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W3 Ethical Decision Making and 7 Steps Analysis

This document discusses ethical decision making models and processes. It describes factors that influence ethical decisions such as individual, organizational, and external factors. It outlines Kohlberg's stages of cognitive moral development and how individuals' level of moral reasoning impacts their perception and response to ethical issues. Finally, it provides a 7-step model for sound ethical decision making that involves gathering facts, defining the issue, identifying stakeholders, analyzing alternatives, and choosing the best action.

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Majd Jamal Abudeeb
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86 views18 pages

W3 Ethical Decision Making and 7 Steps Analysis

This document discusses ethical decision making models and processes. It describes factors that influence ethical decisions such as individual, organizational, and external factors. It outlines Kohlberg's stages of cognitive moral development and how individuals' level of moral reasoning impacts their perception and response to ethical issues. Finally, it provides a 7-step model for sound ethical decision making that involves gathering facts, defining the issue, identifying stakeholders, analyzing alternatives, and choosing the best action.

Uploaded by

Majd Jamal Abudeeb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Bus 481 Business Ethics

Ethical Decision Making Models

1
Moral controversies / ethical issues

• Privacy
• Discrimination
• Worker health and safety
• International labor standards
• Illegal copying of a software – piracy,
intellectual property rights
• Corruption

2
ETHICAL DECISION MAKING

• Factors Affecting Ethical Decision Making

• “The Cognitive Moral Development Model”

• Steps for Sound Ethical Decision Making

3
Ethical Decision Making Model

The framework

• reveals the factors that influence ethical decisions

• provides insights about typical ethical decision

making processes in business organizations

4
Ethical decisions are influenced by:

• Individual factors

• Organizational / situational factors

• External / environmental factors

5
Individual Factors

Ethical Issue / Individual Decision Behavior


Dilemma Making Process

External / Organizational /
Environmental Factors Situational Factors

Ethical Decision Making Model


6
ndividual factors
ackground, personality, personal goals,
emographics (gender,age, education, work experience,
osition, income), ideology, intentions, knowledge,
ersonal values, attitudes, psychological
COGNITIVE MORAL DEVELOPMENT MODEL
Kohlberg ( 1981)
How people decide what course of action is right?
Morally superior modes of ethical reasoning 7
Organizational / Situational factors

Corporate culture, corporate goals, characteristics

of the job, significant others, managerial philosophy,

managerial behavior, opportunity, reinforcement

system (rewards / punishment)

8
Environmental / External factors

Volatile economic conditions, scarce resources,

increased competition, multiple stakeholders,

political and social institutions, government

and legal environment (legislation), social

environment (societal values)


9
Kohlberg’s Stages of Cognitive Moral Development

Different people make different decisions in similar

situations because they are in different stages of

cognitive moral development.

Individuals develop through 6 developmental

stages of moral reasoning


10
Stages of Cognitive Moral Development
. The stage of punishment and obedience
. The stage of individual instrumental purpose and
exchange
. The stage of mutual interpersonal expectations,
relationships and conformity
. The stage of social system and conscience
maintenance
. The stage of prior rights, social contract or utility
. The stage of universal ethical principles 11
. The stage of punishment and obedience
ight is defined in terms of obedience to rules and
uthority. A person in this stage responds to rules
ccording to the physical power of those who determine
uch rules
. The stage of individual instrumental purpose and
xchange
ight is defined in terms of what serves one’s own needs,
ight to one’s self interest and fairness to him or her vs.
yalty, justice. Purpose is to serve one’s own needs.
12
3. The stage of mutual interpersonal expectations,
relationships and conformity
Emphasizes others rather than himself or herself.
Fairness to others, others’ well-being is considered
4. The stage of social system and conscience
maintenance
Right is determined by considering duty to society.
Duty, respect for authority and maintaining the social
order are the focal points
13
5. The stage of prior rights, social contract or utility
Individual is concerned with upholding the basic values,
rights and legal contracts of the society.
Individuals feel a sense of obligation and commitment, a
social contract to other groups and recognize that in
some cases legal and moral points of view may conflict

6. The stage of universal ethical principles


Right is defined by universal ethical principles that
everyone should follow. Universal rights, justice and
equality are important.
14
• Preconventional stages – 1 and 2
• Conventional stages – 3 and 4
• Post conventional stages – 5 and 6

15
• Kohlberg’s model implies that a person’s level of
moral development influences his or her perception
of and response to an ethical issue.

• According to the model, as people progress through


stages of moral development, and with time,
education and experience, they may change their
values and ethical behavior

16
7 STEPS TO SOUND ETHICAL DECISION MAKING

1-Gather the facts


How did the situation occur? Are there historical facts
that should be known?

2- Define the ethical issue/ problem /dilemma


Define causes of unethical behavior, individual,
organizational, environmental factors

3- Identify the affected parties- Stakeholders


Who are the stakeholders? (Primary and secondary)
Name them and define their stakes. How are they
17
affected?
4-Economic / legal / ethical analysis
Identify the normative moral philosophy (consequential,
non-consequential, justice, relativist)

5- Costs of unethical behavior


Identify the personal, organizational and societal costs

6- What are the alternatives available at that situation?


What alternatives would you suggest for resolving the
problem? Discuss the pros and cons of each alternative

7- Choose one best action / decision


If an action is taken, do you agree with the way the
dilemma is resolved? If an action is not taken, what would
you suggest for more effectively resolving the problem?
18
How would the decision affect the stakeholders?

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