Chapter 3Making Decision In Business Ethics

What is mean by decision making?Reaching at conclusionFinding the solution based on facts and figure, So decision making is based on Facts & Figure.What is mean by Ethical Decision Making?Maintaining the moral principle and providing benefits to each and every party involved in decision making.

Ethical Decision should be good, practical, and stand moral test.Ethical Decision Making Steps for managerStudyMany solutionCheck past casesFinal solution

Decision Process In competitive pressureMarket adopt the unethical practices in competitive pressure as competition demands cut the head to go ahead.Competitive pressure makes to take decision considering only short term goals so decision making process is limited to collecting the competitor data finding the opportunity or creating it.

Structure Of Ethical Decision MakingIdentify the problemGenerate the alternate solutionEvaluate alternatives using cost- benefit relationSelect the solutionImplement the solutionImpact of SEZ on the farmer and their land.

Guidelines for manager for ethical decision makingUnderstand Individual code of conduct Understand Industrial code of conduct Collect the factsProblems in ethical decision makingGlobalizationGoal CongruenceFinancial burdensCompetitive pressure

Individual Effect on decision making

Individual:- A Person

Each person have its own personality based on Moral valuesBeliefWay of thinkingKnowledgeAbility of handling the pressureEach of above characteristic affect the decision making process

Moral Values:- A judgment about right & WrongTaking bribeBelief:- Pray to the god is based on belief of individual Way of thinking:-A glass contain half amount of waterPositive way of thinking & Negative of thinkingKnowledge:-A person with experience and without experience Ability of handling the pressure Success or Suicide

Situational Effect on decision making

Organization surrounded by external and internal environment.A situation affect the decision making processExample:- Growth of BusinessDelineation of BusinessThese are two different situation and in each situation we will find different decision making process.

Nokia makes the decision to introduce the mobile phones of lower rate in Indian marketBased on season or festival price of product goes up or downManMohan Sing analyzed the situation in 1991 and take the decision to introduce LPG policy

Model For Ethical Decision MakingClarifyEvaluateDecideImplementMonitor and modify

Model For Ethical Decision MakingClarify.Determine precisely what must be decided.Evaluate.Distinguish solid facts from beliefs, desires, theories, suppositions, unsupported conclusions, opinions, and rationalizations.With regard to each alternative, carefully consider the benefits, burdens and risks to each stakeholder.Decide.Make a judgment about what is not true and what consequences are most likely to occur.Evaluate the viable alternatives according to personal conscience.Implement.Develop a plan of how to implement the decision.Maximize the benefits and minimize the costs and risksMonitor and modify.Monitor the effects of decisions.Be prepared and willing to revise a plan, or take a different course of action.