“Ethical”

Decision Making in
Business

Presented By:
Ajay (01), Ajit (02), Anil (03), [Retail Management]
Kriti(19), Manoj(20), Piyush(27),
Pushkar (30) 3rd Trimester
 What is
business ethics
Meaning
Business ethics is the behavior that
a business adheres to in its daily dealings
with the world. The ethics of a particular
business can be diverse. They apply not
only to how the 
business interacts with the world at large,
but also to their one-on-one dealings with a
single customer.

Business ethics is the study of business

situations, activities, and decisions where
issues of right and wrong are addressed.
What is an ethical
Decision
Ethical decisions are concerned with a
judgement of right and wrong.
•The decision is likely to have significant effects on
others.

•The decision is likely to be characterized by choice, in

that alternative course of action are open

•The decision is perceived as ethically relevant by one

or more parties
STEPS IN MAKING
ETHICAL DECISIONS
RECOGNIZE AN ETHICAL ISSUE

GET THE FACTS

EVALUATE ALTERNATIVE ACTIONS

MAKE A DECISION AND TEST IT

ACT AND REFLECT ON THE OUTCOME

RECOGNIZE AN ETHICAL ISSUE
 Could this decision or situation be
damaging to someone or to some
group? Does this decision involve a
choice between a good and bad
alternative, or perhaps between two
“goods” or between two “bads”?

 Is this issue about more than

what is legal or what is most
efficient ? If so, how?
GET THE FACTS
What are the relevant facts of the case? What
facts are not known? Can I learn more about the
situation? Do I know enough to make a
decision?

What individuals and groups have an

important stake in the outcome? Are some
concerns more important? Why?

What are the options for acting? Have all the

relevant persons and groups been consulted?
Have I identified creative options?
EVALUATE
ALTERNATIVE ACTIONS
 Evaluate the options by asking the following questions:

1. Which option will produce the most good and do the least
harm? (The Utilitarian Approach)
2. Which option best respects the rights of all who have a
stake? (The Rights Approach)
3. Which option treats people equally or proportionately?
(The Justice Approach)
4. Which option best serves the community
as a whole, not just some members?
(The Common Good Approach)
5. Which option leads me to act as the sort of person I want to
be? (The Virtue Approach)
MAKE A DECISION
AND TEST IT
Considering all these approaches, which
option best addresses the situation?
If I told someone I respect-or told a
television audience—which option I have
chosen, what would they say?
ACT AND REFLECT ON THE
OUTCOME
How can my decision be implemented
with the greatest care and attention to the
concerns of all stakeholders?
How did my decision turn out and
what have I learned from this specific
situation?
RELATIONSHIP WITH NORMATIVE
THEORY
The role of normative theory in these stages of ethical
decision-making is primary in relation to moral
judgements. Moral judgements can be made according
to considerations of rights duty, consequences etc.
INFLUENCES ONINDIVIDUAL FACTORS

ETHICAL AGE AND GENDER

NATIONAL AND CULTURAL
EDUCATION AND EMPLOYMENT
DECISION- MAKINGPSYCHOLOGICAL FACTORS
PERSONAL VALUE
PERSONAL INTEGRITY
MORAL IMAGINATION

SITUATIONAL FACTORS
ISSUE RELATED FACTORS
MORAL INTENSITY
MORAL FRAMING
CONTEXT –RELATED FACTORS
REWARDS
AUTHORITY
BUREAUCRACY
WORK ROLES
ORGANIZATIONAL CULTURE
NATIONAL CONTEXT
 LIMITATIONS OF ETHICAL DECISION MAKING

INDIVIDUAL FACTORS

EVALUATE MAKE A ACT AND

RECOGNIZE GET ALTERNATIVE DECISION REFLECT
THE ACTIONS AND ON THE
AN FACTS TEST IT OUTCOME
ETHICAL
ISSUE

SITUATIONAL FACTORS