Ethical_Dilemma_and_Ethical_Decision.pptx

Ethical_Dilemma_and_Ethical_Decision.pptx

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  Ethical Dilemma andEthical Decision Making Unit 4
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  ETHICAL DILEMMA It isa moral situation in which a choice has to be made b/w two equally undesirable alternatives. Any decision where moral considerations are relevant can potentially give rise to an ethical dilemma, for example: • A decision that requires a choice between rules • A decision where there is no rule, precedent or example to follow • A decision that morally requires two or more courses of action, which are in practice incompatible with each other. • A decision that should be taken in one’s self-interest, but which appears to violate a moral principle that you support. It is the imperative to act, combined with the uncertainty of which action to take, that causes a dilemma Doing morally right Bad Outcome Doing morally wrong Good Outcome
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  Examples of EthicalDilemmas Accounting: Your supervisor enters your office and asks you for a check for $150.00 for expenses he tells you he incurred entertaining a client last night. He submits receipts from a restaurant and lounge. At lunch your supervisor’s girlfriend stops by to pick him up for lunch and you overhear her telling the receptionist what a great time she had at dinner and dancing with your supervisor the night before. What do you do? Journalism/Advertising Your newspaper has published a report on a national study, which concluded that bottled water has virtually no health advantages over the tap water in more cities, including yours. The study included comments from local health storeowners and water distributors challenging the study. The Aqua Pure Bottled Water Company, advertising account worth over $75,000. a year, has threatened to pull its account with your newspaper unless you run another story of equal prominence, focusing on the benefits of bottled water. What do you do? Retailing You are the owner of a retail-clothing store. Your store has a policy of not accepting gifts. However, over the years, salesmen have offered, and other employees have accepted lunch, theatre and baseball tickets. You arrive home from the office and find a new TV and DVD player on you doorstep with a note that says: “A personal gift for out long standing friendship. Enjoy it with you family in good health. The Jones Clothing Company” What do you do?
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  How ethical dilemmaaffects business outcomes? • Shareholders • Employees • Stakeholders • Equal distribution of Wealth • Peace and Harmony
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  Sources of EthicalProblems • Failure of Personal Character • Conflict of Personal values and Organizational goals: Intense Competition and making profit. • Organizational v/s. Social Values • Personal beliefs v/s. Organizational Practices: multi-racial & multi-religious employees • Production and sale of hazardous but popular products: eg. Sale of cigarettes • Other ethical challenges: Price fixing, unfair shares, discriminating wage structure etc.
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  Why business shouldact ethically? • To meet shareholders expectations. • To prevent harm to the general public. • To build trust with the shareholder. • To protect against abusing of employees. • To protect themselves against unethical practices. • To create environment of values.
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  How corporations observeethics to reduce ethical dilemma? • Code of Ethics.images.png • Employ people with good reputation. • Ethics considered in personal performance. • Rewards for ethical behaviour. • Ethical aids for more ethical behaviour among employees.
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  Code of personalethics for employees • Respect confidentiality. • Maintain high standard of responsibility. • Avoid situation involving conflict of interest. • Act with integrity. • No discrimination against anybody. • Committed to general goals of the organization. • Maintain Company established ethical standards
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  How to resolveethical dilemma? • Utility Approach: Shareholder • Rights Approach: Society • Justice Approach: Employees • Deontological Approach: Action oriented: Universal Laws • Teleological Approach: Result oriented: According to personal character
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  Steps involved inresolving Ethical Dilemma • Step I: Analyze the consequences – Who are the beneficiaries? – Who are going to be harmed? – What benefits and harms to occur? Both short-term and long term. • Step II: Analyze the actions – Measure best action with respect to moral standards and principles • Step III: Make a decision
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  Steps involved inresolving Ethical Dilemma The Poter box model considers six different steps: • Define the dilemma (or the situation) • Identify values • Develop an accountability system (establishing principles) • Compare the alternatives • Implement the decisions • Monitor the consequences and develop a policy
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  Ethical Decision Making Itis a decision taken with respect to Ethical Dilemma or Problem in business. Ethical models/approaches to take ethical decisions • Rights Theories • Justice Theories • Utilitarian Theories • The Virtue Approach • The common good approach
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  Stages in EthicalDecision Making • Recognize moral issues • Make some king of moral judgment about that issue (pause and think) • Establish moral intent (goals) • Engage in moral behaviour (get your facts right)
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  1. Stop, thinkand identify the situation or problem 2. Construct a description 3. Whose problem is it? 4. Review in terms of the Ethical Framework 5. Consider legal, moral principles and values 6. Identify the support that is available 7. Identify courses of action 8. Select course of action 9. Evaluate the outcome (with the use of supervision where appropriate) 10. Regularly check the personal impact of these events A 10 step process model for ethical decision- making
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  A Framework forEthical Decision Making Recognize an Ethical Issue • Could this decision or situation be damaging to someone or to some group? Does this decision involve a choice between a good and bad alternative, or perhaps between two "goods" or between two "bads"? • Is this issue about more than what is legal or what is most efficient? If so, how? Get the Facts • What are the relevant facts of the case? What facts are not known? Can I learn more about the situation? Do I know enough to make a decision? • What individuals and groups have an important stake in the outcome? Are some concerns more important? Why? • What are the options for acting? Have all the relevant persons and groups been consulted? Have I identified creative options? Evaluate Alternative Actions Evaluate the options by asking the following questions: • Which option will produce the most good and do the least harm? (The Utilitarian Approach) • Which option best respects the rights of all who have a stake? (The Rights Approach) • Which option treats people equally or proportionately? (The Justice Approach) • Which option best serves the community as a whole, not just some members? (The Common Good Approach) • Which option leads me to act as the sort of person I want to be? (The Virtue Approach) Make a Decision and Test It • Considering all these approaches, which option best addresses the situation? • If I told someone I respect-or told a television audience-which option I have chosen, what would they say? Act and Reflect on the Outcome • How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders? • How did my decision turn out and what have I learned from this specific situation?
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  Factors influencing ethicaldecision making • Individual Factors – Age and Gender. – Nationality and Cultural Characteristics. – Education and employment. – Personal values • Trust worthiness, respect, responsibility, fairness, caring, morality, integrity etc. – Psychological Factors • How people think: Cognitive moral development (perception and learning): at different level of thinking. • Locus of control: control over their lives.
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  Factors influencing ethicaldecision making • Situational Factors – Issue related factors • Moral Intensity • Magnitude of consequences • Social consensus • Probability of effect • Temporal immediacy • Proximity • Concentration of effect – Moral Framing • Harmony • Efficiency • Image of power and effectiveness
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  Factors influencing ethicaldecision making • Context Related Factors: means organizational context in which employee will be wrong (Workplace ethics, CSR, Corporate Governance) – System and Reward – Authority – Bureaucracy – Work roles – Organizational norms and culture – National and Cultural Context
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  Kohlberg’s model ofCognitive Moral Development • Six different stages of why people make different decisions for same Ethical problem 1. Stage of Punishment and obedience 2. Stage of individual purpose 3. Stage of multi-interpersonal expectations, relationships and conformity 4. Stage of social system and conscience maintenance 5. Stage of prior rights, social contract and utility 6. Stage of universal ethical principles
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  Framework of EthicalDecision Making – Take choices seriously – Good decisions are both ethical and effective – Use good judgment and discipline – Evaluate choices from different ethical perspectives – Consider consequences – Make a decision – Act and reflect on decisions