Chapter Five

ETHICAL DECISION MAKING

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Copyright 2012 John Wiley & Sons

Describe individual characteristics

Chapter 5
Learning Objectives

Chapter 5: Collins, Business Ethics

that impact ethical beliefs,

sensitivities, intentions, and
behaviors
Analyze the processes by which
general ethical beliefs and
sensitivities lead to the formation of
specific ethical intentions
Apply a systematic rational ethical
decision-making framework to
arrive at a moral conclusion
Facilitate a negotiation between
competing ethical perspectives
Recognize warning signs that an
unethical decision is approaching

Ethical Behavior Model

James Rest has developed a four-component
model sequentially showing that an individual
is likely to behave morally if he or she:
1. Is aware that an ethical dilemma has arisen
2. Forms a moral judgment
3. Develops motivation to do something about it and
4. Is a person of high moral character

Chapter 5: Collins, Business Ethics

Exhibit 5.1 Decline from Ethical Belief to Ethical Action

In general, ethical beliefs generate ethical intentions and

result in ethical behaviors. But there is typically a drop
off going from one step to the next.

Insert Exhibit 5.1

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

The gap between ethical belief and ethical intent in

Exhibit 5.1 can be caused by not wanting to create a

negative relationship with the coworker
Another big gap exists between should and did
Why did a large percentage of managers who

claimed they would report the cheater not follow up

on the ethical intention?
Chapter 5: Collins, Business Ethics

Exhibit 5.2 Ethical Behavior Model

Insert Exhibit 5.2

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Individual Characteristics (A)
Individual factors that have the largest impact
on ethical decision making are:
1. More education
2. More work experience
3. Religion
4. Reasoning at a higher level of moral development
5. A higher score for deontology or idealism
6. A lower score for relativism, teleology, economic
orientation, or Machiavellianism
Chapter 5: Collins, Business Ethics

Exhibit 5.3 Individual Characteristics

Insert Exhibit 5.3

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Ethical Beliefs and Sensitivities (B)
A belief is a mental state that guides behaviors
Ethical sensitivity refers to an individuals awareness

that a particular situation raises ethical concerns

Ethical beliefs and sensitivities are the result of a host

of individual characteristics, such as age, education,

moral development level, or work experience
Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Ethical Intuitions (C)
Ethical intuition is a quick insight independent of
any reasoning process about right and wrong
Professor Jonathan Haidt concludes that many

ethical decisions are the result of intuitive reactions

rather than deep reflection

Chapter 5: Collins, Business Ethics

Exhibit 5.4 Liberal and Conservative Ethical Intuitions-What

Matters Most

Insert Exhibit 5.4

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Theory of Planned Behavior (D)
According to Icek Ajzens theory of planned behavior,

formulating an intention to act ethically is a function of a

persons attitudes toward the behavior, subjective norms,
and perceived behavioral control

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Issues Moral Intensity (E)
Moral intensity refers to issue-related factors, rather
than individual or organizational factors, that are
likely to determine the magnitude of a persons
moral approval or disapproval
According to business ethics scholar Tom Jones, an

issues moral intensity is likely to vary based on six

factors

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

The six factors:
1. Magnitude of consequences
2. Social consensus
3. Probability of effect
4. Temporal immediacy
5. Proximity
6. Concentration of effect

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Organization Characteristics (F)
OFallon and Butterfield, in their extensive review
of the business ethics research literature, found
four organizational characteristics associated with
ethical behaviors
Codes of Ethics
Ethical Climate/Culture
Organization Size
Rewards and Sanctions

Chapter 5: Collins, Business Ethics

Ethical Behavior Model

Ethical Intentions (G)
An ethical intention is determining mentally
to take some action that is morally
appropriate
But even if an intention to act ethically is

solidified, an individual still may not follow

through on the ethical intention
Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Rational Ethical Decision Making (H)
After an initial intention is formed, some people
pause and apply a more rational approach to ethical
decision making
Rational ethical decision-making frameworks help

individuals analyze the ethical basis of their

decisions and actions

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Rotary Internationals Four-Way Test:
Of the things we think, say, or do,
1. Is it the TRUTH?
2. Is it FAIR to all concerned?
3. Will it build GOODWILL and BETTER
FRIENDSHIPS?
4. Will it be BENEFICIAL to all concerned?

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Raytheons Ethics Quick Test:
Is the action legal?
Is it right?
Who will be affected?
Does it fit Raytheons values?
How will I feel afterwards?
How would it look in the newspaper?
Will it reflect poorly on the company?

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

A Systematic Rational Ethical Decision-Making Framework

Insert Exhibit 5.5

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

The Six Ethical Theories

Insert Exhibit 5.6

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

The Trolley Problem: A series of three ethical
dilemmas developed by moral philosophers that
highlight the tension between utilitarianism and
deontology

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Insert Exhibit 5.7

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

The six ethical theories parallel Lawrence Kohlbergs

six levels of moral reasoning

As shown in Exhibit 5.9 (next slide), moral reasoning

in Stages 1 and 2 reflects egoism, Stage 3 moral

reasoning reflects social group relativism, Stage 4
moral reasoning reflects cultural relativism, stage 5
reflects utilitarianism and deontology, and Stage 6
reflects deontology and virtue ethics

Chapter 5: Collins, Business Ethics

Exhibit 5.9 Kohlbergs Stages of Moral Development and

Ethical Theories

Insert Exhibit 5.9

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Rushworth Kidder and his colleagues have found strong
consensus among five values, or virtues, that are common
worldwide

Insert Exhibit 5.10

Chapter 5: Collins, Business Ethics

Rational Ethical Decision Making

Each ethical theory raises important issues for the

decision maker to consider, and each theory has

strengths and weaknesses
Applying the seven questions (see next slide) to the

most salient ethical dilemmas will likely reveal that

each decision option has strengths and weaknesses,
and ethical trade-offs might be required

Chapter 5: Collins, Business Ethics

Exhibit 5.11 Critical Thinking Decision-Making

Process Table

Insert Exhibit 5.11

Chapter 5: Collins, Business Ethics

Persuading Others
A managers failure to engage employees who apply
different ethical theories can damage employee morale
and result in unethical behaviors and lawsuits

Insert Tips and Techniques Achieving Ethical Consensus

Chapter 5: Collins, Business Ethics

Ten Ethical Hazard Approaching Signs

Michael Josephson describes 10 common rationalizations
for unethical acts

Insert Exhibit 5.12

Chapter 5: Collins, Business Ethics