ETHICAL APPROACHES IN DECISSION MAKING

SUBMITTED TO

MA’AM AYESHA BAKHTAWAR

SUBJECT

BUSINESS ETHICS

TOPIC

CASE STUDY

ROLL NO.

BBA-023R16-59

CLASS

BBA……..6th ………..B

DATED

AUGUST 20, 2018

INSTITUTE

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 ETHICAL APPROACHES IN DECISSION MAKING

SUBMITTED BY

 MUHAMMAD SALMAAN BIN KHAWER 59

 ASIM QURESHI

 MUHAMMAD SHAHID 72

 SHAHZAIB HASSAN

 AZMEER KHAN 58

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 ETHICAL APPROACHES IN DECISSION MAKING

LEARNING OUTCOMES

 INTRODUCTION TO TOPIC

 TYPES OF DECISION MAKING

 ETHICS IN DECISION MAKING

 ETHICAL APPROACHES IN DECISION MAKING

…. UTLITRIANISM

…. UNIVERSALISM

…. ETHICAL RELATIVISIM

…. VIRTUE APPROACH

…. COMMON GOOD APPROACH

…. RIGHTS

…. FAIRNESS OR JUSTICE APPROACH

 WHY………..

 CONCLUSSION

 REFERENCES

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 ETHICAL APPROACHES IN DECISSION MAKING

DECISION MAKING
decision making is an art involving various inputs such as knowledge, ability,
experiences to source process and analyze data, skill to evaluate alternatives, creative
thinking and above all risk taking ability.

TYPES OF DECISION MAKING

 Programmed
 Non programmed
 Systematic
 Reactive
 Responsive
 Intuitive

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 ETHICAL APPROACHES IN DECISSION MAKING

ETHICAL APPROACHES IN DECISION MAKING

Following are some ethical approaches to decision making,

 Utilitrianism

 Universalism

 Ethical Relativism

 Virtue Approach

 Common Good Approach

 Rights

 Justice

The detail is as follows,

 UTILITRIANISM

The utilitarian approach deals with consequences; it tries both to increase

the good done and to reduce the harm done.

The ethical action is the one that produces the greatest good and does the least harm
for all the community.

Utilitarian ethics are based on the maximization of "good outcomes" and

minimizations of "bad outcomes."

Example

if you use low-wage foreign workers in response to price competition, you might
retain your market share, enabling you to avoid laying off your U.S. employees, and
perhaps even allowing you to pay your U.S. employees higher wages. If you refuse to
use low-wage foreign workers regardless of the competition, you may be unable to
compete. This could result in layoffs of your U.S. workers and even your foreign
workers, for whom the relatively low wages may be essential income. On the other
hand, using low-wage workers may tend to depress the wages of most workers, thus
reducing almost everyone’s standard of living and depressing their ability to purchase
the very goods you and others are trying to sell.

 UNIVERSALISM

The universalist approach to ethical decision making is similar to the

Golden Rule. This approach has two steps.

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 ETHICAL APPROACHES IN DECISSION MAKING

 First, you determine whether a particular action should apply to all people under
all circumstances.

 Next, you determine whether you would be willing to have someone else apply
the rule to you.

EXAMPLE

You would ask yourself whether paying extremely low wages in response to
competition would be right for you and everyone else. If so, you then would ask
yourself whether someone would be justified in paying you those low wages if you, as
a worker, had no alternative except starvation.

 VIRTUAL APPROACH

Virtues are dispositions and habits that enable us to act according to the
highest potential of our character.

• Honesty, courage, compassion, generosity, tolerance, love, fidelity, integrity,

fairness, self-control, and prudence are all examples of virtues.

• Virtue ethics asks of any action, "What kind of person will I become if I do this?" or
"Is this action consistent with my acting at my best?"

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 ETHICAL APPROACHES IN DECISSION MAKING

 COMMON GOOD APPROACH

The common good approach refers to actions that are taken or

policies that are put into place in order to benefit not only a certain group of
individuals, but the society as a whole. It is seen as the best decision that will bring
positive and beneficial results.

 ETHICAL RELATIVISM

Ethical relativism holds that no universal standards or rules can be used

to guide or evaluate the morality of an act. This view argues that people set their own
moral standards for judging their actions. This is also referred to as naïve (lack of
experience, wisdom ) relativism. The logic of ethical relativism extends to culture.

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 ETHICAL APPROACHES IN DECISSION MAKING

 RIGHTS

Moral rights are based on legal rights and the principle of duty.

The limitations of rights include:

 Can be used to disguise and manipulate selfish, unjust political interests and
claims

 Protection of rights can be at the expense of others.

 JUSTICE

The principle of justice deals with fairness and equality. Two recognized
principles of fairness that represent the principle of justice include: Equal rights
compatible with similar liberties for others Social and economic inequality
arrangement

Four types of justice include:

 Compensatory

 Retributive

 Distributive

 Procedural

CONCLUSSION.
In our complex global business climate, ethical decision making is rarely easy.
However, as a business owner, you have several models available for analyzing your
ethical dilemmas. Sometimes one approach will be more appropriate than another. If
you take time to consider the various possibilities, you are more likely to make a
decision you believe is ethically correct.

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