Framework for Understanding Ethical Decision Making in Business
All of these interrelated factors influence the evaluations of and intentions behind the decisions that produce ethical or unethical behavior.
The first step in ethical decision making is to recognize that an ethical issue requires an individual or work group to choose among several actions….
that various stakeholders inside or outside the firm will ultimately evaluate as right or wrong.
Ethical issue intensity
the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization.
____________contributes significantly to intensity because they typically __________
Senior employees and those with administrative authority
dictate an organization’s stance on ethical issues
Ethical issue intensity reflects the _________ of the individual or work group that faces the ethical decision making process
ethical sensitivity
six “spheres of influence” when confronted with ethical choices—
the workplace
family
religion
legal system
community
profession
Moral intensity
a person’s perception of social pressure and the harm the decision will have on others.
high moral inensity= low intention to act unethically
The perception of ethical issue intensity can be influenced by management’s use of…. (3)
In other words, managers can affect the degree to which employees perceive the importance of an ethical issue through …
rewards and punishments
corporate policies (the rules that govern day-2-day behavior)
corporate values (guiding principles)
positive and/or negative incentives.
When people need to resolve ethical issues in their DAILY LIVES, they often base their decisions on…
They generally learn these values and principles through the _________with familymembers, social groups,religion and education.
their own values and principles of right or wrong.
socialization process
In the workplace, personal ethical ISSUES typically involve (5)
honesty
conflicts of interest
discrimination
nepotism (favoring relatives, friends)
theft of organizational resources.
Research regarding individual FACTORS that affect ethical awareness, judgment, intent, and behavior include (6)
gender, education, work experience, nationality, age, and locus of control.
_____ is the legal relationship between a person and the country in which he
or she is born.
Nationality
(it plays a role in ethical decisions because of cultural differences)
Locus of control
external control
internal control
individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements
They believe that the events in their lives are due to uncontrollable forces.
believe that they control the events in their lives by their own effort and skill.
