Problems in Ethical decision making.docx

Ethical decision-making refers to the process of making choices that align with moral principles and values, ensuring that actions are just, fair, and responsible. It involves evaluating options based on the potential impact on stakeholders, considering both short-term and long-term consequences, and striving to make decisions that promote integrity, respect, and fairness.

1. BUSINESS ETHICS AND CORPORATE GOVERANCE (24BALC032)
UNIT 2
Ethical decision-making
Ethical decision-making refers to the process of making choices that align with moral principles and
values, ensuring that actions are just, fair, and responsible. It involves evaluating options based on the
potential impact on stakeholders, considering both short-term and long-term consequences, and
striving to make decisions that promote integrity, respect, and fairness.
Key elements of ethical decision-making include:
1.Identifying the ethical issue: Recognizing when a situation involves a moral dilemma or
ethical concern.
2.Gathering information: Collecting relevant facts, understanding the stakeholders involved,
and considering the context of the decision.
3.Considering alternatives: Exploring different courses of action and their possible outcomes.
4.Evaluating consequences: Weighing the benefits and risks associated with each alternative
from an ethical perspective, considering both the short and long-term effects.
5.Making a decision: Choosing the action that best aligns with ethical principles, such as
fairness, honesty, and justice.
6.Taking responsibility: Acknowledging the impact of the decision and being accountable for
its consequences.
7.Reflecting: After the decision has been made, reflecting on the process and outcomes to learn
from the experience.
Problems in Ethical Decision making
1. Lack of Information and Awareness
Ethical decisions often suffer when individuals lack the necessary information or are unaware of
ethical guidelines. Without a clear understanding of the rules or consequences, people may
unintentionally make unethical choices.
Example: An employee might unknowingly misuse company data because they were never trained on
data privacy policies.
2. Cultural and Personal Bias
Cultural norms and personal beliefs can affect how people perceive right and wrong, leading to biased
ethical decisions. These biases can cause unfair treatment or discrimination without the decision-
maker realizing it.
Example: A manager may favor hiring candidates from their own cultural background, assuming they
will “fit in better,” ignoring more qualified applicants.

2. 3. Pressure from Peers and Superiors
People may feel compelled to act unethically due to pressure from colleagues or bosses, fearing
rejection, punishment, or job loss. This pressure can override their personal judgment.
Example: An employee might falsify sales reports because their manager insists on meeting
unrealistic targets.
4. Ambiguity in Rules and Expectations
When company policies or rules are unclear or contradictory, individuals may struggle to determine
what is ethically correct, leading to poor choices.
Example: If a company says “always prioritize the customer” but also “never give discounts,”
employees may not know how to act when a loyal customer requests a price reduction.
R5. Conflict Between Personal Values and Company Policy
Sometimes, an employee’s personal ethics clash with company policies, creating difficult choices.
Following company rules might feel like a betrayal of one’s moral beliefs.
Example: A worker who values honesty may be uncomfortable promoting a product they believe is of
poor quality, but company policy requires aggressive marketing.