Chapter Two:

Ethical Decision
Making: Personal
and Professional
Contexts

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• A Decision-Making Process for Ethics 1
An initial sketch of an ethical decision-making process.
• The first step is to determine the facts of the
situation.
– Perceptual differences surrounding how
individuals experience and understand
situations can explain many ethical
disagreements in a situation.
– An ethical judgment made in light of a diligent
determination of the facts is a more
reasonable ethical judgment than one made
without regard for the facts.
• A second step requires the ability to recognize an
ethical decision or an ethical issue—then identify
the ethical issues involved.
– The first and second steps may arise in a
reverse order in some circumstances.
– Economic decisions and ethical decisions are
not mutually exclusive.
– An ethical decision should be made based on
how it would affect the well-being of all the
people involved.

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• A Decision-Making Process for Ethics 2

Some call the Others warn of Change blindness Third step is to Many perspectives
inability to inattentional occurs when identify and to and interests at
recognize ethical blindness, which is gradual change consider all of the stake means that
issues as a result of focusing goes unnoticed people affected by ethical decisions
normative myopia, on too narrow a over time. a decision, the often involve
or range of questions. people often called conflicts and
shortsightedness stakeholders. dilemmas.
about values.
When we focus on the
wrong thing, or fail to
focus, we may fail to see
key information that will
lead us to success or
prevent unethical
behavior.

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• Figure 2.1: Stakeholder Map

The third step involved in ethical decision making

requires decision makes to identify and to consider all of
the people affected by a decision, the people often called
stakeholders.
Access the text alternative for slide image.

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• An Ethical Decision-
Making Process 1 Determine the facts.

Identify the ethical issues

involved.

Identify stakeholders and

consider the situation from
their point of view.

Consider the available

alternatives—also called
using moral imagination.

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• An Ethical Decision-Making Process 2

Compare and weigh the alternatives, based on:

• Consequences (for all stakeholders).

• Duties, rights, principles.
• Implications for personal integrity and character.

Make a decision.

Monitor and learn from the outcomes.

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• A Decision-Making Process for Ethics 3

The fourth step is to consider the available alternatives.

• When facing an ethical decision, moral imagination is the ability to
envision various alternative choices, consequences, resolutions, benefits,
and harms.

The fifth step in the decision-making process is to compare and

weigh the alternatives on each stakeholder you defined.
• The point of this exercise is to recognize that a responsible and ethical
decision should be explainable, defensible, and justifiable to all
stakeholders involved.
• Some alternatives might concern principles, rights, or duties that override
consequences.
• Decision making requires consideration of the effects of a decision on
one’s own integrity, virtue, and character.
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• A Decision-Making Process for Ethics 4

Once the variables are explored, the sixth step is to make a

decision.
• Making a decision in business usually means formulating a plan and
carrying it out.

The final step is to evaluate the implications of the decisions, to

monitor and learn from the outcomes, and to modify actions
accordingly when faced with future similar challenges.

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• Ethical Decision Making 2

On an important decision one rarely has 100% of the information

needed for a good decision no matter how much one spends or
how long one waits. And, if one waits too long, he has a different
problem and has to start all over. This is the terrible dilemma of
the hesitant decision maker.
Robert Greenleaf

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• When Ethical Decision Making Fails 1

Some stumbling blocks to responsible decision making are

intellectual or cognitive.
• Ignorance.
• Considering only limited alternatives.
• Finding comfort in simplified decision rules.
• Selecting the alternative that satisfies the minimum decision criteria, also
known as satisficing.

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• When Ethical Decision
Making Fails 2 Other stumbling blocks
to decision making are
more a question of
motivation and
willpower.
• Sometimes it is easier to do the
wrong thing.
• Sometimes people make
decisions that they regret later
because they lack the courage
to do otherwise at the time.
• Courage is also needed when
responding to peer pressure.

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• Ethical Decision Making in Managerial Roles
Within a business setting, individuals must consider the ethical
implications of both personal and professional decision making.

Some of our roles are social and some roles are institutional.
• Social roles are friend, son or daughter, spouse, citizen, neighbor.
• Institutional roles are employees, managers, employees, parents, children,
professor, and president of a student club.

Managers, executives, and board members have the ability to

create and shape the organizational context in which all
employees make decisions.
• They have a responsibility to encourage ethical behavior and discourage
unethical behavior.

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