The ethical decision-making framework includes the concepts of ethical issue intensity, individual factors, organizational factors, and opportunity. Discuss how these concepts influence the ethical decision-making process.
Firstly, the concept of ethical issue intensity refers to the perceived significance or bearing of an ethical matter to the person, team, and/or organization. It seeks to reflect upon the ethical understanding of the individual as well as the work group. As such, it influences the ethical decision making process through aligning to an individual's perception of social burden and the detriment that his/her decision will impact on others. As a matter of fact, it subjects a person to the six spheres of influence including profession, place of work, legal system, family, religion, and community.
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On the other hand, individual factors influence the ethical decision-making process based on the fact that individuals establish their ethical decisions in line with their specific principles and values of right and wrong. Through socialization, individuals learn values where good individual values decrease unethical conduct while increasing positive work performance. Since values have a subjective basis, they vary through cultures and while an individual may purpose to do right, social or organizational factors may alter this resolve. Studies shows that different individual factors impact ethical behavior such as gender, education, work experience, nationality, and age. As regards the locus of control, individual variances exist in relation to the overall effects of external versus internal reinforcements or events. In turn, it influences their ethical decision making.
Similarly, organizational factors strongly impact on employees. As a matter of fact, corporate culture underlines the various norms, values, and artifacts shared among the organization members. In turn, it points out whether the organization possesses a strong ethical conscience. Ultimately, a function of various elements including work group, top leadership, managers, significant others as well as influential individuals in a workgroup impact the ethical decision-making process.
In line with the circumstances in an organization comes the concept of opportunity that may permit or limit both unethical and ethical conduct. Opportunity presents within the immediate job setting where employees work, their coworkers, and the type of work. As such, opportunities for ethical misconduct may be decreased by instituting formal policies, codes, and rules. Expertise or facts about competition presents an opportunity to abuse such knowledge for unethical purposes.
Discuss how the three categories of institutions (political, economic, and social) are important in establishing a foundation for normative values.
Institutions play an important role in establishing a foundation for normative values. Institutions fall into political, economic, and social categories. Ethical firms have rules and policies in place to define proper behavior which often form the compliance element of the organization's culture. In the same way, normative business values consider the political reality outside the legal sphere in through instituting industry values. Legal matters including antitrust issues, price fixing, and consumer protection from the backbone in upholding an equitable and fair marketplace. Such issues form some of the major concerns for organizations when making ethical decisions. Within the organization, competition influences company operations as well as the extent to which staff go for the good of the organization. The extent of competition within the industry determines the obstacles to entry within the industry. Other aspects such as existing alternatives for the goods manufactured by the industry competitors as well as the influence of the business competitors over their consumers influence normative values.
On the other hand, social institutions consist of education, religion, as well as the family unit. In society, laws exist towards ensuring that organizations engage in fair practices. However, no laws insist on doing to others as you would like to have them do to you but nonetheless, various cultures embrace this rule. Business values support organizational efficacy when connected to goals. On the contrary, such values may impede success if more effective methods of organizational structure are overlooked in favor of organizational stability. In cases where organizations may sacrifice innovative concepts or procedures to maintain acceptability, it can limit innovation and production. As such, it remains vital for organizations not to stray away from business values and norms by embedding principles from political, economic, and social institutions offer incentives for proper conduct.
