Ethics Analysis (Hosmer Model)

Ethics Analysis (Hosmer Model)

Manager's Decision Checklist

1.                 What are the best economic alternatives?

2.                 What are the legal alternatives?

3.                 Does a given decision result in greater benefits than damages for society as a whole, not just for our organization as part of that society?

4.                 Is the decision self-serving, or would we be willing to have everyone else take the same

action when faced with the same circumstances?

5.                 We understand the need for social cooperation; will our decision increase or decrease the willingness of others to contribute?

6.                 We recognize the importance of personal freedom; will our decision increase or decrease the libery of others to act?

7.                 Lastly, we know that the universe is large and infinite, while we are small and our lives are short; is our personal improvement that important, measured against the immensity of that other

scale?

The Nature of Ethics in Management

"Right" and "proper" and "fair" are ethical terms. They express a judgment about our behavior towards other people that is felt to be just. We believe that there are right and wrong ways to behave towards others, proper and improper actions, fair and unfair decisions. These beliefs are our moral standards of behavior. They reflect our sense of obligation to other people, our sense that it is better to help rather than to harm other people.

Moral problems are truly managerial dilemmas. They represent a conflict between an organization's economic performance (measured by revenues, costs and profits) and its social performance (stated in terms of obligations to persons both within and outside the organization).

Characteristics of Moral Problems in Management

1.                 Most ethical decisions have extended consequences.

2.                 Most ethical decisions have multiple alternatives.

3.                 Most ethical decisions have mixed outcomes.

4.                 Most ethical decisions have uncertain consequences.

5.                 Most ethical decisions have personal implications.