Ethical Awareness and Judgment Dynamics

Factors Affecting Ethical Awareness

• Facing scrutiny from peers increases ethical awareness.
• Using ethically charged language in discussions helps individuals consider ethical implications.
• Moral intensity - the potential harm to others - increases ethical awareness.

Factors Affecting Ethical Judgment

• Language as a Framing Device
  • Using positive terms like "integrity" and "fairness" amplifies the ethical context of a situation.
  • Euphemisms like "letting you go" or "outsourcing" downplay ethical issues.
• Moral Intensity
  • When a decision has a real threat to the well-being of others, moral intensity is higher, making individuals more sensitive to the outcome.
  • Training on ethical dilemmas and their potential problems can prime employees for future situations.

Individual Differences

• Recognizing individual differences in ethical decision-making is important for effective management.
• Key individual differences impacting ethical judgment include:
  • Cognitive Moral Development - level of moral reasoning and ethical understanding.
  • Locus of Control - whether individuals believe they control their outcomes or are subject to external forces.
  • Machiavellianism - tendency to be manipulative and self-serving.
  • Moral Disengagement - rationalizing unethical behavior.

Levels of Cognitive Moral Development

• Preconventional Level:
  • Focus on self-interest and avoiding punishment.
  • Individuals at this level may ask "What's in it for me?" or "Can I get away with this?"
  • Stage 1: Obedience and Punishment Orientation: Focus on avoiding punishment.
  • Stage 2: Instrumental Purpose and Exchange: Focus on reciprocity and self-interest.
• Conventional Level:
  • Focus on societal norms and the approval of others.
  • Individuals at this level may ask "What will others think?" or "Is this acceptable according to societal rules?"
• Postconventional Level:
  • Emphasis on individual principles and universal ethical values.
  • Individuals at this level are guided by a strong sense of justice and fairness.

Fact-Gathering and the Confirmation Trap

• Individuals may fall into the "confirmation trap" where they only seek information that confirms their existing beliefs.
• This can lead to biased decision-making and ignoring potential risks.

Consequences of Ethical Decisions

• When evaluating the consequences, consider:
  • Simplification of Decisions: To avoid being overwhelmed, focus on the most significant consequences.
  • Self vs. Others: Acknowledge the bias favoring our own well-being over others.
  • The Illusion of Optimism and Control: We may underestimate risks when taking on new ventures.
  • The Sunk Cost Fallacy: Continuing to invest in an endeavor that's not working.

Illusion of Superiority

• We tend to view ourselves as more fair, honest, and ethical than others.
• Individuals with true integrity question their own motives.

Strike a Balance Between Intuition and Critical Thinking

• System 1: Instinctual "gut" reactions; immediate, fast thinking.
• System 2: Analytical, slower, critical thinking.
• Ethical judgment often happens quickly and instinctively.
• It's important to know when to trust your gut and when to pause and engage in critical thinking.

Key Takeaways

• Many employees rely on management or peers for moral guidance.
• Employees' cognitive moral development level significantly influences their ethical decision-making.
• Individuals with an internal locus of control tend to make decisions based on ethical principles rather than self-interest.
• It's essential to be aware of the effects of System 1 (fast, intuitive thinking) and System 2 (slower, analytical thinking).