Ethical Decision Making

Climate Setting
• Name
• Position/area of expert or interest
• Expectation
• Ground rules/Norms
 Objectives
• State the concept of ethics and moral
• Elaborate the steps of ethical decision
making
• Define the benefits of ethical decision
making
• Explain the peculiar characteristics of
ethical organization
• Experience sharing on challenges in
ethical decision making
 Reflection 1
• What is the concept of ethics to you ?

• What is decision making to you ?

• Do you have an experience to see your

decision from the ethical point of view
(values) of your organization? How
 ETHICS
• The concept has come to mean various things to
various people, but historically Ethics is derived
from the Greek word ethos, meaning “character.”
Another term for ethics is morality, which comes
from the Latin mores, meaning “custom.”
• Morality focuses on the “right” and “wrong” of
human behavior. Thus, ethics
deals with questions about how people act toward
one another. Philosophers and ethicists have
developed numerous theories of ethical conduct.
• usually represent standards of behavior that are
both idealistic and practical in purposes
 ETHICS…
• People are constantly confronted with the need to
make choices that have consequences for both
themselves and others.

• In some cases, individuals are confronted by

competing ethical values. It has been said that in
such situations, individuals should ask two
questions: “What good do I seek?” and “What is my
obligation in this circumstance?”

• Many ethicists assert there's always a right thing to

do based on moral principle, and others believe the
right thing to do depends on the situation --
ultimately it's up to the individual.) Many
philosophers consider ethics to be the "science of
conduct."
 ETHICS…
• The inability to agree on what constitutes
that “good” and “obligation” has led
philosophers to divide into two groups.
One group, the ethical absolutists and
ethical relativists maintain that there are
universal standards that do not change
over time and that apply to everyone
 ETHICS…
Ethical absolutists

maintain that there are universal standards

that do not change over time and that
apply to everyone
 ETHICS…

• The ethical relativists, says that people’s

ethical judgments are determined by the
changing customs and traditions of the
society in which they live.
 Ethical Decision Making
• This framework is particularly helpful when
clear choices are not available
such as when ethical rules of conduct or the
application require significant professional
judgment, or in a situations where there
may be competing ethical values.
 THE TEN-STEP METHOD OF
DECISION MAKING
1. IDENTIFY THE KEY FACTS
2. IDENTIFY & ANALYZE THE MAJOR
STAKEHOLDERS
3. IDENTIFY THE UNDERLYING DRIVING
FORCES
4. IDENTIFY/PRIORITIZE OPERATING
VALUES & ETHICAL PRINCIPLES
5. DECIDE WHO SHOULD BE INVOLVED
IN MAKING THE DECISION1
 METHOD OF
DECISIONMAKING…
6. DETERMINE & EVALUATE ALL VIABLE
ALTERNATIVES

7. TEST PREFERRED ALTERNATIVE WITH A

WORST-CASE SCENARIO

8. ADD A PREVENTIVE COMPONENT

9. DECIDE AND BUILD A SHORT & LONG-

TERM ACTION-PLAN
10. USE DECISION-MAKING CHECKLIST
 1.Obtain the facts relevant to the
decision
• “Role play” key stakeholders to see what
they see as facts.

• Watch out for assuming causative

relationships among coincidental facts
 Reflection 2
• What are the factors that contribute to
make ethical decision to you ?

• What are the challenges to make ethical

decision in your organization?
 2.IDENTIFY & ANALYZE THE
MAJOR STAKEHOLDERS
• Make sure to identify both direct and
indirect stakeholders.

• Genuinely “walk in their shoes” to see

what they value and want as a desired
outcome.
 3.IDENTIFY THE UNDERLYING
DRIVING FORCES
• Think like a M.D. – look for what’s beneath
the presenting symptoms.

• Use these driving forces to develop your

Step 8 preventive component
 4.PRIORITIZE OPERATING
ETHICAL PRINCIPLES
• Think of this step as determining the up-
front “design parameters” for an effective
solution.

• Don’t rush this step – building consensus

here will pay off later.
 5.DECIDE WHO SHOULD BE
INVOLVED IN MAKING THE
DECISION
• All stakeholders have a right to have their
best interests considered.

• If you can’t actually involve all

stakeholders, have someone “role play”
their point of view.
6.DETERMINE & EVALUATE ALL
VIABLE ALTERNATIVES

• Critical: all possible alternatives must pass

the 3-part review-gate criteria.

• Imagine possible consequences of each

alternative cascading down on each
stakeholder.
 7.TEST PREFERRED
ALTERNATIVE WITH A WORST-
CASE SCENARIO
• This step helps prevent a “rush to
judgment” towards a wrong solution.

• Emphasize this step when all stakeholder

interests are not being adequately
considered.
 8. ADD A PREVENTIVE
COMPONENT

• Problem-solving heroes” want to get on to

the next problem and won’t take time for
this step.

• Only immediate-solution decisions usually

come back to bite you.
9. DECIDE AND BUILD A SHORT
& LONG-TERM ACTION-PLAN
• The devil’s usually in the details – take the
time needed to be detailed and
comprehensive.

• Make sure that the means used in your

action-steps correlate with your desired
ends.
 10. USE DECISION-MAKING
CHECKLIST

• Become thoroughly familiar with this end-

point checklist before you get started in
Step 1.

• Don’t allow group-think here -- make sure

everyone involved fills this out individually
 Reflection 3
• Do you have an experience to this step of
decision making process discuss

• What steps/procedures do you follow in

your decision making process? Share your
experience
 Reflection 4
• What is the Benefits of Ethical Decision
Making in organization?
 The Benefits of Ethical Decision
Making
• Accomplish the mission and vision of the
organization effectively and efficiently.

• Maintain standards of ethics to protect public

interest

• Gain Public trust and image

• Ensure sustainability
 Benefits…

• Legitimizes managerial actions,

• Strengthens the coherence
• Develop organization’s culture,
• Improves trust in relationships between
individuals ,teams and groups
• Supports greater consistency in standards and
qualities of products and services
• Cultivates greater sensitivity to see the impact of
actions in the organization
 Description of Highly Ethical
Organization
• At ease interacting with diverse internal and
external stakeholder .
• The ethical values of the organization are
practical.
• Are obsessed with fairness.
• Their ethical values emphasize that the other
persons' interests count as much as their own.
• Responsibility is individual rather than
collective.
• They see their activities in terms of purpose.
 Reflection
“Ethical values, consistently
applied, are the cornerstones in
building a commercially
successful and socially
responsible business.”
 Ethical Organization …
• There exists a clear vision and picture of integrity
throughout the organization.
• The vision is owned by all stakeholders.
• The reward system is aligned with integrity and
performance.
• Policies and practices of the organization are aligned
with the vision; no mixed messages.
• System based, transparent and honest communication
• Every significant management decision has ethical value
dimensions.
• No conflict of interest or well managed
 Reflection
• What is your commitment to make your
organization more ethical organization ?
THANK YOU