Ethical decisions serve as the primary basis for good corporate governance. What is required for this is not a theoretical analysis of how ethical decisions are made in corporate organizations but a road map providing guidance towards such ethical decision-making. The framework in this article, empirically developed, serves this purpose. This article has heavily drawn upon empirical research through focus group interviews and factor analysis of 43 items. Two new constructs, namely, Moderators and Navigators have been proposed through this article, which aims to strengthen the practical approach of ethical decision-making theory. Results of factor analysis have shown the presence of 7 steps in ethical decision-making, serving as an empirical base not present in any previous work.
Keywords: Corporate Governance, Ethical Decision making, Moderators
Taking decisions in a corporate organization is a critical performance factor for a modern manager. More so, when such decision must appear, prima facie, as a 'correct' decision in the light of a strategic perspective.
Managers confront ethical situations everyday, although seldom are the problems identified for them as ethical or moral ones (Wittmer, 2000). Corporate organizations pose major problems for anyone who tries to apply moral standards to business activities. In the mid-1960s and 1970s, the field of business ethics saw a basic shift in emphasis from personal responsibility to corporate responsibility.
Jones (1991) opined, "despite this increased attention to ethics in organizations, theoretical and empirical examination of ethical decision-making in organization are in relatively short supply". Miner and Petocz (2003) have recommended for the development and researching of comprehensive ethical decision-making models "that are needed for fully informed professionals and lay decisions".
existing models of organizational ethical decision-making
A number of ethical decision-making models exist in the literature. There is one group of model, which describes the ethical...