A framework for ethical decision making

It identifies corporate fraud and records tampering as criminal offenses and joins those offenses to specific penalties. When virtue ethics are applied to a business-minded framework, personal virtues such as honesty, trustworthiness, and discipline intersect with business skills such as critical thinking, communication skills, and financial competence.

A Framework for Making Ethical Decisions

Right motivation with right action Right motivation with wrong action Wrong motivation with right action Wrong A framework for ethical decision making with wrong action Given the difficulty in exposing true motivation, ethical assessments will inherently be limited to an evaluation emphasis on action or outcome.

The Feminist Approach In recent decades, the virtue approach to ethics has been supplemented and sometimes significantly revised by thinkers in the feminist tradition, who often emphasize the importance of the experiences of women and other marginalized groups to ethical deliberation.

IS-24B: Decision Making and Problem Solving

For example, two people are walking down a hallway and see a third person drop their book bag, spilling all of their books and papers onto the floor. The first step is to identify each scenario from an ethical standpoint as a means of finding the best course of action.

This approach stipulates that the best ethical action is that which protects the ethical rights of those who are affected by the action. The negative effect among small firms is consistent with these companies being less able to absorb the incremental costs associated with SOX compliance.

The reluctance of small businesses and foreign firms to register on American stock exchanges is easily understood when one considers the costs Sarbanes—Oxley imposes on businesses. Journal editorial stated, "One reason the U.

The use of frameworks allows them to find the most effective courses of action while holding fast to their core values and beliefs.

First, it can appear cold and impersonal, in that it might require actions which are known to produce harms, even though they are strictly in keeping with a particular moral rule. Survey scores related to the positive effect of SOX on investor confidence, reliability of financial statements, and fraud prevention continue to rise.

The Egoistic Approach One variation of the utilitarian approach is known as ethical egoism, or the ethics of self- interest. To do this, managers are generally adopting an internal control framework such as that described in COSO.

Your score is the number of clients earned as a result of the decisions you make. The intent is for people to be treated fairly and with dignity and not as a means to an end. Some duties, such as protecting the integrity of the capital markets, may be more important than others.

Opportunity improvement can directly create new target requirements and tasks. This even-handedness encourages treating everyone with equal dignity and respect. It helps in situations involving many people, some of whom may benefit from the action, while others may not.

Ethics should concern all levels of life: For a more thorough treatment, see Chapter 9 in Bernard and Goodyear On the other hand, the benefit of better credit rating also comes with listing on other stock exchanges such as the London Stock Exchange. Virtue A virtue approach requires leaders to base ethical standards on universal virtues such as honesty, courage, compassion, tolerance, and many others.

Know relevant laws and regulations. Identify the potential issues involved. The lessons you learn will help you reach ethical decisions more quickly in the future. For high value decisions, the model shows additional elements that may be explored before making the final choice.

An Ethical Decision-Making Model

The hearings produced remarkable consensus on the nature of the problems: It purposely leaves out anything related to making a profit so that leaders can focus on values instead of a potential impact on revenue.

Individuals who consistently make decisions based on their personal benefit may create legal liabilities for a company that can lead to bankruptcy.

The SEC interpreted the intention of Sec. Is it in tune with core values and the company culture? Civil action to protect against retaliation in fraud cases[ edit ] Section of the Sarbanes—Oxley Act, also known as the whistleblower-protection provision, prohibits any "officer, employee, contractor, subcontractor, or agent" of a publicly traded company from retaliating against "an employee" for disclosing reasonably perceived potential or actual violations of the six enumerated categories of protected conduct in Section securities fraud, shareholder fraud, bank fraud, a violation of any SEC rule or regulation, mail fraud, or wire fraud.

This presented at least the appearance of a conflict of interest. We might say that having plastic surgery is ethically permissible, because it is not wrong to have the surgery it is not impermissiblebut neither is it ethically necessary obligatory to have the surgery.

To create "knowledge containers" that capture information for each specific decision, and the information is represented in a way that allows future reuse. These uncertainties may result in bringing about more harm than good. The more novel and difficult the ethical choice we face, the more we need to rely on discussion and dialogue with others about the dilemma.

These two standards together require management to: Cost for decentralized companies i. A powerful aspect of this concept is that the "Decision Network" model stays constant, while the choices within any one decision change over time. Kant argued that doing what is right is not about the consequences of our actions something over which we ultimately have no control but about having the proper intention in performing the action.

Finally, many people use the terms morality and ethics interchangeably.SUMMARY OF THE STEPS OF THE ETHICAL DECISION MAKING PROCESS 1.

2. Gather the facts 3. Define the ethical issues 4. Identify the affected parties (stakeholders). Ethics in decision making can be addressed as part of the business decision making process.

Ethical Decision-Making

An introduction to basic ideas in applied ethics, such as utilitarianism, rights, justice, virtue, and the common good. Articles include topics such as "What is Ethics?" "Can Ethics Be Taught?" and "A Framework for Ethical Decision Making.".

How People Avoid Making Serious Decisions In The Histories, written in B.C., Herodotus makes the following statement: "If an important decision is to be made [the Persians] discuss the question when they are drunk and the following day the master of the house submits their decision for reconsideration when they are sober.

Build on the knowledge of others as well as your own when you use this unique decision making model. A Framework for Ethical Decision-Making. Download "A Framework for Ethical Decision-Making " Return to entry; The W. Maurice Young Centre for Applied Ethics | School of Population and Public Health.

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A framework for ethical decision making
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