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Ethics in Decision Making Asad Javed

The issue of ethical decision making in organizations has received much attention in recent years. An understanding of ethical decision making in organizations is important to the development of organizational. Business ethics generally deals with evaluating whether practices exercised by employees, leaders and organizations as a whole can be considered morally acceptable (Ferrell, Fraedrich, and Ferrell 2008). Large number of researches has been conducted in order to understand the effect of ethical decision. This review will try to summarize the research of different authors on fore said topic. The field of business ethics is commonly divided into two realms normative ethics, which resides largely in the realm of moral philosophy and theology and guides individuals as to how they should behave, and descriptive (or empirical) ethics, which resides largely in the realm of management and business and is concerned with explaining and predicting individuals actual behaviour (Donaldson and Dunfee, 1994). During the mid-1980s and early 1990s, the field of ethics was advanced by a number of theoretical models (e.g., Jones, 1991; Rest, 1986; Trevino, 1986). These models generally built on Rests (1986) original framework, which views moral decision-making as involving four basic components, or steps identifying the moral nature of an issue, making a moral judgment, establishing moral intent, and engaging in moral action. Researchers have since proposed and tested a wide variety of constructs that influence this four-step process, generally supporting the usefulness of Rests framework. These include individual factors such as gender and cognitive moral development (e.g., Bass et al., 1999; Cohen et al., 2001), organizational factors such as codes of ethics and ethical climate/culture (e.g., Trevino et al., 1998), and moral intensity factors such as magnitude of consequences and social consensus (e.g., Jones, 1991; Singhapakdi et al., 1999).