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11
Making Ethical Decisions
David LongCanterbury Christ Church University
IPW Helsinki Metropolia Business School, Finland May 13 – 17 2013
22
Aims of this Lecture
To explore:
• Why both ethical and unethical decisions get made in the workplace;
• Individual differences shaping ethical decision-making;
• The effect of situational influences on ethical decision-making.
Pluralism?
For practical purposes of making effective decisions in business:
• There is no one theory or approach which is the best or true view of a moral dilemma
• A variety of theoretical approaches throw light from different angles on any particular problem
• Theories and views about ethics should be regarded as complementary rather than mutually exclusive
• Pluralism is a middle ground between moral absolutism and relativism
Crane & Matten, 2010
Recognise Moral Issue
Make Moral
Judgement
Establish Moral Intent
Engage in Moral
Behaviour
Stages in Ethical Decision Making
Source: Crane & Matten 2010
The Ethical Decision Making Process:
55
Influences on Ethical Decision-Making
Two broad categories: individual and situational (Ford and Richardson 1994):
Individual factors - The unique characteristics of the individual actually making the relevant decision. birth factors acquired by experience and socialisation
Situational factors - The particular features of the context that influence whether the individual will make an ethical or unethical decision.
• the ethical framing of the issue.• the issue itself (such as the intensity of the moral issue) .
Personal Values
Opportunity
Significant Others:
Managers & Peers
Ethical Decisions
Significant Others are the Most Influential Factor in Ethical, Organisational Decision Making
Source: Ferrell, Fraedrich & Ferrell 2002
77
IndividualEthical
Decisions
Age and Gender
National and Cultural
Characteristics
Education &Employment
Personal Values and Integrity
MoralImagination
Psychological Factors
(source: Crane & Matten 2007 p137)
Individual Influences on Ethical Decision-Making
Locus ofControl
88
Kohlberg’s Cognitive Moral Development:different levels of ethical reasoning
Stage 2
Follow rules only if in own interests
Stage 1
Obey rulesAnd avoid
punishment
Stage 3
ConformTo meet
expectations of others
Stage 4
BroaderConsideration
of socialaccord
Stage 5
Understand rights and values are
relative
Stage 6
Autonomous decisions act with integrity
Pre-ConventionalUsually associated with
children
ConventionalMost people think
This way
Post-ConventionalVirtuous people with a
strong internal moral compass
Moral Development
e.g unofficial covering fora colleague
e.g personal use of company resources
e.g not purchasing productstested on animals
(source: Crane & Matten 2007 p142)
99
So, Why do Good People Make Unethical Choices?
• Challenge of how to hold on to your integrity and values, despite organisational pressures that create moral dilemmas!
• Reality is often making the ‘least worst’ choice
• Factors contributing to organisational misconduct: Bad examples Alien cultural environment Blaming the victim Failure of individual moral responsibility (Green R The Ethical Manager).
1010
Pressures in the Workplace
• Pressure to perform From superiors ‘Bottom line’ management
• Rewards and punishment Do people get promoted for ethical behaviour? People generally do what is rewarded Less likely to do what is punished
• Peer pressure To go with the crowd Group norms Need to be accepted and fear of being ostracized.
1111
Explaining Unethical Behaviour
Ethical distance• Moral conscience diluted by psychological distance
Diffused Responsibility• No single individual responsible in a group/team• ‘Group think’ shared decisions • Obscured by hierarchies
Rationalisation of unethical behaviour• ‘Everyone’s doing it’• People are more likely to recognise acts as unethical if there is
a social consensus.
1212
Abstraction to Escape Moral Responsibility
Gabriel Marcel (1962) Man Against Society ‘Abstraction’ – a way of distancing ourselves from ethical
problems Power of abstraction – at the root of war Use of abstract terms – the enemy, terrorists etc The more we remove ourselves from regarding others as human
beings, the more we will be willing to do outrageous things to them.
1313
The Concept of Neutralisation
A term used to explain behaviour that is at odds with an individual’s preferred option or is incongruent with accepted social norms.
Typical examples might be:
• Delinquent behaviour• The moral injunction of killing does not apply in war• Consumer choices at the supermarket
(Source: Chatzidakis et al Journal of Business Ethics (2007) 74: 89-100)
1414
Five Categories of Neutralisation
1. Denial of responsibility – “its not my fault”
2. Denial of injury or benefit – “what’s the big deal?”
3. Denial of victim – “its their fault”
4. Condemning the condemners – “it’s a joke after what they’ve
done”
5. Appeal to higher authorities – “I did it for you”
(Source: Chatzidakis et al Journal of Business Ethics (2007) 74: 89-100)
1515
Managing Ethical Behaviour
Loyalty to the group Can be powerful and difficult to counteract
Roles Role models and setting of standards Professionalism (ethical behaviour more likely) Use of power Conflicting roles (can lead to unethical
behaviour).
Institute of Business Ethics Decision Making Framework
Transparency – Do I mind others knowing what I have intended?
Effect - Who does my decision affect or hurt? Fairness – Would my decision be considered fair by those
affected?
(Institute of Business Ethics 2011)
“All that is necessary for evil to triumph is for good men and women to do nothing”.
Edmund Burke
1818
Making Ethical Decisions -Summary
• In this lecture we have:
Discussed the stages of ethical decision-making in business
Outlined individual and situational influences on ethical decision-making
Evaluated why good people often make unethical decisions in business.