Ethical Decision Making and Ethical
Leadership

A frame work for Ethical Decision Making in Businesscheck figure 5-1.
1. Ethical issue intensity.
2. Individual factors.
3. Organizational factors.
4. Opportunity.
5. Business ethics evaluation and intentions
 Using the ethical decision making framework to improve
ethical decisions.
 The role of leadership in a corporate culture.
 Leadership style influence ethical decisions.
Ethical Decision Making and Ethical
Leadership
 Habits of strong ethical leaders
1.
2.
3.
4.
5.
6.
7.
Ethical leaders have strong personal character.
Ethical leaders have a passion to do right.
Ethical leaders are proactive
Ethical leaders consider stakeholder’s interests
Ethical leaders are role models for the org’s value
Ethical leaders are transparent and active
Ethical leaders are competent and holistic in
perspective.
A framework for ethical Decision
making in business
Ethical issue intensity. What is it? And what is moral
intensity?
The answer to the first question lies in following:
To what extent you view certain ethical issue as critical,
problematic with negative consequences or not. It’s
the importance you (or the team or the organization)
attach to a certain ethical issue.
Are you concerned and anxious about lying or cheating.
Two people have different levels of concern. Put a
weight from 1 to 10 on the level of your concern to the
issue of cheating.
1.
Ethical issue intensity
Which of the followings influence the intensity more?
1. The workplace.
2. Family.
3. Religion.
4. Legal system.
5. Community.
6. Profession.
Ethical issue intensity
 Moral intensity: refers to a person’s perception of
social pressure and the harm the decision will have on
others.
 Common concern regarding ethical issue in the
organization is important. So managers need to create
a common concern to avoid ethical conflict.
Individual factors
 Gender
 Education
 Nationality
 Age
 Locus of control
Organizational factors
 A corporate culture
 Ethical culture
 Significant others
 Obedience to authority
Opportunity
 Intrinsic rewards
 Extrinsic rewards

The role of leadership in a
corporate culture
 Leadership- define leadership?
 Are you a leader or a manager?
 Can you as a leader create programs to maintain
ethical culture?
 Planning, organizing, directing, and implementing an
ethical program.
Leadership
 Transformational vs transactional leadership
 Do you know other forms of leadership?
 Level five leaders
 Visionary leaders
 Authentic leaders
Habits of strong ethical leaders
 The 7 habits
1.
2.
3.
4.
5.
6.
7.
Have strong personal character
A passion to do right
Proactive
Consider stakeholder’s interest
Role models
Transparent and actively involved in org D-M
Competent managers who take a holist view of the
firm’s culture