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7-STEP ETHICAL DECISION MAKING-CASE STUDY

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Table of Contents
INTRODUCTION...........................................................................................................................2
Background..................................................................................................................................2
Issues Identified...............................................................................................................................2
7-Step of ethical decision making....................................................................................................3
STEP 1.........................................................................................................................................3
STEP 2.........................................................................................................................................3
STEP 3.........................................................................................................................................3
Duties toward the stakeholders.................................................................................................4
STEP 4.........................................................................................................................................4
STEP 5.........................................................................................................................................5
STEP 6(RECOMMENDATION/SOLUTION)...........................................................................5
STEP 7(EVALUATION AND CONCLUSION)........................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7
PEST ANALYSIS........................................................................................................................7

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INTRODUCTION.
The case study shows how the project by Mangalajodi Ecotourism Trust(MET) was able to
provide the local community with income-generating opportunities and conserve their ecosystem
as well. This report outlines the 7-step ethical decision-making model that was used in this case
study. There were problems identified in this case study which include the need for a decent
livelihood for the public and conservation of the environment and profitability of the institution
which is MET.
Background
This case study is based on a remote village in the Northern West region, near Chilika lake in
Odisha state in India. The lake was one of the best fishing and nesting grounds in India according
to a study in 2009.
N. Sunil Kumar a nature enthusiast was the leader of a project known as the Mangalajodi
Ecotourism Trust(MET) in 2009. This project was founded by NatWest as part of a SEP in India.
Sunil had in mind two major goals to achieve in this project. One was to conserve the ecosystem
and the other one was to enable the community at Mangalajodi village to become self-
sustainable. He wanted the MET to be able to help the locals to prosper. The community was
ravaged by debts and they were vulnerable. MET had to put in place various mechanisms to
address the problems from the community level and also be able to meet their financial
objectives.

Issues Identified
In this case study, various issues have emerged. In reference to the PESTEL Analysis attached
below, first, there is the issue of over-reliance on natural resources by the people living in
Mangalajodi village. Traditionally the community in this village were farmers and fishermen.
Over the past two decades from 1990 going forward, there has been a depletion of fishing
grounds in the area. This has made the community very poor—depletion of the natural resource
leading to a lack of other sources of income which endanger the ecosystem Peacock,2011 p.14.
These illegal activities include the Poaching of indigenous birds around Chillika lake. These
activities are very unethical as observed by Samiti who then came up with a campaign to stop
this norm. A major issue of finding an alternative source of livelihood for the community
emerges. The ecology of the area was deteriorating due to overfishing.
Imbalance in the development goals and how to sustain the ecosystem and environment was an
issue MET was grappling with. Recently the village had grown significantly and urbanization
was taking place. Companies were setting up buildings and people were crowding the village.
This posed a major environmental problem. MET faced numerous competitors in their quest for
profits as well as social responsibility.
The government of India was to train some members of the community to guide the tourist
around the lake. They received job opportunities in the meantime but it did not solve the problem
of poaching permanently or in the long run.

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7-Step of ethical decision making

The outline below is the seven steps of ethical decision making which will be in reference to
course material MGMT5050 2021 by Associate Professor Tracy Wilcox. The following steps
influence decision-making in my final evaluation
STEP 1
According to this case study, there is an issue with the well-being of the community living in
Mangalajodi. There is a clear connection between the poverty status of the people and their
decision to seek an alternative to poaching. They dwell in a place that if it is rich in natural
resources but they cannot reap it maximally. In a report on ethical practices, Deloitte Australia
2018 stated that there was an ethical tension in promoting the welfare of people by creating
employment in sectors like natural resources.
The government and institutions both internal and external have a responsibility to this
community. There is a lack of proper frameworks and mechanisms that govern companies in
offering the people the boost they need. The stakeholders in this case play a leading role to
counter this problem and fix it in both the short run and the long run.
They include the NatWest Foundation, government departments (Forest, environment, fisheries,
and tourism), Non-governmental Organizations like Indiana Grameen Services(IGS)NatWest
came up with MET to put in place mechanisms that will help companies to prioritize the projects
that will bring about social change.
STEP 2
Universal cognitions that are problematic in this case include actions that can be considered right
or wrong in themselves. As for this case, the people's actions to resort to poaching migratory
birds for livelihood purposes are considered ethical despite the dire consequences it has on the
environment and the ecosystem. It was stated that we should use this cognitive skill to access the
risks and access the course of action by Garry et.al ,2013.
Another universal norm is that we should treat people as we treat ourselves. This has not been
applied in this case as the government entities and the companies tasked with the role to help
people are engaging in other activities. The construction of large buildings in the towns, unsafe
waste management practices, and activities in the energy sector have contributed negatively to
environmental conservation. This in the long run has affected the very people they were
supposed to guard and benefit. In this case, based on the universal norms above there is a bias
based on the first universal cognitive norm.
STEP 3
According to this case, there are various demands that the stakeholders have under the
Mangalajodi community and the Mangalajodi Ecotourism Trust.

Duties toward the stakeholders

Responsibilities to the individual company's stakeholders were to formulate activities and plans
that help the village as well as suggest the relevant projects to be initiated by these institutions.

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The stakeholder theory suggests the union of leaders to put into consideration all aspects of the
employees and consider corporate social responsibility Kansas, 2013. They were to administrate
and offer plans that improve this project. MET had to liaise with state agencies and departments
to advise them on the projects.
MET was to set up mechanisms that offer training to the people to develop their skills. They
were to scout for local talents and capabilities to embrace and use for the sustainability of the
community. MET used its funds to lease land from the countrymen and set up lodges for tourists.
This became a source of livelihood for some in the community and they reaped something from
it.
MET also had a duty to the people by building amenities in the neighborhood to make them
comfortable. With the help of the Indian Grameen Services, MET trained many locals on the
basics of hygiene and entrepreneurial skills. MET acted as a conveyor belt to other organizations
in tapping local talent. NGOs used the members who had already been recruited by MET to train
them saving the organization time and funds for looking for newer individuals from scratch
Wilcox,2022.
A conflict of interest emerges between the government and the Mangalajodi people in that it
gave power to MET to oversee the implementations of some mechanisms to rake profits from
them. In the process of making profits it affected the environment there we are so keen to
protect. For example, according to the data provided in the case study by the RBS Foundation
India 2018-2019 report, there was an influx of tourists in the Chiilka Lake region. They occupied
the lodges that had been set up by MET hence they profited immensely. However, during their
tours, the tourist overcrowded and dropped a lot of waste, cans, and other bio-hazardous things.
This affected the lake ecosystem which they had sworn to protect at all costs.
STEP 4
In this case study, MET achieved most of its goals. They were able to enable the community at
Mangalajodi to raise alternative income sources. The decision by MET to rent their land bore
fruits as tourists flooded the area. The community was also able to access a healthy environment
as waste management projects were put in place. According to Kelly ,2019, he stated that a
community thrives in an environment that is safe and healthy. With the soft skills acquired by the
locals in the fields of bookkeeping among others, they were able to be self-employed and others
employed. This was by the use of the public social responsibility framework.
There was a general change in the behavior of the community towards the ecosystem. According
to a report by RBS Foundation India 2018-2019 report, there was a drastic drop in poaching
activities after the implementation of MET's Public Social Change(PSC) mechanisms. It was
worth noting that the number of indigenous birds in the lake also relatively increased compared
to the previous year.
Core stakeholders like companies were now required to invest in the projects that impacted the
community. This altered their plans hence the use of extra money to fund these projects. They
were part of corporate social responsibility.

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The leadership of the community and institutions was also affected by these new mechanisms.
The best decision was an overhaul of the current regime and to put in place a leadership that was
pertinent to the goals of MET and needs to change the overall social behavior. These choices in
general have a good impact on the general public.
STEP 5
The organization's decisions on the various factors, in this case, have made a success. Their
achievements have been mostly due to the hard decisions made by the company. MET wants to
be an institution that offers development plans, oversees the well-being of the public, and
improves society. They inculcated various mechanisms to achieve the targets. By utilitarianism,
given the outcome of MET's acts on the public, the fact that it brought more good to it made it
right
MET concentrated on short-term goals such as the development of lodges around the lake. This
was a toll order which brought problems in the short run but in the end, it paid well in the
achievement of its goal to offer income to the public.
STEP 6(RECOMMENDATION/SOLUTION)
The priority should be given to the public. In this case, I will decide to empower the public first
before any developments. An overall change in the perception of the community will help in the
projects that come afterward. The next phase will be the implementation of legal mechanisms to
govern companies and government sectors. Conservation of the ecosystem will be the next
priority after education to the public. This is an enabler to the economy as it will help in income
for the locals. Finally, the next phase will be the development of infrastructure and other
amenities. All these priorities should be implemented gradually but if possible simultaneously to
achieve the best-desired outcome.

STEP 7(EVALUATION AND CONCLUSION)

An evaluation of my decisions above is based on what is ethically right. As in the case study, the
main issue is the failure of organizations to adhere to what is morally upright. This is the well-
being of the people. In my decision, I have made this a priority. This addresses the SDG on No
Poverty.
The general perception of the ecosystem has not been observed. In my decision, I have put into
consideration the achievement of Sustainable Development Goal number 13 on climate action
according to SDSN report. Educating the public on the importance of conservation will help in
this goal. This single step leads to the achievements of other SDGs like clean water, energy, and
life below water. The main plan is to achieve the SDGs through university education awareness
in this SDGs (SDSN 2020). My plan will involve the building of infrastructure in the long run to
facilitate and enable the reduction of poverty and the building of amenities

REFERENCES
ABC News Australia 2012, Third wave of asbestos deaths hits renovators, online video,
Youtube, ABC News (Australia), 4 September 2012, accessed 20 August 2022, <https://youtu.be

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Wilcox, T & UNSW Business School 2022, MGMT5050: Ethical Decision-making Discussion
Question (7 Steps of Ethical Decision Making), UNSW Business School,
<https://unsw.alma.exlibrisgroup.com/leganto/public/61UNSW_INST/citation/
51302049810001731?auth=SAML>/NbhQSVJqE-w>.
A seven-step guide to ethical decision making - dusk.geo.oregonstate.edu (no date). Available at:
https://dusk.geo.oregonstate.edu/buffgis/ethical_case_studies.pdf (Accessed: October 23, 2022).
l‌ogin.wwwproxy1.library.unsw.edu.au. (n.d.). Database Access - UNSW Library electronic
resource. [online] Available at: https://www-sciencedirect-
com.wwwproxy1.library.unsw.edu.au/science/article/pii/S0007681311000620.
Hasnas, J 2013, 'Whither Stakeholder Theory? A Guide for the Perplexed Revisited', Journal of
business ethics, vol. 112, no. 1, pp. 47–57,
‌Kumar, S. N. 2020. Head sustainable banking India, NatWest group, and head NatWest India
foundation. Personal interview conducted by the Author on May 20, 2020.

MGMT5050 2021, Seven (7) step ethical framework, Created by Assoc Professor Tracy
Wilcox,<http://moodle.telt.unsw.edu.au/pluginfile.phd/7484939/mod_resource/content/1/
MGMT5050%207-Step%20Ethical%20Framework.pdf>.
MGMT5050 2020, 'Why CSR? with Tracy Wilcox', video, MS Stream,
https://web.microsoftstream.com/embed/video/54c352c0-d11a-4781-875c-a33d3cf87988

SDSN Australia, New Zealand, and Pacific. (n.d.). Accelerating Education for the SDGs in
Universities. [online] Available at:
https://ap-unsdsn.org/regional-initiatives/universities-sdgs/education-for-sdgs-guide [Accessed
23 Oct. 2022].

The ethical advantage: the economic and social benefits of ethics to Australia. (n.d.). [online]
Available at: https://ethics.org.au/wp-content/uploads/2018/05/The-Ethical-Advantage-4.pdf.
<https://unsw.alma.exlibrisgroup.com/leganto/public/61UNSW_INST/citation/
50255856550001731?auth=SAML>.

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The Ethics Model: Comprehensive, Ethical Decision Making (no date). Available at:
https://www.counseling.org/docs/default-source/vistas/the-ethics-model.pdf?sfvrsn=c9c24a2c_4
(Accessed: October 23, 2022).
Peacock, M 2011, ABC Australia Foreign Correspondent: 'India - Toxic Trade: In India, asbestos
is used prominently in many construction projects, despite its damaging effects on human health,
television broadcast video, ABC Australia, 8 November 2011, vol 28, issue 1108, viewed 20
September 2022,
unsw.alma.exlibrisgroup.com. (n.d.). SAML Login Redirection. [online] Available at:
https://unsw.alma.exlibrisgroup.com/leganto/public/61UNSW_INST/citation/
50255856550001731?auth=SAML [Accessed 23 Oct. 2022].
Wilcox, T & UNSW Business School 2022, 7 Steps of Ethical Decision Making, online video,
UNSW Business School, <https://web.microsoftstream.com/video/122b0a9b-eb28-4bd9-951e-
f4117f1f1c17>.
Wilcox, T & UNSW Business School 2022, MGMT5050: Ethical Decision-making Discussion
Question (7 Steps of Ethical Decision Making), UNSW Business School,
<https://unsw.alma.exlibrisgroup.com/leganto/public/61UNSW_INST/citation/
51302049810001731?auth=SAML>.
Wilcox, T & UNSW Business School 2022, 7 Steps of Ethical Decision Making, online video,
UNSW Business School, <https://web.microsoftstream.com/video/122b0a9b-eb28-4bd9-951e-
f4117f1f1c17>.

APPENDIX
PEST ANALYSIS
Below is the Pest analysis of the case study and an article on PEST analysis in the tourism sect

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POLITICAL FACTORS
According to the article on PESTEL analysis of tourism by Thomas Bush 2019, the following
factors were put across. First was the issue of open borders affecting tourism. How stable a
government is a major determinant of tourism. The last issue was taxation.
MET rolled out an integration framework for the market-based organization to achieve positive
social change. This was to make companies from outside and inside India contribute to
Corporate social responsibility. Priority had to be given to projects that impact society positively.
There were also some guidelines and mechanisms that were to be followed to achieve this goal.
This gave MET the upper hand in rolling out the Mangalajodi project.
ECONOMIC FACTORS
The level of income to spend among people determines the level of tourism. Generally, there is a
rising nature of income globally, which in turn raises tourists to other countries of destination as
written by Thomas Bush (2019).
The Indian economy was in recession and this affected the government in their service delivery
and policy formulations. Private organizations like NatWest Bank India had to step to save the
situation.

SOCIAL FACTORS
According to Thomas Bush (2019), social media has affected tourism a great deal. People
nowadays find it fashionable to travel. This has boosted the tourism sector globally. Socialization
among people has risen leading to acceptance of all races. Consequently, this has made the
tourism sector grow. Let's now take the case in the case study into perspective.
The Mangalajodi people were accustomed to fishing and agriculture making them vulnerable to
Suraangi (2021) as their sole source of income. It was hard for them to sustain their livelihoods
from any other thing hence resorting to poaching. This was one other social factor that affected
the decisions of MET. The people lacked other skills that could help them seek alternative
sources of income.

TECHNOLOGICAL FACTORS
In the formulation of this report, I have encountered problems such as the inability to access data
from government portals. Data accede were out of date. It would have been more practical to
argue with the facts from up-to-date data
ETHICAL, WEATHER, AND ENVIRONMENTAL FACTORS
These are some of the main determinants and factors in the tourism sector as stated by Thomas
Bush. In the summer many people flood beaches as tourists.

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The people in Mangalajodi had been affected by the migration of birds from the neighboring
countries. This led to the depletion of natural resources in lake Chilika. Due to this happening the
people were affected as their fishing grounds were depleted.

REFERENCE
https://pestleanalysis.com/pestle-analysis-of-tourism/