The paper 'Ethical Decision-Making" is a perfect example of business coursework. Ethics refers to what is good and right for the human being. There has been growing attention to ethics in organisations. There has been the development of several ethical decision-making models in organisations. The management is faced with situations which require coming up with a sound ethical decision (Johnson, 2007). There are situations where an ethical dilemma faces an organisation leading to examining the situation and coming up with an appropriate decision. Ethical decision-making model can be classified into seven steps.
The steps are; identifying the problem, applying a code of ethics, determining the nature of the dilemma, coming up with the potential cause of action, determining the course of action, evaluating the selected course of action and implementing it. In most cases, there are several courses of actions that can be used in ethical decision making. When making a decision, an organisation is supposed to look at all the stakeholders’ interests (Frey, 2000). Ethics should thus be followed with reference to the organizational culture and decision making. It has been observed that firms which are ethical are able to gain success through customer loyalty.
The ability to recognise an issue in the organisation and identify the presence of ethical issue determines the effectiveness of an ethical decision. Ethical maturity is needed when dealing with situations which require ethical decision (Greenwood, 2002). This essay discusses how ethics influences an organisation in the decision-making process. This is done through looking ethical issues at a location, suppliers, human resource management and industrial relations. Of late, there has been a lot of monitoring on the organisation's actions.
In some instances, organisations have made decisions that have led to catastrophic results to their stakeholders. One of a good example of a managerial decision making that led to wrong consequences was Enron and Tyco being declared bankrupt. The actions of the managers led to the loss of employment and funds (Sims & Brinkmann, 2003). The managers made unethical decisions which had negative impacts on the organisation. In most cases, the decision-makers justify their actions claiming they acted on the interest of their shareholders. This leads to a discussion on what are ethical behaviours and what is not due to varying points of views (Greenwood, 2002). An organisation can use different types of frameworks in making decisions.
Ethics in organisations are used to define what right action is. Ethics in organisations may be described as ethical reasoning, welfare or the moral philosophies (Sternberg, 2000). The extent to which the decision-makers utilise ethical frameworks determines how ethical their decisions are. The actions taken may be in the interests of the organisation or to community good. Rational decisions are highly applauded in management.
This is due to the fact that the decision-maker has the ability to revisit the matter until they are satisfied it maximises all issues needed. The problem arises due to the fact that rational decision making is based on an ideal situation. The inclusion of ethics in organisation decision making can lead to an increase in conflict. This occurs when different approaches are taken on ethical issues. The ethical issues used in an organisation are supposed to be transparent to avoid conflict (Frey, 2000).
Greenwood, M 2002, “Ethics and HRM: a review and conceptual analysis”, Journal of Business Ethics, Vol. 36, no. 3, pp. 261–278.
Frey, B. F 2000, “The Impact of Moral Intensity on Decision Making in a Business Context”, Journal of Business Ethics, Vol. 26, no.3, pp.181-195.
Johnson, C. E 2007, Ethics in the workplace: Tools and Tactics for Organizational Transformation, Thousand Oaks, Sage Publication.
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Scott, Elizabeth D 2002, “Organisational Moral Values”, Business Ethics Quarterly, Vol.12, no.1, pp.33-55.
Sims, R. R & Brinkmann, J 2003, “Enron ethics”. Journal of Business Ethics, Vol.45, no.3, pp.243.
Sternberg, E 2000, Just Business: Business ethics in action, Oxford, Oxford University Press.
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