978-0470639948 Chapter 5 Solution Manual Part 1

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Chapter 5:

ETHICAL DECISION MAKING

CHAPTER 5 CHAPTER AND ADDITIONAL QUESTIONS

In studying this chapter, students should consider the questions below.

“CQ1” refers to “Chapter Question 1.” This question appears at the end of the textbook

chapter.

“AQ1” refers to an “Additional Question 1.” This is an “additional” question related to

the chapter. It is not listed at the end of the textbook chapter as a “Chapter Question”.

These items are numbered within the two categories based on the order in which the

answer appears in the chapter.

AQ1: Describe James Rest’s ethical decision making model. What is the relationship between

ethical beliefs and ethical actions?

CQ1: What individual characteristics impact ethical beliefs, sensitivities, intentions, and

behaviors?

CQ2: How are ethical intuitions formed? How do the value sets of liberals and conservatives

differ?

CQ3: Describe Icek Ajzen’s “Theory of Planned Behavior.”

AQ2: What is moral intensity and how does it impact ethical decision making?

AQ3: What organizational factors impact ethical decision making?

AQ4: What other obstacles divert people from following through on their ethical intentions?

CQ4: What seven questions are the bases for a systematic rational ethical decision-making

framework? Which three questions point the decision making in the direction of the most moral

decision?

AQ5: Describe the six ethical theories.

AQ6: How do the ethical theories parallel Kohlberg’s theory of moral development?

AQ7: How can the ethical theories be applied to persuade people?

CQ5: Discuss some of the warning signs that an unethical decision is approaching.

CHAPTER 5 LEARNING OBJECTIVES

After completing this chapter, students should be able to:

Describe individual characteristics that impact ethical beliefs, sensitivities, intentions, and

behaviors

Analyze the processes by which general ethical beliefs and sensitivities lead to the

formation of specific ethical intentions

Apply a systematic rational ethical decision-making framework to arrive at a moral

conclusion

Facilitate a negotiation between competing ethical perspectives

Recognize warning signs that an unethical decision is approaching

CHAPTER 5 OVERVIEW

This chapter explores a variety of factors that influence whether a person decides to

behave ethically or unethically, beginning with how ethical intentions are formed quickly,

initially defended, and then may be revised through a rational ethical decision-making process.

The first part of this chapter helps managers understand factors that shape ethical

intuitions, intentions, and behaviors.

The second part summarizes two common ethical decision-making frameworks and then

offers a systemic seven-question rational ethical decision-making framework grounded in moral

philosophy. The framework enables employees to independently derive a moral answer to ethical

dilemmas. A process for persuading people who approach a decision from a different ethical

perspective and warning signs that an unethical situation is arising are also provided.

CHAPTER 5 LECTURE OUTLINE

Teaching Objective: To teach how to derive moral answers to ethical dilemmas.

Suggested Time: Two to three hours of class time is recommended to present this chapter.

I. Additional Question 1: Describe James Rest’s ethical decision making model. What

is the relationship between ethical beliefs and ethical actions?

Background

James Rest’s model

Relationship between ethical beliefs and ethical actions

II. Chapter Question 1: What individual characteristics impact ethical beliefs,

sensitivities, intentions, and behaviors?

III. Chapter Question 2: How are ethical intuitions formed? How do the value sets of

liberals and conservatives differ?

Ethical beliefs and sensitivities

Ethical intuitions

Liberals and conservatives ethical intuitions

IV. Chapter Question 3: Describe Icek Ajzen’s “Theory of Planned Behavior.”

V. Additional Question 2: What is moral intensity and how does it impact ethical

decision making?

Judicial analysis

Moral intensity factors

VI. Additional Question 3: What organizational factors impact ethical decision making?

VII. Additional Question 4: What other obstacles divert people from following through

on their ethical intentions?

Second doubts

Weakness of will or lack of moral courage

Breaking old habits

VIII. Chapter Question 4: What seven questions are the bases for a systematic rational

ethical decision-making framework? Which three questions point the decision

making in the direction of the most moral decision?

Rotary International’s Four-Way test

Raytheon’s ethics quick test

Systematic rational ethical decision-making framework

IX. Additional Question 5: Describe the six ethical theories.

Egoism

Social group relativism

Cultural relativism

Utilitarianism

Deontology

Virtue ethics

X. Additional Question 6: How do the ethical theories parallel Kohlberg’s theory of

moral development?

XI. Additional Question 7: How can the ethical theories be applied to persuade people?

Background

Persuasion

Achieving ethical consensus

XII. Chapter Question 5: Discuss some of the warning signs that an unethical decision is

approaching.

CHAPTER 5 SUPPORTING MATERIALS

Textbook Inserts

Ethical Dilemma Analysis

What would you do?

Let’s Build a Building

In the Real World: Enron

Exhibits

Exhibit 5.1: Decline from Ethical Belief to Ethical Action

Exhibit 5.2: Ethical Behavior Model

Exhibit 5.3: Individual Characteristics

Exhibit 5.4: Liberal and Conservative Ethical Intuitions – What Matters Most

Exhibit 5.5: A Systematic Rational Ethical Decision-Making Framework

Exhibit 5.6: Six Ethical Theories

Exhibit 5.7: The Trolley Problem

Exhibit 5.8: Virtues and Vices

Exhibit 5.9: Kohlberg’s Stages of Moral Development and Ethical Theories

Exhibit 5.10: Universal Virtues

Exhibit 5.11: Critical Thinking Decision-Making Process Table

Exhibit 5.12: Ten “Ethical Hazard Approaching” Signs

Thematic Boxes

Tips and Techniques

Best Practice in Use

ADDITIONAL QUESTION 1: DESCRIBE JAMES REST’S ETHICAL DECISION

MAKING MODEL. WHAT IS THE RELATIONSHIP BETWEEN ETHICAL BELIEFS

AND ETHICAL ACTION?

BACKGROUND

As noted by business ethicist Marvin Brown, “Most people do what they think is right,

considering the world they think they live in.”

JAMES REST’S MODEL

James Rest, an educational psychologist, has developed a four component model

sequentially showing that an individual is likely to behave morally if:

(1) he or she is aware that an ethical dilemma has arisen,

RELATIONSHIP BETWEEN ETHICAL BELIEFS AND ETHICAL ACTIONS

In general, ethical beliefs generate ethical intentions and result in ethical behaviors. But

there is typically a drop off going from one step to the next.

DISCUSSION ACTIVITY

Have each student reflect on a time when he or she observed another student cheating. Does the

student believe cheaters should be stopped? Did the student report the cheater? If the first answer

is “Yes” and the second answer is “No”, what prevented the student from doing the right thing?

CHAPTER QUESTION 1: WHAT INDIVIDUAL CHARACTERISTICS IMPACT

ETHICAL BELIEFS, SENSITIVITIES, INTENTIONS, AND BEHAVIORS?

Review the research findings in EXHIBIT 5.3 for individual characteristics that have a

positive impact on ethical decision making

oAge (mixed results)

oEducation level (higher education)

DISCUSSION ACTIVITY

Do students believe that: (a) older people are more ethical than young people? (b) educated

people more ethical than less educated people? or (c) women are more ethical than men? Why?

CHAPTER QUESTION 2: HOW ARE ETHICAL INTUITIONS FORMED? HOW DO

THE VALUE SETS OF LIBERALS AND CONSERVATIVES DIFFER?

ETHICAL BELIEFS AND SENSTIVITIES

A belief is a mental state that guides behaviors.

Ethical sensitivity refers to an individual’s awareness that a particular situation raises

ethical concerns.

ETHICAL INTUITIONS

Ethical intuition is a quick insight independent of any reasoning process about right and

wrong. Ambiguous situations, where there is high uncertainty regarding people’s

motivations or the consequences of their actions, also tap into the decision-maker’s

intuition.

LIBERALS AND CONSERVATIVES ETHICAL INTUITIONS

Haidt and his colleagues researched the apparent large difference in ethical intuitions

liberals and conservatives have to public policy issues.

Review the ethical intuition value sets for liberals and conservatives in EXHIBIT 5.4.

This does not mean liberals and conservatives ignore the other political group’s values.

They just care more about their own political group’s values.

DISCUSSION ACTIVITY

Present two contentious political issues to students, one that is of concern to liberals (such as

wanting to nationalize healthcare) and one that is of concern to conservatives (such as reducing

federal spending). Ask students to write down why they support or oppose these policies. Then

review Exhibit 5.4 and note which value sets their reasoning matches. Does the student identify

with the political affiliation (liberals or conservatives) the value set represents?

DISCUSSION ACTIVITY

Ask students if they classify themselves as liberals or conservatives, or if their parents are liberal

or conservatives? Which of the value sets in Exhibit 5.4 resonates the most with students or their

parents? How does this political preference impact their views about government regulation of

business activities?

CHAPTER QUESTION 3: DESCRIBE ICEK AJZEN’S “THEORY OF PLANNED

BEHAVIOR.”

According to Icek Ajzen’s Theory of Planned Behavior, formulating an intention to act

ethically is a function of a person’s:

Each of the three factors has two dimensions. The factor dimensions are explained below

in terms of whether a person should prevent a co-worker from stealing:

Attitude toward the behavior dimensions:

Subjective norms dimensions:

Perceived behavioral control dimensions:

The theory of planned behavior is very useful for understanding precursors to ethical

behavior. Employees will behave ethically if the desired behavior fits their belief system,

they personally have a strong desire to behave ethically, others at work desire the ethical

DISCUSSION ACTIVITY

Have students think of two injustices they’ve observed or heard about: (1) an injustice when they

took some action to remedy, and (2) an injustice when they did not act to remedy.

Evaluate both injustices using the theory of planned behavior. What were:

1. the student’s attitudes (strength of belief and evaluation of outcome) toward the two

injustices?

2. the subjective norms (strength of the normative belief and motivation to comply with the

referent group) toward the two injustices?

3. the perceived behavioral control (strength of the control belief and perceived power of the

control belief) toward the two injustices?

Did one or more of these three factors influence why action was taken in one unjust situation but

not in the other?

ADDITIONAL QUESTION 2: WHAT IS MORAL INTENSITY AND HOW DOES IT

IMPACT ETHICAL DECISION MAKING?

Moral intensity refers to issue-related factors, rather than individual or organizational factors,

JUDICIAL ANALYSIS

Factors that influence the decision-making of judges and juries include the nature of the

harm (physical, economic, or psychological), the nature of those harmed (person or

nonperson), and the stage of the organization’s resource transformation at which the harm

occurs (during the input stage, throughput state, or output stage).

The legal system holds managers most blameworthy for physical harms to people. Less

blameworthy are psychological harms to people and physical harms to animals.

MORAL INTENSITY FACTORS

An issue’s moral intensity is likely to vary based on six factors:

1. Magnitude of Consequences refers to the total sum of harms and benefits generated

by an act, such as the number of people who may be harmed (2 versus 100 people) or

whether the harm is a minor injury or a death. Harmful acts with severe consequences

have high moral intensity.

2. Social Consensus refers to the degree of social agreement that an act is good or bad.

Consensus can occur at two levels, on the broad societal level or within a localized

group of people. The strongest consensus occurs when both levels are in agreement.

Situations that violate social consensus have high moral intensity.

3. Probability of Effect refers to the probability that an act’s effect will actually occur or

cause the predicted harm. Acts with a high likelihood of causing harm have high

moral intensity.

4. Temporal Immediacy refers to the length of time between an act and the onset of

consequences. Acts that immediately cause harm have high moral intensity.

5. Proximity refers to the nearness of an act to its victims and beneficiaries. Harmful

acts that are nearby have high moral intensity.

6. Concentration of Effect refers to the amount of harm an act will create in a

concentrated area. Harmful acts concentrated in a particular area have high moral

intensity.

Therefore, the most morally intense acts are those with a high likelihood of causing

severe harm to many people in a short period of time within a close and concentrated

area, and where there is strong social consensus that the act is wrong. If such an act

occurs, the manager and organization face public outrage and strong legal condemnation.

DISCUSSION ACTIVITY

Have students evaluate two public issues, one that is high on the political agenda (national

healthcare/reducing federal spending) and one that is not (implementing living wage regulation

on the national level) using the six moral intensity factors.

Do the six moral intensity factors differentiate why one issue is high on the national agenda and

the other issue is low?