Download Ethics and Business

Chapter 3
Ethical Decision Making ,
Ethical Theories
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Making Ethical Decisions
• Making good ethical decisions to solve Ethical
Dilemma requires a trained sensitivity to ethical
issues and a practiced method for exploring the
ethical aspects of a decision.
• Having a method for ethical decision making is
absolutely essential.
• Ethical decision should be based on ethical
principles and codes rather than on emotions,
thoughts, fixed policies.
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Ethical Dilemma
• Ethical dilemma: is a situation with
uncertainty about what is right to do from a
moral or ethical perspective.
• For example, the manager of a company may
be put in a position in which he must choose
between the interests of his employees and
his investors. Give more profits or increase
the salary?
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The Framework Overview
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Step One: Describe the problem
Step Two: Determine whether there is an ethical dilemma
Step Three: Identify and rank the key values and principles
Step Four: Gather your information
Step Five: Review any applicable Code of Ethics
Step Six: Determine the options
Step Seven: Select a course of action
• Step Eight: Put your plan into action.
• Step Nine: Evaluate the results.
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Step One: Describe the problem.
• You must first describe the problem and ensure
that it’s actually a moral dilemma that needs to
follow an ethical model.
• Consider the nature of the problem and any signs
of the problem and ensure that you’re attempting
to solve the issue and not just it’s signs.
• Circumstances affect the problem definition (for
whom does the problem exist ? What is the
surroundings?)
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Step Two: Determine whether there is an ethical
dilemma.
• Terms of an ethical dilemma must be ethical in
nature, not legal.
• If something is a law, you then have the ethical
choice to follow the law or not.
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Step Three: Identify and rank the key values
and principles.
• What reasons can you provide for prioritizing
one competing value over another?
• Understand that a decision to a dilemma
which goes against an individual’s personal set
of values has very little chance of success.
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Step Four: Gather Your Information
• Do you have all the known facts?
• Do you understand the applicable laws or
legalities?
• Do you have all relevant policies available to
review?
• Are you clear about the individual’s views and
personal values?
* Don’t hesitate to seek out consultation.
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Step Five: Review Any Applicable Code of
Ethics
• Look for the following:
-- mission statement
-- values base of the organization
-- ethical principles to guide practice
-- ethical standards
• Codes can be revised or updated as needed.
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Step Six: Determine the Options
• List all possible actionable options.
• Weigh the cost/benefits of each option.
• Seek out additional points of view.
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Step Seven: Select a Course of Action
1) Remove the least desirable option.
2) Remove any which you can not put into
action.
3) Remove any options which break the values
systems of those affected.
4) Recognize that your final choice will be
impacted by your personal values.
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Step Eight: Put your plan into action.
• Think about the outcomes with a sense that
you have truly approached this ethical dilemma
with the best of intentions and to the best of
your ability.
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Step Nine: Evaluate the Results
• Evaluate the cost for each person
involved (client, family members, coworkers, agency, etc.)
• Consider submitting your most difficult
cases to an ethics review board for
feedback.
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Ethical Dilemma
• Example 2 :
• A new technology is being launched which is good
for the company as well as the customers. But, if
this is brought into use, a less man-power is
required for the organization.
• The entrepreneur is now in an ethical dilemma
whether he wants to satisfy his customers with
good services or be loyal to his employees who
have helped the company grow.
• The unpleasantness of the situation arises when
neither the customers nor the employees deserve
to suffer and it is the entrepreneur’s call to take.
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Ethical Theories
• Different ethical theories exist and
theories can be applied to different
situations to inform our thinking and
support decision making.
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Ethical Theories
1. Consequentialism: ) ‫)العواقبية‬
• Consequentialist ethics holds the view that the
correct moral response is related to the
outcome, or consequence, of the act.
• The central aim is the principle of 'maximising
the greatest good for the greatest number'.
• The 'good' referred to a variety of ways and
may refer to values or 'utility' such as
happiness, or another life enhancing outcome.
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Ethical Theories
2. Deontology :
"‫ "التزام وواجب‬- ‫األخالق الواجبة‬
‫هي األخالق المعيارية التي تحكم على مدى أخالقيات أي سلوك على أساس مدى مالءمة هذا السلوك‬
‫للقواعد أو المعايير‬
Deontology is based on duties and rights and
respects individuals as ends in themselves. ‫كغاية بحد ذاته‬
It places value on the intentions of the individual
(rather than the outcomes of any action) and
focuses on rules, obligations and duties.
• Deontology requires absolute adherence to these
obligations and acting from duty is viewed as acting
ethically.
‫التزام‬
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Ethical Theories
3. Virtue Ethics : ‫اخالق الفضيلة‬
• The key difference between consequentialism
deontology and virtue ethics is that the final
emphasizes the moral character, or virtues of the
individual.
• Virtue ethics has emerged due to the perceived
deficits ‫ العجز المتصور‬in ethical theories such as
consequentialism and deontology for
healthcare, honesty and kindness.
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• The virtues are fixed character traits which are
held to be societally valuable such as truthtelling, trustworthiness,
• Practical wisdom relates to how the virtues are
applied or performed.
• Virtue ethics is about an individual of good
character doing the right thing.
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