GMS 802 Lecture : chapter 2

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A look at the sources of ethical problems in business and how to prevent them. Barriers to ethical decision-making: personal causes, interpersonal & organizational causes, narrow self-interest, distancing from responsibility. Human drives can be expressed as virtues (positive) or vices (negative) Acting in one"s own interest does not necessarily exclude considering the interest of others. Self-interest becomes a problem when it used to create profits regardless of the impact on others. According to this theory, different people make different decision in similar situations because they are in different stages of cognitive moral development. Individual instrumental purpose and exchange: punishment and obedience. 2: mutual interpersonal expectations, relationship and conformity, law and order orientation, prior rights, social contract or utility, universal ethical principles. Preconventional stages self-centered : stage 1: children are obedient because they are afraid of being punished or want to be rewarded, stage 2: a person determines what is right by the action that gets his/her needs met.

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