Ethical Decision Making in Business 1 Ethical Business Decision Making Considering Stakeholder Interest (original) (raw)

Ethical Business DecisionMaking Considering Stakeholder Interest

res publication, 2014

A focus on short-term profit as an exclusive measure of business success has led to an erosion of stakeholder trust and opened the door for ethical misconduct. This study identified the values, beliefs, and experiences in the background of business leaders and led to the development of a process for decision making in which stakeholder interest is considered. This phenomenological study, grounded in the institutional theory, addressed how an ethical interpretive framework becomes institutionalized. The research question explored the attributes of decision making when there are ethical implications affecting stakeholders. Data were collected by interviewing 20 middle-to senior-level corporate leaders in the eastern half of the United States. The data were coded to identify themes, which were then analyzed.Four themes emerged: (a) honesty and integrity in interactions that are internal and external to the company; (b) doing the right thing, the right way for both stakeholders and the company; (c) weighing the benefits and risks to stakeholders and the company; and (d) transparency when acting and communicating. This research study was designed to assist business leaderswith decision making when there are ethical implications affecting stakeholders that may result from their actions.

Conceptualizing the Determinants of Ethical Decision Making in Business Organizations

Understanding the role of the determinants of the ethical decision making in business organizations has become increasingly appealing to the field of business ethics. Various ethical decision making models put more emphasis on a narrow set of determinants. In concert with other contextual factors, these determinants appear to drive the ethical decision making in business organizations. However, in the literature there seems to be room for a more holistic set of determinants, which can explain effectively and holisti-cally the diverse ethical rationales underlying the decision making more effectively. In this paper, the authors set out several ethical models and extract the predominant determinants. After portraying the main literature, the authors conclude that the most recent models are based on the first generation of ethical models, which tend to be more theoretical than empirical. They note the lack of empirical research in this area, which can be explained by both the nature and the intricateness of business ethics. They find that empirical analysis, when it exists, tends to focus on specific variables. The authors highlight at the end of the paper the need for integrative ethical models, which tackle not only the " how " but also the " why " of ethical decision making.

ETHICAL THEORY AND STAKEHOLDER- RELATED DECISIONS: THE ROLE OF STAKEHOLDER CULTURE

We use convergent elements of major ethical theories to create a typology of corporate stakeholder cultures-the aspects of organizational culture consisting of the beliefs, values, and practices that have evolved for solving problems and otherwise managing stakeholder relationships. We describe five stakeholder cultures-agency, corporate egoist, instrumentalist, moralist, and altruist-and explain how these cultures lie on a continuum, ranging from individually self-interested (agency culture) to fully other-regarding (altruist culture). We demonstrate the utility of our framework by showing how it can refine stakeholder salience theory.

BUSINESS ETHICS AND STAKEHOLDER ANALYSIS

Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethica] management decisions. A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just men* tioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making.

A Review of Empirical Studies Assessing Ethical Decision Making in Business

Citation Classics from the Journal of Business Ethics, 2012

This article summarizes the multitude of empirical studies that test ethical decision making in business and suggests additional research necessary to further theory in this area. The studies are categorized and related to current theoretical ethical decision making models. The studies are related to awareness, individual and organizational factors, intent, and the role of moral intensity in ethical decision making. Summary tables provide a quick reference for the sample, fmdings, and publication outlet. This review provides insights for understanding organizational ethical decision constructs, where ethical decision making theory currently stands, and provides insights for future empirical work on organizational ethical decision making.

An Ethical Foundation for Organizational Decision-Making at the Operational and Strategic Levels

In this chapter, we demonstrate that the movement of the field of organizational decision-making away from a purely rational, economic model to incorporate concepts such as bounded rationality, politics, and power has created a space for normative ethics to flourish. We also offer practical advice for those teaching business ethics in decision-making courses. We encourage teachers to challenge students’ current ethical conceptions to promote greater awareness, we provide a five-step framework for approaching ethical decisions, and we offer a case study example to employ the framework and promote a new way of ethical thinking.

A Conceptual Framework for Ethical Decision Making in Organizations

Advances in Knowledge Acquisition, Transfer, and Management, 2015

This chapter addresses the lack of a framework that allows the generation of mechanisms and processes that benefit ethical decision making in organizations in order to promote civic virtue in its members. The authors explore how constructing spaces promote an honest and open dialogue among citizens, associations, business, and various levels of government. These spaces encourage the development of mechanisms and processes for social and personal benefit among its participants. The conceptual framework discussed is created by De la Cruz and Sasia (2013), named the Ethical Triangle Model. This model proposes at least three dimensions in an organization: legitimacy, motivation, and capacity. The proposed conceptual framework is dynamic and it is applicable to any organization. Future research must be made for testing the framework proposed here.