Ethical Decision Making

Question 1

Pulicity test

Answer 1

how would the public see this

Question 2

Trusted friend test

Answer 2

would a friend accept this

Question 3

Reciprocity

Answer 3

Would I like this behavior done to me

Question 4

Universality Test

Answer 4

Neutral observer test

Question 5

Obituary Test

Answer 5

can you live with yourself

Question 6

Behaviors of High

Integrity

Answer 6

Possess Humility 
Maintain concern for the greater good
be truthful 
fulfill commitments 
strive for fairness
take responsibility 
Have respect for the individual

Question 7

Top Reasons that Drive Business Ethics

Answer 7

1. Globalization
2. Marketplace Competition
3. Pressure from Customers
4. Corporate Scandals
5. Demands by Investors

Question 8

The Ethical Cycle examines

Answer 8

Examine:
Moral problem statement
Problem analysis
Options for actions
Ethical judgment
Reflection
Morally acceptable action

Question 9

Ethical-Issue Intensity

Answer 9

The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization

Reflects the ethical sensitivity of the
individual and/or work group
Triggers the ethical decision making
process

Question 10

Individual Factors

Answer 10

People base their ethical decisions on their own values and principles of right or wrong

Values are learned through socialization
Good personal values decrease unethical behaviour and increase positive work behaviour
Values are subjective; vary across
cultures

Question 11

Organizational Factors on individual

Answer 11

Organizational culture has a stronger
influence on employees than individual
values

Corporate culture
Ethical culture
Significant Others
Obedience to Authority

Question 12

Opportunities to reduce unethical behaviour

Answer 12

Opportunities for misconduct can be reduced by establishing formal codes, policies, and rules

Aggressive enforcement is required
Knowledge can sometimes lead to unethical
behavior
A person who has an information base,
expertise, or information about
competition has an opportunity to exploit
knowledge

Question 13

Business Ethical dilemmas,

Answer 13

Behaviour, and Evaluations
Ethical dilemmas involve situations
where rules are vague or in conflict

Critical thinking skills and ability to take
responsibility are important
The final step is deciding what action to
take based on a person’s intentions
Guilt or uneasiness is the first sign that an unethical decision has occurred
Most businesspeople will make ethical
mistakes

Question 14

Using the Ethical Decision-Making

Model to Improve Ethical Decisions

Answer 14

Impossible to objectively determine if a business decision is right or wrong

Understanding how ethical decisions are made will not solve ethical problems

Business ethics involves value judgments and collective agreement about acceptable patterns of behavior

Ethical decision making in business does not rely on personal values and morals

Organizations take on cultures of their own

Informal relationships enforce an ethical
culture

Question 15

Normative Considerations in

Ethical Decision Making

Answer 15

Normative approaches: concerning how organizational decision makers should approach an issue

Different from a descriptive approach
that examines how organizational decision makers approach ethical decision making
Concepts like fairness and justice are
highly important in a normative structure

Question 16

Implementing Principles and Core

Values in Ethical Decision Making

Answer 16

Two main principles of justice...
Liberty principle (equality principle):  
States that each person has basic 
rights that are compatible to the basic 
liberties of others
Difference principle:  States that 
economic and social equalities (or 
inequalities) should be arranged to 
provide the most benefit to the least-
advantaged members of society
Does not advocate for the complete elimination of 
inequalities in society
The most ethical decision seeks to benefit and not 
harm disadvantaged populations

Question 17

Principles

Answer 17

Widely accepted
Used to develop values and standards
establishes pervasive boundaries for behavior
Valued across cultures

Question 18

Values

Answer 18

Subjective and related to choice
Used to develop norms
Provides guidance to organizations
Differs across cultures and firms

Question 19

An organizational ethical culture is shaped by

Answer 19

effective leadership

Question 20

Top level support is required for

Answer 20

ethical behavior

Question 21

An ethical corporate culture needs

Answer 21

shared values and proper oversight

Question 22

The more you know about ethical decision

making,

Answer 22

the more likely you will be to make

good decisions