- Ethical issue intensity
- Individual factors
- Organizational factors
- Opportunity


[SLIDE 1]

The first component of the ethical decision-making framework is being able to recognize when there is an ethical issue. Different people view ethical issues differently. Because of this, ethical conflict can arise when there are differences in opinions.

Ethical awareness is the ability to perceive whether there is an ethical issue in a situation or decision .

Ethical issue intensity refers to how important a decision or event is perceived to be by an individual, an organization, or a work group.

Moral intensity refers to how an individual reacts to social pressure and whether that person believes his or her decisions will harm others.


[SLIDE 2]

Individual factors that contribute to ethical decision making are subjective and can vary a lot across different cultures.

Extensive research has been done on the issue of gender in ethical decision making. The results show that there is very little difference in gender and ethics. When differences are found, however, women do tend to be more ethical than men.

People who have more work experience and/or higher levels of education tend to make more ethical decisions. A person's major does not matter. A person could have been a business student, liberal arts student, or any other major.

Nationality refers to a person's legal relationship with a particular nation. Nationality is typically conferred based on where a person is born. Due to cultural differences, a person's nationality has a big impact on how a person makes ethical decisions. Things that are unethical and illegal in one country, for example, may be culturally acceptable in another. The issue of bribery is one example. While bribery is illegal in many countries, it is considered culturally acceptable and even expected in others.


[SLIDE 3]

Age is a big factor in ethical decision making. Younger workers tend to believe that unethical behavior can be justified if it benefits the organization. Older employees with more knowledge and experience, however, are not as easily influenced by organizational culture as their younger coworkers. Older workers are better able to deal with complex ethical issues.

Locus of control refers to how people view themselves in relation to power. Those who believe they are at the mercy of external forces believe there is nothing they can do and that they have to go with the flow. Those who believe they control their own destinies, however, trust their own abilities to influence their environment. Research indicates that those who believe they are in control of their own destinies tend to be more ethical .

External controls are external forces that control or influence one's behavior.

Internal controls refers to the belief that individuals are in control over their own destinies.


[SLIDE 4]

Research has shown that people do not just make ethical decisions based on their own personal values. The organization's values heavily influence these decisions. Group work, business meetings, and even casual conversations with coworkers all influence individual's ethical decisions.

Corporate culture is an organization's shared values, norms, and artifacts. It also includes the way in which groups within an organization solve problems. 

Ethical culture refers to factors within an organization that influence the ethical decision making process. Just a few of these factors include corporate policies, the influence of coworkers, top management's leadership, and corporate communications.


[SLIDE 5]

Significant others refers to those who have influence in a work group. They can include managers, peers, subordinates, and coworkers. Significant others assist workers with various tasks and provide information and advice. Within an organization, significant others strongly influence individual's decisions. 

Obedience to authority refers to following the directives of a superior. When an organization's culture emphasizes the importance of following orders, many workers will carry out orders given by a supervisor even if those orders are in conflict with the workers' morals.


[SLIDE 6]

Opportunity refers to the conditions within an organization that permit or limit ethical or unethical behavior. An example of opportunity is when a company does not put up barriers against unethical behavior. Opportunity then exists for employees to do unethical things.

Immediate job context refers to where people work, the company they work for, and the type of work they do. Opportunity is directly related to immediate job context and is influenced by rewards and punishments used by management to influence behavior.