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Making Decision in Business Ethics

This document discusses ethical decision making in business. It provides steps for ethical decision making including studying the problem, generating multiple solutions, evaluating alternatives using costs and benefits, selecting a solution, and implementing it. It notes that ethical decisions should provide benefits to all stakeholders and stand up to moral scrutiny. Individual characteristics like moral values, beliefs, knowledge and ability to handle pressure can influence decision making. Situational factors like competitive pressure or organizational goals can also impact the process. Guidelines are presented for managers to make ethical decisions, along with challenges like globalization and financial burdens. A five-step model is outlined for ethical decision making: clarify the problem, evaluate alternatives, decide on a solution, implement it, and monitor/modify the

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RajKam
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33 views

Making Decision in Business Ethics

This document discusses ethical decision making in business. It provides steps for ethical decision making including studying the problem, generating multiple solutions, evaluating alternatives using costs and benefits, selecting a solution, and implementing it. It notes that ethical decisions should provide benefits to all stakeholders and stand up to moral scrutiny. Individual characteristics like moral values, beliefs, knowledge and ability to handle pressure can influence decision making. Situational factors like competitive pressure or organizational goals can also impact the process. Guidelines are presented for managers to make ethical decisions, along with challenges like globalization and financial burdens. A five-step model is outlined for ethical decision making: clarify the problem, evaluate alternatives, decide on a solution, implement it, and monitor/modify the

Uploaded by

RajKam
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 3

Making Decision In Business Ethics

What is mean by decision making?

Reaching at conclusion
Finding the solution based on facts and figure, So decision making is
based on Facts & Figure.

What is mean by Ethical Decision


Making?

Maintaining the moral principle and providing benefits to each and


every party involved in decision making.

Ethical Decision should be good, practical,


and stand moral test.
Ethical Decision Making Steps for manager
Study
Many solution
Check past cases
Final solution

Decision Process In competitive pressure


Market adopt the unethical practices in competitive pressure as
competition demands cut the head to go ahead.
Competitive pressure makes to take decision considering only short
term goals so decision making process is limited to
collecting the competitor data
finding the opportunity or creating it.

Structure Of Ethical Decision Making

Identify the problem


Generate the alternate solution
Evaluate alternatives using cost- benefit relation
Select the solution
Implement the solution
Impact of SEZ on the farmer and their land.

Guidelines for manager for ethical decision


making
Understand Individual code of conduct
Understand Industrial code of conduct
Collect the facts

Problems in ethical decision making

Globalization
Goal Congruence
Financial burdens
Competitive pressure

Individual Effect on decision


making
Individual:- A Person
Each person have its own personality based on
Moral values
Belief
Way of thinking
Knowledge
Ability of handling the pressure
Each of above characteristic affect the decision making process

Moral Values:A judgment about right & Wrong


Taking bribe
Belief:Pray to the god is based on belief of individual
Way of thinking:A glass contain half amount of water
Positive way of thinking & Negative of thinking
Knowledge:A person with experience and without experience
Ability of handling the pressure
Success or Suicide

Situational Effect on decision


making
Organization surrounded by external and internal environment.
A situation affect the decision making process
Example:Growth of Business
Delineation of Business
These are two different situation and in each situation we will find
different decision making process.

Nokia makes the decision to introduce the mobile phones of lower


rate in Indian market
Based on season or festival price of product goes up or down
ManMohan Sing analyzed the situation in 1991 and take the
decision to introduce LPG policy

Model For Ethical Decision Making


1. Clarify
2. Evaluate

3. Decide
4. Implement
5. Monitor and modify

Model For Ethical Decision Making


Clarify.
Determine precisely what must be decided.
Evaluate.
Distinguish solid facts from beliefs, desires, theories, suppositions, unsupported conclusions,
opinions, and rationalizations.
With regard to each alternative, carefully consider the benefits, burdens and risks to each
stakeholder.
Decide.
Make a judgment about what is not true and what consequences are most likely to occur.
Evaluate the viable alternatives according to personal conscience.
Implement.
Develop a plan of how to implement the decision.
Maximize the benefits and minimize the costs and risks
Monitor and modify.
Monitor the effects of decisions.
Be prepared and willing to revise a plan, or take a different course of action.

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