Organizational Ethics Issue Resolution

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Organizational Ethics � PAGE �3�

Organizational Ethics Issue Resolution


Deborah Hiller

Rebecca Peregrine

MGT/344 Organizational Behavior and Ethical Responsibility

May 19, 2008


Organizational Ethics Issue Resolution

Organizations are faced with making important decisions in every area of business on a daily basis. The challenge is to make decisions in an ethical manner that is beneficial to customers and employees. Six ethical decision-making steps assist many organizations in resolving issues. An examination of outsourcing goods and services will be analyzed to illustrate the six-step process. The process includes clarifying the issue, analyzing information by stakeholders, identification of values, issue resolution, addressing objections, and implementing the resolution (Hitt, Miller, and Colella, 2006). A decision maker prefers to make an effective decision that is timely, and acceptable to all who are affected by the decision, and that satisfies the key decision standards. Hitt, et al. (2006) stated, individuals commonly make satisfactory rather than optimal decisions in which "satisficing decisions occur because first, individuals cannot collect and process all information that might be relevant for a particular decision.

Secondly, they occur because individuals have a tendency to stop searching after the first acceptable solution has been discovered" (p. 360).

Issue Clarification

The first of the six ethical decision-making steps is to clarify the problem. For example, many organizations outsource goods and services to foreign markets. However, in many organizations controversy surrounds whether the decision of outsourcing is ethical, or unethical. When a domestic organization is contemplating outsourcing goods or services, decisions must be carefully planned to execute effectively. Decision makers must begin with determining the extent of the issue. Often a company's stakeholders will begin by gathering information, and focusing on the problem. Problems are normally gaps between where the company is currently, and where the company would like to be in...