Ethical Decision

Making: Personal and

Professional Contexts
P R E PA R E D B Y: JIE MAURICIO
Found an iPod: What would you do?
I ma g i ne yo u a r e t he f i r s t pe r s o n t o a r r i ve f o r yo ur bus i ne s s
et hi c s c l a s s .

Yo u no t i c e a n i Po d o n t he f l o o r under nea t h t he a dj a c ent s ea t .

I t do e s nʼ t ha ve s e c ur i t y s e t t i ng s e na bl e d a nd a s yo u c he c k i t , i t
s e e ms t o wo r k s pe r f e c t l y f i ne .

S t udent s a r e beg i nni ng t o ent er t he r o o m a nd no t bei ng a bl e t o

de c i de i mme di a t e l y, yo u pl a c e t he i Po d o n t he f l o o r ne x t t o
yo ur o wn ba c k pa c k a nd bo o k s .

§ Wha t wo ul d yo u t hi nk a bo ut a s yo u s a t t he r e t r y i ng t o
de c i de wha t t o do ?

§ I ns t e a d o f be i ng t he pe r s o n who f i nds t he i Po d, i ma g i ne
yo u a r e t he f r i e nd who s i t s ne x t t o t ha t pe r s o n; yo ur
f r i end l ea ns over, t el l s yo u wha t ha ppened, a nd a s k s f o r
a dv i c e. Wha t wi l l yo u s ay ?

§ I ma g i ne yo u a r e t he s t ude nt r e pr e s e nt a t i ve o f j udi c i a l
bo a r d o f yo ur s c ho o l a nd t he s t udent dec i des t o keep
t he i Po d, a nd i s l a t er a c c us ed o f s t ea l i ng. Ho w wo ul d
yo u ma ke yo ur de c i s i o ns ?
Decision
Making Process
for Ethics
SIX STEP APPROACH IN
RESOLVING ETHICAL DILEMMAS
Obtain the relevant facts

Identify the ethical issues from the facts

Determine who is affected by the outcome of the dilemma and how

each person or group is affected

Identify the alternatives available to the person who must resolve the
dilemma

Identify the likely consequences of each alternative

Decide the appropriate actions

Monitor and Learn from the Outcome

9/12/25 4
Determine The Facts of the Situation

q O n e h a s t o m a ke a n h o n e s t e f f o r t t o u n d e r s t a n d t h e s it u a t io n s o a s t o d i s t i n g u i s h f a c t s
f r o m m e r e o p i n i o n . Kn o w t h e f a c t s a n d c a r e f u l l y r e v i e w t h e c i r c u m s t a n c e s .

q O n e r e a s o n w hy e t h ic a l d is a g r e e m e n t s e x is t is a t t r ib u t e d t o p e r c e p t u a l d i f fe r e n c e s
s u r r o u n d in g h o w in d iv id u a ls e x p e r ie n c e a n d u n d e r s t a n d s it u a t io n s .

q E t h ic a l ju d g m e n t m a d e in lig h t o f d ilig e n t d e t e r m in a t io n o f f a c t s is m o r e r e a s o n a b le e t h ic a l
j u d g m e n t t h a n t h e o n e m a d e w it h o u t r e g a r d f o r t h e f a c t s

q A p e r s o n w h o a c t s in a w a y t h a t is b a s e d o n a c a r e f u l c o n s id e ra t io n o f t h e f a c t s h a s a c t e d in
a m o r e e t h ic a lly r e s p o n s ib le w a y t h a n a p e r s o n w h o a c t s w it h o u t d e lib e ra t io n
Identify the Ethical Issues Involved

q Requires the ability to recognize a decision or issue as an ethical decision or ethical issue

q In certain situations, issue identification becomes the first step and determining the facts becomes
the second step

q In many business situations, what appears to be an ethical issue for one person will be perceived
as a simple financial decision by others

q When does a business decision become an ethical decision?

v Business or economic decisions and ethical decisions are not mutually exclusive

v Being sensitive to ethical issues is an impor tant characteristic that needs to be cultivated in
ethically responsible people

v We need to ask how our decisions will impact the well-being of the people involved

q To t h e d e g r e e t h a t a d e c i s i o n a f f e c t s t h e w e l l - b e i n g o f t h e p e o p l e i n v o l v e d , i t i s a d e c i s i o n w i t h
ethical implications
Identify the Ethical Issues Involved

q N o r m a t i ve m yo p i a – s h o r t s ig h t e d n e s s a b o u t va lu e s ; t e n d e n c y t o ig n o r e o r t h e la c k o f a b ility
t o r e c o g n iz e e t h ic a l is s u e s in d e c is io n m a k in g

§ I n b u s in e s s c o n t e x t s , it c a n b e e a s y t o b e c o m e s o inv o lv e d in t h e f in a n c ia l a s p e c t s o f
d e c is io n s t h a t o n e lo s e s s ig h t o f e t h ic a l a s p e c t s

q In a t t e n t i o n a l b l i n d n e s s r e s u lt s f r o m f o c u s in g f a ilu r e s . I f w e h a p p e n t o f o c u s o n , o r if w e
a r e t o ld s p e c if ic a lly t o p a y a t t e n t io n t o – a p a r t ic u la r e le m e n t o f a d e c is io n o r e ve n t , w e a r e
like ly t o m is s a ll o f t h e s u r r o u n d in g d e t a ils , n o m a t t e r h o w o b v io u s

§ Example is when you are driving and one of your passenger is chatting with you and you just
realized that you missed to turn in the next stop light because your “mind was elsewhere”

q Change blindness occurs when decision makers fail to notice gradual changes over time
Identify Stakeholders and Consider the Situation from
their Point of View

§ S t a ke h o ld e r s – in c lu d e a ll t h e in d iv id u a ls o r g r o u p s a f f e c t e d b y a d e c is io n , p o lic y, o r
o p e ra t io n o f a f ir m o f a n in d iv id u a l

§ Is s u e s m u s t b e e x a m in e d f r o m a va r ie ty o f p e r s p e c t ive s o t h e r t h a n o n e ʼs o w n a n d o t h e r t h a n
w h a t lo c a l c o nve n t io n s s u g g e s t , h e lp s m a ke o n e ʼs d e c is io n s m o r e r e a s o n a b le , a c c o u n t a b le ,
a n d r e s p o n s ib le

§ M a k in g d e c is io n s f r o m a n a r r o w a n d p e r s o n a l p o in t o f v ie w e n s u r e s t h a t w e a r e lia b le t o
m a ke d e c is io n t h a t d o e s n o t g ive d u e c o n s id e ra t io n t o o t h e r p e r s o n s a n d p e r s p e c t ive s
Identify Stakeholders and Consider the Situation from
their Point of View

Employees
• One major challenge to ethical
decision making is that decisions
involve interest of multiple
stakeholders
Owners Customers
• Ethical decisions involve dilemmas
as there are many perspectives
The and interest at stakes
Corporation

Local
Suppliers
community

Government
Application – Identifying
stakeholders

Tr y S h i f t i n g y o u r r o l e :

q Rather than be in the position of the person who

discovers iPod, what would you think if you are the
person who lost it?

q What would your judgment me if you were the friend

who was asked for advice?
Consider Available Alternatives

§ M o ra l im a g in a t io n is b e in g a b le t o c r e a t i ve l y i d e n t i f y a l t e r n a t i ve s . I t is a n e le m e n t t h a t
d is t in g u is h e s g o o d p e o p l e w h o m a ke e t h i c a l l y r e s p o n s i b l e d e c i s i o n s f r o m g o o d p e o p l e
who does not.

§ D o n o t c o n s id e r o n ly t h e o b v io u s o p t io n s w it h r e g a r d t o a p a r t ic u la r d ile m m a , b u t a ls o t h e
m u c h m o r e s u b t le o n e s t h a t m ig h t n o t b e e v id e n t a t f ir s t g la n c e
Application – Exploring Alternatives

One person might decide keeping the iPod:

§ He judges that the chances of discovering the true

owner are slim

§ If he doesnʼ t keep it, the next person to discover it will

Another person is can think of another alternative as:

§ He can return early for the next class to see who is

sitting at the desk

§ He could check to learn who is the previous teacher

class was and ask the teacher for help in identifying
the owner
 Compare and Weigh the Alternatives

§ C r e a t e a m e n t a l s p r e a d s h e e t t h a t e va lu a t e s § We ig h in g t h e a lt e r n a t ive s w ill invo lve t h e

t h e im p a c t o f e a c h a lt e r n a t ive yo u h a ve f o llo w in g c o n s e q u e n c e s t o a ll t h e r e le va n t
d e v is e d o n e a c h s t a ke h o ld e r yo u id e n t ify s t a ke h o ld e r s

§ M o s t h e lp f u l w a y t o a c c o m p lis h t h is t a s k is § L ike ly
t o t r y t o p la c e o n e s e lf in t h e o t h e r § Fo r e s e e a b le
p e r s o nʼs p o s it io n
§ Po s s ib le

§ U n d e r s t a n d in g a s it u a t io n f r o m a n o t h e r ʼs p o in t
o f v ie w.
Compare and Weigh the Alternatives

§ A c r it ic a l e le m e n t o f t h is e va lu a t io n w ill b e t h e c o n s id e ra t io n o f w a y s t o m it ig a t e ,
m in im iz e , o r c o m p e n s a t e f o r a ny p o s s ib le h a r m f u l c o n s e q u e n c e s o r t o in c r e a s e a n d
p r o m o t e b e n e f ic ia l c o n s e q u e n c e s

§ A d d it io n a l f a c t o r in c o m p a r in g a n d w e ig h in g a lt e r n a t ive s is t o c o n s id e ra t io n o f t h e e f f e c t s
o f a d e c is io n o n o n e ʼs o w n in t e g r ity, v ir t u e , a n d c h a ra c t e r

§ A s k yo u r s e lf if it w ill m a ke yo u f e e l p r o u d if yo u r d e c is io n w ill b e p r in t e d a s a f r o n t-
p a g e a r t ic le ?
Making the Decision

§ To b e a c c o u n t a b le in o u r d e c is io n m a k in g ,
it is n o t s u f f ic ie n t t o d e lib e ra t e ove r t h e
p r o c e s s , o n ly t o la t e r t h r o w u p o u r h a n d s
o n c e t h e d e c is io n is m a d e a n d s a y “ I t ʼs
out of my hands now”

§ We s h o u ld le a r n f r o m o u r e x p e r ie n c e s
Monitoring the Outcomes

§ To b e f u lly a c c o u n t a b le in o u r d e c is io n -
m a k in g , w e h a ve t h e r e s p o n s ib ility

§ To e va lu a t e t h e im p lic a t io n s o f o u r
d e c is io n s

§ To m o n it o r a n d t h e n le a r n f r o m t h e
outcomes

§ To m o d ify o u r a c t io n s a c c o r d in g ly
w h e n f a c e d w it h s im ila r c h a lle n g e s in
the future
 Offline Assessment – 30 minutes

§ W h a t h a s b e e n yo u r m o s t d if f ic u lt e t h ic a l d e c is io n

e ve r m a d e ? D e s c r ib e t h e c o n t e x t o f t h e s c e n a r io t o

s e e t h e f u ll p ic t u r e o f t h e s it u a t io n . L o o k in g b a c k ,

w ill yo u c h a n g e yo u r d e c is io n a f t e r le a r n in g a b o u t

t h e d if f e r e n t s t e p s in e t h ic a l d e c is io n m a k in g ?

E x p la in
Why Do Good People
Engage in Bad Acts?

There are many ways in which responsible

decision making can go wrong
v People can simply choose to do
something unethical
v Well-intentioned people fail to choose
ethically

Stumbling blocks to responsible decision-

making and behavior are either cognitive or
intellectual
Explaining Bad Acts -1

1 . A c c o r d in g t o t h e m o d e l o f e t h ic a l d e c is io n m a k in g , a c e r t a in ty p e o f ig n o ra n c e c a n a c c o u n t
f o r b a d e t h ic a l c h o ic e s . Ig n o ra n c e c a n b e w i l l f u l a n d i n t e n t i o n a l

§ Af ter you discover a lost iPod, you might rationalize to yourself that no one will ever
k n o w, t h a t n o o n e i s r e a l l y g o i n g t o b e h u r t , t h a t i f t h e o w n e r w a s s o c a r e l e s s , t h e y
deserve to lose their iPod

§ Yo u m i g h t t r y t o j u s t i f y t h e d e c i s i o n b y t e l l i n g y o u r s e l f t h a t y o u a r e o n l y d o i n g w h a t
anyone else would do in this circumstance

§ Yo u m i g h t c h o o s e n o t t o t h i n k a b o u t i t a n d t r y t o p u t a n y g u i l t y f e e l i n g s o u t o f y o u r m i n d

2 . C o n s i d e r i n g o n l y l i m i te d a l te r n a t i ve s

§ Re s p o n s ib le d e c is io n m a k in g w o u ld r e q u ir e t h a t w e d is c ip lin e o u r s e lve s t o e x p l o r e
a d d i t i o n a l m e t h o d s o f r e s o lu t io n
Explaining Bad Acts - 2

3 . We a r e m o s t c o m f o r t a b le w it h s i m p l i f i e d d e c i s i o n r u l e s

§ Having a simple rule to follow can be reassuring to many decisions-makers even if it may
not be the best possible decision

4 . We o f t e n s e le c t t h e a lt e r n a t ive t h a t s a t i s f i e s m i n i m u m d e c i s i o n c r i t e r i a : s a t i s f i c i n g

5 . O t h e r s t u m b lin g b lo c k s in c lu d e m o t iva t io n & w illp o w e r

§ S o m e t im e s it is e a s ily s im p le r t o d o t h e w r o n g t h in g . I n o u r c a s e e x a m p le , w h o w a n t s t o
d o a ll t h e t r o u b le o f f in d in g lo s t a n d f o u n d o f f ic e a n d w a lk in g a c r o s s t h e c a m p u s
( im a g in e w a lk in g f r o m We s t C a m p u s t o E a s t C a m p u s ) t o r e t u r n t h e iPo d ?

§ S o m e p e o p le l a c k t h e c o u ra g e t o s p e a k u p b e c a u s e o f f e a r o f c o n s e q u e n c e ( lo s in g j o b,
p e e r p r e s s u r e , f e a r c u lt u r e )
Usual Suspects for Explaining Unethical Conduct

§ E n o r m o u s a m o u n t s o f c o r p o ra t e e xe c u t ive c o m p e n s a t io n

§ L a c k o f ov e r s ig h t o f c o r p o ra t e e xe c u t iv e d e c is io n s

§ S ig n if ic a n t d is t a n c e b e t w e e n d e c is io n m a ke r s a n d t h o s e t h e y im p a c t

§ F in a n c ia l c h a lle n g e s

§ S e t o f e t h ic a l va lu e s t h a t h a s n o t ye t c a u g h t u p t o t e c h n o lo g ic a l a d va n c e s
Ethical Decision Making in Managerial Roles

§ S o c ia l c ir c u m s t a n c e s c a n m a ke it e a s ie r o r m o r e d if f ic u lt t o a c t in a c c o r d a n c e w it h o n e ʼs o w n
judgment

§ W it h in b u s in e s s , a n o r g a n iz a t io nʼs c o n t e x t s o m e t im e s m a ke it d if f ic u lt f o r e ve n t h e b e s t-
in t e n t io n e d p e r s o n t o a c t e t h ic a lly e ve n w h e n t h e y w a n t t o ; a t t h e s a m e t im e , t h e r ig h t
o r g a n iz a t io n a l c u lt u r e a n d s t r u c t u r e c a n m a ke it d if f ic u lt f o r a d is h o n e s t p e r s o n t o a c t
u n e t h ic a lly

§ Re s p o n s i b i l i t y f o r t h e c ir c u m s t a n c e s t h a t c a n e n c o u ra g e e t h i c a l b e h a v i o r a n d d i s c o u ra g e
u n e t h i c a l b e h a v i o r f a lls t o t h e b u s in e s s m a n a g e m e n t a n d e xe c u t i ve t e a m
Managerial Roles
§ T h e d e c is io n m a k in g m o d e l in t r o d u c e d

in t h is c h a p t e r d e ve lo p s f r o m a p o in t

o f v ie w o f a n in d iv id u a l w h o f in d s

h e r s e lf / h im s e lf in a p a r t ic u la r s it u a t io n

§ Pe r s o n a l in t e g r ity lie s a t t h e h e a r t o f

s u c h in d iv id u a l d e c is io n m a k in g :

§ W h a t k in d o f p e r s o n I a m

§ W h a t a r e m y va lu e s

§ What do I stand for

Managerial Roles

§ W it h in a b u s in e s s s e t t in g , in d iv id u a ls m u s t c o n s id e r t h e e t h ic a l im p lic a t io n s o f b o t h p e r s o n a l
a n d p r o f e s s io n a l d e c is io n m a k in g

§ E ve r y in d iv id u a l f ills a va r ie ty o f s o c ia l r o le s a n d t h e s e r o le s c a r r y w it h t h e m a ra n g e o f
e x p e c t a t io n s , r e s p o n s ib ilit ie s , a n d d u t ie s

§ S o m e o f o u r r o le s a r e s o c ia l: f r ie n d , s o n / d a u g h t e r, s p o u s e , c it iz e n , n e ig h b o r.

§ S o m e a r e in s t it u t io n a l: m a n a g e r, t e a c h e r, s t u d e n t b o d y p r e s id e n t

§ S o m e a r e p r o f e s s io n a l: a t t o r n e y s , a c c o u n t a n t s , a u d it o r s , f in a n c ia l a n a ly s t
Roles & Responsibilities Application

Yo u r j u d g m e n t a b o u t t h e iPo d C a s e m ig h t d if f e r
g r e a t ly if :

q Yo u k n e w t h a t y o u r f r ie n d lo s t it

q Yo u w e r e a t e a c h e r in t h e c la s s

q Yo u w e r e a m e m b e r o f c a m p u s j u d ic ia l b o a r d

q Yo u h a v e p r e v io u s ly lo s t a s im ila r it e m
Roles and Responsibilities in Business

§ I n a b u s in e s s c o n t e x t , in d iv id u a ls f ill r o le s o f e m p loy e e s , m a n a g e r s , s e n io r e xe c u t iv e s , b o a r d
members

§ M a n a g e r s , e xe c u t ive s , b o a r d m e m b e r s h a ve t h e a b ility t o c r e a t e a n d s h a p e t h e o r g a n iz a t io n a l
c o n t e x t in w h ic h a ll e m p loye e s m a ke d e c is io n s

§ H e n c e , t h e y h a ve a r e s p o n s ib ility t o p r o m o t e o r g a n iz a t io n a l a r ra n g e m e n t t h a t e n c o u ra g e
e t h ic a l b e h a v io r a n d d is c o u ra g e u n e t h ic a l b e h a v io r
 Discussion of Opening Decision
Point: What Would You Do?
1. Determine the facts

§ Knowing that the iPod functioned perfectly would be good

evidence for concluding that it was left behind accidentally rather
than intentionally discarded

§ Knowing the actual cost of the iPod would also be evidence that it
is something likely to be highly valued and not something easily
abandoned

§ The situation raises ethical issues of rights, happiness, personal

integrity and honesty

2. Identify Stakeholders - It involves two major stakeholders: the

i P o d ’s t r u e o w n e r a n d y o u
Discussion of Opening Decision
Point: What Would You Do?
3. Any decision you make will have broader implications :

§ it will encourage or diminish a campus culture of trust

and honesty

4. Consider the following perspectives

q Imagining yourself in the position of the student who

lost the iPod /the student who might sit in judgment
at a campus judicial hearing

q Imagining the results of keeping the iPod and then

having that fact discovered and publicized

q Considering the number of hours someone might have

to work at an on-campus job in order to earn enough
money to buy another iPod

q Ref lecting on the type of person who keeps another ʼs

proper ty and to ask yourself if this is who you really
are and want to be
Key Take Aways

§ “Nearly all men can stand adversity, but if you want to test a man’s character, give him
power.” Abraham Lincoln

§ “ The time is always right to do what is right.” Martin Luther King

§ “I believe that every right implies a responsibility; every opportunity, an obligation; every
possession, a duty.” John D Rockefeller Jr