TO DETERMINE THE IMPACT OF ETHICS ON RISK MANAGEMENT DECISIONS (original) (raw)

2024, TO DETERMINE THE IMPACT OF ETHICS ON RISK MANAGEMENT DECISIONS

Reason for writing: The paper explored the relationship between ethics and risk management decisions. It explored various ethical frameworks. The other factors whose influence was studied are stakeholder perspective, influence of regulatory framework, and financial aspects. Throughout this chapter, a significant gap was identified. It was observed that there is a lack of understanding regarding the practical applications of ethics in the risk management process. In the landscape of ethical decision-making process of risk management which contributes effectively to the risk mitigation of the organisation. Problem: This study used a research approach that incorporates positivist, phenomenological, and case study methodologies, as well as a positivist research philosophy and a quantitative methodology. The target population is limited to 51 respondents chosen for their different risk management perspectives. Specifically, regression analysis is the most important for quantitative insights. Validity of content and t-test reliability are also discussed. Limitations include restrictions on the population and possible biases. These are handled with careful wording and ethical considerations. Methodology: Probability sampling, specifically stratified sampling, ensures that diverse subgroups are represented. Non-probability sampling uses snowball sampling that takes advantage of social relationships that are already established. The study instrument uses a systematic questionnaire for the collection of quantitative data. Additionally, it also uses in-depth interviews for qualitative insights. Pilot research is conducted before the distribution of questionnaires by email. It allows for more reach and efficient data collection over four weeks. Data analysis like descriptive and inferential statistics plays important roles. Results: In this study with 51 responses, the majority fall between ages 25-34 (37.3%), indicating a notable presence of individuals in their late twenties and early thirties. Regarding orientation, a different blend includes males (41.2%), females (33.3%), and non-binary individuals (17.6%). Income distribution shows 27.5% earn under $30,000, providing insights into varied financial backgrounds. Ethical considerations strongly influence decisions for 39.2%, emphasising their significance. By observing on the effectiveness of ethical training vary, with 29.4% finding it exceptionally effective. Opinions differ on how well organisations integrate morals into risk management. Implications: Ethical leadership's impact on risk reduction is seen decidedly by 52.9%. Regarding involving others in managing ethical risks, opinions vary, with 29.4% uncertain. Stakeholder trust in ethical risk management has blended responses, with 29.4% strongly agreeing. Employees' awareness of ethical considerations shows a split view. Ethical leaders significantly influence decisions, with 37.3% strongly agreeing. The probability of employees actively reporting risks in a strong ethical culture is emphasised by 35.3%. The study reveals assorted perspectives on ethics, risk management, and organisational culture. Firstly, the report focuses on the ethics theory which is Deontological ethics shapes risk management decisions by emphasising universal moral duties and encouraging ethical behaviour, despite potential results. Secondly, the risk management theory of prospect theory examines the individual's decision regarding the gains or losses. Then it moved to the active integration of the ethical principles into risk management which fostered value-driven trust among the stakeholders. Hence, organisation can effectively mitigate the risk factors through informed and aligned strategies which help to cultivate a positive work environment in the workplace.