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EIGHT STEPS TO SOUND ETHICAL DECISION MAKING IN BUSINESS

STEP 1: Gather the facts.

· How did the situation occur?

· Are there historical facts that I should know?

· Are there facts concerning the current situation that I should know?

STEP 2: Define the ethical issues.

· Don’t jump to a solution. Think through the ethical issues. Recognize that multiple ethical issues may exist.

STEP 3: Identify the affected parties (the stakeholders).

· You may have to think beyond the facts of the case to identify all stakeholders.

STEP 4: Identify the consequences.

· After identifying the stakeholders, consider the potential consequences for each party that have a relatively high probability of occurring.

· What are the long-term and the short-term consequences?

· What are the symbolic consequences?

· What are the consequences of secrecy?

STEP 5: Identify the obligations.

· Identify the obligations involved and the reasons for each one.

STEP 6: Consider your character and integrity.

· Think about yourself as a person of integrity. Ask yourself what a person of integrity would do in this situation.

· New York Times Test

STEP 7: Think creatively about potential actions.

· Be sure that you haven’t unnecessarily forced yourself into a corner. Are you assuming that you only have two choices, either A or B? Look for creative alternatives. Perhaps there’s another answer: C.

STEP 8: Check your gut.

· We are all hardwired to be empathetic and to desire fairness. If your gut is sending up red flags, give the situation more thought.

Source: Trevino, L.K, & Nelson, K.A. (2014). Managing business ethics: Straight talk about how to do it right (6th ed). Hoboken, NJ: John Wiley & Sons.