This document discusses ethical decision making in business. It outlines several models that guide ethical decision making, including rights theory, justice theory, and utilitarianism. It also discusses influences on ethical decision making like personal moral standards, workplace ethics and culture, and the nature of ethical issues. Key factors in ethical decision making are developing trustworthiness, respect, responsibility, fairness, caring, and good citizenship. Managers must balance different stakeholder interests and address complex issues with human-centered solutions.

2. Ethical Decision Making in Business
Introduction
In an organization, the managers and the executives are encountered with hundreds of situations
where they need to make prudence decisions which are morally and ethically justifiable. In a
company there are set rules, need for hierarchical sanctions, department pressures, the need for
cost cutting and enchanting profit, maintaining the reputation of the company and considering the
interests of all pressure groups and stakeholders. Though there is no fixed outline for making
ethical decisions, there are some factors that would influence one’s decision can be understood.
However, based on the different case studies, research findings, we can conceptualize a framework
for understanding ethical decision making in business.
Ethical models that Guide Decision Making
There are several theories that came into the realm of business philosophy over the years which
provide certain benchmarks to set organizational or professional standards or help develop a basis
for normative judgement that could transcend organizational or professional cultures. But it is
manifested that business theorists, have not made much use of these theories that could offer
models of ethical decision making due to-
(i) ethical theories and their relevance to business research are not easily understood by business
theorists
(ii) ethical theories, being normative, are difficult to put into practice
At present, three models based on rights, justice and utilitarianism are prominent and used more
than others.
Rights Theory
The right-based theories were advocated by Immanuel Kant who stressed personal rights, and
Locke who underlined the importance of property rights. They focused on the entitlements of
individuals as persons with dignity and held the view that ethical decisions should protect the legal
and moral rights that an individual is entitled to. According to ethicists these individual rights
would include the rights to (1) free consent, (2) freedom of conscience, (3) privacy, (4) free space,
and (5) due process. According to DeGeorge, there is considerable overlapping of legal and moral
rights. But while legal rights are protected by law, moral rights are to be protected by society.
Rights imply corresponding duties, especially the duty to respect others’ rights.
Justice Theory
Chronologically, Justice theories precede rights theories and can be traced to Greek philosophers,
Plato and Aristotole in the fifth century BC. These theories advocate that all persons should be
guided by fairness, justice, equity and by a sense of impartiality. Rawls depicted the modern
context where he outlined that ethical decisions should results in a situation where all human
beings are treated equally, and in case some are treated unequally, it must be based on some
defensible reasons. Equality is the based-on justice. Disparity in incomes between top management

3. and the workers in widening almost every decade even in emerging economies which poses us in
an ethical dilemma which was explained in the article of Marrkkula Center, “A framework for
thinking Ethically.”
Utilitarianism
Utilitarianism is an ethical theory that states that the best action is the one that maximizes utility
or produces the greatest good for the largest number of people. "Utility" is defined in various
ways, usually in terms of the wellbeing of sentient entities. Jeremy Bentham, the founder of
utilitarianism, described utility as the sum of all pleasure that results from an action, minus the
suffering of anyone involved in the action. Utilitarianism is a version of consequentialism, which
states that the consequences of any action are the only standard of right and wrong. Unlike other
forms of consequentialism, such as egoism and altruism, utilitarianism considers the interests of
all beings equally. According to Barry, a chosen action may not lead to greatest benefit to a large
body of persons in every situation but over the long run they will results in greatest societal benefits
compared to the other alternatives.
In two situations, utilitarian-based theories will be considered unethical:
(1) decision that’s bring about personal gain at the cost of society’s benefit
(2) decisions that results in inefficient attainment of desired ends
The utilitarian approach has a double-edged focus to a ethical problem: to increase the good done
and to reduce the harm done.
The Virtue Approach
This approach advocates that ethical actions should be consistent with certain morally acceptable
virtues that would pave the way for full development of humanity.
The virtuous persons are the ethical persons, virtues are like habits, once acquired turn into
characteristics of a person. To decide, two question arises,
What kind of a person I will be if I do this?
Or, is this action consistent with my acting as an ethical person?
Virtues are honesty, integrity, courage, compassion, love, fidelity, tolerance, prudence, sense of
fairness, sacrifice and self-control. Virtuous people are: Mahtma Gandhi, Mother Teresa, Jawharlal
Neheru.
The Common Good Approach
The common good approach, like the justice Approach advocated by Greek philosophers,
identifies that societal view that life in a community is good in itself and it is moral responsibility
of each person not only to contribute, but also to enrich it. It draws attention to the establishment
and maintenance of law and order, policing and fire service, health care, public education, places
of amusements to promote the overall welfare in society. The ethical action is one that is for the
greater good and that contributes most to the achievement of a quality common existence.

4. Which approach to use?
Each of the theories discussed has its own strengths, weaknesses and followers. Though all the
theories can be claimed to be a set of ethical principles, each theory addresses an ethical aspect of
behavior. It is difficult to arrive at a standard answer on which approach to use but ethicists
Velasquez, Cavanagh and Moberg have provided a schematic for ethical decision making that uses
3 criteria – utility, rights and justice together. According to these authorities, if an action meets all
of the three criteria, it is considered ethical. Carol has suggested a system which uses an “ethics
screen” which includes ethical principles, ethical tests and standards which could be personal,
organizational or societal.
Ethical Decision Making with Cross-holder Conflicts and Competition
The problem for ethical decision making becomes more complicated with the conflicts of
shareholders’ interests in business. There are many situations that occur very often in industries
that arise conflicting interests of shareholders. For instance, when an organization with a view to
increasing profits and declaring higher dividends to shareholders on a long-term basis, resorts to
the introduction of high-technology labor-saving devices and dismissal of its labor in hundreds.
This leads to a very complex ethical decision making to managers. Though managers are obliged
to the shareholders to make provisions for declaring high dividend, the adopted measures of cost
cutting through dismissal of hundreds of employees will create severe human problems as well as
an ethical dilemma for managers. This type of situation calls for a solution with a “human face”.
For example, the managers can ensure that the displaced employees from one division can be
trained suitably to enable them to be absorbed in the company’s other divisions. This type of
solution is not an easy job so ethicists find it difficult to offer a proper solution to these conflicting
situations. Barry proposed the following decision making rules regarding cases of conflicts and
mixed effects:
1. Choose the more important obligation between the two or more obligations.
2. Choose an action of higher ideal when two or more ideals conflict or when ideals conflict
with obligations.
3. Choose the action that produces the greater good, or the lesser harm, when the effects are
mixed.
Applying Moral Philosophy to Ethical Decision Making
Moral philosophy means the principles or values that people use to decide what is wrong and what
is right. Individuals use different moral philosophies depending on whether they are making a
personal or making a work-related decision. This difference may arise because the kind of goals
and pressures that motivate persons to achieve success in work environment does not exist in their
domestic or personal lives. For example, an executive if asked by his manager, may prepare an
exaggerated expenditure account for his department for necessary sanction so that his department
will have a comfortable annual budget with no constraint in expenditure but when he has to make
his own domestic expenditure he cannot be so generate and has to stay within his means.
Another reason why persons change their moral philosophies when applying them to ethical
decision making may be due to corporate culture. So when a person joins a new firm, he or she

5. may try to change certain values within his or her moral philosophy to suit the moral philosophy
of the new firm.
Another constraint that one faces in applying moral philosophies in ethical decision making in
personal or business environment, is its inexact or unscientific nature. In implementing moral
philosophies from an individual perspective requires persons to make their own decisions based
on what is right or wrong. However, in business perspective that is not enough because one has to
consider the business culture and policies and understand whether this decision will produce
greatest benefits and less harm to the business.
Applying moral philosophy in ethical decision making is important to ensure the business success
and maintain a harmony in the environment. Ignoring moral philosophy may lead to conflicts
among employees or employers. It may also result into bad decision making which may harm
individuals or businesses. If the employees face problems that they cannot solve successfully in
ethical decision making with the help of moral philosophy, a clear understating of the basic premise
of their decision rationale can help them have a firm grasp of the situation and take sound decisions
Kholberg’s Model of Cognitive Moral Development
Lawrence Kohlberg’s stages of moral development, a comprehensive stage theory of moral
development based on Jean Piaget’s theory of moral judgment for children (1932) and developed
by Lawrence Kohlberg in 1958. Cognitive in nature, Kohlberg’s theory focuses on the thinking
process that occurs when one decides whether a behavior is right or wrong. Thus, the theoretical
emphasis is on how one decides to respond to a moral dilemma, not what one decides or what one
actually does.
Kohlberg identified three levels of moral reasoning: pre-conventional, conventional, and post-
conventional. Each level is associated with increasingly complex stages of moral development.

6. Level 1: Pre conventional
Throughout the pre-conventional level, a child’s sense of morality is externally controlled.
Children accept and believe the rules of authority figures, such as parents and teachers. A child
with pre-conventional morality has not yet adopted or internalized society’s conventions regarding
what is right or wrong, but instead focuses largely on external consequences that certain actions
may bring.
Stage 1: Obedience-and-Punishment Orientation
Stage 1 focuses on the child’s desire to obey rules and avoid being punished. For example, an
action is perceived as morally wrong because the perpetrator is punished; the worse the punishment
for the act is, the more “bad” the act is perceived to be.
Stage 2: Instrumental Orientation
Stage 2 expresses the “what’s in it for me?” position, in which right behavior is defined by
whatever the individual believes to be in their best interest. Stage two reasoning shows a limited
interest in the needs of others, only to the point where it might further the individual’s own
interests. As a result, concern for others is not based on loyalty or intrinsic respect, but rather a
“you scratch my back, and I’ll scratch yours” mentality. An example would be when a child is
asked by his parents to do a chore. The child asks “what’s in it for me?” and the parents offer the
child an incentive by giving him an allowance.
Level 2: Conventional
Throughout the conventional level, a child’s sense of morality is tied to personal and societal
relationships. Children continue to accept the rules of authority figures, but this is now due to their
belief that this is necessary to ensure positive relationships and societal order. Adherence to rules
and conventions is somewhat rigid during these stages, and a rule’s appropriateness or fairness is
seldom questioned.
Stage 3: Good Boy, Nice Girl Orientation
In stage 3, children want the approval of others and act in ways to avoid disapproval. Emphasis is
placed on good behavior and people being “nice” to others.
Stage 4: Law-and-Order Orientation
In stage 4, the child blindly accepts rules and convention because of their importance in
maintaining a functioning society. Rules are seen as being the same for everyone, and obeying
rules by doing what one is “supposed” to do is seen as valuable and important. Moral reasoning in
stage four is beyond the need for individual approval exhibited in stage three. If one person violates
a law, perhaps everyone would—thus there is an obligation and a duty to uphold laws and rules.
Most active members of society remain at stage four, where morality is still predominantly dictated
by an outside force.

7. Level 3: Post conventional
Throughout the post conventional level, a person’s sense of morality is defined in terms of more
abstract principles and values. People now believe that some laws are unjust and should be changed
or eliminated. This level is marked by a growing realization that individuals are separate entities
from society and that individuals may disobey rules inconsistent with their own principles. Post-
conventional moralists live by their own ethical principles—principles that typically include such
basic human rights as life, liberty, and justice—and view rules as useful but changeable
mechanisms, rather than absolute dictates that must be obeyed without question.
Stage 5: Social-Contract Orientation
In stage 5, the world is viewed as holding different opinions, rights, and values. Such perspectives
should be mutually respected as unique to each person or community. Laws are regarded as social
contracts rather than rigid edicts. Those that do not promote the general welfare should be changed
when necessary to meet the greatest good for the greatest number of people. This is achieved
through majority decision and inevitable compromise. Democratic government is theoretically
based on stage five reasoning.
Stage 6: Universal-Ethical-Principal Orientation
In stage 6, moral reasoning is based on abstract reasoning using universal ethical principles.
Generally, the chosen principles are abstract rather than concrete and focus on ideas such as
equality, dignity, or respect. Laws are valid only insofar as they are grounded in justice, and a
commitment to justice carries with it an obligation to disobey unjust laws. People choose the
ethical principles they want to follow, and if they violate those principles, they feel guilty. In this
way, the individual acts because it is morally right to do so (and not because he or she wants to
avoid punishment), it is in their best interest, it is expected, it is legal, or it is previously agreed
upon. Although Kohlberg insisted that stage six exists, he found it difficult to identify individuals
who consistently operated at that level.
Moral development plays an important role in our social interactions. Understanding how and why
individuals make decisions regarding moral dilemmas can be very useful in many settings.
Kohlberg’s theory of moral development provides a framework in which to investigate and begin
to comprehend how moral reasoning develops within individuals.
INFLUENCES ON ETHICAL DECISION MAKING
There are three major factors influencing an employee in business decision making. These are:
• Personal moral standards
• Workplace ethics and culture
• Nature of issues
Ethical dilemmas arise upon business persons in cases of cutting raw material cost or laying off
labors to increase dividends to shareholders. Also, the lack of time to contemplate and reflect on
alternate course of action without compromising their ideals arises due to higher work pressure

8. and competition in market. This type of situation forces to take unethical actions like fake discounts
or low quality of product to be marketed. There are situation where it is seen that fair minded
people have difference of opinions for ethical decision making in a particular situation. Though,
trained sensitivity to ethical issues might be helpful for proper decision making, it is also important
for a person to have full grasp of implications of choices, ability to evaluate complex, ambiguous
and incomplete facts and other skill to implement ethical decisions effectively.
Apart from the personal strong personal beliefs, one should also have a framework of reliable
principle to work on and procedure to apply those in specific ethical problems. To make ethical
decisions an individual has to reckon two sets of values, which are:
• Own personal value
• Value of workplace
The ethical conviction may take place due to influence of factors such as family background,
upbringing, education, culture, religion belief, friends circle, organizational value, professional
norms, law and political habits and the person’s stage of moral development.
WORK PLACE ETHICS
Workplace ethics are the moral principles that guide a person's actions in the workplace. Ethical
standards can vary from industry to industry, and from position to position within an industry. If
the corporate culture is straightforward as per mission and vision are statement and well laid
politics and strongly protected of stakeholders, then it will not create any issues for an ethically
sensitive employee. But, if the culture is haughtiness and full of political biasness then ethical
issues in personal and professional roles are bound to arise.
NATURE OF ETHICAL ISSUES
Ethical issues may arise on the basis of personal human traits and philosophies. In the workplace,
various events may take place where the employees are bound to take part in certain occasions
which may hurt their religious or philosophical viewpoints. This situation forces the employee to
be in an ethical dilemma of weather should he do it or not. As a result, often conflict between
management and employees may rise within the organization.
PERSONAL VALUES AND ETHICAL DECISION MAKING
An ethical decision maker need to develop certain values, which are also known as the six pillars
of character. These are:
• Trustworthiness
• Respect
• Responsibility
• Fairness
• Caring

9. • Citizenship
This six pillars creates a multi-level filter through which our ethical decision making process is
proceeded and the quality of decision making is very high when these are followed.
Trustworthiness:
A trustworthy company is upfront and honest in all actions, including interaction with employees
and customers. When representatives of a company uphold ethical standards, they help build a
positive reputation for a company. Making commitments and following through with them also
demonstrates trustworthiness. Honesty involves following established rules and telling the truth at
all times. Traits of trustworthiness are:
• Be honest
• Don’t deceive, cheat, or steal
• Be reliable — do what you say you’ll do
• Have the courage to do the right thing
• Be loyal — stand by your family, friends, and country
Respect:
All people have an inherent right to receive respectful treatment. A respectful company and its
employees will extend this type of respect to everyone, including employees, customers, and
competitors. Extending tolerance to others is another facet of respect. Civility and courtesy, even
in unpleasant situations, shows a respectful attitude. Traits of respect are:
• Treat others with respect; follow the Golden Rule
• Be tolerant and accepting of differences
• Use good manners, not bad language
• Be considerate of the feelings of others
• Don’t threaten, hit or hurt anyone
• Deal peacefully with anger, insults, and disagreements
Responsibility:
Management and employees often make decisions on behalf of a company. These decisions will
have consequences and ramifications. Responsible professional behavior involves being
accountable for decisions without trying to move blame elsewhere. Even something as basic as
making timely payments on small business loans is an important part of responsible business

10. behavior. Another part of responsibility is diligence and a desire to succeed. When employees
work hard to represent a company in an ethical manner, everyone benefits. The traits are:
• Do what you are supposed to do
• Plan ahead
• Persevere
• Use self-control
• Be self-disciplined
• Think before you act — consider the consequences
• Be accountable for your words, actions, and attitudes
Fairness:
Consistent business dealings and transactions demonstrate fairness. A company should institute a
balanced code of conduct that serves everyone, including the business and the customers. For
example, customers need a product or a service provided by the company, and the company needs
to make a profit while serving the needs of customers. The customers have the right to receive
high-quality goods or services, and the company has the responsibility to provide this. The
customers also have the responsibility to pay for the goods or services received, and the company
has the right to receive compensation for good or services provided. The traits are:
• Play by the rules
• Take turns and share
• Be open-minded; listen to others
• Don’t blame others carelessly and be fair
Caring:
Extending a caring attitude toward customers and employees is part of positive ethics. A business
can demonstrate this type of caring by helping customers when possible, listening to concerns, and
expressing gratitude. Customers each may have individual concerns and problems. A company
might not always be able to resolve these issues, but showing concern is a positive attribute for a
company. The traits of caring are:
• Be kind
• Be compassionate and show you care
• Express gratitude and forgive
Citizenship:

11. A business is a part of a community, both on a small and large scale. A business should conduct
itself within the laws of the community. A business can also demonstrate a civic-minded mentality
by assisting the community in various ways. Some companies may participate in corporate
volunteering efforts to benefit a community. Other companies may make corporate donations to
help various organizations within a community.
• Volunteer and protect environment
• Get involved in community affairs and cooperate
• Obey rules and respect authority
Corporate values and ethical decision making
Corporate culture can be defined as a set of values, belief goals, norms and ways of solving
problems that an organization’s employee share and live up with in their work environment.
Organizational culture depends on the individual’s moral values and standard. Specially working
environment, mission, vision and corporate values influence individual to take their decision. In
organization decision are mostly taken through committee, discussion or meetings of responsible
group. Employees must go with the culture by taking the corporate values otherwise it may create
a chaos.
Organization may have developed a culture that is consumer oriented. In this culture organization
are concern of consumer, their comfortability, satisfaction. If consumers are happy then
Corporations are too. Other corporation may develop employee centered policies which more
focused of employees. Other can be result oriented. These organization only think of profit. Other
standard of culture may invalid. Every organization is focused of profit otherwise they will not
survive.
Ethical conscience are the standard that represent the work or activity should be done. Organization
must develop an ethical climate. By ethical conscience a fraud activity can be defined. It actually
present the motive of individual or organization. Enron wanted to show more profit to stockholder
for enhancing capitalization. Here ethical conscience was secondary because their main motive
was capitalization so they published profit statement.
Ethical decision making helps people make difficult choices when faced an ethical dilemma a
situation in which there is no clear right or wrong answer.
There are 3 steps of making ethical decision:
• Ethics of obedience: this present law related obedience as well as moral values.
• Ethics of care: it engages empathy to take decision.
• Ethics of reason: it engages our rational brain about the legitimacy of the work.
Role of corporate governance in ensuring ethics in workplace

12. Corporate governance is the mechanism and processes by which corporation is directed and
controlled. Basically it is kind of rules, formal codes and policies which help organization to run
in an effective way. Every organization have these and trying to implement them. Corporate
governance centers such values as integrity, accountability, transparency and disclosure of
financial and non-financial information. How corporate governance facilitate? It gives proper
explanation of the board including risk, corporate performance, fair accounting and reporting
system, monitoring effectiveness and changing them.
A Framework of Ethical decision making-
Making an ethical decision is a tough task. In our personal lives, we choose what is right or wrong
based on our moral preferences. But when it comes to organizations, the decision making becomes
much more complex. That no longer depends on individual perspective.
Sometimes the power to choose is not self-evident. Outside control and inner emotions can leave
one feeling powerless. Especially when one is young or immature, feelings of joy and depression,
anger, fear, frustration, grief, anxiety, resentment, jealousy, guilt, loneliness, love seem to come
and go on their own, creating moods that may seem beyond control. The intensity of our feelings
can encourage us to act and react impulsively as if we had no choice. We may not have the power
to do everything we want to do, but we still have the power to decide what to do with what we
have. And that is power enough.
Taking help from Michael Josephson’s groundwork for making ethical decisions, we can construct
the following components of good choices.
• Take choices seriously- We all make thousands of decisions daily. Most of them do not
justify extended forethought. They are simple, repetitive or without significant
consequence. In such cases, it may be safe to just go with our feelings. It’s OK to decide
spontaneously what to wear and eat and what to say in casual conversations. When the
issues are not morally complex and the stakes are small, our normal instincts are sufficient.
The problem comes when we don’t distinguish between minor and potentially major issues,
when we “go with the flow” in situations that demand a much more careful approach.
• Good decisions are both ethical and effective-
Ethical Decisions- A decision is ethical when it is consistent with the Six Pillars of
Character. Ethical decisions generate and sustain trust; demonstrate respect, responsibility,
fairness and caring; and are consistent with good citizenship. If we lie to get something we
want and we get it, the decision might well be called effective, but it is also unethical.
Effective Decisions- A decision is effective if it accomplishes something we want to
happen, if it advances our purposes. A simple test is: are you satisfied with the results? A
choice that produces unintended and undesirable results is ineffective.
• Discernment and Discipline- There are two critical aspects to ethically sound decisions:
knowing what to do and doing it.

13. Discernment- The first requirement of good decisions is discernment. It is not obvious to
everyone, for example, that it is just as dishonest to deliberately deceive someone by half-
truths and omissions as to tell an outright lie. It’s also not always clear how to respond
most effectively. Discernment requires knowledge and judgment.
Discipline- Good decisions also require discipline, the strength of character to do what
should be done even when it is costly or uncomfortable. It’s not enough that we discern the
ethical and effective course; we must follow it. This often takes will power or moral
courage: the willingness to do the right thing even when it is inconvenient, scary, difficult
or costly.
The process of making good ethical decisions-
To make good decisions, we should have a belief in the importance of ethics, an ethical
sensitivity to the implications of the various choices we have, the ability to evaluate facts
at our disposal which may be incomplete, complex, contentious and even ambiguous and
the skill to implement effectively the ethical decisions we make.
Here is the process one should follow to make good ethical decisions-
1. Recognize and identify the kind of ethical issue you need to resolve-
First and foremost, we have to recognize the ethical issue and then seek answers
regarding the nature of the issue, the conflict it raised and how the decision will
have impact on the people involved. We have to think about potential positive and
negative consequences for affected parties by the decision (Focus on primary
stakeholders to simplify analysis until you become comfortable with the process).
What are the magnitude of the consequences and the probability that the
consequences will happen, all these things need to be considered before making a
decision.
2. Pause and Think-
One of the most important steps to better decisions is the oldest advice in the world:
think ahead. To do so it’s necessary to first stop the momentum of events long
enough to permit calm analysis. This may require discipline, but it is a powerful
tonic against poor choices. The well-worn formula to count to 10 when angry and
to a hundred when very angry is a simple technique designed to prevent foolish and
impulsive behavior. But we are just as apt to make foolish decisions when we are
under the strain of powerful desires or fatigue, when we are in a hurry or under
pressure, and when we are ignorant of important facts.
Just as we teach our children to look both ways before they cross the street, we can
and should instill the habit of looking ahead before they make any decision.
Stopping to think provides several benefits. It prevents rash decisions.
It prepares us for more thoughtful discernment. And it can allow us to mobilize our
discipline.

14. 3. Make sure of your goals-
Before you choose, clarify your short- and long-term aims. Determine which of
your many wants and don’t-wants affected by the decision are the most important.
The big danger is that decisions that fulfill immediate wants and needs can prevent
the achievement of our more important life goals.
4. Get your facts right-
Be sure you have adequate information to support an intelligent choice. You can’t
make good decisions if you don’t know the facts. To determine the facts, first
resolve what you know, then what you need to know. Be prepared to get additional
information and to verify assumptions and other uncertain information.
Once we begin to be more careful about facts, we often find that there are different
versions of them and disagreements about their meaning. In these situations part of
making sound decisions involves making good judgments as to who and what to
believe.
Here are some guidelines:
• Consider the reliability and credibility of the people providing the facts.
• Consider the basis of the supposed facts. If the person giving you the information says he
or she personally heard or saw something, evaluate that person in terms of honesty,
accuracy and memory.
• Remember that assumptions, gossip and hearsay are not the same as facts.
• Consider all perspectives, but be careful to consider whether the source of the information
has values different from yours or has a personal interest that could affect perception of the
facts.
• Where possible seek out the opinions of people whose judgment and character you respect,
but be careful to distinguish the well-grounded opinions of informed people from casual
speculation, conjecture and guesswork.
• Finally, evaluate the information you have in terms of completeness and reliability so you
have a sense of the certainty and fallibility of your decisions.
5. Evaluate choices from different ethical perspectives-
Now that you know what you want to achieve and have made your best judgment
as to the relevant facts, make a list of options, a set of actions you can take to
accomplish your goals. If it’s an especially important decision, talk to someone you
trust so you can broaden your perspective and think of new choices. If you can think
of only one or two choices, you’re probably not thinking hard enough.
6.
7.

15. 8. Make a decision-
It’s time to make your decision. If the choice is not immediately clear, see if any of
the following strategies help:
• Talk to people whose judgment you respect. Seek out friends and mentors,
but remember, once you’ve gathered opinions and advice, the ultimate
responsibility is still yours.
• What would the most ethical person you know do? Think of the person you
know or know of (in real life or fiction) who has the strongest character and
best ethical judgment. Then ask yourself: what would that person do in your
situation? Think of that person as your decision-making role model and try
to behave the way he or she would. Many Christians wear a small bracelet
with the letters WWJD standing for the question “What would Jesus do?”
Whether you are Christian or not, the idea of referencing a role model can
be a useful one. You could translate the question into: “What would God
want me to do?” “What would Buddha or Mother Teresa do?” “What would
Gandhi do?” “What would the most virtuous person in the world do?”
• What would you do if you were sure everyone would know? If everyone
found out about your decision, would you be proud and comfortable?
Choices that only look good if no one knows are always bad choices. Good
choices make us worthy of admiration and build good reputations. It’s been
said that character is revealed by how we behave when we think no one is
looking and strengthened when we act as if everyone is looking.
• Golden Rule: do unto to others as you would have them do unto you. The
Golden Rule is one of the oldest and best guides to ethical decision-making.
If we treat people the way we want to be treated we are likely to live up to
the Six Pillars of Character. We don’t want to be lied to or have promises
broken, so we should be honest and keep our promises to others. We want
others to treat us with respect, so we should treat others respectfully.
9. Act, then reflect on the decision later-
Since most hard decisions use imperfect information and “best effort” predictions,
some of them will inevitably be wrong. Ethical decision makers monitor the effects
of their choices. If they are not producing the intended results or are causing
additional unintended and undesirable results, they re-assess the situation and make
new decisions.
Conclusion
In our discussion, it’s evident that without making an ethical decision, no organization will
sustain in the long run in a competitive emerging market where consumers are aware of the facts,
competitors are aggressively rivalling. Ethics should be maintained in al courses of actions taken
in an organization.