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Ethical Decision Making Process

This document discusses ethical decision making and various ethical models and approaches. It provides an overview of the following key points: 1. There are several ethical theories that provide benchmarks for ethical decision making, including rights theories, justice theories, and utilitarianism. 2. Kohlberg's model of cognitive moral development explains how individuals' ability to make ethical decisions progresses through six stages as their knowledge and socialization increases. 3. When making decisions, individuals and organizations should consider multiple ethical perspectives and the potential consequences of different choices to arrive at rational and principled decisions.

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Amal Remesh
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Download as PPTX, PDF, TXT or read online on Scribd
389 views

Ethical Decision Making Process

This document discusses ethical decision making and various ethical models and approaches. It provides an overview of the following key points: 1. There are several ethical theories that provide benchmarks for ethical decision making, including rights theories, justice theories, and utilitarianism. 2. Kohlberg's model of cognitive moral development explains how individuals' ability to make ethical decisions progresses through six stages as their knowledge and socialization increases. 3. When making decisions, individuals and organizations should consider multiple ethical perspectives and the potential consequences of different choices to arrive at rational and principled decisions.

Uploaded by

Amal Remesh
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ETHICAL DECISION MAKING

PROCESS
Contemporary Managers have to deal with

compulsions in competition and business


In the exigencies of business it has become
vital that decisions are ethical and rational
Generally it is assumed that employees in
the organisation make same manner
decisions in Home and workplace
Although it is not possible to measure how
an employee make decisions; however it
could be understood to some extent, the
factors involved in decision making process

ETHICAL MODELS
There are several theories that have been

developed by philosophers over the years


These theories often provide a benchmark to set
standards and develop a normative judgement
There are discrepancies in making judgement
using these theories. The reasons are
Ethical theories and their relevance are not easily

understood
Being normative, these theories are difficult to put to
practice
Of the models, theories based on RIGHTS, JUSTICE &
UTILITARIANISM are prominent

ETHICAL MODELS
Rights theories
Justice theories
Utilitarianism
The Virtue Approach
The Common Good Approach

RIGHTS THEORIES
Advocated by Immanuel

Kant, who stressed personal


rights, and Locke(John Locke
widely known as the Father
of Classical Liberalism, was
an English philosopher and
physician)
Both focused on the
entitlements of individual as
persons with dignity and

Immanuel
Kant

John Locke

RIGHTS THEORIES
Individual rights include
Free Consent
Freedom of Conscience
Privacy
Free Speech
Due Process

There is considerable overlapping of legal

and moral rights


Legal rights protected by law
Moral rights should be protected by society

JUSTICE THEORIES
This precede Rights

Theory and can be


traced back to Plato
and Aristotle
(disciple of Plato)
It advocates that all
persons should be
guided by fairness,
justice, equity and
impartiality

JUSTICE THEORIES
In the modern format, however, it states that

human beings in some cases are treated


unequally
It will be unfair to treat SUPREME COURT
JUDGE with a daily-wage earner
A CEO will be treated differently than a
casual worker
In India we face such dilemma
E.g. Grade III workers directly appointed by
companies get higher salary than employees
recruited from employment agencies. WHY?

UTILITARIANISM
Holds the view that an action or decision is

right if it maximizes utility or produces the


greater good for the largest number of
people
Based on economic postulates and can be
traced back to classical economists like
ADAM SMITH, DAVID RICARDO, JEREMY
BENTHEM & JOHN STUART MILL
It employs a TELEOLOGICAL approach and
asserts that behaviour or actions should be
evaluated in terms of their consequences

THE VIRTUE APPROACH


A very ancient approach, advocated that

ethical actions should be consistent with


certain morally acceptable virtues that would
pave the way for full development of humanity
Virtues are attitudes or character traits that
enable us to be and to act in ways that would
develop our highest potential
It stresses the importance of eternal virtues
that human beings would always like to
showcase in persons who will be referred to
as role models to others

THE COMMON GOOD


APPROACH
The approach suggests The Interlocking

relationships of society are grounded on


ethical reasoning, respect and compassion for
others (esp. vulnerable sections of society)
It always draws attention to certain
conditions
Effective law and order
Policing
Health care
Public education
Places of recreation and amusement

WHICH APPROACH TO USE


All the Theories have its pros and cons
It is difficult to arrive at a standard

condition
It can be summarised that if any action that
meets at least three criteria, then it can be
taken as ethical
Utility
Rights
Justice

If an action meets 2 criteria; then we must

look into other overwhelming factors

KOHLBERGS MODEL OF
COGNITIVE MORAL DEVELOPMENT
It is necessary to understand the

concept of cognitive moral


development as enunciated by
psychologist Lawrence Kohlberg
His 6 stage model of cognitive
development explains why people
make different decisions in similar
ethical situations
This happens from lower level to
higher level as peoples knowledge
and socialisation continues to develop
with time

KOHLBERGS MODEL OF

COGNITIVE MORAL
The stage of punishment and obedience
DEVELOPMENT

Behaviour of small children who respond to rules dictated

by parents and consider right and wrong from the


punishments they get

The stage of individual instrumental purpose and

exchange
Individual evaluates behaviour on the basis of fairness to

oneself. It is also called stage of reciprocity because it is not


depended on loyalty but what one gets in return

The stage of mutual interpersonal expectations,

relationships and conformity


Individuals consider the well being of others, though they

may still be motivated by obedience to rules


People tend to live up to what is expected of them

KOHLBERGS MODEL OF
COGNITIVE MORAL DEVELOPMENT
The stage of Social System and Conscience

Maintenance
Individual considers his/her duty to society as the right

thing to do
People tend to uphold the law when faced with dilemma

The stage of Prior Rights, Social Contract or Utility


Individual has broader vision and develops a sense of

social obligation
Arrive at rational decisions even if it is illegal

The stage of Universal Ethical Principles


There are certain universal principles that needs to be

upheld
Will not care about law but care about people and morality

PERSONAL VALUES AND


ETHICAL DECISION MAKING
Trust worthiness
Respect
Responsibility
Fairness
Caring
Citizenship
Page 293 of business ethics and

corporate governance by A C
Fernando

FRAME WORK FOR E D M


Take choices seriously
Good decisions based on rationality
Discernment (judgement based on insight) and Discipline

(strength of character)
Recognise and identify the kind of ethicak issue to
resolve
Pause and Think
Make sure of the Goals
Get the facts right
Evaluate choices from different ethical perspectives
Consider sonsequences
Make a decision
Act, then reflect on decision later

CORPORATE VALUES & EDM


In work environment, the values, the

mission and the vision of the company will


have a greater influence on an individual
than ones own morals and ethics
In corporations decisions are made
collectively by groups
Organisation culture plays a vital role
A corporate culture can be defined as
A set of values, beliefs, goals, norms and ways

of solving problems that an organisations


employees share and live up to

CORPORATE VALUES & EDM


The ethical climate of an organisation provide a

clear cut idea about the functioning


There will always be certain pressure groups
which tends to bend decisions
It may contradict with the shareholders interests
also
Corporate governance centers around integrity,
accountability, transparency, full disclosure of
financial and non financial information with
fairness and openness
However very hard to accomplish since there will
be anti-social elements trying to take advantage

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