The issue of ethical decision making in organizations has received much attention in recent years for a variety of reasons: the post-Watergate atmosphere, mounting public scorn regarding business behavior, and manager’s cynicism and internal personal-work values conflicts (Brenner & Molander, 1977; Crittenden, 1984; Ingersoll & Pound, 1984, Lincoln, Pressley, & Little, 1982; Rickless, 1983).
Interactionist model of ethical decision making in organizations
Retrieved from March 2011:
Ethics in an organization refers to rules (standards, principles & values) governing the conduct of organizational members and the consequences of organizational decisions.
The organizational ethics can be classified as:
- Defining appropriate behavior.
- Establishing organizational values.
- Nurturing individual responsibility.
- Providing leadership & oversight.
- Relating decisions to stakeholder interests.
- Developing accountability.
- Relating consequences.
- Auditing & improvement.
- Culture, values and programs.
- Compliance and leadership.
- Recognition of the role of co-workers and managers.
- Balancing stakeholder interests.
- Management of situational pressures.
- Rewards beyond short-term performance.
Qualities Required for Ethical Decision Making:
- The competence to identify ethical issues and evaluate the consequences of alternative courses of action.
- The self-confidence to seek out different opinions about the issue and decide what is right in terms of a situation.
- Tough mindedness: the willingness to make decisions when all that needs to be known cannot be known and when the ethical issue has no established, unambiguous solution.
Ethical Behavior
* Individual Influences
* Value systems
* Locus of control
* Machiavellianism
* Cognitive moral developmen
Organizational Influences
* Codes of conduct
* Norms
* Modeling
* Rewards and punishments
People judge themselves based on their intentions, but others are judged based on their behavior, so an individual accountability in an organizational setting is necessary.
"A personality characteristic indicating one’s willingness to do whatever it takes to get one’s own way"
(Niccolò Machiavelli)
What are the impacts of culture in terms of mixed-motive decision making?
Decision making is a contemporary problem facing many businesses. The culture influence on the industrial procurement manager's perception of the different characteristics of potential global sourcing locations, with a view to integrating the influence of culture operating at different levels into a global sourcing location decision framework; thereby enhancing managerial insights to the role played by culture in making decisions.
For example, the procurement managers select regions for low-cost sourcing based on both specific measures and individual and/or group perceptions of the region, whether these perceptions are correct or not. The cultural orientation impacts geographical perceptions which in turn impact criteria ratings of locations.
The culture is viewed as a fundamental decision-making construct.
Sources
Klebe Trevino, Linda. The Academy of Management Review, Vol. 11, No. 3. (Jul. 1986), pp. 601-607.
JOURNAL OF BUSINESS ETHICS. Volume 13, Number 3, 205-221, DOI: 10.1007/BF02074820
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