Ethical Decision Making in Everyday Work Situations

The Ethical Decision-Making Process

Ladies and Gentlemen, the process of making ethical decisions requires,

Commitment. It is the desire to do the right thing regardless of the cost.
Consciousness, the awareness to act consistently and apply moral convictions to daily
behavior. And Competency, which is the ability to collect and evaluate information,
develop alternatives, and foresee potential consequences and risks.

Good decisions are both ethical and effective:

Ethical decisions generate and sustain trust; demonstrate respect,

responsibility, fairness and care; and are consistent with good citizenship. These
behaviors provide a foundation for making better decisions by setting the ground
rules for our behavior.

Whereas, decisions are effective if they accomplish what we want to be

accomplished and if they advance our purposes. A choice that produces
unintended and undesirable results is ineffective. The key to make effective
decisions is to think about choices in terms of their ability to accomplish our most
important goals.

Ladies and Gentlemen, first step in the process of ethical decision

making, is to Take Time to Define the Problem.

Some initial analysis has to happen for leaders to truly understand where they
need to bring in ethical principles. Leaders have to decide why an ethical
decision needs to be made and the outcomes that are desired for the decision.

Consult Resources and Seek Assistance

Leaders then need to work on developing a strategy, using the resources and
people around them. Whether, it be qualified co-workers, HR professionals, or
policies and handbooks set long ago, leaders need to gain clarity from other
sources when creating a strategy to tackle the issue.

Think About the Lasting Effects

While identifying the problem and seeking viable resources to help is the way to
go, any advice for how to handle an issue should be filtered through the lens of
how it will affect others. For instance, if there is an issue with employees getting
to work on time, managers could install policies that change the time workers
report, but if they are not careful, it may have a detrimental impact on other
workers, and even clients.

Consider Regulations in Other Industries

Regulations and standards that other companies have established can be a good
starting point for developing ethical strategies. Leaders should take a look at how
they handle specific issues that have come their way. It might also be helpful to
take a look at the mistakes the leader’s company and other organizations have
made and learn from them. Everyone does not always get it right 100 percent of
the time. Therefore, it is essential to see the good and bad side to become even
more informed about a decision that should be made.

Decide on a Decision

After consulting others and doing a bit of extra research, it is the time for a final
decision. Since the choice will likely impact many, it’s a good idea to create a
proposal of what the issue is and how leaders plan to work with the team to solve
it. If the problem is more personal and involves harassment of some kind, it is
more appropriate to only deal with those involved and establish a plan of action
to handle that particular situation. However, for widespread ethical issues that
 have become a problem in the workplace, it is a good practice to bring decisions
to the team at large.

Ladies and Gentlemen, the last step is to Implement and Evaluate. This is where
talk meets action. It is easy for people to research and create solutions to a problem,
but when dealing with morality and ethics, it can be challenging to put it into action
finally. No one benefits from a plan that is not put into practice, so at some point,
leaders need to facilitate the implementation of the ethical decision. Also, the application
is not enough. Evaluation allows everyone to see how the approach is working out, and
if there were some unintended consequences leaders did not foresee. Is the problem
finally fixed? Did things get better or worse? Analysis of this issue can help those
involved, to figure out the appropriate response.

Levels of Ethics: An Organizational Framework

Ladies and Gentlemen, while there may appear to be a difference in ethics between
individuals and the organizations, often individuals’ ethics are shown through the ethics
of an organization, since individuals are the ones who set the ethics to begin with.

There are four main levels of ethics within organizations. The first level is societal
issues. These are the top-level issues relating to the world as a whole, which deal with
questions such as the morality of child labor worldwide. Deeper-level societal issues
might include the role of capitalism in poverty.

Second level of ethics is stakeholder’s issues. A stakeholder is anyone affected by a

company’s actions. In this level, businesses must deal with policies that affect their
customers, employees, suppliers, and people within the community. For instance, this
level might deal with fairness in wages for employees or notification of the potential
dangers of a company’s product.

The third one is the internal policy issue level of ethics. In this level, the concern is
internal relationships between a company and employees. Fairness in management,
and employee participation would all be considered ethical internal policy issues.
The last level of ethical issues is personal issues. These deal with how we treat
others within our organization. For example, gossiping at work or taking credit for
another’s work would be considered personal issues. As an employee of an
organization, we may not have as much control over societal and stakeholders’ issues,
but certainly we have control over the personal issues level of ethics.

Approaches to Ethical Standards

Ladies and Gentlemen, Before turning to certain sources of personal ethics, I would
like to discuss few classical ethical approaches on which decisions can be and are
made by individuals, organizations and other stakeholders who choose principled and
responsible ways of acting towards others.

Some of the approaches presented here date back to Plato, Socrates and even earlier
to ancient religious groups. These approaches can be, and are, used in combination;
based on the nature of different situations.

Philosopher’s Approach

Ladies and Gentlemen, Philosophers believe in few ethical standards, which can guide
ethical decision making. First, the utilitarian approach says that when choosing one
ethical action over another, we should select the one that does the most good and least
harm. Whereas in the rights approach, we look at how our actions will affect the rights
of those around us. So rather than looking at good versus harm as in the utilitarian
approach, we are looking at individuals and their rights to make our decisions.

The common good approach says that when making ethical decisions, we should try to
benefit the community as a whole.

The virtue approach asks the question, “What kind of person will I be if I choose this
action?” In other words, the virtue approach to ethics looks at desirable qualities and
says we should act to obtain our highest potential.

The imperfections in these approaches are three fold:

Not everyone will necessarily agree on what is harm versus good.

 Not everyone agrees on the same set of human rights.

We may not agree on what a common good means.

Because of these imperfections, it is recommended to combine several approaches

when making ethical decisions. If we consider all approaches and ways to make ethical
decisions, it is more likely that we will end up in a better ethical decision.

Josephson Institute of Ethics’ Model

Ladies and Gentlemen, Josephson’s Institute of Ethics model focuses on six steps to
ethical decision making. The first step is to stop and think. When we stop to think, this
avoids rash decisions and allows us to focus on the right decision-making process. It
also allows us to determine if the situation we are facing is legal or ethical. In the
second step, we clarify our goals, we allow ourselves to focus on expected and desired
outcomes. Next, we need to determine the facts in the situation. Are we getting our
facts? Is the person who is providing the facts to us credible? Is there bias in the facts
or assumptions that may not be correct? Next, create a list of options. This can be a
brainstormed list with all possible solutions. In the next step, we can look at the possible
consequences of our actions. For example, who will be helped and who might be hurt?
Since all ethical decisions we make may not always be perfect, considering how we feel
and the outcome of our decisions will help us to make better ethical decisions in the
future.

Sources of Personal Ethics

Ladies and Gentlemen, people are not born with a set of values. The values are
developed during the aging process. We can gain our values by watching others. The
more we identify with someone, the more likely we are to model that person’s behavior.
Besides our life models, other things that can influence our values are Religion, Culture,
Media, Attitudes and experiences.
Religion. Religion has an influence over what is considered right and wrong. Religion
can be the guiding force for many people when creating their ethical framework.

Culture. Every culture has a societal set of values. Our culture tells us what is good,
right, and moral. In some cultures where corruption and bribery is the normal way of
doing business, people in the culture have the unspoken code that bribery is the way to
get what you want.

Media. Media shows us what our values “should” be. For instance, frequent
advertisements on luxurious life and expensive cars might influence people and they will
value those things as mandatory.

Attitudes.

Ladies and Gentlemen, Our attitudes, similar to values, start developing at a young age.
As a result, our impression, likes, and dislikes affect ethics, too. For example, someone
who spends a lot of time outdoors may feel a connection to the environment and try to
purchase environmental friendly products.

Experiences.

Whereas, on the other hand, our values can change over time depending on the
experiences we have. For example, if we are bullied by our boss at work, our opinion
might change on the right way to treat people when we become managers.

Ladies and Gentlemen, in the current slide I will cover certain

limitations to Ethical Decision Making

Dark Side of Organizational Leadership

 Not all leaders lead or model high standards or values. Six symptoms of the
failure of ethical leadership provide a practical lens to examine a leader’s
shortsightedness:

In Ethical blindness, the leaders do not perceive ethical issues due to inattention
or inability.

Where as, in Ethical muteness, leaders do not have or use ethical language or
principles. They “talk the talk” but do not “walk the talk” on values.

In Ethical incoherence: They are not able to see inconsistencies among values
what they say and what they follow; For instance, they say, they value
responsibility but reward performance, based only on numbers.

In Ethical paralysis: They are unable to act on their values from lack of
knowledge or fear of the consequences of their actions.

In Ethical hypocrisy, they are not committed to their espoused values, rather they
delegate things they are unwilling or unable to do themselves.

And lastly, In Ethical schizophrenia, leaders do not have a set of coherent values;
they act one way at work and another way at home.

Ladies and Gentlemen, referring to some common rationalizations that can cloud
our judgment when we are involved in making tough ethical decisions.

If it's necessary, it's ethical: This approach often leads to ends-justify-the-

means reasoning and treating non-ethical tasks or goals as moral imperatives.

The false necessity trap: "Necessity is an interpretation and not a fact." We

tend to fall into the "false necessity trap" because we overestimate the cost of
doing the right thing and underestimate the cost of failing to do so.

If it's legal and permissible, it's proper: This substitutes legal requirements for
personal moral judgement. This alternative does not embrace the full range of
ethical obligations, especially for those involved in upholding the public trust.
Ethical people often choose to do less than what is maximally allowable but more
than what is minimally acceptable.

It's just part of the job: Conscientious people who want to do their jobs well
often compartmentalize ethics into two categories: private and job-related.
Fundamentally decent people may often feel justified doing things at work that
they know to be wrong in other contexts.

It's for a good cause: This is a seductive rationale that loosens interpretations
of deception, concealment, conflicts of interest, favoritism, and violations of
established rules and procedures.

I was just doing it for you: This rationalization pits values of honesty and
respect against the value of caring and over estimates other people's desire to be
"protected" from the truth. This is the primary justification for committing "little
white lies."

I'm just fighting fire with fire: This is the false assumption that promise-
breaking, lying, and other kinds of misconduct are justified if they are routinely
engaged in by those with whom you are dealing. This rationale compromises
your own integrity.

It doesn't hurt anyone: This rationalization is used to excuse misconduct when

violating ethical principles so long as no clear and immediate harm is perceived.
It treats ethical obligations as simple factors to be considered in decision-making
rather than as ground rules.

Everyone's doing it: This is a false "safety in numbers" rationale that often
confuses cultural, organizational, or occupational behaviors and customs as
ethical norms.

It's OK if I don't gain personally: This justifies improper conduct for others or
for institutional purposes.
 I've got it coming: People who feel overworked and/or underpaid rationalize that
minor "perks" (acceptance of favors, discounts, gratuities, abuse of sick leave,
overtime, personal use of office supplies) are nothing more than fair
compensation for services rendered.

I can still be objective: This rationalization ignores the fact that a loss of
objectivity always prevents perception of the loss of objectivity. It also
underestimates the subtle ways in which gratitude, friendship, anticipation of
future favors and the like affect judgement.

Real Life Ethical Decision Making Examples

1. Costco’s Decision To Pay Fair Wages

Ladies and Gentlemen, coming over to certain real life ethical decision making
examples. Costco Wholesale is one of the biggest successes in American retail.
Impressively, reported $34.74 billion quarterly revenues that grew at a rate of 7.35% in
2019. Much of Costco’s success comes from the high level of customer service offered
by satisfied employees. One reason why Costco can attract high-quality employees is
its willingness to pay higher than average wages. Costco succeeds because it can
attract the best workers. Additionally, Costco avoids labor trouble, high turnover, and
conflict because its employees are satisfied. Costcos decision making in paying fair
wages resulted into more satisfied employees that made the company a big success.

Similarly, Volkswagen’s Strategy to Reduce its Workforce Without Layoffs is another

best example of ethical decision making. Volkswagen is following a historic German
policy of reducing its workforce without layoffs. Volkswagen cuts the workforce by not
filling empty jobs. For instance, Volkswagen does not hire replacements for retiring
workers. Consequently, Volkswagen can eliminate up to 7,000 positions and could save
$6.7 billion. However, existing workers in Volkswagen’s German operations will not face
layoffs. No layoffs are a smart policy because it increases workers’ morale.
3. Best Buy’s Commitment to Sustainability

Ladies and Gentlemen, another worth mentioning example is of Best Buy, which is one
of the “America’s most sustainable company”. Best Buy CEO is committed to reduce his
company’s environmental impact by reducing waste. For instance, Best Buy’s Geek
Squad customer service team members drive Toyota Prius hybrid cars. Consequently,
Best Buy claims to have “saved 140,000 gallons of gas, the carbon equivalent of taking
263 cars off of the road for a year.” Moreover, Best Buy encourages customers not to
throw electronics away by having the Geek Squad service products. Furthermore, Best
Buy claims to have collected two billion pounds of unwanted electronics and appliances
for recycling. In addition, Best Buy operates Teen Tech Centers that teach
disadvantaged young Americans basic technology skills. Teen Tech Centers help Best
Buy grow its labor force by creating trained employees. In addition, Teen Tech Centers
help reduce unemployment in America, which has a serious shortage of vocational
education.

Ethics are paying off at Best Buy in the form of survival. Notably, Best Buy is the only
national electronics chain left in the United States. Its most famous competitor Radio
Shack went out of business in 2017. Other competitors like Circuit City are also long
gone.

Ethical Decision Making in PAF

Ethical decision making in Pakistan Air Force can be ensured by developing a clear cut
understanding of the PAF’s Core Values i.e Integrity, duty and excellence.

Creating an ethical culture by demonstrating personal examples and becoming a role

model for others.

Provision of guidelines through formulation of code of ethics for the organization.

And, through Establishment of more effective and stringent accountability and

assessment system in PAF.
Vision

Ladies and Gentlemen, with this, I will come to my vision that is To promote an
ethical culture through perpetuated indoctrination, effective implementation of Core
Values, establishment of stringent accountability & Assessment System, to strengthen
the Ethical Decision Making Process in PAF

Ladies and Gentlemen, coming over to the Analysis part of my presentation. In

my opinion

 Decision Making is involved at every level in an organization and it

cannot be neglected.

 Ethical Decision Making will lead the organization to next level, if

performed rightly at right place and time, will result in betterment of
the Organization.

 Organizations in which working environment is based on Ethical

Decision Making will keep Growing ahead.

 Moreover, Workforce need to be kept in confidence to gain maximum

efficiency.

Recommendations

Ladies and Gentlemen, Organizations must focus on creating an ethical culture by

making ethics part of employee beliefs and incorporating those into the
organizational mission, vision and core values.

Leaders in an organization must demonstrate personal examples and act as a role

model for others, as actions speak louder than words.
Socialization to the core values is paramount to promote ethical culture in an
organization, so that as new members join the organization, the culture can be
perpetuated through indoctrination process.

Ethics must be woven into the design of performance evaluations to highlight its
importance to the employees of an Organization.

The promotion of ethical culture is important because ethical organizations are not
created as much by enforcement as they are by peer pressure.

Organizations must formulate clear guidelines that dictate how unethical behaviors will
be dealt with. These guidelines should also provide a formal mechanism for reporting
unethical or questionable behavior.

Organization should reward those employees that model ethical behavior and make
tough decisions, or takes an unpopular stand, that supports the organization’s code of
ethics.

Conclusion

Ladies and Gentlemen, we live in a world that is not black and white. Rather, it is
colored by subtle shades of gray. Situations are complex and multiplicity of options is
the rule, rather than the exception. An ethical response will never come without there
being a sense of personal responsibility within those who make the decisions. Ideally,
leaders in an organization will guide ethical change. However, the responsibility to be
as an individual and act on the courage of one's convictions can sometimes be the only
effective approach. Ladies and Gentlemen, I will conclude my presentation with the
famous quote of a great philosopher Corllis Lamont and I quote “I believe firmly that in
making ethical decisions, man has the prerogative of true freedom of choice”, I unquote.

Ladies and Gentlemen, that all from my side. Thank you very for patient hearing. The
panel will be available for questions answers session in a short while.