Decision Making, Creativity, and Ethics

What is a “decision”? The choice made from two or more alternatives.

What is a “Rational Decision”? Choices that are consistent and value maximizing within specified constraints

Rational Decision-Making Model:

A model that escribes how individuals should behave in order to maximize some outcome.

Step :1 Identify the Problem

It can sometimes require serious thought to find the
central issue that must be addressed.
Step :2 Establish Decision Criteria
In this step ,the decision maker needs to determine what
is relevant in making the decision.
Step :3 Weigh Decision Criteria
Because the criteria identified will seldom be equally
important ,you will need to weight the criteria to create
the correct priority in the decision.
Step :4 Generate Alternatives
Once you have identified the issue and gathered
relevant information ,now it is time to list potential
options for how to decide what to do .
Step :5 Evaluate Alternatives
After creating a somewhat full list of possible alternatives ,each alternative can be evaluated .Which
choice is most desirable and why?
Step :6 Select the Best Alternative
After a careful evaluation of alternatives ,you must choose a solution .You should clearly state your
decision to avoid confusion or uncertainty .The solution might be one of the options that was initially
listed ,an adaptation of one of those options ,or a combination of different aspects from multiple
suggestions.
 Example on individual decision

Example on corporate decision

What do we Assume in order to apply this model?

Complete information :The problem is clear and unambiguous.
Known options :The decision maker can identify all relevant options in an unbiased manner.
● Chooses the option with the highest utility.
Bounded rationality
Bounded rationality recognizes that decision-makers often face complex and uncertain situations and
must make decisions within the constraints of their cognitive abilities.
○ Information Limitation :Decision-makers have limited access to complete and accurate information.
○ Time Constraints
○ Decision Context :The decision context ,including environmental factors and social influences .Factors
such as organizational norms ,biases ,and external pressures can affect decision outcomes
 What is Ethics?
• Ethics is the study of moral values or principles that guide our behavior and inform us whether
actions are right or wrong
• Ethical considerations should be an important criterion in organizational decision making.
• Ethical Organizations :organization that operates with a strong commitment to moral principles
and values and strives to conduct its business in a manner that is fair ,honest ,transparent ,and
responsible ,prioritize integrity and consider the well-being of stakeholders ,including
employees ,customers ,suppliers ,and the broader society.

Characteristics of an ethical organization

Why is“ Ethical Organizations ”Important?

• Ethical organizations are:
• more attractive than others to employees.
• Less likely to become embroiled in scandals.
• More likely to be rewarded by investors ,who increasingly focus on good governance and strong
cultures as sources of sustainable value creation.
• Therefore ,business leaders need to ensure their organization is one with high morals ,principles ,
conduct ,and ethics so that employees feel comfortable and confident there.

Ethical Workplace
Businesses can build trust and promote an ethical workplace by:
1. Treating employees well.
2. Demonstrating ethical practices and placing customers ahead of profits.
3. Giving priority to employee rights ,fair procedures ,and equity in pay and promotion.
4. Promoting tolerance ,compassion ,loyalty and honesty in the treatment of customers and
employees.
 How to make Ethical decisions?
Four Ethical Decision Criteria

Example Utilitarian Criteria:

A software company is developing a new application that collects user data for targeted advertising. The
company's decision-makers weigh the potential benefits of personalized advertisements ,such as increased
revenue and improved user experience ,against the privacy concerns and potential harm to user
autonomy. After careful consideration, they decide to implement strong privacy safeguards to minimize
harm and ensure the greatest overall well-being of users.
Example of Rights Criteria:
A company is considering implementing a surveillance system in its office that would monitor employees '
activities without their knowledge or consent. However ,the company recognizes the employees' right to
privacy and decides against implementing the system to avoid infringing on their fundamental rights
Example of Justice Criteria:
A company is considering implementing a new compensation policy that aims to address wage gaps. The
decision-makers analyze the current salary structure ,identify inequities ,and adjust salaries to ensure a more
equitable distribution of rewards based on factors such as job responsibilities ,experience ,and performance.
Example of Care Criteria: #
A company is reviewing its policies on work-life balance and decides to introduce flexible working hours
and remote work options to accommodate employees 'caregiving responsibilities. The decision-makers
recognize the importance of supporting employees ’caregiving relationships and promoting a healthy work-
life integration.
 Examples

Corporate Social Responsibility)CSR)

An organization’s responsibility to consider the
impact of its decisions on society
The Corporate Citizenship Model
● is an approach to corporate social responsibility)CSR(that
views companies as responsible corporate citizens with a
duty to contribute positively to society.
● It emphasizes integrating social and environmental considerations into the core business strategies
and operations of a company ,going beyond philanthropy or compliance with regulations.
● Key Elements: Responsibility ,Integration ,Stakeholder engagement ,Shared Value Creation ,
Transparency and accountability
 Carrol Model
Economic responsibilities
● Importance to the societies of
businesses making profits.
● Those firms that are not successful
in their economic or financial
sphere go out of business.
● Without the ability to make a profit ,
the company cannot
fund the other levels.
● For example ,a company
transitioning to cheaper ,eco -
friendly packaging potentially
satisfies an economic ,legal ,and
ethical obligation at the same time.

Legal responsibilities
● Performing in a manner consistent with expectations of government and law
● Complying with various federal ,state ,and local regulations
● Conducting themselves as law-abiding corporate citizens
● Fulfilling all their legal obligations to societal stakeholders
● Providing goods and services that at least meet minimal legal requirements
Ethical responsibilities
● Performing in a manner consistent with expectations of societal mores and ethical norms
● Preventing ethical norms from being compromised in order to achieve business goals
● Being good corporate citizens by doing what is expected morally or ethically
● Recognizing that business integrity and ethical behaviour go beyond mere compliance with laws
and regulations
Philanthropic
● Corporate philanthropy embraces business’s voluntary or discretionary activities.
● business’s desire to participate in social activities that are not mandated ,not required by law ,
and not generally expected of business in an ethical sense.
● Consumers expect the companies they do business with to give back to society.
Mansour CSR activities

EGYPTIAN CLOTHING BANK MANSOUR SUPPORTS‘ AYADY ’

)2022( ONCOLOGY FOR 5 YEARS )2022(

Ethical Workplace: Why would a company go through all this trouble?

- Organizational Reputation - Organizational Justice

● Organization Reputation :consists of familiarity with the organization and beliefs about what
to expect from the organization in the future.
○ being known :generalized awareness or visibility of the firm
○ being known for something :perceived predictability of organizational outcomes and
behavior relevant to specific audience interests
○ generalized favorability :perceptions or judgments of the overall organization as good ,
attractive ,and appropriate.

Ethical Dilemmas :What Would You Do?

Your company policy on reimbursement for meals while travelling on company business is that you
will be repaid for your out-of-pocket costs ,which are not to exceed 80$ a day .You don’t need receipts
for these expenses—the company will take your word .When travelling ,you tend to eat at fast-food
places and rarely spend in excess of 20$ a day .Most of your colleagues submit reimbursement requests
in the range of 55$ to 60$ a day regardless of what their actual expenses are .How much would you
request for your meal reimbursements?

You have discovered that one of your closest friends at work has stolen a large sum of money from the
company .Would you do nothing ?Go directly to an executive to report the incident before talking
about it with the offender ?Confront the individual before taking action?
Make contact with the individual with the goal of
persuading that person to return the money?