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Ethical Decision Making and Ethical Leadership C H A P T E R 5 The Ethical Decision Making Process In business, people make decisions differently than at home Organizational pressures The ethical decision making process in business includes ethical issue intensity, individual factors, and organizational factors, such as corporate culture and opportunity Source: Triangle Images Framework for Understanding the Ethical Decision Making Process in Business Ethical Issue Intensity Ethical issue intensity is the perceived relevance or importance of an ethical issue to the individual, work group, and/or organization Reflects the ethical sensitivity of the individual or work group Triggers the ethical decision process Moral Intensity relates to a person’s perception of social pressure and the harm the decision will have on others Individual Factors People often base their decisions regarding ethical issues on their own values and principles of right or wrong Research on gender and ethical decision making women are generally more ethical than males Education, Nationality, and Age are other individual factors Locus of control relates to individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements Can be external or internal Organizational Factors Corporate culture is a set of values, norms, and artifacts that members (employees) of an organization share Those who have influence in a work group (e.g. managers, coworkers, subordinates) are referred to as significant others Obedience to authority helps to explain why many employees simply follow the directives of a superior Source: Digital Vision Opportunity Describes the conditions in an organization that limit/permit ethical/unethical behavior Relates to individuals’ immediate job context Where they work, with whom they work, and the nature of the work Opportunities for misconduct can be reduced by establishing formal codes, policies, and en
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