Test Ch 1 review

Broadening beyond the individual or group, utilitarianism is the philosophy that an ethical decisio n provides the greatest good for the greatest number. Andrew Gustafson (2013) describes utilitaria nism as providing “a vision of ethical behavior that holds the common interests of humanity as of ut most importance when making a moral decision” (p. 326). A utilitarian approach relies on a cost/ benefit analysis based on the principle of utility , or greatest happiness principle, which determines t he rightness of acts (or rules of action) by their effect on total happiness. Evaluating and choosing an ethical action requires moral reasoning , the process in which individua ls define whether an action is morally right. Even with seemingly clear guidelines for ethical conduc t, professionals can encounter situations where acting ethically is ambiguous or difficult. Consider a sports example: The expectation that not all people will act ethically creates three decision-making styles:  Idealists —people who act on their moral ideals, no matter what.  Pragmatists —people who attempt to act in the service of their own material welfar e as well as upon their moral ideas.  Opportunists —people driven exclusively by their own material welfare  An ethical decision-making model is a resource or tool that facilitates the ethical a nalysis of an action or a decision in an orderly, systematic manner (Kotalik et al., 20 14). Many ethical decision- making models provide a sequence of steps that include gathering more information , identifying alternatives, applying ethical filters, choosing an optimal option, and im plementation (Baird, 2012; Hartman & DesJardins, 2008). The Ethics Resource Center (2009a) encourages companies to adopt an ethical filter with a strong focus on the organization in a six-step “ PLUS Decision Making Model .” The cue word PLUS references: P = Policies: Is it consistent with my organization’s policies, procedures, and guidelines? L = Legal: Is it acceptable under the applicable laws and regulations?

U = Universal: Does it conform to the universal principles/values my organization has adop ted? S = Self: Does it satisfy my personal definition of right, good, and fair? (Ethics Resource Cen ter, 2009a, para. 5) Consider: Ethical Decision-Making Steps Step 1: Identify the Issue a. What are the key facts in this situation? 1. What do you know for sure? 2. What is not known? b. What are the personal values of the decision maker and the organization’s values? c. What ethical principles are most relevant to this situation? d. What are the rules or laws relevant to this situation? Step 2: Identify the Stakeholders a. List the major stakeholders that have a stake in the outcome of the situation. b. What does each stakeholder value? c. What are the desired outcomes of this situation for each stakeholder? Step 3: Analyze Alternatives a. Brainstorm possible alternatives for this situation. b. Determine the possible consequences of each alternative for the key stakeholders. c. Assess each alternative on actions, actor, and outcome perspectives. Step 4: Take Action a. What decision or action is consistent with principles, values, and has the best outco me? b. What are possible repercussions from the action? Step 5: Monitor Outcome a. Will your recommendation stand the test of time? b. Is your recommendation a model of “right” behavior? Each step of the model involves further reflection t

Businessethics are standards and guidelines regarding the conduct of commerce and the developm ent of relationships in business (Ferrell et al., 2011). They form the foundation for a more envelopin g concept: corporate social responsibility (CSR) , which refers to any effort to improve a company’ s environmental and social impact. Corporate leaders engage in CSR efforts in one of two ways: piec emeal or as part of a more encompassing program. Ethics, also known as moral philosophy, is a branch of thought that addresses questions about morality and deals with concepts such as right and wrong, virtue and vice, and justice and crime. Businessethics are standards and guidelines regarding the conduct of commerce and the development of relationships in business. Ethical communication consists of passing information along in a manner that is truthful, d oes not violate the rights of others, and does not aim to deceive. When people make decisions based on what is the greatest good for the greatest number of people, a utilitarian principle may be the guiding force. Utilitarianism has been termed the “calculus of pai n,” because it tries to minimize pain and maximize pleasure for the greatest number of people, base d in part on the concept of hedonism. Whistle-blowing provides an example of a choice with an ethical component. An employee who exp oses improper company activities often risks retribution from others in the organization, and the di sclosure may damage the economic well-being of the company.