Applying Ethical Guideposts to Decisions

1. The individual and/or the organization is immature. 2. Economic self-interest is overwhelming. 3. Special circumstances outweigh ethical concerns. 4. People are uneducated in ethical decision making. 5. Possible rewards outweigh possible punishments for unethical behavior. 6. The prevailing attitude is “All’s fair in love, war, and business.” 7. There is powerful organizational pressure to commit unethical acts.

EXHIBIT 18.1 Why Do Individuals Make Poor Choices on Ethical Issues? Source: O. C. Ferrell and G. Gardiner, In Pursuit of Ethics: Tough Choices in the World of Work (Springfield, IL: Smith Collins Co., 1991), pp. 9–13.

Applying Ethical Guideposts to Decisions

In the final analysis it is individuals who make the decisions, and quite often individuals make poor choices on ethical issues.Exhibit 18.1provides some of the reasons why this happens in organizations. Consequently, it is important that you develop your own ethical guideposts and decision-making processes to apply for yourself, regardless of the type of organization you are in or who your boss is. What are the guideposts that you can apply, especially in those “gray” areas where right and wrong are not easily defined? What processes can you follow to enhance your ethical thinking and decisions? Following are some ethical guidelines that can guide your decisions in most situations. If you want more of a cookbook formula, review the step-by-step ethical screening test for individual decision making that follows the seven guideposts. 1. Understand your organization’s policy on ethics. Policies on ethics, if they exist, describe what the organization leaders perceive as ethical behavior and what they expect you to do. Understanding your organization’s ethics policy will clarify what is permissible and what discretion you have. 2. Anticipate unethical conflict. Be alert to situations that may promote unethical behavior. Under unusual circumstances, even a normally ethical person may be tempted to act out of character. It will be in your best interest to anticipate those unusual situations and be proactive. For example, if an important client has a reputation for cutting corners and putting pressure on your salespeople, you could seek to stifle any unethical temptation by meeting with the customer to tactfully restate the company’s ethical credo. You could also give the sales staff helpful advice on how to rebuff questionable overtures and meet goals through ethical means. 3. Think before you act. Ask yourself, “Why am I doing what I’m about to do? What led up to the problem? What is my true intention in taking this action? Is my reason valid? Or are there ulterior motives behind it—such as proving myself to my peers or superiors? Will my action injure someone?” Also ask yourself, “Would I disclose to my boss or family what I am about to do?” Remember, it is your behavior and your actions. You need to make sure that you are not doing something that will jeopardize your reputation or your organization. 4. Consider all consequences. As you ponder your decision, you should also be asking what-if questions. For example: “What if I make the wrong decision? What will happen to me? What will happen to my job? What if my actions were described, in detail, on a local TV news show or in the newspaper? Would that public notice bother or embarrass me or