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ChapterTwo:EthicalDecisionMaking:PersonalandProfessionalContextsCopyright?2021McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.ChapterObjectivesAfterreadingthischapter,youwillbeableto:Describeaprocessforethicallyresponsibledecisionmaking.Applythismodeltoethicaldecisionpoints.Explainthereasonswhy"good"peoplemightengageinunethicalbehavior.Exploretheimpactofmanagerialrolesonthenatureofourdecisionmaking.EthicalDecisionMaking1Itisveryimportanttoknowwhoyouare.Tomakedecisions.Toshowwhoyouare. MalalaYousafzaiADecision-MakingProcessforEthics1Aninitialsketchofanethicaldecision-makingprocess.Thefirststepistodeterminethefactsofthesituation.Perceptualdifferencessurroundinghowindividualsexperienceandunderstandsituationscanexplainmanyethicaldisagreementsinasituation.Anethicaljudgmentmadeinlightofadiligentdeterminationofthefactsisamorereasonableethicaljudgmentthanonemadewithoutregardforthefacts.Asecondsteprequirestheabilitytorecognizeanethicaldecisionoranethicalissue—thenidentifytheethicalissuesinvolved.Thefirstandsecondstepsmayariseinareverseorderinsomecircumstances.Economicdecisionsandethicaldecisionsarenotmutuallyexclusive.Anethicaldecisionshouldbemadebasedonhowitwouldaffectthewell-beingofallthepeopleinvolved.ADecision-MakingProcessforEthics2Somecalltheinabilitytorecognizeethicalissuesasnormativemyopia,orshortsightednessaboutvalues.Otherswarnofinattentionalblindness,whichisaresultoffocusingontoonarrowarangeofquestions.Whenwefocusonthewrongthing,orfailtofocus,wemayfailtoseekeyinformationthatwillleadustosuccessorpreventunethicalbehavior.Changeblindnessoccurswhengradualchangegoesunnoticedovertime.Thirdstepistoidentifyandtoconsiderallofthepeopleaffectedbyadecision,thepeopleoftencalledstakeholders.Manyperspectivesandinterestsatstakemeansthatethicaldecisionsofteninvolveconflictsanddilemmas.Figure2.1:StakeholderMapThethirdstepinvolvedinethicaldecisionmakingrequiresdecisionmakestoidentifyandtoconsiderallofthepeopleaffectedbyadecision,thepeopleoftencalledstakeholders.Accessthetextalternativeforslideimage.AnEthicalDecision-MakingProcess1Determinethefacts.Identifytheethicalissuesinvolved.Identifystakeholdersandconsiderthesituationfromtheirpointofview.Considertheavailablealternatives—alsocalledusingmoralimagination.AnEthicalDecision-MakingProcess2Compareandweighthealternatives,basedon:Consequences(forallstakeholders).Duties,rights,principles.Implicationsforpersonalintegrityandcharacter.Makeadecision.Monitorandlearnfromtheoutcomes.ADecision-MakingProcessforEthics3Thefourthstepistoconsidertheavailablealternatives.Whenfacinganethicaldecision,moralimaginationistheabilitytoenvisionvariousalternativechoices,consequences,resolutions,benefits,andharms.Thefifthstepinthedecision-makingprocessistocompareandweighthealternativesoneachstakeholderyoudefined.Thepointofthisexerciseistorecognizethataresponsibleandethicaldecisionshouldbeexplainable,defensible,andjustifiabletoallstakeholdersinvolved.Somealternativesmightconcernprinciples,rights,ordutiesthatoverrideconsequences.Decisionmakingrequiresconsiderationoftheeffectsofadecisiononone’sownintegrity,virtue,andcharacter.ADecision-MakingProcessforEthics4Oncethevariablesareexplored,thesixthstepistomakeadecision.Makingadecisioninbusinessusuallymeansformulatingaplanandcarryingitout.Thefinalstepistoevaluatetheimplicationsofthedecisions,tomonitorandlearnfromtheoutcomes,andtomodifyactionsaccordinglywhenfacedwithfuturesimilarchallenges.EthicalDecisionMaking2Onanimportantdecisiononerarelyhas100%oftheinformationneededforagooddecisionnomatterhowmuchonespendsorhowlongonewaits.And,ifonewaitstoolong,hehasadifferentproblemandhastostartallover.Thisistheterribledilemmaofthehesitantdecisionmaker.RobertGreenleafWhenEthicalDecisionMakingFails1Somestumblingblockstoresponsibledecisionmakingareintellectualorcognitive.Ignorance.Consideringonlylimitedalternatives.Findingcomfortinsimplifieddecisionrules.Selectingthealternativethatsatisfiestheminimumdecisioncriteria,alsoknownassatisficing.WhenEthicalDecisionMakingFails2Otherstumblingblockstodecisionmakingaremoreaquestionofmotivationandwillpower.Sometimesitiseasiertodothewrongthing.Sometimespeoplemakedecisionsthattheyregretlaterbecausetheylackthecouragetodootherwiseatthetime.Courageisalsoneededwhenrespondingtopeerpressure.EthicalDecisionMaking3Therearetwokindsofpeople,thosewhodotheworkandthosewhotakethecredit.Trytobeinthefirstgroup;thereislesscompetitionthere.IndiraGandhiEthicalDecisionMakinginManagerialRolesWithinabusinesssetting,individualsmustconsidertheethicalimplicationsofbothpersonalandprofessionaldecisionmaking.Someofourrolesaresocialandsomerolesareinstitutional.Socialrolesarefriend,sonordaughter,spouse,citizen,neighbor.Institutionalrolesareemployees,managers,employees,parents,children,prof
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