A Case Study Analysis of the Ethical Implications to Stakeholders from
Managerial Decisions Using the Three Managerial Ethical Decision
Models.
Managers experience situations on a frequent basis that require them to make
ethical and moral decisions. An ethical decision can be defined as a decision that is
both legal and morally acceptable to the wider community while an unethical
decision is either illegal or simply morally unacceptable to the wider community
(Jones, 1991). Ethical decisions can be explained and justified by the three ethical
decision making approaches known as; utilitarian, moral rights, and the justice model
(Waddell, Jones, and George, 2012.). In This case study a manager working in a
large corporation …show more content…
Ensuring that everyone interests are served to what they
perceive as justice. Although it could be argued that the decision made at the time
was in the best interests of the stakeholders involved (Haines, Street and Haines,
2008). It will most likely lead to the decision to buy the gift but on the evidence that it
was a fair and just decision at the time it was made.
Moral Rights Model Approach
A moral rights approach is applying a purely ethical approach to the decision with the
view of the rights and privileges of the people affected by the decision (Waddle,
Jones and George, 2012.). This approach is about choosing the outcome that best
protects the individual’s rights and privileges. The major flaw in this model is, how
does a manager weigh up the importance of stakeholders? Choosing to favour one
stakeholder over another is a difficult task (Reynolds, Schultz and Hekman, 2006).
The moral rights implications for all stakeholders involved is that they have a right
not to be associated with a firm that conducts socially unethical behaviour, this may
provide a social stigma for employee’s that work there. For certain other
stakeholders such as investors and other managers higher up the line, they have …show more content…
The sustainability of this model is directly related to the scale of the impact of
the decision (Smith, 1990).
Utilitarian Model Approach
A Utilitarian approach is the way of making decisions that produce the greatest good
for the greatest number of people (Waddle, Jones and George, 2012.). The utilitarian
model is about choosing the option that provides the greatest benefits to
stakeholders. The main problem with this model is that it is up to the manager to
decide on the relative importance of each group of stakeholders. Would this reflect
badly when the business is audited? Would shareholders and customers approve of
such a decision? How does a manager weigh up the effect of the decision upon the
various stakeholders? These are all questions that the manager will face if he
chooses to use this model of approach. Although even considering this, through the
utilitarian approach, a decision to buy the gift could be proved ethical because it
provides the greatest good to the stakeholders involved. No stakeholders directly
involved will receive a negative impact (Reynolds, Schultz and Hekman,
Managerial Decisions Using the Three Managerial Ethical Decision
Models.
Managers experience situations on a frequent basis that require them to make
ethical and moral decisions. An ethical decision can be defined as a decision that is
both legal and morally acceptable to the wider community while an unethical
decision is either illegal or simply morally unacceptable to the wider community
(Jones, 1991). Ethical decisions can be explained and justified by the three ethical
decision making approaches known as; utilitarian, moral rights, and the justice model
(Waddell, Jones, and George, 2012.). In This case study a manager working in a
large corporation …show more content…
Ensuring that everyone interests are served to what they
perceive as justice. Although it could be argued that the decision made at the time
was in the best interests of the stakeholders involved (Haines, Street and Haines,
2008). It will most likely lead to the decision to buy the gift but on the evidence that it
was a fair and just decision at the time it was made.
Moral Rights Model Approach
A moral rights approach is applying a purely ethical approach to the decision with the
view of the rights and privileges of the people affected by the decision (Waddle,
Jones and George, 2012.). This approach is about choosing the outcome that best
protects the individual’s rights and privileges. The major flaw in this model is, how
does a manager weigh up the importance of stakeholders? Choosing to favour one
stakeholder over another is a difficult task (Reynolds, Schultz and Hekman, 2006).
The moral rights implications for all stakeholders involved is that they have a right
not to be associated with a firm that conducts socially unethical behaviour, this may
provide a social stigma for employee’s that work there. For certain other
stakeholders such as investors and other managers higher up the line, they have …show more content…
The sustainability of this model is directly related to the scale of the impact of
the decision (Smith, 1990).
Utilitarian Model Approach
A Utilitarian approach is the way of making decisions that produce the greatest good
for the greatest number of people (Waddle, Jones and George, 2012.). The utilitarian
model is about choosing the option that provides the greatest benefits to
stakeholders. The main problem with this model is that it is up to the manager to
decide on the relative importance of each group of stakeholders. Would this reflect
badly when the business is audited? Would shareholders and customers approve of
such a decision? How does a manager weigh up the effect of the decision upon the
various stakeholders? These are all questions that the manager will face if he
chooses to use this model of approach. Although even considering this, through the
utilitarian approach, a decision to buy the gift could be proved ethical because it
provides the greatest good to the stakeholders involved. No stakeholders directly
involved will receive a negative impact (Reynolds, Schultz and Hekman,