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In business, ethical decision making is a strategy that prioritizes ethical principles as a set of standards, rather than economic considerations, in making business decisions. Companies that value ethical behavior may consider a number of ethical values, including how their actions reflect on themselves and how their decisions affect the company, its employees, and others. community or the world at large. Common ethical issues in business include environmental concerns, employee welfare, operational transparency, product integrity, and customer satisfaction; Many ethical dilemmas in the business world weigh these variables against economic growth. However, making ethical decisions can be difficult in the workplace and often requires resolving ambiguous situations.
Though there is not a single framework for making ethical decisions, each ethical decision-making model incorporates these four core steps:
1. Identify the facts
To make the right decision when faced with an ethical issue, you must first verify that you have all the facts. This means you base your choices on facts, details, and verified actions rather than intuition, personal experience, or emotions. Also, consider your moral conscience. Think about every angle of the situation and determine if you're missing an important perspective. When determining the facts of a particular situation, you may find that it is best to bring all relevant parties together in a meeting to make a decision together.
2. Lay out all possible options
Once you know the actual situation, outline all the possible options for the business decision. Be open and honest about each choice, regardless of its perceived ethical issues. Also, take note of any aspects you may have overlooked in this situation, and spend time thinking about possible solutions you may not have considered.
3. Sort options by implication
Once you have outlined all of your options in the ethical decision-making process, it’s time to consider the effects or consequences of each option. Consider the following questions: Which options have the greatest benefit (or the greatest good) for the most people? Which options have the fewest negative consequences (or do the least harm) for the most people? Which options benefit your company the most or the least? Which options are in line with your company values? Which options reflect your personal values or ethical standards? Which options do you consider ethical actions, and which do you consider unethical? Why or why not?
4. Weigh your considerations
After carefully considering the implications of each option, decide which ethical principles are most important to your business and which are least important: this is an ethical decision-making framework. Ethical choices value variables such as the general good, honesty, transparency, fairness and equity, rights and obligations. Decide which ethical model is right for you and your business, and take the strongest ethical action in your situation.
5. Accept Feedback
Ethical decision making is often in a gray area and often involves a lot of disagreement. Therefore, it is essential to be approachable and open to feedback. Benefits of receiving feedback include:
Learn from your mistakes
More opportunities to demonstrate compassion, fairness and transparency
Identify blind spots that you don't know about
Involve your team in the decision-making process
Although such conversations may be uncomfortable, don't avoid them. Accepting feedback not only makes you a more effective leader, it also helps your employees speak up in the workplace.
Source: Harvard Business School, MasterClass