The Significance of Ethical Decision Making, for Business Growth

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Ethics goes beyond being a buzzword. It serves as a foundation that can propel a company from being ordinary to extraordinary. Throughout history we have witnessed the consequences faced by businesses like Enron, Wells Fargo and Uber when they veer off the path. Their reputations are tarnished trust is shattered. They serve as tales in the annals of corporate history.

Joseph Potchen  is a professor who imparts knowledge to business leaders through his graduate level Business Ethics course at Michigan State University’s Eli Broad College of Business. He emphasises the significance of ethics in achieving long term success in business.

The Measurable Impact of Trust in Business

There is a connection between ethical conduct and business success. Than being an afterthought ethical values should be regarded as driving forces for businesses that aim to cultivate lasting relationships within society.

Recent surveys shed light on this matter. A study conducted by Edelman revealed that despite a decline, in trustworthiness since 2016 businesses are still perceived as pillars of trust.

It’s quite interesting that 52% of the people surveyed believe that businesses are generally more ethical compared to governments or the media. In addition a significant 75% of respondents think that businesses can achieve profitability while also benefiting their communities.

When it comes to dealing with dilemmas it can be quite challenging. To help business leaders navigate these complexities we have developed a six step model. This model is designed to provide guidance in making decisions whether they are related to challenges or personal predicaments. It is based on research aimed at distilling behaviour into practical and easily understandable strategies ensuring that integrity remains a top priority, in every decision making process.

Six-Step Guide to Making Ethical Choices

When faced with situations where different interests or valuesre, at play making ethical choices can be quite challenging. However, there are steps you can follow to help you make decisions. Here is a guide that outlines six steps for making choices;

1. Gathering the information;

Begin by understanding the situation at hand. This may involve gathering data communicating with all parties involved or conducting research.

It’s important to differentiate between facts, assumptions and opinions.

2. Identifying the aspects;

Determine which moral principles or values are relevant in this situation.

Take into account any considerations, regulations or organisational policies that may apply.

Understand the conflicts involved;

Is it a matter of improvesty versus loyalty? Individual rights versus community benefits?

3. Evaluating options;

Brainstorm courses of action and potential solutions, for the situation.

Consider both short term and long term consequences associated with each alternative.

Reflect on who will be impacted by each choice. How they will be affected.

4. Make a Choice;

Carefully consider the advantages and disadvantages of each option based on principles and the potential impact.

Use a framework, such, as utilitarianism (which focuses on maximising overall good) deontological ethics (which emphasises duty and rules) virtue ethics (which highlights character) or another framework to guide your decision making process.

5. Take Action;

Once you have reached a decision take steps to put it into action. This might involve implementing a plan finding a solution or even deciding not to take any action.

Ensure that your actions align with your decision. For example if you choose to voice your concerns about an issue do so in an respectful manner.

6. Reflect on the Outcome;

After the situation has unfolded, take some time to assess the consequences of your choice.

Did the outcome match your expectations? If not why?

Use this reflection as an opportunity, for learning and enhancing your decision making process in scenarios.

Remember that nobody is flawless and everyone will encounter challenging situations at some point.

The aim is not to evade circumstances but to approach them with careful consideration and improvesty. As you continue to engage in practice and contemplate your choices your capacity, for making decisions will grow stronger.