Making Ethical Decisions
David Long
Canterbury Christ Church University
IPW Helsinki Metropolia Business School, Finland
May 13 – 17 2013
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Aims of this Lecture
To explore:
• Why both ethical and unethical decisions get
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made in the workplace;
Individual differences shaping ethical decisionmaking;
The effect of situational influences on ethical
decision-making.
Pluralism?
For practical purposes of making effective decisions in business:
• There is no one theory or approach which is the best or true
view of a moral dilemma
• A variety of theoretical approaches throw light from different
angles on any particular problem
• Theories and views about ethics should be regarded as
complementary rather than mutually exclusive
• Pluralism is a middle ground between moral absolutism and
relativism
Crane & Matten, 2010
Stages in Ethical Decision Making
The Ethical Decision Making Process:
Recognise
Moral Issue
Make Moral
Judgement
Source: Crane & Matten 2010
Establish
Moral Intent
Engage in
Moral
Behaviour
Influences on Ethical Decision-Making
Two broad categories: individual and situational (Ford and
Richardson 1994):
 Individual factors - The unique characteristics of
the individual actually making the relevant
decision.
 birth factors
 acquired by experience and socialisation
 Situational factors - The particular features of the
context that influence whether the individual will
make an ethical or unethical decision.
• the ethical framing of the issue.
• the issue itself (such as the intensity of the moral issue) .
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Significant Others are the Most Influential
Factor in Ethical, Organisational Decision
Making
Personal
Values
Opportunity
Source: Ferrell, Fraedrich & Ferrell 2002
Significant
Others:
Managers &
Peers
Ethical
Decisions
Individual Influences on Ethical
Decision-Making
Personal Values
and Integrity
Age and Gender
National and
Cultural
Characteristics
Individual
Ethical
Decisions
Moral
Imagination
Education &
Employment
Locus of
Control
Psychological
Factors
(source: Crane & Matten 2007 p137)
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Kohlberg’s Cognitive Moral Development:
different levels of ethical reasoning
Moral Development
Pre-Conventional
Conventional
Post-Conventional
Usually associated with Most people think Virtuous people with a
children
This way
strong internal moral compass
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Stage 6
Obey rules
And avoid
punishment
Follow
rules only
if in own
interests
Conform
To meet
expectations
of others
Broader
Consideration
of social
accord
Understand
rights and
values are
relative
Autonomous
decisions act
with integrity
e.g unofficial covering for
a colleague
(source: Crane & Matten 2007 p142)
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e.g personal use of
company resources
e.g not purchasing products
tested on animals
So, Why do Good People Make
Unethical Choices?
• Challenge of how to hold on to your integrity and values, despite
organisational pressures that create moral dilemmas!
• Reality is often making the ‘least worst’ choice
• Factors contributing to organisational misconduct:
 Bad examples
 Alien cultural environment
 Blaming the victim
 Failure of individual moral responsibility
(Green R The Ethical Manager).
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Pressures in the Workplace
• Pressure to perform
 From superiors
 ‘Bottom line’ management
• Rewards and punishment
 Do people get promoted for ethical behaviour?
 People generally do what is rewarded
 Less likely to do what is punished
• Peer pressure
 To go with the crowd
 Group norms
 Need to be accepted and fear of being ostracized.
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Explaining Unethical Behaviour
 Ethical distance
• Moral conscience diluted by psychological distance
 Diffused Responsibility
• No single individual responsible in a group/team
• ‘Group think’ shared decisions
• Obscured by hierarchies
 Rationalisation of unethical behaviour
• ‘Everyone’s doing it’
• People are more likely to recognise acts as unethical if there is
a social consensus.
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Abstraction to Escape Moral
Responsibility





Gabriel Marcel (1962) Man Against Society
‘Abstraction’ – a way of distancing ourselves from ethical
problems
Power of abstraction – at the root of war
Use of abstract terms – the enemy, terrorists etc
The more we remove ourselves from regarding others as human
beings, the more we will be willing to do outrageous things to
them.
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The Concept of Neutralisation
A term used to explain behaviour that is at odds with an
individual’s preferred option or is incongruent with accepted
social norms.
Typical examples might be:
• Delinquent behaviour
• The moral injunction of killing does not apply in war
• Consumer choices at the supermarket
13 (Source: Chatzidakis et al Journal of Business Ethics (2007) 74: 89-100)
Five Categories of Neutralisation
1. Denial of responsibility – “its not my fault”
2. Denial of injury or benefit – “what’s the big deal?”
3. Denial of victim – “its their fault”
4. Condemning the condemners – “it’s a joke after what they’ve
done”
5. Appeal to higher authorities – “I did it for you”
14 (Source: Chatzidakis et al Journal of Business Ethics (2007) 74: 89-100)
Managing Ethical Behaviour
 Loyalty to the group
 Can be powerful and difficult to counteract
 Roles
 Role models and setting of standards
 Professionalism (ethical behaviour more likely)
 Use of power
 Conflicting roles (can lead to unethical behaviour).
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Institute of Business Ethics
Decision Making Framework
 Transparency – Do I mind others knowing what I


have intended?
Effect - Who does my decision affect or hurt?
Fairness – Would my decision be considered fair by
those affected?
(Institute of Business Ethics 2011)
“All that is necessary for evil to
triumph is for good men and
women to do nothing”.
Edmund Burke
Making Ethical Decisions -Summary
• In this lecture we have:
 Discussed the stages of ethical decisionmaking in business
 Outlined individual and situational influences on
ethical decision-making
 Evaluated why good people often make
unethical decisions in business.
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