Prime therapeutics has seen declining profits and must cut costs by downsizing staff. To make ethical decisions, they will use the 5 Whys method to understand the root causes of declining profits and potential solutions. Any staffing decisions must avoid targeting people based on attributes like race, religion, or orientation. Moving forward, Prime will communicate its status quarterly using the PDCA model to gain employee buy-in for changes through open communication.

1. IMPORTANCE OF ETHICAL
DECISION MAKING
BY MARIA CHAMPION

2. OVERVIEW
• Over the past two years Prime therapeutics has seen a major decline in profits and has decided that in
order to keep the organization in business, we have to make some necessary cutbacks and one of the
major cutbacks would be downsizing our staff. It is no secret that when an organization decides to
downsize, the decisions will be scrutinized.

3. DETERMINING THE ROOT CAUSE
• Using the 5 Why’s method, will help better understand why Prime’s profits are steadily declining and it
will also provide an insight for a potential solution.

4. MAKING AN ETHICAL DECISION
• Whenever there is a decision to decrease staff, it’s important that as an organization we abide by ethical
and moral decision making. We never want to be in a position where an employee feels as if they were
targeted because of their race, religion, age or sexual orientation

5. MAGNITUDE OF CONSEQUENCES
• Magnitude of consequences is defined as the total harm/benefit resulting from the moral action in
question

6. MOVING FORWARD
• Using the PDCA model “a four–step model for carrying out change. Just as a circle has no end, the PDCA
cycle should be repeated again and again for continuous improvement”, we will communicate the
organizations status on a quarterly basis, this will take place between managers and employees. By
continuously keeping the communication open within the organization you have better chances of
getting a buy in from the employees who feel uncertain about the organization and its decisions.

7. CONCLUSION
• Downsizing is the last option an organization wants to have but if it happens it’s important to use ethical
decision making to come to the best option for your organization.