trevino model of ethical decision making
The chapter includes analysis of many of the more memorable business ethics cases (e.g. In: Lechona T., (ed. In this paper we present a revision of the Ethical Matrix specifically tailored to decision . The Sacklers have made large donations to art galleries, research institutes, and universities, including Harvard, with money earned through the family business, Purdue Pharma, which made billions by marketingand, most experts argue, overmarketingthe prescription painkiller OxyContin. Rather than try to follow a set of simple rules (Dont lie. Dont cheat.), leaders and managers seeking to be more ethical should focus on creating the most value for society. A version of this article appeared in the. Your partner suggests dinner at an upscale Northern Italian restaurant that has recently reopened. 1. We want to help businesspeople regain the trust thats been squandered in the last few years. The book differs from other business ethics texts in five key ways: The authors state that ethics can be taught, so organizations must look for systemic causes of unethical behavior. Read more about what the framework can (and cannot) do. Answers: A, D. A manager who serves as a role model for ethical conduct in a way that is visible to employees is referred to as a(n) _____ manager. Her Primary areas of research are accounting education and accounting ethics. Journal of Marketing 49(3): 8796, Ferrell O. C., Gresham L. G., Fraedrich J. P. (1989) A Synthesis of Ethical Decision Models for Marketing. Your capacity and reputation for impartiality are key to your end of the employer-employee contract. Cramer, J. and Krueger, A. Journal of Business Ethics 43(4): 389394, Deal T. E., Kennedy A. SAM Advanced Management Journal 59(1): 3239, Loe T. W., Ferrell L., Mansfield P. (2000) A Review Of Empirical Studies Assessing Ethical Decision Making In Business. Yet another way to think about CSR is the triple bottom line: a firms economic, social, and environmental impacts. With the increasing globalization of business, many managers find themselves in an international environment full of ethical challenges, facing greater numbers of stakeholders, foreign languages and cultures, and high-level issues such as corruption, money laundering, human rights abuses, substandard workplace conditions, environmental impact, respect for local cultures, and more. Common conflicts involve bribes (overt or subtle), personal influence, and privileged information. The three main aspects of her model are explained below. This document is designed as an introduction to thinking ethically. (1993) Organizational Consequences, Marketing Ethics, and Sales Force Supervision. 4) identify the consequences. Whereas many experts would define negotiation ethics in terms of not cheating or lying, I define it as putting the focus on creating the most value (which is of course helped by being honest). Only by careful exploration of the problem, aided by the insights and different perspectives of others, can we make good ethical choices in such situations. Ethical debacles are a regular occurrence, so business ethics is far from a fad. 2. Get the Facts. If we behave unethically out of self-interest, were often unaware that were doing soa phenomenon known as motivated blindness. The chapter lays out examples to illustrate how people have multiple ethical selves, behaving differently depending on context. One's duty to society, respect for authority, and maintaining the social order become the focus of decision making. In addition the authors cover the role of the manager as the lens through which employees view the company as well as the filter through which senior executives view employees.. One of my clients, a corporation that gets rave reviews for its social-responsibility efforts, created an internal video featuring four high-level executives, each telling a story about going above the bosss head at a time when the boss wasnt observing the ethical standards espoused by the corporation. Employees in organizations with ethical leaders can be expected to behave more ethically themselves. Keywords Immanuel Kant, Age of Enlightenment, Ancient Greek philosophy, Applied ethics, Africana philosophy. About Us; Staff; Camps; Scuba. In their book Nudge, Richard Thaler and Cass Sunstein describe how we can design the architecture surrounding choices to prompt people to make value-creating decisions. My plan is to do better next year than last year. volume73,pages 219229 (2007)Cite this article. The authors introduce basic management concepts to promote ethical employee behavior, assuming (1) managers want to be ethical, (2) managers want their subordinates to be ethical, and (3) managers experience will offer insight into the unique ethical requirements of the job. Customer confidence issues: these include confidentiality, product safety and effectiveness, truth in advertising, and special fiduciary responsibilities. Access more than 40 courses trusted by Fortune 500 companies. What about a pregnant womanshould she count as two people? We all have an image of our better selvesof how we are when we act ethically or are at our best. We probably also have an image of what an ethical community, an ethical business, an ethical government, or an ethical society should be. Even if you are committed to another philosophical perspective, try to appreciate the goal of creating as much value as possible within the limits of that perspective. Chapter 3: Deciding Whats Right: A Psychological Approach The authors present several ways in which individuals differ in their judgments: 2. (The Justice Lens), Which option will produce the most good and do the least harm for as many stakeholders as possible? Most of us are ethically inconsistent as well. Management Accounting 64: 3441, Sims R. L., Gegez E. (2004) Attitudes Towards Business Ethics: A Five Nation Comparative Study. participative ethical decision making modelmr patel neurosurgeon cardiff 27 februari, 2023 . But the largest influence on corporate ethics programs has been from the U.S. (1990) Marketing Ethics: Factors Influencing Perceptions of Ethical Problems and Alternatives. Thus, Trevino (1986) suggests that when the work requires an individual to engage in complex role taking and . 4. Ethical culture is a multisystem framework of formal and informal organizational systems. This is easy to see in a common family negotiationone in which Ive been involved hundreds of times. Leave the company. Managing Business Ethics takes the view that ethical and unethical conduct are primarily the product of how systems align within an organization to promote certain kinds of behavior. During dinner your partner proposes that you watch a documentary; you counterpropose a comedy; and you compromise on a drama. Well never reach it, but it can inspire us to create more good, increasing well-being for everyone. In academics, there is a growing effort to promote open science (Nosek et al., Reference Nosek, Alter, Banks, Borsboom . Does this decision involve a choice between a good and bad alternative, or perhaps between two goods or between two bads? People tend not to think of allocating time as an ethical choice, but they should. Individuals have a comparative advantage when they can perform a task at a lower opportunity cost than others can. Journal of Business Ethics 25(3):158204, McCabe D. L., Trevino L. K., Butterfield K. D. (1996) The Influence of Collegiate and Corporate Codes of Conduct on Ethics-Related Behavior in the Workplace. The increasingly popular institutionalization of 360-degree feedback means that workers need to carefully consider all of their work relationships and maintain high standards of ethical behavior. After publishing a paper on ethical behavior, for example, I received an email from a start-up insurance executive named Stuart Baserman. Google Scholar. Locus of control: perception of the control one exerts over events (internal-high, external-low). The first problem is that we may not agree on the content of some of these specific lenses. NYU Stern School of Business 44 West 4th Street KMC7-150 However, it can be difficult to decide which duty, right or principle takes precedence in a clash, and this approach faces troubles when following rules might lead to devastating consequences. The main purpose of this study is to identify the importance of several variables in the ethical decision making process, propose a model that incorporates the Festinger (1957) Cognitive Dissonance Theory and the Jones (1991) model. The following framework for ethical decision-making is intended to serve as a practical tool for exploring ethical dilemmas and identifying ethical courses of action. Care ethics is rooted in relationships and in the need to listen and respond to individuals in their specific circumstances, rather than merely following rules or calculating utility. Use of corporate resources: because you represent your company, your actions can be regarded as those of the corporation. Ethics Resources. We make most decisions using System 1. With help of students and managers, the material was tested in universities and corporations. First, a . History has shown that divorcing business from ethics runs huge risks. People tend to fulfill assigned roles, which may reduce awareness of personal responsibility through deindividuation. It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. by Linda K. Trevio and Katherine A. Nelson Having a method for ethical decision-making is essential. 2023 Springer Nature Switzerland AG. 4. The Free Press, New York, Jones E. E. (1985) Major Developments in Social Psychology During the Past Five Decades. PubMedGoogle Scholar. Perseus, New York, Donaldson T., Dumfee T. W. (1999) When Ethics Travel: The Promise and Peril of Global Business Ethics. Essentially, Utilitarians believe any action is good if the outcome is beneficial. People follow the behavior of others, particularly those in positions of power and prestige. Which is more important to you: your salary or the nature of your work? Utilitarianism, a results-based approach, says that the ethical action is the one that produces the greatest balance of good over harm for as many stakeholders as possible. Strategic: business needs a healthy society because only a healthy society can produce a productive workforce and the rules that make business transactions possible. If I told someone I respect (or a public audience) which option I have chosen, what would they say? Each type builds on and goes beyond the prior type of responsibility, much like a pyramid, which the authors flesh out with examples. This article (a) proposes an issue-contingent model containing a new set of variables called moral intensity; (b) using concepts, theory, and evidence derived largely from social psychology, argues that moral intensity influences every . Ethical culture can influence employees to do either the right thing or the wrong thing. Relying on a managerial approach, they define ethical behavior in business as consistent with the principles, norms, and standards of business practice that have been agreed upon by society. Evidence shows we are motivated by economic and moral concerns. For centuries philosophers have argued over what constitutes moral action, theorizing about what people should do. Creating value requires that managers confront and overcome the cognitive barriers that prevent them from being as ethical as they would like to be. The Forester-Miller and Davis essay presents a five-step paradigm for making ethical decisions. Another way to think about corporate social responsibility (CSR) is in terms of multiple types of responsibility: economic, legal, ethical, and philanthropic. (The Rights Lens), Which option treats people fairly, giving them each what they are due? Identify the obligations (principles, rights, justice) 7. - 103.57.208.84. Reynolds, S. J. Ethical Decision Making And Ethical Leadership . Organizations have a comparative advantage when they can produce and sell goods and services at a lower cost than competitors do. The model offers insight into First, organizations could use assessment of how managers think about ethical dilemmas and cognitive moral development when selecting provides a way to typologize real world decision- managers for positions in which ethical decision making phenomena based on Kohlberg's empiri- making is an important part of the job. Options include a professional association, regulatory community, religious group, your family or the broader publicbut not your work group or organization (unless in a highly ethical context). To do so, the paper is organized as follows. These scientists have shown that environment and psychological processes can lead us to engage in ethically questionable behavior even if it violates our own values. . Indeed, my recent empirical research with Karen Huang and Joshua Greene shows that those who make ethical decisions behind a veil of ignorance do create more value. Could this decision or situation be damaging to someone or to some group, or unevenly beneficial to people? Trevino, Linda Klebe; Nelson, Katherine A., 1948- . Consequentialism (teleology): utilitarianism can be practical but cumbersome to calculate. A method of making ethical decisions B. Trevino and Nelson have outlined a fairly comprehensive, wise, and practical . The model combines individual variables (moral develop-ment, etc.) She was happy to be a good citizen and do some of them, but she didnt have time to take on all of them. The ethical decision-making process. The deliberative system leads to more-ethical behaviors. Rawls argued that if you thought about how society should be structured without knowing your status in it (rich or poor, man or woman, Black or white)that is, behind a veil of ignoranceyou would make fairer, more-ethical decisions. 3. Journal of Applied Psychology 64(3): 331338, Hunt S. D., Vasquez-Perraga A. The concept of bounded rationality, which is core to the field of behavioral economics, sees managers as wanting to be rational but influenced by biases and other cognitive limitations that get in the way. (Our essay elaborating further on the care ethics lens is forthcoming.). It recognizes that decisions about "right" and "wrong" can be difficult, and may be related to individual context. Are the concerns of some of those individuals or groups more important? It alerted me to the existence of a developed academic literature on the subject of ethical decision-making models. The Ethical Decision-Making Process. 3. Care ethics holds that options for resolution must account for the relationships, concerns, and feelings of all stakeholders. In my view, leaders answering ethical questions like these should be guided by the goal of creating the most value for society. Sentencing Guidelines, which have trended toward increasing fines for both individuals and organizations convicted of felony crimes. Social Consensus, Proximity, Probability of Effect, and For instance, we may claim that we contribute more to group tasks than we actually do. 1665 Words7 Pages. We need to consciously engage the latter. Managers should use these cues to promote ethics. 5. The model, illustrated through an HR case example, serves as a . 47107, Jones T. M. (1991) Ethical Decision Making By Individuals In Organizations: An Issue Contingent Model. 43 promotes an ethical culture and assigns responsibility to individuals, the members are more inclined to act ethically as they are held responsible for any unethical transgression. Chapter 9: Corporate Social Responsibility But when we compare multiple options, our decisions are more carefully considered and less biased, and they create more value. Existing theoretical models of individual ethical decision making in organizations place little or no emphasis on characteristics of the ethical issue itself. Secondary stakeholders are other individuals or groups to whom the organization has obligations. Both are needed for well-functioning organizations and societies. Partially because of media attention to American business scandals, many businesses are allocating resources to formal ethics and legal compliance programs. Journal of Applied Psychology 75(4): 378385, Vitell S., Festervand T. (1987) Business Ethics: Conflicts, Practices and Beliefs of Industrial Executives. Consider the experience of my friend Linda Babcock, a professor at Carnegie Mellon University, who noticed that her email was overflowing with requests for her to perform tasks that would help others but provide her with little direct benefit. An ethical decision is one that stems from some underlying system of ethics or a . Typically, negotiation analysis focuses on what is best for a specific negotiator. It is influenced by the characteristics of individuals (e.g., personal differences, cognitive biases) and by the characteristics of organizations (e.g., group pressures, culture). Although the autonomous-vehicle case represents a tougher ethical decision than most managers will ever face, it highlights the importance of thinking through how your decisions, large and small, and the decisions of those you manage, can create the most value for society. Preserving your reputation is essential. The ethical concern in this situation is the clinician's defense of the patient's diagnosis. A better understanding of the process will help managers develop policies that enhance the likelihood of ethical behavior in their organizations. 7) thinking creatively about potential actions. Rather than try to follow a . You counterpropose your favorite pizza joint. 1. This approach suggests that the interlocking relationships of society are the basis of ethical reasoning and that respect and compassion for all othersespecially the vulnerableare requirements of such reasoning. (For further elaboration on the common good lens, please see our essay, The Common Good.), A very ancient approach to ethics argues that ethical actions ought to be consistent with certain ideal virtues that provide for the full development of our humanity. When I evaluate various aspects of my life, I can identify many ways in which I have created value for the world. Ricardos concept can be seen in many organizations where one individual is truly amazing at lots of things. How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders? They then show how intelligent systems design can encourage managers and employees to follow their predispositions for cooperation and uprightness. Each of the lenses introduced above helps us determine what standards of behavior and character traits can be considered right and good. Academy of Management Review 16(2): 366395, Jones S. K., Hiltebeitel K. M. (1995) Organizational Influence in the Moral Decision Process of Accountants. The main barriers that are included in ethical decision-making are social responsibility, clash of interests of different parties, corruption, safety of the customer when using company's products, groupthink, whistleblowing etc. Journal of Business Ethics 51(2): 167173, Hegarty W. H., Simms H. P. Jr. (1978) Some Determinants of Unethical Decision Behavior: An Experiment. Maintaining that these divergent findings result from underspecified and inconsistent treatments of experience in the business ethics literature, we build theory around experience and its connection to ethical decision making. This paper reviews the major theories, studies and models concerning ethical decision making in organizations. Im guessing that you largely agree with these goals, even if you hew to philosophies that focus on individual rights, freedom, liberty, and autonomy. The two of you compromise on a third establishment, which has good Italian food and pizza thats a bit fancier than what your preferred pizza place offers. Social equity: pay scales are expected to ensure equity of genders, races, and ethnicities. Yet we all crave direction from our leaders. The book describes factors leading to the crisis: cheap borrowing, real estate speculation, bad loan origination, securitization, and failures of raters, risk managers, regulators and legislators. The development of organizational culture requires a long viewas much as 6 to 15 years. A true ethical dilemma puts two or more right values in conflict. Define the ethical issues 4. The list of moral rightsincluding the rights to make one's own choices about what kind of life to lead, to be told the truth, not to be injured, to a degree of privacy, and so onis widely debated; some argue that non-humans have rights, too. Abstract. Essay by ammons123 , University, Master's , A , November 2014. download word file, 3 pages 0.0. Gather the Facts. California Management Review 41(4): 4564, Ferrell O. C., Gresham L. G. (1985) A Contingency Framework for Understanding Ethical Decision Making in Marketing. But when leaders make fair personnel decisions, devise trade-offs that benefit both sides in a negotiation, or allocate their own and others time wisely, they are maximizing utilitycreating value in the world and thereby acting ethically and making their organizations more ethical as a whole. Automobile manufacturers need to reckon with such difficult questions in advance and program their cars to respond accordingly. After a good (but not great) evening, you both realize that because your partner cared more about dinner and you cared more about the movie, choosing the upscale Northern Italian restaurant and the comedy would have made for a better evening. 3. Think about how you can influence your colleagues with the norms you set. 1. The three main aspects of her model are explained below. Google Scholar, Bommer M., Gratto C., Gravander J., Tuttle M. (1987) A Behavioral Model of Ethical and Unethical Decision Making. This chapter addresses typical ethical problems individuals face at work as well as their costs. 4. Fairness, benevolence, self-interest, and principles (or rules) may all form the basis for climates that affect employee behavior. Moving beyond a set of simple ethical rules (Dont lie, Dont cheat), this perspectiverooted in the work of the philosophers Jeremy Bentham, John Stuart Mill, and Peter Singerprovides the clarity needed to make a wide variety of important managerial decisions. The traditional model of ethical decision making in business suggests applying an initial set of principles to a concrete problem and if they conflict the decision maker may attempt to balance them intuitively. She has co-authored two editions of the text ``Developing Managerial Skills in Organizational Behavior''as well authored or co-authored a significant number of professional articles and presentations related to management and management education. The authors begin with a focus on the difficulties faced by the individual expatriate manager, such as: (1) the difficulties of foreign business assignments, (2) the need for structure, training, and guidance, (3) foreign language proficiency, (4) learning about the culture, (5) recognizing the power of selective perception as influenced by culture (e.g. Ethical decision-making style: people prefer prescriptive ethical theories based on our tendencies toward idealism (concern for others welfare) or relativism (emphasis on situation-dependency). Ethics is also concerned with our character. (For further elaboration on the utilitarian lens, please see our essay, Calculating Consequences.). Take Time to Define the . Virtue Approach - We see Aristotle's influence here. (The Common Good Lens), Which option leads me to act as the sort of person I want to be? Journal of Business Ethics 11(9): 671678, Accounting, The Charles F. Dolan School of Business, Fairfield University, 1073 North Benson Road, Fairfield, CT, 06824, United States, Roselie McDevitt,Catherine Giapponi&Cheryl Tromley, You can also search for this author in Journal of Applied Psychology, 91(4): 737-748. Managing Business Ethics: Straight Talk About How To Do It Right Andrew Carnegie gave away 90% of his wealthabout $350 millionto endow an array of institutions, including Carnegie Hall, the Carnegie Foundation, and more than 2,500 libraries. I know companies whose products make the world worse, but they have good diversity and inclusion policies.
