Ch. 4 IEBE

Ethical Decision Making in
Business Matrix
Ch. 4 IEBE
Ethical Decision Making
An ethical decision is one that engenders trust, and thus indicates

responsibility, fairness and caring to an individual. To be ethical, one
has to demonstrate respect, and responsibility.Ethical decision-making
requires a review of different options, eliminating those with an
unethical standpoint, and then choosing the best ethical alternative.
PEAS Framework
PEAS stands for Problem, Evidence, Analysis, and
Solution. Each word represents a crucial problem solving
step. As you move forward from step to step, you may
need to circle back to earlier steps to redefine the
problem, gather more evidence or conduct additional
assessment
How does it works?
Answer the following questions in sequence to arrive at an appropriate solution:
1. Problem
● What is the ethical problem to be solved?
● What question(s) do I need to answer?
2. Evidence
● What relevant facts and figures do I know?
● How do I know these are facts rather than opinions, inferences or assumptions?
● Who are the affected stakeholders? What are their interests?
● What do I not know that is relevant to solving the problem?
How does this What ethical guidelines and theories will I use to help me
decide what to do? Consider at least 3-4 different theories,
work? such as:
o Front Page of the Newspaper Test
o End/Means Test
o The Golden Rule
o Utilitarianism
o Professional Standards of Codes of Conduct

Analysis ● What legal rules are relevant to the problem?
● What 3-4 possible solutions would solve the problem?
● Evaluate each alternative solution in light of each ethical
theory and applicable legal rules.
● What are the practical implications, both positive and
negative, of each alternative solution?
● How are the stakeholders affected by each alternative?
Use the attached chart to assess the effects of each
alternative solution.
● What assumptions and inferences am I making? Are
these justified?
● Which solution am I most comfortable with? Why?
● Does my solution solve the problem and answer the
questions identified in Step #1?
Solution
What is my solution to the problem?
Understanding the dimensions of the problem, using all relevant evidence,

applying a variety of ethical theories, and paying close attention to my analysis,
why is mine the best solution?
How will I explain my solution to all of the stakeholders?

Ethical dilemma
An ethical dilemma (ethical paradox or moral dilemma) is a problem in the

decision-making process between two possible options, neither of which is
absolutely acceptable from an ethical perspective. Although we face many ethical
and moral problems in our lives, most of them come with relatively straightforward
solutions.
Ethical Issues in Finance
1. Adoption of proper accounting policies
2. Proper valuation of assets
3. Fair disclosure of relating to financial affairs of organisations
4. Adhere to GAAP/IFRS
5. Ethical audit practices
6. Not practicing creative accounting
7. Optimum utilization of finance

Ethical issues in HRM
1. Providing with fair salary and wages
2. Providing good working conditions
3. Satisfaction of security needs and job satisfaction
4. Providing career opportunity for career development
5. Fair and just evaluation of employees performance
6. Encourage union and labour relation 7. Enhancement of knowledge capital

Ethical issues in Sales &
Marketing
1. Understanding of customers
2. Marketing of safe and useful products snacks
3. Fair and adequate information about services within the rules and regulations.
4. True and fair advertisement
5. Correct weights and measures
6. Not supplying injurious products for commercial gain
7. Ensuring stability in pricing

Intellectual Property Rights and
Business Ethics
What is Intellectual Property?
Intellectual Property (IP) is “creations of the mind, such as inventions;

literary and artistic works; designs; and symbols, names and images used
in commerce. The owner of intellectual property has monopoly of its use.
Intellectual property is protected by laws, including patents, copyright,
trademarks and trade secret laws.”
Intellectual property rights are the rights
given to persons over the creations of
their minds. They usually give the
creator an exclusive right over the use of
his/her creation for a certain period of
IPR time.
1. Copyrights
2. Trademark
3. Patents
What would be a concern of yours if you “owned”
an idea?
1. Someone copying it illegally

2. Selling for profit
3. Another person is benefitting from your
creativity and effort without paying
Ethics & IPR 4. Why would anyone want to create things if
they weren’t going to benefit financially and
someone else was?
5. Are there any reasons why you would argue
for personal copying or posting content
without authorization?
Ethics & IPR https://youtu.be/X74HO5B_KOc
Ethical Challenges for Managers
1. Bribery
2. Conflict of Interest.
3. Self-dealing,
4. Outside employment
5. Family interests
6. Gifts from friends
7. Honesty and Integrity
8. Whistleblowing
Ethical Decision Making
Process
7 STEP Model
https://youtu.be/E0Thmuow6yM
PLUS Filter Model
The PLUS Filters
The PLUS Filters: What Really Are They?
PLUS Filters are ethics filters that have adapted to mnemonic word PLUS. PLUS
is the mnemonic of Policies, Legal, Universal, and Self. The integration of PLUS
Filters in the decision making process is best achieved when there are effective
communication and formal mechanism in place.
The PLUS Filters are applied in each of the steps in the decision making process.
PLUS Filters P = Policies
● Is it consistent with my organization’s policies, procedures,

and guidelines?
L = Legal
● Is it acceptable under the applicable laws and regulations?
U = Universal
● Does it conform to the universal principles/values my

organization has adopted?
S = Self
● Does it satisfy my personal definition of right, good, and

fair?
The PLUS Filters and Its Application
● Integration of PLUS Filters in decision making is best achieved with effective communication
and formal mechanism in place.
● In defining the problem, we aim to define the difference between the expected and/or desired
outcomes and actual outcomes. With the PLUS application, PLUS surfaced the ethical issues and
ask the question, “Does the existing situation violate any of the PLUS considerations?”
● When the PLUS Filters are applied, this determines if the ethical components of the decision are
being surfaced or satisfied.
● The use of PLUS Filters in the decision making process can be your barometer in determining if
decisions made are within accepted ethical boundaries agreed upon by your company and the
environment that the company revolves in
Thanks
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Ethical Decision Making in

An ethical decision is one that engenders trust, and thus indicates

o Front Page of the Newspaper Test

o The Golden Rule

o Professional Standards of Codes of Conduct

What is my solution to the problem?

Understanding the dimensions of the problem, using all relevant evidence,

How will I explain my solution to all of the stakeholders?

An ethical dilemma (ethical paradox or moral dilemma) is a problem in the

2. Proper valuation of assets

3. Fair disclosure of relating to financial affairs of organisations

5. Ethical audit practices

6. Not practicing creative accounting

7. Optimum utilization of finance

2. Providing good working conditions

3. Satisfaction of security needs and job satisfaction

4. Providing career opportunity for career development

5. Fair and just evaluation of employees performance

6. Encourage union and labour relation 7. Enhancement of knowledge capital

2. Marketing of safe and useful products snacks

4. True and fair advertisement

5. Correct weights and measures

6. Not supplying injurious products for commercial gain

7. Ensuring stability in pricing

What is Intellectual Property?

Intellectual Property (IP) is “creations of the mind, such as inventions;

1. Someone copying it illegally

The PLUS Filters: What Really Are They?

● Is it consistent with my organization’s policies, procedures,

● Is it acceptable under the applicable laws and regulations?

● Does it conform to the universal principles/values my

● Does it satisfy my personal definition of right, good, and

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