Karl Knapp’s Ethical Decision Making Model
Ethical Question
Economic Analysis
1. What are the best economic
alternatives?
Legal & Policy Analysis
2. Is the action legal in all countries
and localities were it would be
taken?
3. Does the action violate any
professional or organizational
codes of conduct, rules, or
policies?
Ethical Analysis
4. Does the decision result in
greater benefits than damages for
society as a whole, not just for
our organization?
5. Is the decision self-serving, or
would we be willing to have
everyone else take the same
action when faced with the same
circumstances?
6. We understand the need for
social cooperation; will our
decision increase or decrease the
willingness of others to
contribute?
7. Will our decision increase or
decrease the liberty of others to
act?
8. Does the action result in benefit
for the least advantaged person?
9. Would the benefits and burdens
resulting from the action be
distributed fairly?
10. Does the action infringe on the
moral rights or dignity of others?
11. Does the action help to build
one of the moral virtues in that
person?
12. How would I feel if this action
becomes public knowledge?
Ethical Source (sources from Hosmer, Velasquez, & Cook)
Cost/benefit analysis
The legal system of the affected countries and localities
Professional and organizational policies
Utilitarianism – acting in such a way that the greatest good is achieved for the greatest
number.
Kant’s Categorical Imperative - The person’s reasons for acting must be reasons that
everyone could act on at least in principle; and the person’s reasons for acting must be
reasons that he or she would be willing to have all others use, even as a basis of how they
treat him or her. An action is morally right for a person if, and only if, in performing the
action, the person does not use others merely as a means for advancing his or her own
interests, but also both respects and develops their capacity to choose freely for
themselves. (Velasquez, 2002).
Social good – positive decision results such as happiness, benefit or least harm.
An ethic of care emphasizes two moral demands:
 We each exist in a web of relationships and should preserve and nurture those concrete
and valuable relationships we have with specific persons;
 We each should exercise special care for those with whom we are concretely related by
attending to their particular needs, values, desires, and concrete well-being as seen from
their own personal perspective, and by responding positively to these needs, values,
desires, and concrete well-being, particularly of those who are vulnerable and dependant
on our care. (Velasquez, 2002).
 Fairness - Rawls: “A) Each person has an equal right to the most extensive basic
liberties compatible with similar liberties for all (these basic liberties include the right to
vote, freedom of speech and conscience and other civil liberties, freedom to hold
personal property, and freedom from arbitrary arrest.), and B) Social and economic
inequalities are arranged so that they are both: 1) To the greatest benefit of the least
advantaged persons and 2) Attached to offices and positions open to all under
conditions of fair equality of opportunity.” (Velasquez, 2002).
Distributive justice –fair distribution of benefits and burdens across a group or society.
 Egalitarian justice: “every person should be given exactly equal shares of a society’s
or a groups benefits and burdens.” (Velasquez, 2002).
 Capitalist justice: “benefits should be distributed according to the value of the
contribution the individual makes to a society, a task, a group, or an exchange”.
(Velasquez, 2002).
 Socialist justice: “from each according to his ability, to each according to his need”.
(Velasquez, 2002).
 Libertarian justice: “Everyone should act to ensure greater freedom of choice, for this
promotes market exchange, which is essential for social productivity.” (Hosmer, 1996).
 Right is a justified claim or entitlement that an individual can make to behave or to
have others behave toward him or her in a certain way.
 Virtue theory argues the aim of the moral life is to develop those general dispositions
we call the moral virtues (courage, temperance, justice, prudence, faith, hope and
charity), and to exercise and exhibit them in the many situations that human life sets
before us (Velasquez, 2002).
 The front page of the New York Times test
Hosmer, L. T. (1996). The ethics of management. Chicago: The McGraw-Hill Companies, Inc.
Velasquez, M. G. (2002). Business ethics: concepts and cases. New Jersey: Prentice Hall.