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Road Map to Ethical Decision Making: A Decision TreeOne of the greatest pressures on top executives is to maximize shareholder value:to deliver the greatest return on investment to the owners of their company.Harvard Business School professor Constance Bagley suggests that what is needed is a decision tree to help with ethical decisions.51. Decision treeGraph of decisions and their possible consequences, used to create a plan to reach a goal.It basically asks these questions:1. Is the Proposed Action Legal? -If the action isn’t legal, don’t do it2.If “Yes,” Does the Proposed Action Maximize Shareholder Value?-If the answer is “yes”, should you do it? Not necessarily.3.If “Yes,” Is the Proposed Action Ethical?-Main obligation is to manage “for the best interest of the corporation,” which includes the interests of the larger community not just themselves and their business.-This goes with any country even if the shareholders have value, ethics need to be present.4.If “No,” Would It Be EthicalNotto Take the Proposed Action?
those denied tenure did not become very unhappy-People are often right when they describe what outcome will make them feel good or bad, but they are often wrong when asked to predict how strongly they will feel that way and how long the feeling will last.