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Journal of Business Ethics

Erschienen in:

26.10.2015

Ethical Decision-Making Theory: An Integrated Approach

verfasst von: Mark S. Schwartz

Erschienen in: Journal of Business Ethics | Ausgabe 4/2016

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Abstract

Ethical decision-making (EDM) descriptive theoretical models often conflict with each other and typically lack comprehensiveness. To address this deficiency, a revised EDM model is proposed that consolidates and attempts to bridge together the varying and sometimes directly conflicting propositions and perspectives that have been advanced. To do so, the paper is organized as follows. First, a review of the various theoretical models of EDM is provided. These models can generally be divided into (a) rationalist-based (i.e., reason); and (b) non-rationalist-based (i.e., intuition and emotion). Second, the proposed model, called ‘Integrated Ethical Decision Making,’ is introduced in order to fill the gaps and bridge the current divide in EDM theory. The individual and situational factors as well as the process of the proposed model are then described. Third, the academic and managerial implications of the proposed model are discussed. Finally, the limitations of the proposed model are presented.

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For ease of reference, ‘ethics’ or ‘ethical’ are considered throughout the paper to be synonymous with ‘morality’ or ‘moral.’

For example, Ferrell and Gresham state (1985, p. 87): “Absence of a clear consensus about ethical conduct…has resulted in much confusion among academicians…”

This is similar to the approach used by Treviño et al. (2006) in their literature review of EDM.

One might try to distinguish situations involving ‘ethical dilemmas’ from those whereby an individual is facing a ‘moral temptation.’ ‘Ethical dilemmas’ can be seen as those more challenging situations involving ‘right versus right’ or ‘wrong versus wrong’ alternatives, such as deciding which employee to lay off. ‘Moral temptations’ however involve ‘right versus wrong’ alternatives more directly linked to one’s self-interest, such as deciding whether to steal supplies from the office supply cabinet (see Kidder 1995). For the purposes of the I-EDM model, both ethical dilemmas and moral temptations can be faced by individual decision makers as ethical issues.

Jones states (1991, p. 367): “…an ethical decision is defined as a decision that is both legal and morally acceptable to the larger community. Conversely, an unethical decision is either illegal or morally unacceptable to the larger community.” This is too limited a definition of ‘ethical’ to be utilized for the purposes of properly studying the EDM process. Jones (1991, p. 367) himself admits that his definition of an ethical decision is “imprecise and relativistic” and refers to the difficulties of establishing substantive definitions for ethical behavior. Others have also suggested that this definition of what is ethical is “too relativistic” and avoids a precise normative position on right versus wrong (Reynolds 2008; Tenbrunsel and Smith-Crowe 2008). In addition, community norms can violate ‘hypernorms’ (see Donaldson and Dunfee 1999).

While there is an extensive literature on moral theory, the moral standards can be grouped under three general categories: (i) conventionalist (e.g., industry or corporate codes of ethics); (ii) consequentialist (e.g., utilitarianism); or (iii) deontological, including trustworthiness, respect, moral rights, and justice/fairness (see Schwartz and Carroll 2003; Schwartz 2005).

Another possible way of dividing up EDM models is to categorize those that focus primarily on the disposition of the decision maker, versus those that are more interactional (person-situation) in nature. See Tsang (2002, p. 25).

Ferrell et al. (1989) later suggest a revised ‘synthesis model’ which incorporates into their original model (1985) Kohlberg’s stages of moral development as well as the deontological and teleological moral evaluation process taken from Hunt and Vitells’ EDM model (1986).

Kohlberg (1973) proposed three general levels of moral development including the pre-conventional (stage one: punishment; stage two: self-interest), conventional (stage three: referent others; stage four: law), and post-conventional (stage five: social contract; stage six: universal ethical principles). Kohlberg in later years indicated that his model focused on moral reasoning, and later clarified that it really only focused on justice/fairness issues. See Rest et al. (1999).

For ‘heightened ethical concern,’ see De Cremer et al. (2010, p. 3). Moral awareness is defined by Rest (1986, p. 3) as the “…interpretation of the particular situation in terms of what actions (are) possible, who (including oneself) would be affected by each course of action, and how the interested parties would regard such effects on their welfare.”

Moral judgment is defined by Rest as: “[F]iguring out what one ought to do. Applying moral ideals to the situation to determine the moral course of action” (Rest 1984, p. 26).

For ‘determination’ see Ferrell et al. (1989, p. 60). Moral intention might be considered synonymous with moral motivation which Rest defines as giving “…priority to moral values above other personal values such that a decision is made to intend to do what is morally right” (1986, p. 3).

Moral action is defined as having “…sufficient perseverance, ego strength, and implementation skills to be able to follow through on his/her intention to behave morally, to withstand fatigue and flagging will, and to overcome obstacles” (Rest 1986, pp. 4–5).

For example, other rationalist models include the ‘general theory model’ proposed by Hunt and Vitell (1986), a ‘behavior model’ proposed by Bommer et al. (1987), and a ‘reasoned action’ model proposed by Dubinsky and Loken (1989) based on the theory of reasoned action (Fishbein and Ajzen 1975). In conducting a summary of various early models, Brady and Hatch (1992) propose that at least four of the models (Ferrell and Gresham 1985; Hunt and Vitell 1986; Treviño 1986; Bommer et al. 1987) contain the same four elements (1) a decision process, modified by (2) internal and (3) external factors, leading to (4) ethical or unethical behavior.

For example, Rest himself refers to the cognitive–affective interactions that take place during each of the four stages of EDM (Rest 1984, p. 27). According to Rest (1986, p. 6), the moral awareness stage involves trying to understand our own ‘gut feelings’ and in terms of the moral judgment stage “…most people seem to have at least intuitions about what’s morally right or wrong” (1986, p. 8). Rest states: “…there are different affect and cognition interactions in every component” (1984, p. 28). He also states: “…I take the view that there are no moral cognitions completely devoid of affect, no moral affects completely devoid of cognitions, and no moral behavior separable from the cognitions and affects that prompt the behavior” (Rest 1986, p. 4). Hunt and Vitell (1986, p. 10) also refer to the ‘feeling of guilt’ one might experience if behavior and intentions are inconsistent with one’s ethical judgments.

‘Bounded ethicality’ can be defined as one making decisions that run counter to values or principles without being aware of it (Chugh et al. 2005; Palazzo et al. 2012).

In terms of cognitive biases, Messick and Bazerman (1996) propose a series of theories about the world, other people, and ourselves which are suggested to help explain the often unethical decisions that executives make. In terms of theories about the world, people often ignore possible outcomes or consequences due to five biases: “…ignoring low-probability events, limiting the search for stakeholders, ignoring the possibility that the public will ‘find out,’ discounting the future, and undervaluing collective outcomes” (1996, p. 10).

Moral reasoning might also be argued to potentially take place without a conscious, effortful deliberation, suggesting it can be classified as a form of intuition. Intuition might also be classified as a very basic form of moral reasoning, meaning there is no real dispute between the two forms of processing, but rather they merely represent a difference in degree (i.e., time or effort) of processing. However, because moral reasoning involves non-automatic inferential processing, moral reasoning can be distinguished from intuition not only in terms of degree but also in terms of the kind of processing taking place (see Wright 2005, pp. 28–29 and 44–45).

While positive emotions such as empathy are generally associated with ethical behavior, it may also be the case that positive affect arises following unethical behavior (e.g., cheating) which can then reinforce additional future unethical behavior. See: Ruedy et al. (2013).

The sorts of emotions that have been suggested as impacting EDM include anger; anxiety; compassion; distress; dominance; embarrassment; empathy; fear; grief; guilt; hope; humiliation; love; meaninglessness; mercy; pride; regret; remorse; responsibility; sadness; shame; and sympathy (see: Haidt 2001; Agnihotri et al. 2012). Eisenberg (2000) provides a review of the research on guilt, shame, empathy, and moods in relation to morality.

‘Moral-personal’ dilemmas (as opposed to ‘impersonal’ dilemmas) that trigger an emotional response relate to situations such as deciding whether to physically push someone onto a trolley track to save the lives of many others. See Greene et al. (2001).

Moral willpower (or self-sanction) can act like a ‘moral muscle’ that can be depleted following heavy use, or strengthened over time (see Muraven et al. 1999).

For example, one might include intuition and emotions (or the ability to control one’s emotions) as part and parcel of one’s moral character based on a virtue-based ethics approach. For the purposes of the I-EDM model, intuition and emotion are described as part of the moral judgment stage; however, the extent and manner in which this takes place would potentially depend on one’s moral character disposition.

‘Current ethical value system’ (CEVS) is the framework that guides an individual’s ethical choices and behavior (see Jackson et al. 2013, p. 236).

Ethical ideology is “…an integrated system of beliefs, values, standards, and self-assessments that define an individual’s orientation toward matters of right and wrong” (McFerran et al. 2010, p. 35). One’s ‘ethical ideology’ is made up of one’s ‘moral personality’ and ‘moral identity’ (McFerran et al. 2010). Schlenker (2008, p. 1079) suggests that there is a continuum between a ‘principled ideology’ (one believes moral principles exist and should guide conduct “…regardless of personal consequences or self-serving rationalizations”) and ‘expedient ideology’ (one believes moral principles have flexibility and that deviations for personal gain are justifiable).

Ethical predisposition is defined as “…the cognitive frameworks individuals prefer to use in moral decision making” (Reynolds 2006b, p. 234).

‘Moral identity’ has been suggested by several theorists as playing an important self-regulatory role in linking moral attitudes to one’s behavior. See Schlenker (2008, p. 1081). See also Lapsley and Narvaez (2004) for a review of the concept of moral identity.

See O’Fallon and Butterfield (2005) and Craft (2013) for a complete list of EDM individual-related variables that would potentially fall into these categories.

For example, Herndon states (1996, p. 504): “While Jones (1991) adds the concept of moral intensity which is the degree of ‘badness’ of an act; it can be placed in the consequences and behavioral evaluation portions of the synthesis integrated model.”

As an alternative to ‘ethical infrastructure,’ others (e.g., Valentine et al. 2013) have used the term ‘ethical context’ to refer to both the ‘ethical culture’ (Treviño et al. 1998) and the ‘ethical climate’ of the organization (Victor and Cullen 1988).

The notion of ‘vulnerability’ has apparently received little attention in the business ethics literature. See: Brown (2013).

The firm’s ethical infrastructure should be considered distinct from organizational-level norms, although there would clearly be a relationship between them. This discussion is however beyond the scope of the paper.

There is however a risk of moral awareness being confounded with moral judgment, especially when the definition of moral awareness includes consideration of one or more ethical standards (see Reynolds 2006b, p. 233).

Carroll (1987) refers to ‘amoral managers,’ who can either act intentionally or unintentionally. Unintentional amoral managers “…do not think about business activity in ethical terms. These managers are simply casual about, careless about, or inattentive to the fact that their decisions and actions may have negative or deleterious effects on others. These managers lack ethical perception and moral awareness; that is, they blithely go through their organizational lives not thinking that what they are doing has an ethical dimension to it. They may be well intentioned but are either too insensitive or egocentric to consider the impacts on others of their behavior” (Carroll 1987, p. 11).

The classic example of ‘ethical blindness’ comes from the recall coordinator of the defective Ford Pinto vehicle who asked himself: “Why didn’t I see the gravity of the problem and its ethical overtones?” (Gioia 1992, p. 383).

This can also take place due to moral muting, which involves managers who “…avoid moral expressions in their communications…” (Bird and Waters 1989, p. 75).

Ethical intention is sometimes linked with ethical behavior as being part of the ‘same phenomenon’ (Reynolds 2006a, p. 741) or they can be combined together as representing one’s ‘ethical choice’ (Kish-Gephart et al. 2010, p. 2). It may be therefore that ‘intention’ should be eliminated from Rest’s (1986) four-stage model, but might continue to act as a proxy for measuring judgment or behavior in EDM empirical research (see Mencl and May 2009, p. 205). For the purposes of the I-EDM model, intention remains theoretically distinct from behavior.

Some have argued that the debate over reason versus intuition/emotion is actually based on whether one is experiencing a moral dilemma requiring a reasoning process, versus an affective or emotion-laden process based on reacting to a shocking situation such as considering the prospect of eating one’s own dog (Monin et al., 2007, p. 99).

Heath (2008) provides a similar list of moral rationalizations which he refers to as ‘neutralization techniques.’

Three notable exceptions include Reynolds (2006a), who makes rationalization explicit in his model as a retrospective (e.g., post hoc analysis) process operating as part of the higher order conscious reasoning system, while the decision-making model proposed by Tsang (2002) positions moral rationalization (along with situational factors) as being central to the ethical decision-making process. Dedeke (2015) also indicates that rationalization of one’s reflexive (intuitive or emotion-based) judgment can be part of the ‘moral reflection’ stage of EDM where moral reasoning also takes place.

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Titel: Ethical Decision-Making Theory: An Integrated Approach
verfasst von: Mark S. Schwartz
Publikationsdatum: 26.10.2015
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 4/2016
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-015-2886-8

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