Ethics: 8 Steps to Ethical Decision

Making In Business

Step 1: Gather the

Facts
Asking questions about
the issue is
important!
?) How did the situation
occur?
?) What issues do both
sides bring to the
table?
?) Is there any
background information
I am given?

Step 2: Define the

Ethical Issues
?) Why are people
upset?
In most cases, one side
or the other does not
agree on what the
issue really is. You
need to define the
ethical issue for
yourself before you
can make a sound
decision.

Ethics: 8 Steps to Ethical Decision

Making In Business
Step 3: Identify the
Affected Parties
The affected parties
are anyone who is
effected by the
consequence of the
ethical issue.
Sometimes not all of
the effected parties
are mentioned,
however, they still
need to be
considered.
?) Who are all of the
effected parties

STAKEHOLDER: Those
who have a stake in
the organization and
how it performs.
These can include:
Owners, managers,
customers,
employees,
suppliers, the
community, the
government, the
natural environment,
and of course
stockholders.

Ethics: 8 Steps to Ethical Decision

Making In Business
Step 4: Identify the
Consequences
After you identify
each party involved,
identify the
consequences for
each party.
?) How does each
partys consequences
fair when compared
with the outcome?

Long Term vs.

Short Term
Consequences
?) How will the
ethical decision
effect the
parties in the
long term and
the short term.

Ethics: 8 Steps to Ethical Decision

Making In Business
Symbolic
Consequences
Every decision and
action sends a
message.
?) What message will
be sent by the
ethical decision?
?) What will happen if
it is misunderstood?

Consequence of
Secrecy
Sometimes a decision
is made in private
to avoid
confrontation or
negative reaction.
?) Is it a sound
ethical decision if
the decision must be
hid from some
stakeholders?

Ethics: 8 Steps to Ethical Decision

Making In Business
Step 5: Identify the
Obligations
When determining an
ethical issue it is
important to look at
the obligations of
the stakeholders and
make sure that each
is justified.

?) What are each

parties obligations?

Step 6: Consider Your

Character and Integrity
Society defines what
ethics is for us,
however, the community
of the stakeholders may
have a different view
than you. When making
an ethical decision you
must consider the
following
?) Disclosure Rule: If you
do not want others to
know about it then you
should not be doing it!

Ethics: 8 Steps to Ethical Decision

Making In Business
Step 7: Think
Creatively about
Potential actions
Before a final decision
is rendered make sure
you have unnecessarily
forced yourself into a
corner. Many ethical
decision are not A or
B choices, get
creative about other
ways to solve the
problem.
?) What is another way
to solve the problem?

Step 8: Check
your Gut

?) How do you feel

about the ethical
decision?
?) Was the
conclusion easy
for you to come
up with?