Ethical Decision

Making :
Process & Approaches
 Ethical Dilemma
There are situations when there is no simple choice between right or wrong.
Dilemmas are complex situations, when there are not clear-cut guidelines
either in law or religion. Dough Wallace explains ,” An ethical dilemma exists
when one is faced with having to make a choice among following
alternatives –
● Significant value conflicts among different interests.
● Real alternatives that are equally justiciable.
● Significant consequences on “Stakeholders” in the situation”.

Example :-
Mr. Rupak Lal has no money to pay for his wife’s medicine and the
pharmacist will not give it to him on credit. The wife would die if she did not
get medicine. He broke into the shop and stole the medicine. There is a
conflict of two ethics, one of saving a life and the other of not stealing.
Why Ethical Decision is important?
● Decision making is a process of selection from a set of alternative courses
of action which is thought to fulfill the objectives of the decision problem
more satisfactorily than other.
● Making good ethical decisions to solve ethical dilemma requires a trained
sensitivity to ethical issues and a practiced method for exploring the
ethical aspects of a decision.
● Having a method for ethical decision making is absolutely essential.
● Ethical decision should be based on ethical principles and codes rather
than on emotions, thoughts, fixed policies.
 Two types of Ethical Choices
● Right vs Wrong : Choosing right from
wrong is the easiest.
● Right vs Right :
i. Situation contains shades of gray that
is all alternative have desirable and
undesirable results.
ii. Choosing “ The lesser of two evils”
iii. Objective : Make a defensible decision.
Ethical Decision
Approaches
Stages in Decision Making Process
I. Defining the problem
II. Developing alternative solutions
III. Evaluation of alternatives
IV. Choice of best alternative
V. Implementing the decision
VI. Follow up
 Step 1 : Defining the Problem
Sufficient time should be spent on defining the problem as it is not always
easy to define the problem and to see the fundamental thing that is causing
the trouble and that needs correction.
The problem should be classified keeping in view the following factors :
a. The nature of the decision i.e., whether it is strategic or it is routine,
b. The impact of the decision on other functions,
c. The futurity of the decision,
d. The periodicity of the decision, and
e. The limiting or strategic factors relevant to the decision.
 Step 2 : Developing Alternative Solutions
● After defining and analyzing the problem, the next step in the decision-
making process is the development of alternative courses of action.
● Without resorting to the process of developing alternatives, a manager is
likely to be guided by his limited imagination.
● It is rare for alternatives to be lacking for any course of action. But
sometimes, a manager assumes that there is only one way of doing a
thing. In such a case, what the manager has probably not done is to force
himself consider other alternatives. Unless he does so, he cannot reach
the decision which is the best possible.
● From this can be derived a key planning principle which maybe termed as
‘The Principle of Alternatives’.
● Alternatives exist for every decision problem. Effective planning involves a
search for the alternatives towards the desired goal.
 Step 3 : Evaluation of Alternatives
● After the alternative solutions to the
problem have been identified, they
need to be evaluated to compare
their positive and negative aspects.
● This would help in determining the
probability of effectiveness of each
alternative in resolving the problem
at hand.
 Step 4 : Choice of Alternative
● Proper evaluation of alternatives
would help in rejecting the non-
feasible alternatives and selecting the
most appropriate alternative course
of action.
● Selection of the alternative can be
based on three approaches :
a. Experience
b. Experimentation
c. Research and Analysis
Step 5 : Implementing the Decision
● The choice of an alternative will not serve any purpose if it is not put into
practice.
● The manager should try to ensure that systematic steps are taken to
implement the decision.
● The main problem which the manager may face at the implementation
stage is the resistance by the subordinates who are affected by the
decision. If the manager is unable to overcome this resistance, the energy
and efforts consumed in decision-making will go waste.
● In order to make the decision acceptable, it is necessary for the manager
to make the people understand what the decision involves, what is
expected of them and what they should expect from the management.
● The principle of slow and steady progress should be followed to bring
about a change in the behaviors of the subordinates.
 Step 6 : Follow Up
● It is better to check the results after putting the decision into practice. The
reasons for following up of decisions are as follows:
a) If the decision is a good one, one will know what to do if faced with the
similar problem again.
b) If the decision is the bad one, one will know what not to do the next
time.
c) If the decision is bad and one follows up soon enough, corrective action
may still be possible.
● In order to achieve proper follow up, the management should devise an
efficient system of feedback information. Such information will be very
useful in taking the corrective measures and in taking right decisions in
the future.
Ethical Theories:
 Factors
affecting ethical
decision
making

Situational
Personal Factors
Factors

Extrinsic/
Intrinsic Factors Environmental
Factors
 Personal Factors
A number of characteristics affect how each individual communicator makes
decision about what is right and what is wrong:
a. Maturity: Some people, even as children or teenagers, have more ethical
maturity than others. Maturity is not necessarily related to chronological
age.
b. Professional Experience: The less experience a person has in making ethical
decision, the more difficult those decisions are-and the more likely some of
those decisions will be wrong.
c. The ability to deal with uncertainty: Some people become rattled and
cannot think clearly when the pressure is on; others become very
focused, rise to the occasion, and make good decisions under difficult
circumstances.
 Situational Factors
● Situational or environmental factors play a vital role in ethical decision
making.
● Environmental factors impact the individual decision making behaviour
such as the complexity of the task and cohesion of team members.
● Working environmental factors such as leadership, providing proper
rewards, constructive criticism, guided career development, equity,
effective interpersonal relationship, occupational engagement and work
commitment impact the ethical decision making process positively.
● In other cases, when the employees get engaged in conflicting roles,
getting punished for right behaviour and poor rewarding or appraisal
system followed by the organisation, then it may negatively impact the
ethical decision making process and the functioning of an organisation.
 PLUS Approach
● Ethical decision making involves taking into consideration
ethical issues at various stages of the decision making
process. The basic steps involved in ethical decision-
making are the same as in normal decision-making
process.
● PLUS approach assumes effective communication with all
employees; so there is a common understanding of :
a. Organization's policies and procedures as they apply to
the situation.
b. Applicable laws and regulations.
c. Set of "universal" values-in this case empathy, patience,
integrity, and courage.
d. Individuals sense of right, fair, and good arising from
their personal values set. The decision-makers apply the
above filters to the various steps of the decision-making
process to take ethical decisions.
 How our mind works
while making an ethical
decision?
 Case Study
Sarah was recently promoted to a managerial position at her industrial
engineering company. With her new position, she is now responsible for
overseeing the company’s production factory, meaning approximately 50 factory
workers now report to her. Although Sarah previously worked as an engineer
and does not have any experience running a factory, she is excited to begin her
new position.
At the end of her first day, Sarah is confused to see her factory workers
continuing to work well past the end of their 8-hour shift. She then goes to the
factory supervisor (who reports to her) to express concern because the factory
does not have the budget to pay so many workers overtime. The supervisor
smiles at Sarah and explains that the factory meets production goals by making
the factory workers work off the clock. The workers are well aware of this
expectation and went along with it in order to keep their jobs. Sarah is shocked
to learn this illegal practice had become part of the company culture, but the
supervisor explains that the company’s CEO (who is Sarah’s boss) is well aware of
this expectation.
 Question 1

Ques: What ethical principle is violated by the company's

practice of making workers work off the clock?
a) Respect for autonomy
b) Beneficence
c) Non-maleficence
d) Justice

Answer: d) Justice. This practice is unfair and unjust to the

workers who are not being paid for the work they are doing.
 Question 2

What should Sarah do about the situation?

a) Ignore it and let the workers continue working off the clock
b) Report the situation to the authorities
c) Confront the supervisor and CEO about the illegal practice
d) Join in on the illegal practice to fit in with the company
culture
Answer: c) Confront the supervisor and CEO about the
illegal practice. As a manager, Sarah has a responsibility to
ensure that the company is following ethical and legal
practices, and this practice violates both.
 Question 3

Which ethical principle should Sarah prioritize in this

situation?
a) Respect for autonomy
b) Beneficence
c) Non-maleficence
d) Justice
Answer: d) Justice. Sarah needs to ensure that the workers
are being treated fairly and justly, and that the company is
following ethical and legal practices.
 Question 4

What potential consequences could Sarah face if she

reports the situation to the authorities?
a) She could lose her job
b) She could be praised for her ethical decision-making
c) The company could face legal consequences
d) All of the above
Answer: d) All of the above. Reporting the situation to the
authorities could result in negative consequences for Sarah,
but it is still the ethical and legal course of action.
 Question 5
What is the best way for Sarah to approach confronting the
supervisor and CEO about the illegal practice?
a) Yell and be confrontational
b) Express concern and provide evidence of the illegal practice
c) Ignore the issue and hope it goes away
d) Quit her job

Answer: b) Express concern and provide evidence of the

illegal practice. Being confrontational is unlikely to be
effective, and ignoring the issue or quitting her job are not
ethical or practical solutions.
Presented By :
Riddhi Jain - 01417788821
Pearl - 01817788821
Muskan Miglani - 03517788821
Mrinalika Santoshi - 05017788821