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Lecture 4 (Individual influences on ethical decision making (Cognitive…
Lecture 4
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Situational factors
Are features of the context that influence whether the individual will make unethical or ethical decisions. These include factors associated with work (such as reward systems, job roles, and organizational culture) and those associated with the issue itself (such as the intensity of the moral issue or ethical framing of the issue)
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Context related
Authority, is the exercise of hierarchical power to compel a subordinate to act in a certain way. It is a key factor in shaping ethical decisions because employees tend to flow the explicit and implicit preferences, orders and rules of their superiors
Systems of reward, if an organization rewards its salespeople for the number of sales they make, then those salespeople may be tempted to compromise on ethical standards in the dealings with customers in order to earn more commission (pressuring an elderly lady/man to buying something they don't need or want)
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Descriptive ethical theory, describes how ethical decisions are actually made in business, and explains what factors influence the process and outcomes of those decisions
Whisleblowing is intentional acts by employees to expose either internally or externally, perceived ethical or legal violations by their organisation