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Ethical Decision Making

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Abinash Rath

on 26 April 2018

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Transcript of Ethical Decision Making

Process and controlling factors
Ethical Decision Making
How business people take ethical decisions and why they do so ?
Affecting EDM
Situational Factors

Moral Intensity
Moral Framing

Work roles
Organizational Culture
Avoidance strategies

Denial of responsibility
Social weighting
Metaphor of ledger
Affecting EDM
Individual factors
3.National and cultural
4.Education and employment
5.Psychological Factors
6.Personal values and integrity
7.Moral imagination
Abinash Rath
Three steps in Ethical Decision Making
Recognize an ethical issue
Apply relevant ethical theories
Establish moral intent and take decision
Case study : Malibu car by General motors (1984)
1. Fuel tank on the front.
2. Possibility of fuel fed fires in case of head on collison.
3.Estimated 500 fatalities per year with damage claim of 2 lakhs usd per car.
4.With sales of 41 million cars per year , each fatality cost = 2.40 usd per car.
5. Replacement cost of 8.59 usd per car.
6. Using cost benefit analysis GM allowed the dangerous design with a savings of 6.19 usd per car.
US Chamber of Commerce held the decision as:

" hallmark of corporate good behavior "
Philosopher Alasdiar Macintyre argues :
"The executive has to calculate the most efficient ,the most economical way of mobilizing the existing resources to produce the benefits "
This type of cost benefit analysis is extremely prevalent in organizational decision making .
Whether we use normative theories for EDM ?
How we use normative theories for EDM ?
EDM depends upon a range of
factors .
Are women more ethical than men ?

The way in which men and women think and act in response to ethical dilemmas may differ.
10 yrs
30 yrs
60 years
Does age makes any difference ?
National and Cultural
Geert Hofstede's research
Individualism vs collectivism
Power distance
Uncertainty avoidance

Money vs People
Long term vs short term orientation
Education and employment
Psychological factors
1.Cognitive moral development ( CMD )
2.Locus of control
Stages of moral development
I m not OK you are OK
I m NOT OK you are NOT OK
I m OK you are NOT OK
I m OK you are OK
Locus of control :

1.Internal LOC
2.External LOC
1.Issue related
2.Context related
Moral intensity
Magnitude of consequences
Social consensus
Probability of effect
Temporal immediacy
Concentration of effect
Moral Framing
The same problem or dilemma can be perceived very differently according to the way that the issue is framed

Facilitation payment
The actors believe that they have no
other choice than to participate in such behavior.
"Its none of my business what the company
is doing in oversees bribery"
1.Condemn the condemner
2.Selective social comparison.
"You have no right to criticize us .
Others are worse than us ."
Actors believed they are entitled to engage in deviant behavior because of their accrued credits.
Reward system
"People are likely to do what they
are rewarded for'
"The issue will be felt more intensely if the consequences are significant."
"Moral intensity will increase when it is deemed unethical by others too."
Downloading illegal movies and music from internet.
Smoking is injurious to health.
Feeling of nearness.
Theft from Bank ( 1 crore )
Theft from Home ( 1 crore )
denial of responsibility
Social weighting
Metaphor of ledger
People do what they are told to do
or what they think they’re being told to do ?
Full transcript