ETHICAL DECISION

MAKING
By
Rafia Ayub
Ethical Decision making
• In organization decisions are made by
individuals or by committees.
• Therefore discussion of business ethics
will transform into ethics of individuals who
makes the decision.
Factors affecting decisions
1. Personal traits
2. Organizational traits
3. Ethical principles
4. Decision making process
Requirements of Ethical Decision
Making

• Ethical commitment: The personal resolve to

act ethically, to do the right thing.
• Ethical consciousness: the ability to perceive
the ethical implications of an action.
• Ethical competency: ability to engage in
sound moral reasoning & develop practical
problem solving strategies.
DIFFERENTIATING IN BETWEEN;
• ETHICS
• MORALS
• PERSONAL ETHICS
• VALUES
• LAWS
Ethics
a system or code of conduct based on
moral duties & obligations which
indicate how we should behave: it
deals with the ability to distinguish
right from wrong & commitment to
do right.
Morals

Refers to what is good & right in

character & conduct.
• i.e. our personal belief system and how
this affects our interactions with others in
all aspects of our life
• Determined within a broad context of a
culture or society
Values
Core beliefs which guide or
motivate attitudes & actions.
• Reflect who we are and our belief system
• Are elaborated through relationships
• Are shaped by our nature-nurture
influences
Laws
Are the agreed-on rules of a
society that set forth the basic
principles for living together as a
group

• Dictate minimum standards of behavior

that society will tolerate
1. Personal traits
• Ego strength / self-confidence

• Locus of control
1. Organizational Traits
• Organizational Culture

• Organizational Goals
Organizational culture
It is the set of shared values and norms that
control the organizational members
interactions with each other and with
suppliers, customers and people outside the
organization.

• the ways the organization conducts its business, treats

its employees, customers, and the wider community,
• the extent to which autonomy and freedom is allowed in
decision making, developing new ideas, and personal
expression
• how power and information flow through its hierarchy
• the strength of employee commitment towards
collective objectives.
3. Ethical Principles
• Honesty
• Integrity
• Fidelity
• Fairness
• Caring for others
• Respect for others
• Responsible citizenship
• Pursuit of excellence (quality):
• Accountability
4. Decision Making Process
• Identify desired outcomes
• Define the Problem
• Examine Difficulties and Obstacles
• Develop Alternative Solution
• Select Best Solution
• Identify Reactions/Rewards