Ethical Awareness and Judgment Dynamics

Study Notes

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.

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.

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.

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.

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.

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.

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.

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).