Moral Decision Making Study Notes
Introduction
This module focuses on moral decision-making, emphasizing the importance of ethical
awareness, judgment, and action. It outlines a structured approach to ethical decision-making in
business and explores the influences of group norms, organizational culture, and individual
differences on ethical behavior.
Ethical Awareness and Ethical Judgment
Ethical awareness is the recognition of situations that raise ethical concerns. It is crucial for
ethical judgment and action. Factors influencing ethical awareness include:
● Belief that peers will find the issue ethically problematic.
● Use of ethical language to frame situations.
● Recognition of morally intense issues, where consequences are significant and
immediate.
8 Steps to Sound Ethical Decision Making in Business
1. Gather the Facts: Understand the historical and current context of the situation.
2. Define the Ethical Issues: Identify ethical dilemmas and points of value conflict.
3. Identify the Affected Parties: Recognize stakeholders and their rights.
4. Identify the Consequences: Consider probable consequences, both short-term and
long-term.
5. Identify the Obligations: Determine ethical obligations based on values and principles.
6. Consider Your Character and Integrity: Reflect on what a person of integrity would do.
7. Think Creatively About Potential Actions: Explore multiple options beyond binary
choices.
8. Check Your Gut: Trust your intuition and empathy regarding potential harm.
Group and Organizational Culture
Group norms significantly influence ethical behavior. Individuals often conform to the actions of
their peers, which can lead to rationalizing unethical behavior. Key points include:
● Pressure to conform can lead to unethical actions.
● Management should clearly state and enforce ethical rules.
● Organizational culture impacts ethical behavior through rewards and discipline.
Organizational Effects
, Rewards and discipline shape behavior in organizations. Employees are motivated by rewards
and may engage in unethical behavior if they feel pressured to meet goals. Important
considerations include:
● Focus on how goals are achieved, not just the outcomes.
● Conflicting roles can lead to ethical dilemmas.
● Whistle-blowing can be encouraged in certain roles.
Obedience to Authority
Individuals often comply with authority figures, which can lead to ethical issues. Key aspects
include:
● Diffusion of responsibility in groups can lead to inaction.
● Individuals may feel less responsible for ethical violations in a group setting.
● Encouraging personal responsibility can enhance ethical behavior.
Stress and Ethical Behavior
High stress levels can impair ethical decision-making. Managers should create a supportive
work environment to mitigate stress and promote ethical behavior.
Organizational Culture and Ethics
Formal and informal cultural systems shape ethical behavior. Important elements include:
● Selection systems for hiring individuals who fit the ethical culture.
● Training programs that align with organizational values.
● Performance management systems that reward ethical conduct.
Cognitive Biases in Ethical Decision Making
Cognitive biases can hinder ethical judgment. Key biases include:
● Overconfidence in knowledge of facts.
● Confirmation bias, where individuals seek information that supports their beliefs.
● Self-interest in decision-making, often leading to unethical choices.
Individual Differences in Ethical Judgment
Factors such as moral development, locus of control, and desired moral approbation influence
ethical behavior. Important levels of moral development include:
● Level 1: Focus on rewards and punishments.
● Level 2: Recognition of societal obligations.
Introduction
This module focuses on moral decision-making, emphasizing the importance of ethical
awareness, judgment, and action. It outlines a structured approach to ethical decision-making in
business and explores the influences of group norms, organizational culture, and individual
differences on ethical behavior.
Ethical Awareness and Ethical Judgment
Ethical awareness is the recognition of situations that raise ethical concerns. It is crucial for
ethical judgment and action. Factors influencing ethical awareness include:
● Belief that peers will find the issue ethically problematic.
● Use of ethical language to frame situations.
● Recognition of morally intense issues, where consequences are significant and
immediate.
8 Steps to Sound Ethical Decision Making in Business
1. Gather the Facts: Understand the historical and current context of the situation.
2. Define the Ethical Issues: Identify ethical dilemmas and points of value conflict.
3. Identify the Affected Parties: Recognize stakeholders and their rights.
4. Identify the Consequences: Consider probable consequences, both short-term and
long-term.
5. Identify the Obligations: Determine ethical obligations based on values and principles.
6. Consider Your Character and Integrity: Reflect on what a person of integrity would do.
7. Think Creatively About Potential Actions: Explore multiple options beyond binary
choices.
8. Check Your Gut: Trust your intuition and empathy regarding potential harm.
Group and Organizational Culture
Group norms significantly influence ethical behavior. Individuals often conform to the actions of
their peers, which can lead to rationalizing unethical behavior. Key points include:
● Pressure to conform can lead to unethical actions.
● Management should clearly state and enforce ethical rules.
● Organizational culture impacts ethical behavior through rewards and discipline.
Organizational Effects
, Rewards and discipline shape behavior in organizations. Employees are motivated by rewards
and may engage in unethical behavior if they feel pressured to meet goals. Important
considerations include:
● Focus on how goals are achieved, not just the outcomes.
● Conflicting roles can lead to ethical dilemmas.
● Whistle-blowing can be encouraged in certain roles.
Obedience to Authority
Individuals often comply with authority figures, which can lead to ethical issues. Key aspects
include:
● Diffusion of responsibility in groups can lead to inaction.
● Individuals may feel less responsible for ethical violations in a group setting.
● Encouraging personal responsibility can enhance ethical behavior.
Stress and Ethical Behavior
High stress levels can impair ethical decision-making. Managers should create a supportive
work environment to mitigate stress and promote ethical behavior.
Organizational Culture and Ethics
Formal and informal cultural systems shape ethical behavior. Important elements include:
● Selection systems for hiring individuals who fit the ethical culture.
● Training programs that align with organizational values.
● Performance management systems that reward ethical conduct.
Cognitive Biases in Ethical Decision Making
Cognitive biases can hinder ethical judgment. Key biases include:
● Overconfidence in knowledge of facts.
● Confirmation bias, where individuals seek information that supports their beliefs.
● Self-interest in decision-making, often leading to unethical choices.
Individual Differences in Ethical Judgment
Factors such as moral development, locus of control, and desired moral approbation influence
ethical behavior. Important levels of moral development include:
● Level 1: Focus on rewards and punishments.
● Level 2: Recognition of societal obligations.
