BAF1013 Finance & Accounting for Decision Making

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Lecture 1: Ethical Decision Making

Learning Objectives
At the end of the lecture, you should be able to:

1. Explain the principles in ethical decision-making.

2. Identify ethical issues and dilemmas in the decision-making process.
3. Describe the various ethical perspectives in a decision-making situation.
4. Describe the consequences of deviating from the principles in ethical decision-making.

Introduction

Ethical decision-making is the process of evaluating and choosing among alternatives in a manner
consistent with ethical principles. In both personal and business settings, ethical decisions can have
significant consequences. Making the right decision is not always easy, but it’s essential to consider
the ethical implications of your choices.

Considerations When Making Ethical Decisions

Before we dive in, let's think about what goes through your mind when you're faced with a tough
choice. Maybe you've been in a situation where:

• Your friend asks you to cover for them when they're skipping class

• You see a classmate cheating on an exam

• You find a wallet with cash in it

In these moments, you're actually considering ethical decisions! So, what should you think about?

• Is anyone going to get hurt?

• Am I breaking any rules or laws?

• How would I feel if someone did this to me?

• What would happen if everyone did this?

These questions help you start thinking ethically.

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1. Principles in Ethical Decision Making

When making ethical decisions, there are several important principles to guide your choices:

a) Integrity

o Acting with honesty and moral uprightness. It means staying true to your values, even
when it’s difficult.

o Example: Not falsifying information on a job application even if it helps you get the
job.

b) Transparency

o Being open and clear about the information that might impact others’ decisions.
People deserve to know the truth so they can make informed choices.

o Example: A business being honest about the risks of investing in a new product.

c) Fairness

o Treating others equally and making sure that your decisions do not unfairly
disadvantage or benefit one group over another.

o Example: Offering the same opportunities to all employees regardless of their

background.

d) Accountability

o Taking ownership for your actions and being willing to explain and justify your
decisions.

o Example: A manager accepting blame for a project failure instead of blaming his team.

e) Respect

o Treating others with dignity and valuing their rights, opinions, and perspectives. This
means considering how your actions impact others and acting in a way that shows
consideration and empathy.

o Example: Listening to a colleague's feedback with an open mind, even if you disagree,
and ensuring that their concerns are taken seriously.

f) Responsibility

o Acknowledging the duty to act in the best interest of others and the wider community.
This means considering the long-term effects of your decisions on people, the
environment, and society.

o Example: A company implementing environmentally friendly practices, even if it

means higher costs, because it is responsible for reducing its carbon footprint.

These principles are important because they help maintain trust, ensure justice, and promote a
positive culture in any environment—whether it's at school, in business, or in your personal life.

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2. Identifying Ethical Issues and Dilemmas

Okay, so how do you spot an ethical issue? Look out for situations where:

• You feel uncomfortable or unsure about what to do

• There's a conflict between two or more of the principles we just talked about

• You have to choose between two options that both seem wrong

• Someone could get hurt or treated unfairly

Examples:

• Should you tell on a friend who's bullying someone?

• Is it okay to use AI to write your essay if the teacher didn't specifically forbid it?

• If you know your company's product has a flaw, do you tell customers?

3. Ethical Perspectives in Decision-Making

Different people might approach these situations differently. Here are some ways people think about
ethics:

1. The Greater Good: What helps the most people?

2. Following the Rules: What do the rules or laws say?

3. Character-Based: What would a good person do?

4. Rights-Based: Is this respecting everyone's rights?

For example, in the bullying scenario:

• Greater Good: Telling might help stop bullying for everyone

• Following Rules: School policy might require reporting bullying

• Character-Based: A good friend would help their friend stop harmful behavior

• Rights-Based: The victim has a right to feel safe at school

4. Consequences of Ignoring Ethical Principles

Let's be real - sometimes it's tempting to ignore ethics. But there can be serious consequences:

• Losing trust: People might not believe you in the future

• Guilt: You might feel bad about your choices

• Punishment: You could get in trouble at school or work

• Reputation damage: Others might see you differently

• Legal issues: Some unethical actions are against the law

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Practical Exercise

Let's practice! Imagine you're working part-time at a café. You see a coworker pocketing money from
the register. What do you do?Think about:

1. What ethical principles are involved?

2. What are the potential consequences of action or inaction?

3. How would different ethical perspectives approach this?

4. What could happen if you ignore the ethical aspects?

Conclusion

Remember, ethical decision-making is a skill. The more you practice, the better you'll get. It's not
always easy, but making ethical choices helps build a better world for everyone. Plus, it feels good to
know you're doing the right thing!

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