Final - Ethical Analysis: So how do we address an ethical...

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Ethical Analysis: So how do we address an ethical situation? 1. Identify the issue(s) and stakeholders Who are the relevant stakeholders: The stakeholders of a firm are the many groups of people affected by the firm’s decisions. Any given managerial decision affects, in varying degrees, the following stakeholders o Owners or shareholders, Employees, Customers, Management, The general community, Future generations 2. Identify the applicable principles, values The Golden Rule: interact with other people in a manner that you would like them to interact with you. Public disclosure test: let the public know about your dilemma and have them decide. If the public does not approve of your decision, then you fail the public disclosure test. Universalization test: What would the world be like if every other person mimicked my decision? If others followed my example, would the world be a better place? Ethical Relativism: the theory that denies the existence of objective moral standards. Rather, individuals must evaluate actions on the basis of what they feel is best for them. It promotes tolerance; it is a system where two people can disagree morally but both are correct. However, murder could be seen as moral under ethical relativism as long as the murderer feels the death of the victim is in there legitimate best interest. Situational Ethics: We put ourselves in the person’s shoes that is facing the ethical dilemma. Once we put ourselves in their shoes, we can judge whether the decision was ethical or not. Absolutism: When making an ethical decision, we go back to a set of ethical guidelines. The ethics of a decision answer to a set of rules, not to the person making the decision like ethical relativism or situational ethics. There are issues with absolutism, specifically which rules to follow Consequentialism: Ethical decisions should be made based on the consequences of the decision. Utilitarianism: Choose the action that provides the greatest pleasure, but don’t worry about the pain caused by the actual action, something like the ends justify the means. o Act Utilitarianism: Choose the action that has the greatest pleasure over pain for all those involved as individuals o Rule Utilitarianism: Choose the action that has the greatest pleasure over pain for all those involved as a whole, as a rule. Cost-Benefit Analysis: a form of utilitarianism, but used with monetary terms. Deontology: Acting on the basis of the recognition that certain actions are right or wrong, regardless of their consequences. Categorical imperative: an action is only moral if it would be consistent for everyone in society to act in the same way. The principal of rights asserts that whether a business decision is ethical depends on how the decision affects the rights of all
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Final - Ethical Analysis: So how do we address an ethical...

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