Ethics: 8 Steps to Ethical Decision Making In Business

1
Ethics 8 Steps to Ethical Decision Making In
Business

• Step 1 Gather the Facts
• Asking questions about the issue is important!
• ?) How did the situation occur?
• ?) What issues do both sides bring to the table?
• ?) Is there any background information I am
  given?

• Step 2 Define the Ethical Issues
• ?) Why are people upset?
• In most cases, one side or the other does not
  agree on what the issue really is. You need to
  define the ethical issue for yourself before you
  can make a sound decision.

2
Ethics 8 Steps to Ethical Decision Making In
Business

• Step 3 Identify the Affected Parties
• The affected parties are anyone who is effected
  by the consequence of the ethical issue.
  Sometimes not all of the effected parties are
  mentioned, however, they still need to be
  considered.
• ?) Who are all of the effected parties

• STAKEHOLDER Those who have a stake in the
  organization and how it performs. These can
  include Owners, managers, customers, employees,
  suppliers, the community, the government, the
  natural environment, and of course stockholders.

3
Ethics 8 Steps to Ethical Decision Making In
Business

• Step 4 Identify the Consequences
• After you identify each party involved, identify
  the consequences for each party.
• ?) How does each partys consequences fair when
  compared with the outcome?

• Long Term vs. Short Term Consequences
• ?) How will the ethical decision effect the
  parties in the long term and the short term.

4
Ethics 8 Steps to Ethical Decision Making In
Business

• Symbolic Consequences
• Every decision and action sends a message.
• ?) What message will be sent by the ethical
  decision?
• ?) What will happen if it is misunderstood?

• Consequence of Secrecy
• Sometimes a decision is made in private to avoid
  confrontation or negative reaction.
• ?) Is it a sound ethical decision if the decision
  must be hid from some stakeholders?

5
Ethics 8 Steps to Ethical Decision Making In
Business

• Step 5 Identify the Obligations
• When determining an ethical issue it is important
  to look at the obligations of the stakeholders
  and make sure that each is justified.
• ?) What are each parties obligations?

• Step 6 Consider Your Character and Integrity
• Society defines what ethics is for us, however,
  the community of the stakeholders may have a
  different view than you. When making an ethical
  decision you must consider the following
• ?) Disclosure Rule If you do not want others to
  know about it then you should not be doing it!

6
Ethics 8 Steps to Ethical Decision Making In
Business

• Step 7 Think Creatively about Potential actions
• Before a final decision is rendered make sure you
  have unnecessarily forced yourself into a corner.
  Many ethical decision are not A or B choices,
  get creative about other ways to solve the
  problem.
• ?) What is another way to solve the problem?

• Step 8 Check your Gut
• ?) How do you feel about the ethical decision?
• ?) Was the conclusion easy for you to come up
  with?