1. Kuliah 4 Etika Profesi dan Bisnis Oleh Coky Fauzi Alfi cokyfauzialfi.wordpress.com Ethical Decision-Making Process

2. Topics Ethical Dilemmas Define: Ethical Decision Making Framework for Understanding Ethical Decision Making Ethical Decision-Making Process Three Ethics Theories

3. Ethical Dilemmas

4. Ethics is about choices which matter, and choices which matter are dilemmas. ― Martin Cohen

5. An Ethical dilemma is a complex situation where ethical principles or values are in conflict. Examples: To whom do I have a duty—self, family, friends, workers, investors, consumers, future generation, and so on? What is a fair or justice resolution—is fairness or justice based on everyone receiving equal shares, or more to those who merit or have earned it.

6. When faced with a difficult ethical dilemma, we need ethical decision making ability for resolve it. It helps one determine the right course of action or the right thing to do and also enables one to analyze whether another’s decisions or actions are right or good.

7. Define: Ethical Decision Making

8. In the context of decision making, your ethics are your personal standards of right and wrong. They are your basis for making ethically sensitive decisions.

9. Ethical decision making is a cognitive process that considers various ethical principles, rules, and virtues or the maintenance of relationships to guide or judge individual or group decisions or intended actions.

10. Framework for Understanding Ethical Decision Making

11. Ethical Issue Intensity Individual Factors Organizational Factors Opportunity Profession or Business Ethics Evaluations and Intentions Ethical Or Unethical Behavior Ethical Or Unethical Behavior

12. Ethical Issue Intensity Ethical issue intensity can be defined as the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization. Ethical issue intensity reflects the ethical sensitivity of the individual or work group that faces the ethical decision making process.

13. Individual Factors Gender―women are generally “more ethical” than men. Education or work experience―the more education or work experience that one has, the better he or she is at ethical decision making. Nationality―cultural appears to be significant in affect of ethical decision making.

14. Age―the older you are, the more ethical you are. Locus of control― external control vs. Internal control. – external control, see themselves as going with the flow because that’s all they can do. – internal control, believe that they control the events in their lives by their own effort and skill Individual Factors

15. Organizational Factors The organization’s values often have greater influence on decisions than a person’s own values. The more ethical employees perceive an organization’s culture to be, the less likely they are to make unethical decisions.

16. Opportunity Opportunity describes the conditions in an organization that limit or permit ethical or unethical behavior. Opportunity results from conditions that either provide rewards, whether internal or external, or fail to erect barriers against unethical behavior.

17. Ethical Decision-Making Process

18. Identify the Ethical Problem Collect Relevant Information Evaluate the Information Consider Alternatives Make a Decision Act or Implement Review the Action 01 02 03 04 05 06 07

19. 01 Identify the Ethical Problem The decision maker must be able to determine: if there is a possible violation of an important ethical principle, societal law, or organizational standard or policy if there are potential consequences that should be sought or avoided that emanate from an action being considered to resolve the problem.

20. 02 Collect Relevant Information The decision maker should seek to gather as much information as possible about which rights are being forsaken and to what degree. A consequential focus would prompt the decision maker to attempt to measure the type, degree, and amount of harm being inflicted or that will be inflicted on others.

21. 03 Evaluate the Information Once the information has been collected, the decision maker must apply some type of standard or assessment criterion to evaluate the situation. The decision maker might use one of the predominant ethics theories—utilitarianism, rights, or justice.

22. 04 Consider Alternatives The decision maker needs to generate a set of possible action alternatives, such as: confronting another person’s actions, seeking a higher authority, or stepping in and changing the direction of what is happening.

23. 05 Make a Decision The decision maker should seek the action alternative that is supported by the evaluation criteria used in Step 3. A decision maker selects a course of action that is supported by all the ethics theories or other evaluation criteria used in the decision- making process.

24. 06 Act or Implement The decision maker, if truly seeking to resolve the problem being considered, must take action. Once the action alternatives have been identified in Step 4 and the optimal response is selected in Step 5, the action is taken in Step 6.

25. 07 Review the Action Once the action has been taken and the results are known, the decision maker should review the consequences of the action. If the optimal resolution to the problem is not achieved, the decision maker may need to modify the actions being taken or return to the beginning of the decision-making process

26. Three Ethics Theories

27. The ethical decision-making process that applies three predominant ethics theories: 1.Utilitarian perspective 2.Rights perspective 3.Justice perspective

28. Utilitarian Perspective A utilitarian perspective: Where the decision maker considers the consequences or out-comes of an action and seeks to maximize the greatest good for the greatest number of those affected by the decision.

29. Rights perspective A decision maker who considers a rights perspective would consider the entitlements of those affected by the decision.

30. Justice perspective A justice perspective may focus on either the equitable distribution of the benefits and costs resulting from the plant closing and employee layoffs (distributive justice) or the maintenance of rules and standards (procedural justice).

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