a company pursues goals or uses methods that are not acceptable to some of its employees
  14. 14. Difficulties in Decision Making• Personal gain/Dubious CharacterPersonal gain or even greed, causes some ethical problems. Business sometimes employs people whose personal values are less than desirable
  15. 15. How to use Ethical Reasoning?• Identify the nature of the ethical problem• Decide which course of action is likely to produce the most ethical resultsThree methods• Utilitarian• Rights• justice
  16. 16. Different MethodsMethod Critical determining An action is ethical Limitations factor whenUtilitarian Comparing benefits Net benefits exceed Difficult to measure and costs costs some human and social costs. Majority may disregard rights of minorityRights Respecting rights Basic human rights Difficult to balance are respected conflicting rightsJustice Distributing fair Benefits and cost Difficult to measure shares are fairly benefits and costs. distributed Lack of agreement on fair shares
  17. 17. Levels of Decision Making• Levels of the individual• Levels of the organization• Levels of the business system
  18. 18. Kohlberg’s Seven Stages Pre-Conventional Moral Development  Stage 0  Stage 1  Stage 2 Conventional Moral Development  Stage 3  Stage 4 Post-Conventional Moral Development  Stage 5  Stage 6  Stage 7
  19. 19. Stage 0At this stage, the individual:• Avoids pain and seeks pleasure• Has no sense of obligation to anyone else• Is self-absorbed (unaware or anyone’s needs other than those that are self-serving)• Does what he/she wants to do• Is amoral• Is totally egocentric in assuming that the world revolves around his/her needs and desires• Has thus no sense of cause-effect• Is typically between the ages of 0-7
  20. 20. Stage 1At this stage, the individual:• Obeys rules in order to avoid punishment• Determines a sense of right and wrong by what is punished and what is not punished• Obeys superior authority and allows that authority to make the rules, especially if that authority has the power to inflict pain• Is responsive to rules that will affect his/her physical well-being• Is usually over the age of 7
  21. 21. Stage 2At this stage, the individual:• Is motivated by vengeance or “an eye for an eye” philosophy• Is self-absorbed while assuming that he/she is generous• Believes in equal sharing in that everyone gets the same, regardless of need• Believes that the end justifies the means• Will do a favor only to get a favor• Expects to be rewarded for every non-selfish deed he/she does• Is usually over the age of 10
  22. 22. Stage 3At this stage, the individual:• Finds peer approval very important• Makes moral decisions on the basis of what will please a limited group and make the person feel included• Thus models behavior on that of the “majority” which is the behavior of the “in crowd” or peer group• Feels that intensions are as important as deeds and expects others to accept intentions or promises in place of deeds• Begins to put himself/herself in another’s shoes and think from another perspective• May continue to be in this stage until him/her has reached the 20s in age
  23. 23. Stage 4At this stage, the individual:• Continues past actions and behaviors in tradition since the maintenance of law and order is supremely important• Is a duty doer who believes in rigid rules that should not be changed• Respects authority and obeys it without question• Supports the rights of the majority or majority rule without concern for those in the minority• Is part of about 80% of the population that does not progress past stage 4
  24. 24. Stage 5At this stage, the individual:• Is motivated by the belief in the greatest amount of good for the greatest number of people• Believes in contracts in which both parties compromise and yet both receive benefits• Believes in consensus (everyone agrees), rather than in majority rule• Respects the rights of the minority especially the rights of the individual• Believes that change in the law is possible but only through the system• Has reached the same stage as the official morality of the nation
  25. 25. Stage 6At this stage, the individual:• Loses the ability to compromise high principles and thus may forfeit his/her life in order to uphold them• Believes that there are high moral principles than those represented by social rules and customs• Obeys these self-chosen high moral principles• Is willing to accept the consequences for disobedience of the social rule he/she has rejected• Uses only passive resistance and has no use for violence in any form• Believes in granting justice and dignity to all human beings as inalienable human rights• Respects justice for its moral nature and its legal nature• Believes that the dignity of humanity is sacred and that all humans have value
  26. 26. Stage 7At this stage, the individual:• Is a “seeker of justice in an unjust world”• Has a cosmic perspective of life• Neglects any consideration for self• Focuses not on the individual but on the whole, a view of self as part of the infinite whole and not as an individual part that is significant• Thus is plagued with despair and sees a world of woe that he/she is inadequate to repair• Possesses an altruism that is difficult for the world to comprehend and consequently his/her forgiveness and compassion often runs afoul of the world’s sense of justice I.e. moral level
  27. 27. 7 step moral reasoning model1. relevant facts2. ethical issues - broad systemic, corporate and personal issues3. primary stakeholders affected by the ethical decision4. possible alternatives5. ethics of each alternative How will each affect stakeholders? Apply the philosophies here6. practical constraints that limit implementation7. which alternative should be taken?
  28. 28. Influences of Ethical Decision Making• Work place ethics• Nature of ethical issues• Personal values and ethical decision making1. Trustworthiness2. Respect3. Responsibility4. Fairness5. Caring6. citizenship
  29. 29. CONTINUED• Corporate values and ethical Decision making• Role of corporate governance in ensuring ethics in work place
  30. 30. Frame work of Ethical decision making• Take choices seriously• Good decisions are both ethical and effective• Discernment and discipline
  31. 31. PROCESS OF MAKING GOOD ETHICAL DECISIONS• Recognize and identify the kind of issue needed to resolve• Pause and think• Make sure of goals• Get your facts right• Evaluate the choices from diferent ethical perspectives• Consider consequences• Make a decision• Act, then reflect on the decision later
  32. 32. ford pinto case photo courtesy of cgearannex