BUSI 4601 Chapter Notes - Chapter 5: Relate, Justice As Fairness, Consumer Protection
2 May 2018
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Chapter 5 Ethical Decision Making
1. Ethical Decision Making
• Weigh personal value and make judgement in view of
organizational practice
• In business, rely in own culture (organizational pressure), not
personal value
• Ethical awareness: ability to perceive if situation or decision has
ethical dimension
2. Ethical Issue Intensity
• Perceived relevance or importance of ethical issue to individual or
group work or organization
o Reflect ethical sensitivity
o Trigger ethical decision making process
• Relate to person’s perception of social pressure and impact
• 6 sphere of influence
o workplace
o family
o religion
o legal system
o community
o Profession
3. Individual factor
• Base decision on own value or principal
• Learn from socialization process with family/social group/
religion/ formal education
• Value is subjective and vary across culture
• May intend to do right but social or organization forces alter the
intent
4. Organizational Factors
• Increase influence in employee
• Corporate culture: set of values or norm or artifacts that member
of organization share
• Ethical culture: reflect whether firm has ethical conscience
• Significant others: one who influence work group
• Obedience to authority: explain unquestioned, followed orders
5. Opportunity
• Condition that limit or permit ethical and unethical behavior
• Immediate job context
o determine opportunity
o known as carrot and stick : reward and reinforcement
• Opportunity of misconduct decrease by establishing formal code/
policy/rule
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