5.2 Dimensions of Ethics: The Individual Level

Ethical decision-making in business is a complex process influenced by personal values, organizational culture, and external pressures. Understanding the factors that shape our choices helps us navigate tricky situations and make decisions that align with our moral compass.

From terminal values that guide our long-term goals to the pressures that can lead us astray, ethical decision-making is a balancing act. By recognizing the forces at play, we can develop strategies to uphold our principles and foster ethical behavior in the workplace.

Individual Ethical Decision-Making in Business

Personal values in business ethics

Top images from around the web for Personal values in business ethics

• 

  Difference Between Honesty and Integrity | Definition, Meaning, Characteristics View original

  Is this image relevant?

• 

  Putting It Together: Ethics in Business | Principles of Management View original

  Is this image relevant?

• 

  The three moral codes of behaviour | Clamor World View original

  Is this image relevant?

• 

  Difference Between Honesty and Integrity | Definition, Meaning, Characteristics View original

  Is this image relevant?

• 

  Putting It Together: Ethics in Business | Principles of Management View original

  Is this image relevant?

1 of 3

Top images from around the web for Personal values in business ethics

• 

  Difference Between Honesty and Integrity | Definition, Meaning, Characteristics View original

  Is this image relevant?

• 

  Putting It Together: Ethics in Business | Principles of Management View original

  Is this image relevant?

• 

  The three moral codes of behaviour | Clamor World View original

  Is this image relevant?

• 

  Difference Between Honesty and Integrity | Definition, Meaning, Characteristics View original

  Is this image relevant?

• 

  Putting It Together: Ethics in Business | Principles of Management View original

  Is this image relevant?

1 of 3

• Personal values and beliefs significantly influence individual ethical decision-making in business
  • Shaped by life experiences, family upbringing, religious beliefs, cultural background, and educational experiences
  • Form the foundation of an individual's ethical framework and guide their decision-making process in various situations
• Key personal values that impact ethical decision-making include honesty, integrity, fairness, respect, and responsibility
  • These values serve as a moral compass, guiding individuals to make ethical choices in complex business settings (negotiations, financial reporting)
• Ethical dilemmas often arise when personal values conflict with organizational goals or practices
  • Individuals must carefully navigate these conflicts and make decisions that align with their core ethical principles (whistleblowing, refusing to engage in unethical practices)

Terminal vs instrumental values

• Terminal values represent desired end-states or ultimate goals in life
  • Examples include happiness, self-respect, wisdom, and a sense of accomplishment
  • Influence long-term decision-making and career choices (pursuing a meaningful career, prioritizing work-life balance)
• Instrumental values are the means or methods for achieving terminal values
  • Examples include ambition, courage, honesty, and responsibility
  • Guide day-to-day behavior and decision-making in the workplace (being transparent with colleagues, taking responsibility for mistakes)
• Alignment between personal values and organizational values leads to increased job satisfaction, commitment, and ethical behavior
  • Misalignment can result in ethical dilemmas and decreased motivation (working for a company with conflicting values)

Factors behind unethical choices

• Pressure to meet targets or deadlines can tempt individuals to cut corners or engage in unethical practices
  • Unrealistic sales goals may lead to misrepresenting product features or manipulating financial reports
• Organizational culture that prioritizes profits over ethics creates an environment where unethical behavior is tolerated or encouraged
  • Lack of consequences for unethical actions sends a message that such behavior is acceptable (ignoring sexual harassment complaints)
• Absence of clear ethical guidelines or codes of conduct leaves room for individual interpretation and potential unethical decisions
  • Ambiguity regarding acceptable practices can lead to misconduct (unclear policies on gifts from vendors)
• Personal financial pressures or incentives may drive individuals to make unethical choices for personal gain
  • Bonus structures tied to short-term results can encourage unethical behavior (insider trading, embezzlement)
• Conformity to authority or peer pressure can cause individuals to follow unethical orders or engage in unethical behavior to fit in with the group
  • Fear of retaliation or ostracism may prevent individuals from speaking up against unethical practices (remaining silent about discrimination)
• Rationalization and moral disengagement allow individuals to justify unethical actions by convincing themselves that their behavior is acceptable or necessary
  • Excuses such as "everyone does it" or "it's for the greater good" enable unethical decision-making (falsifying expense reports, covering up product defects)
• Moral intensity of the situation affects the likelihood of ethical behavior
  • Issues with greater perceived consequences or immediacy are more likely to elicit ethical responses

Ethical Decision-Making Process

• Moral reasoning involves analyzing ethical dilemmas and determining appropriate courses of action
  • Utilizes critical thinking skills to evaluate the ethical implications of various options
• Ethical decision-making models provide structured approaches to resolving ethical dilemmas
  • Help individuals systematically consider relevant factors and potential consequences
• Cognitive moral development influences an individual's ability to recognize and address ethical issues
  • As individuals progress through stages of moral development, their capacity for ethical decision-making improves
• Ethical leadership plays a crucial role in fostering an ethical organizational culture
  • Leaders who consistently demonstrate ethical behavior set the tone for the entire organization