Ethical decision-makingEthical decision-making framework (EDM):It is designed to enhance ethical reasoning by providing the following:-Insights into the identifications and analysis of key issues to be considered and questionsor challenges to be raised-Approaches to combining and applying decision-relevant factors practical actionThe framework assesses the ethicality of a decision or action by examining:-Consequences or well-offness created in terms of net benefit or cost-Rights and duties affected-Fairness involved-Motivation or virtues expectedThe first two of these considerations involve practical application of the philosophical principlesof consequentialism, deontology, and justice and are examined by focusing on the impacts of adecision on shareholders and other affected stakeholders, an approach known as stakeholderimpact analysis.The third consideration, the motivation of the decision maker, involves applying whatphilosophers know as virtue ethics. It provides insights likely to be helpful when assessingcurrent and future governance problems as part of a normal risk management exercise.Consequentialism, Utilitarianism, TeleologyConsequentialists are intent on maximizing the utility produced by a decision. For them, therightness of an act depends on its consequences. This approach is essential to a good ethicaldecision. It holds that an act is morally right if and only if that act maximizes the net good.DeontologyIt is different from consequentialism in that deontologists focus on the obligations or dutiesmotivating a decision or action rather than on the consequences of the action. It takes theposition that rightness depends on the respect shown for duty and the rights and fairness thatthose duties reflect. A deontological approach raises issues related to duties, rights and justiceconsiderations and teaches students to use moral standards, principles and rules as a guide tomaking the best ethical decision.
