Chapter 5 - Ethical Decision Making and
Ethical Leadership
Key Components of Ethical Decision-Making Framework - answer include ethical-issue
intensity, individual factors, organizational factors, and opportunity.
Ethical decision-making framework - answer not a guide for making decisions, intended
to provide insights and knowledge about typical ethical decision-making processes in
business organizations
Individual factors - answer gender, education, nationality, age, and locus of control
Ethical-issue intensity - answer the relevance or importance of an ethical issue in the
eyes of the beholder
Moral intensity - answer relates to a person's perception of social pressure and the
harm the decision will have on others
Education - answer number of years spent in pursuit of academic knowledge
Nationality - answer legal relationship between a person and the country in which they
were born in
Locus of control - answer relates to an individual's differences in relation to a
generalized belief about how one is affected by internal versus external events or
reinforcements
External control - answer belief that the events in life are due to uncontrollable forces
Internal control - answer belief that a person has control over the events in their lives by
their own effort and skill
Corporate culture - answer a set of values, beliefs, goals, norms, and ways of solving
problems that employees of an organization share
Ethical culture - answer reflects whether the firm also has an ethical conscience,
function of many factors, including corporate policies on ethics, top management's
leadership on ethical issues, the influence of coworkers, and the opportunity for
unethical behavior.
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