INDIAN INSTITUTE OF SOCIAL WELFARE & BUSINESS MANAGEMENT

Name & Roll Number:

● RANA MALLIK_20220230073
● INDRAJIT SAHA_20220230076
● SUBHAJIT SARKAR_20220230079
● ABHISHEK GHOSH_ 20220230080
● SAUMYAJIT SABUI_20220230081

Session: 2022 – 2024

Course: MBA-PS
Discipline: TRANSPORTATION AND LOGISTICS MANAGEMENT
Paper: MANAGEMENT SKILLS AND ETHOS (MBA-PS 108)

Topic: THE ITEM ON VALUE-BASED DECISION-MAKING MAY ALSO HAVE

CONTEXTUAL AND ORGANIZATIONAL OBSTACLES IN ETHICAL DECISION
MAKING
What is Decision Making?
Modern management is not complete without decision-making. In essence, it is believed that the
main responsibility of management is to make rational or sound decisions. Every manager makes
countless decisions, either consciously or unconsciously, making them essential to the
management's job.
Decisions are crucial because they influence managerial and organizational actions.
A choice of action made with the intention to accomplish organizational or managerial objectives
or goals can be referred to as a decision. Making decisions is a continuous and essential part of
managing any organization or business operations. Decisions are made to maintain
organizational operations and all company activity.
To assure the achievement of organizational or company goals, decisions are made at every level
of management. Additionally, the decisions are one of the fundamental functional principles that
any business accepts and puts into practice to guarantee the best possible development and
viability of the services and/or goods it provides.
According to the Oxford Advanced Learner’s Dictionary, the term decision-making means - the
process of deciding about something important, especially in a group of people or in an
organization.
Trewartha & Newport defines the decision-making process as follows: “Decision-making involves
the selection of a course of action from among two or more possible alternatives to solve a given
problem”.
Additionally, the decision-making procedure can be seen as a system of checks and balances that
keeps the organization expanding both vertically and linearly. It implies that a goal is sought
during the decision-making process. The objectives are pre-established corporate missions and
visions. The business may encounter numerous challenges in the administrative, operational,
marketing wing, and operational domains in order to accomplish these goals. Such issues are
resolved through a thorough decision-making procedure. No choice is final in and of itself
because new issues may arise that need to be resolved. As was previously stated, the decision-
making process is constant and dynamic because as soon as one problem is handled, another one
pops up, and so on. The process of making decisions takes a long time. Decisions in a
management situation cannot be made hastily. It should follow the steps such as -
● Defining the problem
● Gathering information and collecting data
● Identifying alternatives
● Developing and weighing the options
● Choosing the best possible option
● Taking follow-up action
● Review your decision
The decision-making process takes a long time since it involves the sequential processes listed
above. This is true of every choice made in a commercial setting to address managerial and
administrative issues. Even though the entire process takes a while, the outcome is magnificent
in a professional setting.

Abhishek Ghosh_80

What Is Value-Based Decision Making?

A technique for making important organizational decisions in a timely and informed manner is
value-based decision-making. Use this tool to discover the most important decisions you must
make, ascertain the ideal time to decide, and ascertain the data you require.
It is beneficial to arrange the relevant information in the form of a value model, which can be
built collectively and revised as the team receives new information because crucial decisions
frequently immediately affect the value generated or lost by an organization.

When to Use Value-Based Decision-Making?

Value-based decision-making is appropriate when tackling the following tasks:
● Determining which products to enhance, maintain at the current status, or stop
supporting
● Determining which initiatives to start
● Determining which initiatives to continue
● Determining which initiatives to stop

Why Use Value-Based Decision Making?

Without value models, you run the danger of making decisions in favor of or against things that
provide value to the company.
Value-based decision-making models have a definite edge over conventional ones. Value models
are centered on providing value to the marketplace and consider more than just cost and benefit.
As a result, they significantly improve the business.

How to Use Value-Based Decision-Making?

Follow these steps to implement value-based decision-making:
1. Identify the critical decisions facing your organization that warrant an extra bit of scrutiny and
analysis. Select decisions where the effects of a decision outweigh the costs incurred to reach it
using this approach.
2. Determine when these decisions need to be made. This time frame is usually based on when
options become no longer available, or when the cost of a delayed decision outweighs the value
derived from making the decision.
3. Determine the information required to make an informed decision. Define the purpose,
considerations, costs, and benefits.
4. Use the time until the decision needs to be made to gather the information identified in step
3. Organize this information in the form of a value model so that you can revisit your decision
when the inputs change.
5. When you have gathered all of the necessary information, or when the time to decide arrives,
make the decision based on optimal value delivery to the marketplace.
6. Implement the decision as effectively and efficiently as possible.
7. Repeat the decision-making process regularly, especially when conditions change.

Saumyajit Sabui_81

What is Ethical Decision-Making?

Making moral choices encourages fairness, accountability, and consideration for others.
Recognizing these circumstances, the ethical decision-making process calls for weighing all
available possibilities, displacing unethical viewpoints, and selecting the most suitable ethical
alternative. Effective and moral decisions are made. Good decisions foster respect and trust in
working relationships and are generally associated with good behavior. When decisions
accomplish the purpose for which they were intended, they are effective. A decision that has
unforeseen consequences is ineffectual and, thus, undesirable. Consider all of your options in
order to reach your goals. This is the secret to making wise selections. Understanding the
distinction between short-term and medium- to long-term objectives is crucial for this reason.
Making ethical decisions calls for awareness of ethical matters as well as a process for evaluating
all the relevant factors. Therefore, it is crucial to have a process or structure for making ethical
choices. Once the procedure has been used a few times, it is trusted, making it simpler to follow
the procedures.

Foundation of Ethical Decision-making

Choice and balance are the cornerstones of ethical decision-making; they serve as a guide to
eschew poor decisions in favor of wise ones. Therefore, one of the first questions to ask while
making ethical decisions is, "What would a reasonable man do in this situation?" The three rules
of management may prove useful to advisors when making more difficult choices.
The Rule of Private Gain
If you are the only one personally gaining from the situation, is it at the expense of another? If
so, you may benefit from questioning your ethics in advance of the decision.
If Everyone Does It
Who would be hurt? What would the world be like? These questions can help identify unethical
behavior.
Benefits vs. Burden
If benefits do result, do they outweigh the burden?
People often adopt the essential principles of the group when they collaborate closely on a
project. People who are part of a group frequently compromise their personal principles in favor
of the organization's beliefs. As a result, groups should evaluate the ethicalness of their
organizational decisions using the three management principles. The group must understand
how their decisions will affect others because group dynamics are becoming an increasingly
important indicator of organizational success and because norms of behavior are viewed in the
light of profit and integrity.
We must recognize that every person has unique intrinsic worth when interacting with them. We
frequently aren't conscious that our answers to situations in life are mostly determined by the
values we uphold and are particular to our own culture and perspective because values are so
deeply embedded in us. Furthermore, we rarely consider the possibility that the people we
connect with may have a different set of values from our own.
Making decisions based on ethics results in morally and practically sound behaviors. Making
ethical decisions produces successful decisions that are also moral. Decisions must be both in
order for an organization to prosper and preserve its reputation for reliability.
You want to make moral decisions when acting on behalf of a business or organization. Whether
it's in terms of public impression, employee morale, or running afoul of changing legal
requirements, ethical judgments are more long-lasting and less likely to hurt the firm.
Effective and moral business decisions are made.

Rana Mallik_73

Ethical decision-making in organizational culture -

When a leader or organization seeks to make ethical decisions, they are steering a path between
several options.
The 3 Cs of ethical decision-making are-
Commitment
Aim to do what is ‘right’, even if a higher degree of risk/effort/cost/ is involved.
Consistency
Remain consistently aware of the organization’s core ethical values regularly, not just when a
particularly challenging situation demands it.
Competency
Foresee future risks, objectively evaluate supporting data using critical thinking, and put forward
alternative actions as required.
Ethical Decision-Making process and roadmap
Below is a summary of the roadmap for the ethical decision-making process.
1. Gather the facts
Don’t jump to conclusions until the facts are on the table. Ask yourself questions about the issue
at hand, such as the 5 whys method. Facts are not always easy to find, especially in situations
where ethics play an important part. Some facts are not available or clearly demonstrable. Also,
indicate which assumptions are made.
2. Define the ethical issue
Before solutions or new plans can be considered, the ethical issue is clearly defined. If there are
multiple ethical focal points, only the most important should be addressed first.
3. Identify the stakeholders
Identify all stakeholders. Who are those primary stakeholders? And who are the secondary
stakeholders? Why are they interested in this issue?
4. Identify the effects and consequences
Think about the possible positive and negative consequences associated with the decision. What
is the magnitude of these consequences? And what is the probability that these consequences
will actually occur? Distinguish between short-term and long-term consequences.
5. Consider integrity and character
Consider what the community thinks would be a good decision in this context. How would you
like it if the national newspaper wrote about your decision? What is public opinion? How do your
character and personality influence the decision to be made?
6. Get creative with potential actions
Are there other choices or alternatives that have not yet been considered? Try to come up with
additional solutions or choices if a small number is considered.
7. Decide on the right ethical action
Consider the options based on each option’s consequences, duties, and character aspects. Which
arguments are most suitable to justify the choice?

Subhajit Sarkar_79

Contextual and Ethical obstacles while making Ethical Decisions: -

Obstacles to ethics almost always originate from within the individual, not from others. When
people put up these barriers, they frequently choose to ignore complex or expensive fixes.
Instead, they select solutions that are simple, comfortable, or ones that will benefit them
personally.
There are four typical sorts of roadblocks that are used to support moral choices. These barriers
are caused by necessity, lack of consequences, permissibility, and entitlement.
Necessity obstacles
A decision-maker creates necessary obstacles by insisting that one course of action is the only
way to do something. The person may claim, “There’s no other choice.

Permissibility obstacles
Decision-makers encounter permissibility obstacles when there are no rules or laws to deter a
questionable ethical choice. They confuse what’s right with what’s possible or legal. Decision
makers often say, “There’s no law against it,” or “Nothing is stopping us.”

Entitlement obstacles
Entitlement barriers appear when a decision-maker tries to defend robbing someone else of
something. The decision-maker frequently feels mistreated, disadvantaged, or treated unfairly.
The person frequently utters the phrase "I deserve this more than he does," possibly in an effort
to make things right.
The reasoning argument at the heart of each barrier determines the optimal method for
removing it.

Spread the benefits

The person who raises the necessity obstacle often stands to gain personally, so the best way to
challenge the obstacle is to explore spreading the benefits. The most ethical choice will most
likely provide the most benefits to the most people.

Respect rights
The best way to remove a permissibility obstacle is to respect the rights of those affected by the
decision. When permissibility is used to justify a decision, the rights of one or more parties are
often at stake.

Reverse assumptions
Reversing the assumptions of entitlement obstacles test whether those affected by a decision
are treated equally and fairly. If circumstances warrant special treatment for one party, the same
decision should still be reasonable when the tables are turned.

Indrajit Saha_76

Obstacles encountered by the managers while ethical decision-making (Organizational): -

Making decisions as a manager is not simple. The problem becomes more difficult when it comes
to ethical considerations because so many roadblocks prevent proper decision-making. Making
judgments in the business world is particularly challenging since there are so many unknowns. A
manager could occasionally be forced to make an unethical choice. Making decisions that don't
impact the interests of shareholders, debenture holders, creditors, employees, customers, etc. is
tough for managers. They must give ethical judgments careful consideration because they have
a significant impact on society, employees, and customers. Social responsibility, competing
interests of parties, corruption, customer safety when utilizing a company's products, groupthink,
whistleblowing, etc. are the key obstacles to making ethical decisions.

Some of the obstacles are briefly explained below: -

1. Social and cultural barriers

Making ethical decisions is heavily influenced by social and cultural variables. The management
may make a decision that is detrimental to society or that society may see as being hurtful. Such
decisions will be met with opposition from society, which will ultimately turn people against the
firm. Making ethical decisions may also be hampered by certain cultural variables. Ideals and
traditions, religion, the legal system, interpersonal respect, fidelity, property rights, etc. are all
cultural influences. The cultures of various groups of people, faiths, and geographical areas could
vary. For instance, a managerial choice can hurt a particular religion's interests. As a result,
management finds it challenging to make choices that have ethical implications.

2. Clash of interests of different parties

The clash of interests is another major barrier to ethical decision-making. Sometimes some
decisions may raise some questions such as, does it affect the interest of different parties like
shareholders, creditors, customers…etc., whether there is any bias in decision making, is there
any clash of private interests of the manager who makes the decision and the official or
organizational interest…etc. It is a commonly known fact that gaining benefits at others’ expense
is unethical. All these acts as barriers for the managers while making ethical decisions.

3. Corruption
Another barrier to moral decision-making is corruption. When there is corruption in an
organization, the management will be in a difficult situation. Whether they must consider the
viewpoint of the organization or that of a fellow employee. Should a secretary remain silent when
a boss adds personal expenses to business reimbursement applications, for instance? Some
managers might not fully understand how their choices would affect others. They might not
realize that their participation in corrupt activities can result in violations of core stakeholder
issues like human rights.

4. Safety of the customer when using the company’s products

Consumers pay close attention to a product's safety. The managers are expected to obtain certain
certifications from organizations that evaluate the quality and safety of items in order to
guarantee the safety of the products. Any changes to the organization made by the managers are
unethical. The demand from the corporation to obtain quality certifications may put the
management in a difficult situation. Additionally, the product might not be up to the necessary
standards of quality.
The production managers may encounter challenges when making crucial decisions about the
products, such as whether or not to use the quality mark during the testing process (i.e., prior to
receiving the quality certificate), whether to keep or discard the old records and other issues
related to the use of the quality mark.

Subhajit Sarkar_79

Lack of knowledge about bias and decision-making in organizations

Although to varying degrees, many people in leadership positions are aware that our ideas and
values influence our capacity to make decisions. The door to prejudice is thus wide open, and
hundreds of various biases enter the picture and influence our choices further, a few of which
are highlighted below,

Confirmation bias
We are more likely to make a decision that confirms or is consistent with our existing beliefs or
expectations. It also means that you may disregard information that is counter to your beliefs.

Loss-aversion bias
We are more likely to make a decision that avoids a loss rather than realize a gain.

Action or status quo bias?

It's possible for an organization's culture of inertia and status quo bias to develop over time as a
result of bad judgments that have been made in the past. Making a decision just for the sake of
making a decision could be a counterargument against this. Action bias is the term for this.
Action bias causes us to act too quickly, perhaps before the issue has been well defined, whereas
status quo bias is a propensity to remain inactive.

Groupthink bias
We may be less likely to disagree or contest results because of our desire to fit in with the group.
Although it is frequently discussed in organizations, it is nevertheless a factor in decision-making.
Groupthink bias leans heavily toward unity and a desire to avoid upsetting the group with
individual viewpoints. This leads to dysfunctional decision-making in the absence of strong critical
analysis.
Diversity of thought
Here are some facts from a piece of Forbes research in 2017 on business decisions making.
● Teams outperform individual decision-makers 66% of the time
● All-male teams make better business decisions than individuals 58% of the time
● Gender-diverse teams outperform individuals 73% of the time
● Finally, gender-diverse teams that include a wide range of ages and different geographic
locations make better business decisions 87% of the time.
● The point here is that decisive leadership involves diversified input from your team. The
more diverse your decision-making group is the more influential the decision.

Rana Mallik_73

Being ethical in business is difficult, given the nature of the tasks involved with leading an
organization:
1. The decisions are complex; there is no time for reflection, vital information is missing, etc.
2. The competition is intense, sometimes brutal.
3. We are enslaved by results: You are what you achieve, and there are perverse incentives,
which lead people to do things that should not be done because people get paid to do
things they should not be doing.
4. There is an abundance of inertia, i.e., “that’s how it’s always been done.” It is the success
trap.
5. There are mistakes, inevitably, and the human tendency to deny them or cover them up,
which makes change very difficult.
6. Moral sensitivity is reduced. Ethical problems are not apparent, as they are often masked
under technical considerations, which are the dominant force.
7. There is a lot of cognitive dissonance: resistance to accepting evidence contrary to what
we think.
8. There is a tendency to rationalize the behavior: What is immoral is presented as
acceptable, as a normal practice, “everyone does it”…
9. There is also a prevalence of bureaucratic culture: “This is how things are done here,”
“Follow our lead or you’re out of here,” etc.
The corporation does not consider ethics to be a factor in decision-making. A salesperson chooses
what needs to be done to make sales, regardless of whether this hurts manufacturing, destroys
the environment, or causes comparable unfairness for other departments. Decisions are made
by experts who only consider their narrow field and ignore the repercussions on others. In other
words, a limited or partial approach invites unethical behavior.
Business is dominated by individualism as well; everyone has their own goals, particularly at the
executive level. Values are personal issues. I dislike the idea of ethics since it prevents me from
carrying out my own plans. The corporation ends up being an immoral subject; ethics should only
be used as decoration at this point.
It's also difficult to act morally given the way ethics are expressed in the workplace. We expect
ethics to be profitable. because if it weren't, the ruling body would reject it. We reduce ethics to
a collection of restrictions placed on us by society or the media. This reduces ethics to a set of
rules that must be followed even if they are not advantageous, so we might as well not give it
much thought.
Alternatively, ethics could entail going above and beyond, such as providing a spa for workers,
encouraging them to volunteer on the weekends, or giving back to the company's revenues.
Yes, conducting business ethically is challenging. But it is essential. Knowing the path we must
take will enable us to go forward successfully while becoming truly excellent CEOs by avoiding
bumps in the road and other obstacles.

Indrajit Saha_76

Obstacles to ethical decision-making: rationalizations

We judge ourselves by our best intentions, our noblest acts, and our most virtuous habits. But
others tend to judge us by our last worst act. So in making tough decisions, don’t be distracted
by rationalizations. Here are some of the most common ones:

If it’s necessary, it’s ethical

This rationalization rests on the false assumption that necessity breeds propriety. The approach
often leads to ends-justify-the-means reasoning and treating non-ethical tasks or goals as moral
imperatives.

The false necessity trap

As Nietzsche put it, “Necessity is an interpretation, not a fact.” We tend to fall into the “false
necessity trap” because we overestimate the cost of doing the right thing and underestimate the
cost of failing to do so.

If it’s legal and permissible, it’s proper

This replaces moral judgement with statutory regulations, which create minimum standards of
conduct. The complete range of moral obligations is not covered by this alternative, especially
for those tasked with sustaining the public's trust. Ethical people frequently opt to perform more
than the bare minimum acceptable and less than the maximum permissible.

It’s just part of the job

Conscious people who are motivated to do a good job at their work frequently neglect to give
enough thought to the morality of their professional activity. They frequently divide ethics into
two categories: personal and professional. Thus, morally upright individuals feel justifiable in
acting in ways at work that they would otherwise recognize as inappropriate. They fail to
remember that being a nice person is everyone's primary duty.

It’s all for a good cause

People are especially vulnerable to rationalizations when they seek to advance a noble aim. “It’s
all for a good cause” is a seductive rationale that loosens interpretations of deception,
concealment, conflicts of interest, favoritism, and violations of established rules and procedures.

I was just doing it for you

This is the main defense for telling "small white lies" or hiding crucial information in intimate or
work-related situations, such as performance appraisals. This justification contrasts the virtues
of respect and honesty with the concept of caring. A person has a moral obligation to base his or
her decisions about their own lives on truthful knowledge, hence or they are entitled to the truth.
This justification exaggerates how much people want to be "shielded" from the truth while in
reality, most people would rather know the unpleasant truth than accept comforting lies. Think
about the viewpoint of those who lied. Would they appreciate your thoughtfulness if they found
out the truth or would they feel deceived, favored, or manipulated?

I’m just fighting fire with fire

This is the false assumption that promise-breaking, lying and other kinds of misconduct are
justified if they are routinely engaged in by those with whom you are dealing. Remember: when
you fight fire with fire, you end up with the ashes of your own integrity.

It doesn’t hurt anyone

Used to excuse misconduct, this rationalization falsely holds that one can violate ethical
principles so long as there is no clear and immediate harm to others. It treats ethical obligations
simply as factors to be considered in decision-making, rather than as ground rules. Problem
areas: asking for or giving special favors to family, friends, or public officials; disclosing nonpublic
information to benefit others; using one’s position for personal advantage.

Everyone’s doing it
This is a false, “safety in numbers” rationale fed by the tendency to uncritically treat cultural,
organizational, or occupational behaviors as if they were ethical, just because they are norms.

It’s ok if I don’t gain personally

This justifies improper conduct done for others or for institutional purposes on the false
assumption that personal gain is the only test of impropriety. A related but narrower view is that
only behavior resulting in improper financial gain warrants ethical criticism.
I’ve got it coming
People who believe they are overworked or underpaid justify accepting small "perks" like favors,
discounts, or tips as justifiable payment for their services. This is also used as a justification for
misusing overtime, personal phone calls, insurance claims, sick days, and office supplies.

I can still be objective

By definition, if you’ve lost your objectivity, you can’t see that you’ve lost your objectivity! It also
underestimates the subtle ways in which gratitude, friendship, and the anticipation of future
favors affect judgment. Does the person providing you with the benefit believe that it will in no
way affect your judgment? Would the person still provide the benefit if you were in no position
to help?

Saumyajit Sabui_81

Barriers to Ethical Judgement and Moral Leadership

It would appear that moral leadership and ethical judgement would be rather simple; people
would have learned the distinction between right and wrong in their early years. Early on,
children are taught not to steal or lie. There are cultural fables like the tale of George Washington
and the cherry tree to help us distinguish between good and wrong, as well as ethical guidelines
for many professions. There are numerous instances of persons who are currently incarcerated
due to ethical transgressions. The opposite of unethical activity would seem to be much more
straightforward and productive. Why then do we have such difficulties in business when it comes
to ethics?
Three obstacles to ethical activity are discussed by Messick (2006): 1) people's inability to identify
their own bias; 2) the ethical rules do not exist in universes distinct from one another, and 3) a
lack of confidence to make the right decision. Someone who had previously practiced life
insurance had broken the law. There were around $50,000 in unpaid commissions and the
practice was having financial problems. A buddy assisted the agent in creating a phony life
insurance policy that was designed to be canceled during the free look time but after the
commission had been paid in order to generate some cash flow to cover the mortgage and other
expenses that were past due. The agent believed that the anticipated business would offset the
chargeback, but the anticipated business ultimately failed. How did this agent, who prided
himself on being moral, allow his moral compass to swing negatively? We shall consider the
response in light of Messick's three hurdles.

People's inability to identify their own bias

In this case, the agent involved had been under severe financial stress. He was working and
writing business, but he was not getting paid. His bills were falling behind, and his wife was
getting angry. The agent’s environment was not conducive to ethical behavior. Ethics is a subject
of how people should live, during hard economic times, one’s moral compass can be clouded by
the exigencies of the economic situation (Hartman & DesJardins, 2011). When one is
experiencing stress one’s moral compass can go slightly off. That is why, per the Investment
Advisers Act of 1940, in the financial services industries such as life insurance, the agent is
obligated to report financial difficulties to the compliance department of his or her company. In
this case, the financial difficulties were never reported (Cooper & Johnson 1982).

Cognitive Dissonance occurs when one’s behavior is contrary to one's beliefs or self-image
(Luban, 2006). If one thinks of himself or herself as a fine upstanding citizen and one’s behavior
indicates otherwise one cannot change one's past behavior to match one's beliefs, rather one
changes their beliefs to match the behavior (Luban, 2006). For years, this agent believed that this
was not his fault. He had blamed it on the fact that the one large deal fell apart, not that he had
let his moral and ethical guard down. It was the fault of the company for not pushing through the
business, or it was the fault of the client for not returning phone calls when it was the fault of the
agent for letting himself get to the cusp of financial difficulties and thinking that everything would
work out OK. The agent did not see that he was committing fraud because he figured that
eventually, the company would pay the commissions and that no one would lose anything. It was
also blind to the agent that his business was unhealthy and that the deal that did fall through was
never a stable piece of business.

The ethical rules do not exist in universes distinct from one another
In other words, sometimes one ethical and moral principle can seem to conflict with the other
(Messick, 2006). Confusion is created as to what one would need to do to remain ethical. One
believes in the Bible and feels that homosexuality is a sin yet one also believes that everyone has
the right to do as they please as long as they are not hurting anyone else. So then do you allow
people to commit sins and partake in a same-sex marriage since they are not hurting anyone else
or do you stop them from committing a sin and have same-sex marriage illegal? This dilemma
also applies to business ethics, in this situation that has been under discussion. The agent we are
discussing has a moral principle not to steal. He also had the moral principle to take care of his
family and to pay the bills on time, how does he handle this? Had this agent realized his business
was in trouble there would not have been this conflict. Business declines are usually preceded by
a lapse in ethics (Carmeli & Sheaffer, 2009). Had this agent not been in the middle of cognitive
dissonance and had been thinking optimally, he might have been able to see another solution to
increase his business or to have found another line of work before he resorted to fraud to pay
his bills.
Lack of confidence to make the right decision
The last of the three barriers is the lack of courage to make the correct judgment. This agent did
lack the courage to make the correct judgment. He lacked the courage to when his business ran
into difficulty to admit he was in trouble and get out of the business when it had become obvious
that the business was going to fail. He lacked the courage to make the calls to get more business,
and he lacked the courage to come clean with the company and admit his lapse in judgment and
accept the consequences. The ideal time to have shown some courage would have been when
financial trouble became imminent to report it to his compliance department and resign. When
the agent did resign, he made it seem as though he was just resigning because of low business
and let everyone think that the chargeback was accidental. The chargeback did, however, show
up on the agent’s credit report so the agent was not hirable in the financial services industry for
several years.

Abhishek Ghosh_80

Conclusion
Sometimes ethical people can take unethical actions due to barriers to ethical behavior. Cognitive
dissonance creates a situation where one can change their beliefs without even realizing that
they are changing them because of their own misbehavior. One must be alert to these barriers
in themselves and others.