Read the Case study given below and write the findings

Understanding Ethical Decision in Business Studies

In the context of Business studies, 'Ethical Decision' is a term that you may often come across. It fundamentally revolves around choices that respect ethical principles and are in line with the universal morals concerning what is right and wrong. More formally, it involves a process where decisions are made based on ethical rules and standards.

Ethical decision: A choice made that respects ethical norms and values, usually referring to the ones which revolve around honesty, fairness, rights, etc.

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Ethical Decision Definition: Basics for New Managers

For new managers, understanding the concept of ethical decision$-$making is crucial. It not only helps maintain a professional environment but also fosters corporate responsibility and trust. Such decisions often involve considering various factors such as societal norms, organizational culture, and business ethics codes. The steps typically involved in ethical decision making are as follows:

Identify the ethical issue or problem.

Evaluate the alternative actions considering various perspectives.

Make a decision and test it for fairness.

Implement the decision.

Reflect on the decision and its outcomes.

The ethics adherence in business decisions can be illustrated through the ethical decision$-$making model:

Identify issues Generate options Evaluate options Take action Reflection

Recognizing an ethical issue Generating a set of feasible ethical actions Applying ethical judgment to choose the best course of action Implementing the ethical action Reflecting on the decision made

Studies show that managers who follow ethical decision making are not only respected among their peers but also have higher team motivation and productivity. It contributes to building a stronger brand reputation and gaining customer loyalty.

Assumptions and Implications in Ethical Decision Making

Making ethical decisions is not strictly about the individual's character or moral compass. Notably, assumptions play a significant role in the process. Here are some common assumptions involved:

The decision$-$maker is aware of the ethical problem.

The decision$-$maker is willing to make an ethical choice, even if it is a difficult one.

The decision$-$maker believes that the chosen ethical conduct will have a preferred outcome.

For instance, a manager might have to make a decision between firing an underperforming employee or providing them with additional training. While the assumption might be that firing the employee could lead to short$-$term gains, an ethical decision would consider the implications over the longer term, including the emotional cost to the employee and the reputation of the company.

Ethical decisions might start with assumptions, but they undeniably lead to implications, both, for individuals and the organization. Within an organizational context, the implications often revolve around team morale, business reputation, legal issues, and overall business performance. Therefore, understanding the reality of these implications and managing them effectively is key for success in a managerial role.

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Principles of Ethical Decision Making

As you delve deeper into the world of business, you'll find that the principles of ethical decision making have significant weight. Essentially, these principles guide managers and employees alike in navigating the potentially turbulent waters of ethical dilemmas in the business setting. By adhering to these principles, business decisions reflect not just fiscal or strategic interests, but more importantly, the ethical values of the organisation.

Essential Principles in Ethical Decision for Managers

Managers play a pivotal role in shaping and influencing the ethical culture of an organisation through the decisions they make. Consequently, they must be guided by a set of ethical principles that act as a compass during decision$-$making processes. Here, you will explore some of these key principles in great detail:

Responsibility: Managers have the duty to accept the consequences of their decisions. This requires acknowledging and correcting mistakes when they occur.

Accountability: This principle emphasizes that managers are answerable for their actions and decisions.

Respect: This principle promotes dignity and equality, warranting that all individuals in the organisation are treated with respect, regardless of their position or background.

Transparency: A cornerstone of trust cultivation, this principle enshrines that actions and decisions should be open and clear, reducing potential for suspicion or misunderstandings.

Integrity: Managers are encouraged to uphold utmost honesty, refraining from deceptive practices, ensuring their actions align with the company's ethical standards.