9. Ethical Decision Making and CSR

Question 1

What are ethical decisions? (6)

Answer 1

1. Organisations faced w ethical judgements & decisions; ethic problems, dilemma, risk.
2. Ethical decisions concern the choices faced by individuals or organisations that are seen to be right & fair & that lead to an agreed outcome or resolution that is accepted for all parties involved.
3. Importance of decision will depend on the situation & level of responsibility we have
4. Can be day-to-day, operational decisions. Or they can be major and strategic decisions, likely to have major impact on firm and it’s future
5. Proactive (choice of alternatives & time to consider options) or reactive decisions (under pressure or faced with unexpected problems)
6. Difficult decisions are discussed with all members of company

Question 2

What factors affect external ethical decisions? (6)

Answer 2

1. Social norms
2. Industry standards
3. Regulation bodies
4. Professional bodies
5. Codes of conduct
6. Influential stakeholders (press/media, government, organisations & pressure groups)

Question 3

What factors affect internal ethical decisions? (9)

Answer 3

1. Values
2. Culture
3. Purpose & mission
4. Management style
5. HR
6. Staff Capability
7. Training
8. Motivation
9. Internal stakeholders - management & employees

Question 4

What is culture present through?

Answer 4

Values, attitudes & behaviour
It is not something that can be seen but it is a very powerful influence on what an organisation does, it’s key decisions & how it can be managed.

Question 5

What quote defines organisational culture and by whom?

Answer 5

Charles Handy - “The way we do things around here.” - strong focus on how behaviour becomes normalised and established over time in a group or organisation, like unwritten or even unspoken rules.

Question 6

What are the key elements of culture? (6)

Answer 6

1. Values
2. Beliefs
3. Attitudes
4. Tradition
5. Accepted Ideas
6. Practice

Question 7

Ethics - decision making?

Answer 7

• Ethics also affects organisations decision making process in terms of it’s attitudes to risk and who is involved in making decisions
• EG ENRON; scandal & corporate collapse, evident culture of company ignored impending risks of accounting practices & fraudulent activities, thought they were bullet proof to responsibility to key stakeholders.

Question 8

Who decides what is ethical?

Answer 8

1. Depends greatly on individual organisation, it’s culture, values, management style, position in market place etc.
2. In some professions, ethical standards & good practice can be guided by the professional body itself (EG CILA’S GUIDE TO PROFESSIONAL CONDUCT)