Ethical decision making in business
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This document discusses ethical decision making in business. It outlines several models that guide ethical decision making, including rights theory, justice theory, and utilitarianism. It also discusses influences on ethical decision making like personal moral standards, workplace ethics and culture, and the nature of ethical issues. Key factors in ethical decision making are developing trustworthiness, respect, responsibility, fairness, caring, and good citizenship. Managers must balance different stakeholder interests and address complex issues with human-centered solutions.
Ethical decision making in business
- 2. Ethical Decision Making in Business Introduction In an organization, the managers and the executives are encountered with hundreds of situations where they need to make prudence decisions which are morally and ethically justifiable. In a company there are set rules, need for hierarchical sanctions, department pressures, the need for cost cutting and enchanting profit, maintaining the reputation of the company and considering the interests of all pressure groups and stakeholders. Though there is no fixed outline for making ethical decisions, there are some factors that would influence one’s decision can be understood. However, based on the different case studies, research findings, we can conceptualize a framework for understanding ethical decision making in business. Ethical models that Guide Decision Making There are several theories that came into the realm of business philosophy over the years which provide certain benchmarks to set organizational or professional standards or help develop a basis for normative judgement that could transcend organizational or professional cultures. But it is manifested that business theorists, have not made much use of these theories that could offer models of ethical decision making due to- (i) ethical theories and their relevance to business research are not easily understood by business theorists (ii) ethical theories, being normative, are difficult to put into practice At present, three models based on rights, justice and utilitarianism are prominent and used more than others. Rights Theory The right-based theories were advocated by Immanuel Kant who stressed personal rights, and Locke who underlined the importance of property rights. They focused on the entitlements of individuals as persons with dignity and held the view that ethical decisions should protect the legal and moral rights that an individual is entitled to. According to ethicists these individual rights would include the rights to (1) free consent, (2) freedom of conscience, (3) privacy, (4) free space, and (5) due process. According to DeGeorge, there is considerable overlapping of legal and moral rights. But while legal rights are protected by law, moral rights are to be protected by society. Rights imply corresponding duties, especially the duty to respect others’ rights. Justice Theory Chronologically, Justice theories precede rights theories and can be traced to Greek philosophers, Plato and Aristotole in the fifth century BC. These theories advocate that all persons should be guided by fairness, justice, equity and by a sense of impartiality. Rawls depicted the modern context where he outlined that ethical decisions should results in a situation where all human beings are treated equally, and in case some are treated unequally, it must be based on some defensible reasons. Equality is the based-on justice. Disparity in incomes between top management
- 3. and the workers in widening almost every decade even in emerging economies which poses us in an ethical dilemma which was explained in the article of Marrkkula Center, “A framework for thinking Ethically.” Utilitarianism Utilitarianism is an ethical theory that states that the best action is the one that maximizes utility or produces the greatest good for the largest number of people. "Utility" is defined in various ways, usually in terms of the wellbeing of sentient entities. Jeremy Bentham, the founder of utilitarianism, described utility as the sum of all pleasure that results from an action, minus the suffering of anyone involved in the action. Utilitarianism is a version of consequentialism, which states that the consequences of any action are the only standard of right and wrong. Unlike other forms of consequentialism, such as egoism and altruism, utilitarianism considers the interests of all beings equally. According to Barry, a chosen action may not lead to greatest benefit to a large body of persons in every situation but over the long run they will results in greatest societal benefits compared to the other alternatives. In two situations, utilitarian-based theories will be considered unethical: (1) decision that’s bring about personal gain at the cost of society’s benefit (2) decisions that results in inefficient attainment of desired ends The utilitarian approach has a double-edged focus to a ethical problem: to increase the good done and to reduce the harm done. The Virtue Approach This approach advocates that ethical actions should be consistent with certain morally acceptable virtues that would pave the way for full development of humanity. The virtuous persons are the ethical persons, virtues are like habits, once acquired turn into characteristics of a person. To decide, two question arises, What kind of a person I will be if I do this? Or, is this action consistent with my acting as an ethical person? Virtues are honesty, integrity, courage, compassion, love, fidelity, tolerance, prudence, sense of fairness, sacrifice and self-control. Virtuous people are: Mahtma Gandhi, Mother Teresa, Jawharlal Neheru. The Common Good Approach The common good approach, like the justice Approach advocated by Greek philosophers, identifies that societal view that life in a community is good in itself and it is moral responsibility of each person not only to contribute, but also to enrich it. It draws attention to the establishment and maintenance of law and order, policing and fire service, health care, public education, places of amusements to promote the overall welfare in society. The ethical action is one that is for the greater good and that contributes most to the achievement of a quality common existence.
- 4. Which approach to use? Each of the theories discussed has its own strengths, weaknesses and followers. Though all the theories can be claimed to be a set of ethical principles, each theory addresses an ethical aspect of behavior. It is difficult to arrive at a standard answer on which approach to use but ethicists Velasquez, Cavanagh and Moberg have provided a schematic for ethical decision making that uses 3 criteria – utility, rights and justice together. According to these authorities, if an action meets all of the three criteria, it is considered ethical. Carol has suggested a system which uses an “ethics screen” which includes ethical principles, ethical tests and standards which could be personal, organizational or societal. Ethical Decision Making with Cross-holder Conflicts and Competition The problem for ethical decision making becomes more complicated with the conflicts of shareholders’ interests in business. There are many situations that occur very often in industries that arise conflicting interests of shareholders. For instance, when an organization with a view to increasing profits and declaring higher dividends to shareholders on a long-term basis, resorts to the introduction of high-technology labor-saving devices and dismissal of its labor in hundreds. This leads to a very complex ethical decision making to managers. Though managers are obliged to the shareholders to make provisions for declaring high dividend, the adopted measures of cost cutting through dismissal of hundreds of employees will create severe human problems as well as an ethical dilemma for managers. This type of situation calls for a solution with a “human face”. For example, the managers can ensure that the displaced employees from one division can be trained suitably to enable them to be absorbed in the company’s other divisions. This type of solution is not an easy job so ethicists find it difficult to offer a proper solution to these conflicting situations. Barry proposed the following decision making rules regarding cases of conflicts and mixed effects: 1. Choose the more important obligation between the two or more obligations. 2. Choose an action of higher ideal when two or more ideals conflict or when ideals conflict with obligations. 3. Choose the action that produces the greater good, or the lesser harm, when the effects are mixed. Applying Moral Philosophy to Ethical Decision Making Moral philosophy means the principles or values that people use to decide what is wrong and what is right. Individuals use different moral philosophies depending on whether they are making a personal or making a work-related decision. This difference may arise because the kind of goals and pressures that motivate persons to achieve success in work environment does not exist in their domestic or personal lives. For example, an executive if asked by his manager, may prepare an exaggerated expenditure account for his department for necessary sanction so that his department will have a comfortable annual budget with no constraint in expenditure but when he has to make his own domestic expenditure he cannot be so generate and has to stay within his means. Another reason why persons change their moral philosophies when applying them to ethical decision making may be due to corporate culture. So when a person joins a new firm, he or she
- 5. may try to change certain values within his or her moral philosophy to suit the moral philosophy of the new firm. Another constraint that one faces in applying moral philosophies in ethical decision making in personal or business environment, is its inexact or unscientific nature. In implementing moral philosophies from an individual perspective requires persons to make their own decisions based on what is right or wrong. However, in business perspective that is not enough because one has to consider the business culture and policies and understand whether this decision will produce greatest benefits and less harm to the business. Applying moral philosophy in ethical decision making is important to ensure the business success and maintain a harmony in the environment. Ignoring moral philosophy may lead to conflicts among employees or employers. It may also result into bad decision making which may harm individuals or businesses. If the employees face problems that they cannot solve successfully in ethical decision making with the help of moral philosophy, a clear understating of the basic premise of their decision rationale can help them have a firm grasp of the situation and take sound decisions Kholberg’s Model of Cognitive Moral Development Lawrence Kohlberg’s stages of moral development, a comprehensive stage theory of moral development based on Jean Piaget’s theory of moral judgment for children (1932) and developed by Lawrence Kohlberg in 1958. Cognitive in nature, Kohlberg’s theory focuses on the thinking process that occurs when one decides whether a behavior is right or wrong. Thus, the theoretical emphasis is on how one decides to respond to a moral dilemma, not what one decides or what one actually does. Kohlberg identified three levels of moral reasoning: pre-conventional, conventional, and post- conventional. Each level is associated with increasingly complex stages of moral development.
- 6. Level 1: Pre conventional Throughout the pre-conventional level, a child’s sense of morality is externally controlled. Children accept and believe the rules of authority figures, such as parents and teachers. A child with pre-conventional morality has not yet adopted or internalized society’s conventions regarding what is right or wrong, but instead focuses largely on external consequences that certain actions may bring. Stage 1: Obedience-and-Punishment Orientation Stage 1 focuses on the child’s desire to obey rules and avoid being punished. For example, an action is perceived as morally wrong because the perpetrator is punished; the worse the punishment for the act is, the more “bad” the act is perceived to be. Stage 2: Instrumental Orientation Stage 2 expresses the “what’s in it for me?” position, in which right behavior is defined by whatever the individual believes to be in their best interest. Stage two reasoning shows a limited interest in the needs of others, only to the point where it might further the individual’s own interests. As a result, concern for others is not based on loyalty or intrinsic respect, but rather a “you scratch my back, and I’ll scratch yours” mentality. An example would be when a child is asked by his parents to do a chore. The child asks “what’s in it for me?” and the parents offer the child an incentive by giving him an allowance. Level 2: Conventional Throughout the conventional level, a child’s sense of morality is tied to personal and societal relationships. Children continue to accept the rules of authority figures, but this is now due to their belief that this is necessary to ensure positive relationships and societal order. Adherence to rules and conventions is somewhat rigid during these stages, and a rule’s appropriateness or fairness is seldom questioned. Stage 3: Good Boy, Nice Girl Orientation In stage 3, children want the approval of others and act in ways to avoid disapproval. Emphasis is placed on good behavior and people being “nice” to others. Stage 4: Law-and-Order Orientation In stage 4, the child blindly accepts rules and convention because of their importance in maintaining a functioning society. Rules are seen as being the same for everyone, and obeying rules by doing what one is “supposed” to do is seen as valuable and important. Moral reasoning in stage four is beyond the need for individual approval exhibited in stage three. If one person violates a law, perhaps everyone would—thus there is an obligation and a duty to uphold laws and rules. Most active members of society remain at stage four, where morality is still predominantly dictated by an outside force.
- 7. Level 3: Post conventional Throughout the post conventional level, a person’s sense of morality is defined in terms of more abstract principles and values. People now believe that some laws are unjust and should be changed or eliminated. This level is marked by a growing realization that individuals are separate entities from society and that individuals may disobey rules inconsistent with their own principles. Post- conventional moralists live by their own ethical principles—principles that typically include such basic human rights as life, liberty, and justice—and view rules as useful but changeable mechanisms, rather than absolute dictates that must be obeyed without question. Stage 5: Social-Contract Orientation In stage 5, the world is viewed as holding different opinions, rights, and values. Such perspectives should be mutually respected as unique to each person or community. Laws are regarded as social contracts rather than rigid edicts. Those that do not promote the general welfare should be changed when necessary to meet the greatest good for the greatest number of people. This is achieved through majority decision and inevitable compromise. Democratic government is theoretically based on stage five reasoning. Stage 6: Universal-Ethical-Principal Orientation In stage 6, moral reasoning is based on abstract reasoning using universal ethical principles. Generally, the chosen principles are abstract rather than concrete and focus on ideas such as equality, dignity, or respect. Laws are valid only insofar as they are grounded in justice, and a commitment to justice carries with it an obligation to disobey unjust laws. People choose the ethical principles they want to follow, and if they violate those principles, they feel guilty. In this way, the individual acts because it is morally right to do so (and not because he or she wants to avoid punishment), it is in their best interest, it is expected, it is legal, or it is previously agreed upon. Although Kohlberg insisted that stage six exists, he found it difficult to identify individuals who consistently operated at that level. Moral development plays an important role in our social interactions. Understanding how and why individuals make decisions regarding moral dilemmas can be very useful in many settings. Kohlberg’s theory of moral development provides a framework in which to investigate and begin to comprehend how moral reasoning develops within individuals. INFLUENCES ON ETHICAL DECISION MAKING There are three major factors influencing an employee in business decision making. These are: • Personal moral standards • Workplace ethics and culture • Nature of issues Ethical dilemmas arise upon business persons in cases of cutting raw material cost or laying off labors to increase dividends to shareholders. Also, the lack of time to contemplate and reflect on alternate course of action without compromising their ideals arises due to higher work pressure
- 8. and competition in market. This type of situation forces to take unethical actions like fake discounts or low quality of product to be marketed. There are situation where it is seen that fair minded people have difference of opinions for ethical decision making in a particular situation. Though, trained sensitivity to ethical issues might be helpful for proper decision making, it is also important for a person to have full grasp of implications of choices, ability to evaluate complex, ambiguous and incomplete facts and other skill to implement ethical decisions effectively. Apart from the personal strong personal beliefs, one should also have a framework of reliable principle to work on and procedure to apply those in specific ethical problems. To make ethical decisions an individual has to reckon two sets of values, which are: • Own personal value • Value of workplace The ethical conviction may take place due to influence of factors such as family background, upbringing, education, culture, religion belief, friends circle, organizational value, professional norms, law and political habits and the person’s stage of moral development. WORK PLACE ETHICS Workplace ethics are the moral principles that guide a person's actions in the workplace. Ethical standards can vary from industry to industry, and from position to position within an industry. If the corporate culture is straightforward as per mission and vision are statement and well laid politics and strongly protected of stakeholders, then it will not create any issues for an ethically sensitive employee. But, if the culture is haughtiness and full of political biasness then ethical issues in personal and professional roles are bound to arise. NATURE OF ETHICAL ISSUES Ethical issues may arise on the basis of personal human traits and philosophies. In the workplace, various events may take place where the employees are bound to take part in certain occasions which may hurt their religious or philosophical viewpoints. This situation forces the employee to be in an ethical dilemma of weather should he do it or not. As a result, often conflict between management and employees may rise within the organization. PERSONAL VALUES AND ETHICAL DECISION MAKING An ethical decision maker need to develop certain values, which are also known as the six pillars of character. These are: • Trustworthiness • Respect • Responsibility • Fairness • Caring
- 9. • Citizenship This six pillars creates a multi-level filter through which our ethical decision making process is proceeded and the quality of decision making is very high when these are followed. Trustworthiness: A trustworthy company is upfront and honest in all actions, including interaction with employees and customers. When representatives of a company uphold ethical standards, they help build a positive reputation for a company. Making commitments and following through with them also demonstrates trustworthiness. Honesty involves following established rules and telling the truth at all times. Traits of trustworthiness are: • Be honest • Don’t deceive, cheat, or steal • Be reliable — do what you say you’ll do • Have the courage to do the right thing • Be loyal — stand by your family, friends, and country Respect: All people have an inherent right to receive respectful treatment. A respectful company and its employees will extend this type of respect to everyone, including employees, customers, and competitors. Extending tolerance to others is another facet of respect. Civility and courtesy, even in unpleasant situations, shows a respectful attitude. Traits of respect are: • Treat others with respect; follow the Golden Rule • Be tolerant and accepting of differences • Use good manners, not bad language • Be considerate of the feelings of others • Don’t threaten, hit or hurt anyone • Deal peacefully with anger, insults, and disagreements Responsibility: Management and employees often make decisions on behalf of a company. These decisions will have consequences and ramifications. Responsible professional behavior involves being accountable for decisions without trying to move blame elsewhere. Even something as basic as making timely payments on small business loans is an important part of responsible business
- 10. behavior. Another part of responsibility is diligence and a desire to succeed. When employees work hard to represent a company in an ethical manner, everyone benefits. The traits are: • Do what you are supposed to do • Plan ahead • Persevere • Use self-control • Be self-disciplined • Think before you act — consider the consequences • Be accountable for your words, actions, and attitudes Fairness: Consistent business dealings and transactions demonstrate fairness. A company should institute a balanced code of conduct that serves everyone, including the business and the customers. For example, customers need a product or a service provided by the company, and the company needs to make a profit while serving the needs of customers. The customers have the right to receive high-quality goods or services, and the company has the responsibility to provide this. The customers also have the responsibility to pay for the goods or services received, and the company has the right to receive compensation for good or services provided. The traits are: • Play by the rules • Take turns and share • Be open-minded; listen to others • Don’t blame others carelessly and be fair Caring: Extending a caring attitude toward customers and employees is part of positive ethics. A business can demonstrate this type of caring by helping customers when possible, listening to concerns, and expressing gratitude. Customers each may have individual concerns and problems. A company might not always be able to resolve these issues, but showing concern is a positive attribute for a company. The traits of caring are: • Be kind • Be compassionate and show you care • Express gratitude and forgive Citizenship:
- 11. A business is a part of a community, both on a small and large scale. A business should conduct itself within the laws of the community. A business can also demonstrate a civic-minded mentality by assisting the community in various ways. Some companies may participate in corporate volunteering efforts to benefit a community. Other companies may make corporate donations to help various organizations within a community. • Volunteer and protect environment • Get involved in community affairs and cooperate • Obey rules and respect authority Corporate values and ethical decision making Corporate culture can be defined as a set of values, belief goals, norms and ways of solving problems that an organization’s employee share and live up with in their work environment. Organizational culture depends on the individual’s moral values and standard. Specially working environment, mission, vision and corporate values influence individual to take their decision. In organization decision are mostly taken through committee, discussion or meetings of responsible group. Employees must go with the culture by taking the corporate values otherwise it may create a chaos. Organization may have developed a culture that is consumer oriented. In this culture organization are concern of consumer, their comfortability, satisfaction. If consumers are happy then Corporations are too. Other corporation may develop employee centered policies which more focused of employees. Other can be result oriented. These organization only think of profit. Other standard of culture may invalid. Every organization is focused of profit otherwise they will not survive. Ethical conscience are the standard that represent the work or activity should be done. Organization must develop an ethical climate. By ethical conscience a fraud activity can be defined. It actually present the motive of individual or organization. Enron wanted to show more profit to stockholder for enhancing capitalization. Here ethical conscience was secondary because their main motive was capitalization so they published profit statement. Ethical decision making helps people make difficult choices when faced an ethical dilemma a situation in which there is no clear right or wrong answer. There are 3 steps of making ethical decision: • Ethics of obedience: this present law related obedience as well as moral values. • Ethics of care: it engages empathy to take decision. • Ethics of reason: it engages our rational brain about the legitimacy of the work. Role of corporate governance in ensuring ethics in workplace
- 12. Corporate governance is the mechanism and processes by which corporation is directed and controlled. Basically it is kind of rules, formal codes and policies which help organization to run in an effective way. Every organization have these and trying to implement them. Corporate governance centers such values as integrity, accountability, transparency and disclosure of financial and non-financial information. How corporate governance facilitate? It gives proper explanation of the board including risk, corporate performance, fair accounting and reporting system, monitoring effectiveness and changing them. A Framework of Ethical decision making- Making an ethical decision is a tough task. In our personal lives, we choose what is right or wrong based on our moral preferences. But when it comes to organizations, the decision making becomes much more complex. That no longer depends on individual perspective. Sometimes the power to choose is not self-evident. Outside control and inner emotions can leave one feeling powerless. Especially when one is young or immature, feelings of joy and depression, anger, fear, frustration, grief, anxiety, resentment, jealousy, guilt, loneliness, love seem to come and go on their own, creating moods that may seem beyond control. The intensity of our feelings can encourage us to act and react impulsively as if we had no choice. We may not have the power to do everything we want to do, but we still have the power to decide what to do with what we have. And that is power enough. Taking help from Michael Josephson’s groundwork for making ethical decisions, we can construct the following components of good choices. • Take choices seriously- We all make thousands of decisions daily. Most of them do not justify extended forethought. They are simple, repetitive or without significant consequence. In such cases, it may be safe to just go with our feelings. It’s OK to decide spontaneously what to wear and eat and what to say in casual conversations. When the issues are not morally complex and the stakes are small, our normal instincts are sufficient. The problem comes when we don’t distinguish between minor and potentially major issues, when we “go with the flow” in situations that demand a much more careful approach. • Good decisions are both ethical and effective- Ethical Decisions- A decision is ethical when it is consistent with the Six Pillars of Character. Ethical decisions generate and sustain trust; demonstrate respect, responsibility, fairness and caring; and are consistent with good citizenship. If we lie to get something we want and we get it, the decision might well be called effective, but it is also unethical. Effective Decisions- A decision is effective if it accomplishes something we want to happen, if it advances our purposes. A simple test is: are you satisfied with the results? A choice that produces unintended and undesirable results is ineffective. • Discernment and Discipline- There are two critical aspects to ethically sound decisions: knowing what to do and doing it.
- 13. Discernment- The first requirement of good decisions is discernment. It is not obvious to everyone, for example, that it is just as dishonest to deliberately deceive someone by half- truths and omissions as to tell an outright lie. It’s also not always clear how to respond most effectively. Discernment requires knowledge and judgment. Discipline- Good decisions also require discipline, the strength of character to do what should be done even when it is costly or uncomfortable. It’s not enough that we discern the ethical and effective course; we must follow it. This often takes will power or moral courage: the willingness to do the right thing even when it is inconvenient, scary, difficult or costly. The process of making good ethical decisions- To make good decisions, we should have a belief in the importance of ethics, an ethical sensitivity to the implications of the various choices we have, the ability to evaluate facts at our disposal which may be incomplete, complex, contentious and even ambiguous and the skill to implement effectively the ethical decisions we make. Here is the process one should follow to make good ethical decisions- 1. Recognize and identify the kind of ethical issue you need to resolve- First and foremost, we have to recognize the ethical issue and then seek answers regarding the nature of the issue, the conflict it raised and how the decision will have impact on the people involved. We have to think about potential positive and negative consequences for affected parties by the decision (Focus on primary stakeholders to simplify analysis until you become comfortable with the process). What are the magnitude of the consequences and the probability that the consequences will happen, all these things need to be considered before making a decision. 2. Pause and Think- One of the most important steps to better decisions is the oldest advice in the world: think ahead. To do so it’s necessary to first stop the momentum of events long enough to permit calm analysis. This may require discipline, but it is a powerful tonic against poor choices. The well-worn formula to count to 10 when angry and to a hundred when very angry is a simple technique designed to prevent foolish and impulsive behavior. But we are just as apt to make foolish decisions when we are under the strain of powerful desires or fatigue, when we are in a hurry or under pressure, and when we are ignorant of important facts. Just as we teach our children to look both ways before they cross the street, we can and should instill the habit of looking ahead before they make any decision. Stopping to think provides several benefits. It prevents rash decisions. It prepares us for more thoughtful discernment. And it can allow us to mobilize our discipline.
- 14. 3. Make sure of your goals- Before you choose, clarify your short- and long-term aims. Determine which of your many wants and don’t-wants affected by the decision are the most important. The big danger is that decisions that fulfill immediate wants and needs can prevent the achievement of our more important life goals. 4. Get your facts right- Be sure you have adequate information to support an intelligent choice. You can’t make good decisions if you don’t know the facts. To determine the facts, first resolve what you know, then what you need to know. Be prepared to get additional information and to verify assumptions and other uncertain information. Once we begin to be more careful about facts, we often find that there are different versions of them and disagreements about their meaning. In these situations part of making sound decisions involves making good judgments as to who and what to believe. Here are some guidelines: • Consider the reliability and credibility of the people providing the facts. • Consider the basis of the supposed facts. If the person giving you the information says he or she personally heard or saw something, evaluate that person in terms of honesty, accuracy and memory. • Remember that assumptions, gossip and hearsay are not the same as facts. • Consider all perspectives, but be careful to consider whether the source of the information has values different from yours or has a personal interest that could affect perception of the facts. • Where possible seek out the opinions of people whose judgment and character you respect, but be careful to distinguish the well-grounded opinions of informed people from casual speculation, conjecture and guesswork. • Finally, evaluate the information you have in terms of completeness and reliability so you have a sense of the certainty and fallibility of your decisions. 5. Evaluate choices from different ethical perspectives- Now that you know what you want to achieve and have made your best judgment as to the relevant facts, make a list of options, a set of actions you can take to accomplish your goals. If it’s an especially important decision, talk to someone you trust so you can broaden your perspective and think of new choices. If you can think of only one or two choices, you’re probably not thinking hard enough. 6. 7.
- 15. 8. Make a decision- It’s time to make your decision. If the choice is not immediately clear, see if any of the following strategies help: • Talk to people whose judgment you respect. Seek out friends and mentors, but remember, once you’ve gathered opinions and advice, the ultimate responsibility is still yours. • What would the most ethical person you know do? Think of the person you know or know of (in real life or fiction) who has the strongest character and best ethical judgment. Then ask yourself: what would that person do in your situation? Think of that person as your decision-making role model and try to behave the way he or she would. Many Christians wear a small bracelet with the letters WWJD standing for the question “What would Jesus do?” Whether you are Christian or not, the idea of referencing a role model can be a useful one. You could translate the question into: “What would God want me to do?” “What would Buddha or Mother Teresa do?” “What would Gandhi do?” “What would the most virtuous person in the world do?” • What would you do if you were sure everyone would know? If everyone found out about your decision, would you be proud and comfortable? Choices that only look good if no one knows are always bad choices. Good choices make us worthy of admiration and build good reputations. It’s been said that character is revealed by how we behave when we think no one is looking and strengthened when we act as if everyone is looking. • Golden Rule: do unto to others as you would have them do unto you. The Golden Rule is one of the oldest and best guides to ethical decision-making. If we treat people the way we want to be treated we are likely to live up to the Six Pillars of Character. We don’t want to be lied to or have promises broken, so we should be honest and keep our promises to others. We want others to treat us with respect, so we should treat others respectfully. 9. Act, then reflect on the decision later- Since most hard decisions use imperfect information and “best effort” predictions, some of them will inevitably be wrong. Ethical decision makers monitor the effects of their choices. If they are not producing the intended results or are causing additional unintended and undesirable results, they re-assess the situation and make new decisions. Conclusion In our discussion, it’s evident that without making an ethical decision, no organization will sustain in the long run in a competitive emerging market where consumers are aware of the facts, competitors are aggressively rivalling. Ethics should be maintained in al courses of actions taken in an organization.