Organisations that do this often develop ethically oriented goals.

When private businesses embrace corporate responsibility, they make a conscious decision to regulate themselves to reduce any adverse effects that may be caused to society or the environment, or to positively contribute to them. This would be a significant contributor to staff morale and motivation. Managers at such a company might work hard to explore alternative ways of increasing profits or cutting costs besides reducing staff numbers, making this the last resort. For instance, a company might avoid laying off employees as a means of countering losses. A simple example to illustrate this would be where a team leader admits to mistakes and gives credit for team members' contributions.Īccountability can have a significant effect. Some organisations cultivate a culture of transparency and accountability and these are borne in mind when major decisions are made. Related: Why a mission statement is important: uses and examples Company culture and valuesĪ company's culture and values arise out of mission and vision statements along with the influence of organisational leaders or human resources policies. Not only might measures like these be ethical, but they could also improve motivation among staff, which would support business success. Decision-makers in the company might therefore decide to increase salaries whenever profits increase or implement some form of profit-sharing scheme. Product designers would consciously choose more sustainable materials to manufacture their goods and human resources managers might encourage, or even incentivise, car pooling.Ī company's mission statement might emphasise fairness for everyone by making them all stakeholders in its success. For example, if an organisation's founding statements emphasise the importance of sustainability and the environment, this would affect decision-making across the organisation. Mission and vision statements are designed to inspire and inform employees and stakeholders in both decision-making and the ways they approach their work. These statements are foundational principles for the organisation in addition to its goals for success. Below are some areas where ethics-based decision making can make an impact on an organisation: Mission and visionĪn organisation's ethical framework is usually specified in its mission, vision and value statements. Decision-making policy also forms part of the company's culture and corporate responsibility. As a manager, supervisor or team leader, your organisation's decision-making policy has an influence over your work. Incorporating ethical decision-making into the workplace is likely to affect people in various departments of the organisation, some of whom may wish to be consulted. Related: Decision-making skills: definition and examples Ethical decision making in practice

Additionally, an ethical decision might require you to relinquish some efficiency or productivity in exchange for considering others and this kind of decision would require you to consult other people before going ahead. An ethical decision is one which minimises unnecessary adverse effects on other people or the external environment.įor these reasons, an ethical decision-making process may take longer because it would involve seeking advice from stakeholders and other experienced people to ensure your decision is fair. The purpose is to foster trust, collaboration, responsibility and fairness. What is an ethical decision?Īn ethical decision is one which recognises the various people who it might affect and has been made with the right assessment of benefit and risk. In this article, we explain what ethical decision making is, look at ethical decision making in practice, how you can implement it and answer some frequently asked questions. If you're a leader or about to become one, understanding ethical decision making can help you make decisions which carry the greatest benefit for as many people as possible and the organisation as a whole. When making decisions, ethics and values can form a major part of the process.

Ethical decision making process