Ethical Decision Making and normative ethics
Running head: GUIDELINE FOR ETHICAL DECISIONS
How to Make Ethical Decisions Using Various Frameworks
Sariah Nottingham
Regent University
Abstract
The purpose of paper is to analyze the common ethical issues within business through the various frameworks of decision making to ultimately prove how complex decision making is in business. This paper will outline how morals and ethics shape the decisions of business leaders and major corporations today. This paper will also depict decision making from a Christian perspective in relation to God’s will and his guiding principles.
Review of Common Ethical Issues in Business
According to the Webster dictionary, ethics refers to the discipline of what is good and bad and with moral duty and obligation. In other words, ethics uses the context of moral discipline to help align society and the choices of its people in correspondence to right and wrong. Ethics is used broadly throughout every context of life. However, in business conduct all around the world, ethics is extremely important. In America, especially in the rem of major corporations, businesses often fall short to unethical illegal conduct (Rae & Wong, 1996). These unethical decisions can lead to great issues within business and have a large effect on stakeholders (Youtube, 2019). Surface layer ethical issues include the misuse of time, lying to employees (Youtube, 2019) and workplace diversity and equal opportunity (University of Tyler, 2018). However, businesses operating in a global economy face far more issues such as tax avoidance, price standardization, lobbying for law change and embezzling (Youtube 2018).
The debate between being morally right and wrong is not a newly discovered issue. According to Lurie and Albin (2006), there have been many attempts during the history of applied ethics that have tried to develop a theory of moral reasoning. This paper will use research to explore the framework for ethical issues in business and analyze how a person views ethics and makes decisions through various perspectives in relation to Christian Ethics.
Ethical Framework for Decision Making
The decision-making process is often difficult to observe and measure (McDonald and Pak, 1996). There are so many different frameworks for ethical decision making, and each framework adds to the importance of deciphering right from wrong in business and in life. Nevertheless, the question of the compatibility of ethical values across cultural borders has gained much in importance over the past decades (Srnka, 2004). Choosing an ethical decision can be difficult because values and morals can sway a decision. Knowledge, values, attitudes and intentions may not be systematically integrated into the decision-making process, but they are very important as well (Srnka, 2004). Decision making procedures, if effectively used, can guide a perplexed individual into making the right decision (Lurie & Albin, 2006). Srnka (2004) states that the problem of choosing an ethical option is even exacerbated, when the decision maker is confronted with differing cultural values and ethical expectations. However, when applying values and morals to a given situation, what was initially perceived as a moral dilemma is supposed to cease being problematic as such, because the right answer is reached (Lurie & Albin, 2006) Numerous attempts have been made by researchers to use the theory, constructs and measures moral psychology and apply them to social scientific research in business (McDonald and Pak, 1996).
Virtue Framework Virtue Ethics can be traced back as far as the times of Aristotle and Plato (Hursthouse, 2018). The term virtue can be described as possessing an excellent trait of character (Hursthouse, 2018). In other words, the actions of an individual will in turn shape the character of that individual. Aristotle states that the right action is always a midpoint between two choices through the lens of a virtuous person (Crash Course, 2016). Virtue ethics also seeks to answer the question of “What kind of person should I be?” and “What characteristics or virtues make a good person” (Fedler, 2006 p. 7). The doctrine of the unity of the virtues precludes moral conflict (Lurie & Albin, 2006). Therefore, moral conflict can be easily avoided by being virtuous. Through this framework, an individual relies largely on morality and the concept of right and wrong. Its emphasis on virtues or moral character differs from other frameworks that emphasize rules and consequences (Hursthouse, 2018). A person who operates through a virtuous framework makes decisions based on moral principles.
In business, the decision-making process of a virtuous person is quite simple. Although success in business and success in terms of achieving moral virtue are distinct accomplishments, presumably they are connected (Wittmer & O’Brien, 2014). 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 (3 Frameworks for Ethical Decision-Making, para. 3). How a company operates will in turn affect how the company is viewed.
Duty Perspective The duty perspective is also referred to as Deontology. This framework focuses on rules and whether or not a person follows those rules (What is Deontology, 2017). The duty perspective Immanuel Kant is the creator of this framework, and his focus revolves around the motives and willingness of individuals to act for the good of others even if that action may result in a personal loss (Byars & Stanberry). Kant argued that doing what is right is not about the consequences of our actions but about having the proper intention in performing the action (Bonde & Firenze 2013). Therefore, this framework works best in situations where there is a sense of obligation or in those in which the thinker needs to consider why duty or obligation mandates or forbids certain courses of action (Lorenzetti, 2010). The Ethics Centre explains that a business operating through the duty perspective may continue to partner with a company despite the bad reputation of the partnering company (2020). This example emphasizes the importance of acting for the good of others within the framework of the duty perspective. In the context of business, an ethical decision requires companies to do what is right by all stakeholders (Byars & Stanberry).
Consequential Perspective The consequential perspective focuses on the future effects of the possible courses of action and takes into consideration the people who are directly and indirectly affected (Lorenzetti, 2010). Consequentialists view morality through the lens of the ends justifying the means. The main course of action for this framework is based on end results (3 Frameworks for Ethical Decision-Making, para. 4). It works well with issues involving large numbers of people (Lorenzetti, 2010) some of whom may benefit from the action and some whom may not (Bonde & Firenze 2013). The moral quality of action is determined by consequences. This framework maximizes positive consequences for some and minimizes unfavorable consequences for others (3 Frameworks for Ethical Decision-Making, para. 5). A person or company operating using the Consequences framework desires to produce the most good (Bonde & Firenze 2013). In other words, consequentialists work for the betterment of all..Some actions that are expected to produce good consequences might actually end up harming people (Bonde & Firenze 2013). As a result, some people look down upon this framework. Yet, it still operates in the moral context of ethics (Lorenzetti, 2010).
In business ethics, a company may be faced with a difficult decision in which their ethical judgment may be tested. Through this framework a company will look at the consequences of their actions and go with the overall choice that will be better for most. For example, most people argue that lying is morally wrong; However, if lying would help save a person’s life, consequentialists say it is the right thing to do (Consequentialism, 2020). Gentrification is a great example of the consequentialist decision making process in the eyes of major corporations. According to the Oxford Dictionary, gentrification is the process whereby the character of a poor urban area is changed by wealthier people moving in, improving housing, and attracting new businesses, typically displacing current inhabitants in the process. Major corporations take into account the pros of gentrification such as the creation of jobs, new housing, safety increases, growth opportunities and more (Gaille, 2019) because on the grand scheme of things, they outweigh the cons.
Christian Perspective An introduction to Chrstian Ethics states that Christian ethics bases behavior on the will of God (2016). This framework emphasizes the idea that no man is moral or ethical rather we live in a constant struggle to become “moral” while attempting to live our lives in alignment with God (Mayne, 2007). The authority through the lens of the Christian perspective is God (An Introduction to Christian Ethics, 2016). Through this framework, one is able to use the Bible and its teachings about acts, attitudes and personal character traits that are approved by God and those that are not, to govern their ethical decision making (Grudem, 2018). They allow the Bible to shape decisions rather than justify decisions (Nichols, 2010).
Faith-at-work is highly applicable through decision making (Nichols, 2010). Christian ethics applied to economics and business has a long tradition that dates as far back as the thirteenth century (Melé1 & Fontrodona1, 2017). Those from a Christian perspective tend to survey the alternatives and offer biblical additions to sanctify certain forms of ethical reasoning (Spencer, 2015). Therefore, in business, a christian thinker may reference the text of the bible in order to guide their decisions. Christian see the world differently, so they act differently when making decisions (Fedler, 2006 p. 12).
Guided Principles of Ethical Decisions
Guided principles are an important aspect of ethical decision making. Families operate using house rules that govern actions, and businesses need guided principles to govern their decisions (Broundy, 2011). Moreover, defining these beliefs and principles are an important aspect of being a business leader (Sugars, 2010). One must define these principles and values to create a basis in which their company will run on (Broundy, 2011). Sugars explored the concepts of being organized, dedicated, dependable, educated and giving as a few basic principles of business and leadership (2010). Having these basic principles will in turn create a more well rounded leader and business. Nevertheless, businesses must also possess the fundamental principle of being profitable and sustainable as well as acting on integrity and accountability (Writer, 2018).
Christian Guidelines Within the Bible, Christian morality has been formulated through various rules such as the Ten Commandments, Love, and the Golden Rule (Fedler, 2006 p. 22). Christians look to these rules to influence their guiding principles. Though a kingdom focused business must be profitable and sustainable just as any other business (Writer, 2018), it must stay in alignment with God's will (Chrtistian Ethics, 2016). In Romans 12:2 Paul states “ Do not be conformed to this world, but be transformed by the renewing of your minds, so that you may discern what is the will of God---what is good and acceptable and perfect.”. The ten commandments outline the basic rules of the bible including but not limited to the ideas that thou shall not steal, murder, or bear false witness against thy neighbor (Bibleinfo.com, 2020). The Golden Rule (Matthew 7:12) states “Therefore all things whatsoever ye that men would do to you, do ye even so to them: for this is the law and the prophets.” This verse emphasizes the importance of Christian leaders treating others as they want to be treated. Lastly, love can be viewed through many aspects of the Bible. However, God so graciously asks of us to love thy neighbor as oneself (Fedler, 2006 p.22).
The guiding principles of Christians can easily be related to ethical decision making through the rules of morality set forth in the Bible. For example, Theology of Work Project (2014) states that the command to love thy neighbor is considered one of the primary blueprints for ethical concerns. When deciding based on love, the Ten Commandments and or the Golden Rule one may find themselves asking: “What would Jesus do in this situation? (Writer, 2018)”. This Christian like thinking is a key factor in the decision-making process guided by Christian principles.
Lesser of Two Evils Conflicts arise when values are the source of dilemma in ethics (Lurie & Albin, 2006). When taking a closer look into the decision making process of a consequentialist and how to resolve conflict by choosing the option with the smaller consequence, one may question “Does God require us to choose the lesser of two evils?”. Nevertheless, distinguishing moral evil from sin is no simple task (Orr, 1915). Evil focuses more on the idea that opposes divine truth either both in belief or behavior (Adema, 2008). The word evil can also be referenced as calamity; However, a specific calamity may or may not be a sin (Day, 2007). Sin is either violating a revealed divine truth from the word of God or not applying a revealed divine truth from the word of God (Adema, 2008). 1 John 3:12 (New Testament) reads, “Do not be like Cain, who belonged to the evil one and murdered his brother. And why did he murder him? Because his own actions were evil and his brothers were righteous.”. This scripture describes evil as belonging to the evil one (Adema, 2008). According to Russell Moore, some sins are more sinful than others, yet we do not know how to fully decipher this. He goes further to explain the story of Rahab lying (2008). Scripture indicates it is proper to lie in select circumstances when justice and righteousness according to God’s will is the result (Tabletalk, 2020). Truth is owed to those of who the truth is due (Moore, 2008). James 4:7 (New International Version) says that we should submit ourselves to God and resist the devil, and he will flee from you. Therefore, God is not asking us to choose between the lesser of two evils. Rather, he wants us to not choose and resist either choice (Moore, 2008).
Conflicts Resolved Through Ethics Theory
Conflicts may exist between individuals and/or groups and the conflict that arises can usually have a mixture of causes that may include independently or collectively structural, ideological, behavioral, and/or emotional influences (Nay et. al). As stated, Ethics refers to the discipline of what is good and bad and with moral duty and obligation. This theory emphasizes the importance of morality and values. According to the ICAEW’s code of ethics (2020), one may attempt to solve conflicts from an ethical perspective by the following:
1. Gathering the relevant facts and identifying the problem
2. Identifying the affected parties
3. Consider the ethical issues involved
4. Identifying which fundamental principles are affected
5. Refer to the employing organisation's internal procedures
6. Consider and evaluate alternative courses of action
7. Implement the course of action and monitor its progress
Conclusion
In conclusion, Ethics is a highly debatable topic in business. What is considered ethical and unethical lies within frameworks of various perspectives that shape the way we make decisions. Businesses must align with specific frameworks to guide their decisions so that the mission and values of that business correspond accordingly. Ethics focuses on morality and what is considered right and wrong. If a business does not operate ethically, they are bound to face ethical dilemmas at some point. The ethical decision-making process of businesses often pulls from values outlined in the Bible as well. However, even the most righteous leaders can find themselves in an ethical dilemma.
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