INSTITUTE OF PUBLIC ADMINISTRATION AND MANAGEMENT (IPAM)

UNIVERSITY OF SIERRA LEONE (USL)

MODULE TITLE: ETHICS AND PROFESSIONALISM
SEMESTER: SECOND
MODULE LEVEL: DIPLOMA (YEAR TWO)
Course: Diploma in Information Systems
Lecturer: Michaela Denison-George (Mrs.)
Contact Number: 076-281-527

Lecture Notes 2 – Ethical Decision Making

Ethical Issues

What is an ethical issue? – An ethical issue is an identifiable problem, situation or opportunity

that requires a person to choose from among several actions that may be evaluated as right or
wrong, ethical or unethical. In business such a choice often involves weighing monetary profit or
personal benefits against what a person considers appropriate conduct. An ethical issue is present
in a situation when the actions of a person or organisation may harm or benefit others. Examples:
Should an engineer agree to divulge his former employer’s trade secrets to ensure that he gets a
better job with a competitor? Should a sales person omit facts about a product’s poor safety
record in his presentation to a customer? Such questions require the decision maker to evaluate
the ethics of his or her choice. Many ethical issues may seem straightforward and easy to resolve,
but in reality, a person often needs several years of experience in business to understand what is
acceptable or ethical.

An ethical issue is a situation or problem that requires a person or organization to choose

between actions that may be considered morally right or wrong. It often involves questions
about what is fair, just, honest, or respectful, and can arise in personal, professional, or social
contexts.

Key Features of an Ethical Issue:

 Involves moral principles or values (e.g., honesty, fairness, respect).

 Requires a choice or decision between competing actions or interests.
 May involve conflict between personal values and professional duties.
 Often has consequences that affect others (people, organizations, society).

Examples:

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  A doctor deciding whether to keep a patient’s information confidential or report it to
authorities for safety reasons.
 A business choosing between using cheaper labour with poor working conditions or
paying more for ethical treatment of workers.
 A student deciding whether to report a friend who cheated on an exam.

In short, ethical issues challenge individuals to consider what is the right thing to do, not just
what is legal or profitable.

One of the principal causes of unethical behaviour in organisations is overly aggressive financial
or business objectives. Many of these issues relate to decisions and concerns that managers have
to deal with daily. Many ethical issues in business can be categorized under: conflict of interest,
fairness and honesty, communications, business relationships and plagiarism.

1. Conflict of Interest
This exists when a person must choose whether to advance his or her own personal
interest or those of others. For example, a manager in a corporation must ensure that the
company is profitable so that its shareholders receive a return on their investments. If
he /she make decisions that give him/her more power or money but do not help the
company, then there is conflict of interest.
It is improper to accept bribes – payments, gifts or special favours intended to influence
the outcome of a decision. A bribe is a conflict of interest because it benefits an
individual at the expense of the organization or society.
2. Fairness and Honesty
Fairness and honesty are at the heart of business ethics and relate to the general values of
decision makers. Business people are expected to follow all applicable rules and
regulations. But beyond obeying the law, they are expected not to harm customers,
employees, clients or competitors knowingly through deception, misrepresentation,
coercion or discrimination.
3. Communications
These include false and misleading advertising, deceptive personal-selling tactics, lying
about product safety and quality, failure to provide enough information for consumers,
wrong labelling of products, failure to include warning labels on alcohol and tobacco, and
on movies and musical recordings rating their content, language and appropriate audience
age.
4. Business relationships
The behavior of business persons towards customers, suppliers and others in the
workplace may also generate ethical concerns. Ethical behavior within a business
involves keeping company secrets, meeting obligations and responsibilities and avoiding
undue pressure that may force others to act unethically.

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 It is the responsibility of managers to create a work environment that helps the company
achieve its objectives and fulfil its responsibilities. Organizational pressure may
encourage a person to engage in unethical activities e.g. invading others’ privacy or
stealing a competitor’s secrets. Managers who offer no ethical direction to employees
create many opportunities for manipulation, dishonesty and conflicts of interest.
5. Plagiarism
This is the act of taking someone else’s work and presenting it as your own without
acknowledging the person or mentioning the source. This becomes an ethical issue in
business when an employee copies reports or takes the work or ideas of others and
presents it as his or her own. A manger attempting to take credit for a subordinate’s ideas
is engaging in another type of plagiarism.

Ethical Dilemmas
Because ethical standards are not codified, disagreement and dilemmas about proper behaviour
often occur. An ethical dilemma arises in a situation when each alternative choice or behaviour is
undesirable because of potentially harmful or negative ethical consequences. It is difficult to
distinguish between right or wrong.
Ethical Dilemmas in the Workplace
The workplace poses a variety of ethical challenges to managers, teams, and employees. Some
examples of ethical challenges in the work place are:
1. Performance Appraisal
2. Employee Discipline
3. Romantic Relationship
4. Gift Giving
5. And many more

The solution to the above issues can be handled by referring to the three basic questions of
ethical dilemmas in business: Is it legal? Is it balanced? , Is it right?
FACTORS AFFECTING ETHICAL CHOICES
When managers are accused of lying, cheating, or stealing, blame is usually placed on the
individual or on the company in some situations. Most people believe that individuals make
ethical choices because of individual integrity, which is true; but it is not the whole story. Ethical
or unethical business practices usually reflect the values, attitudes, beliefs, and behavior patterns
of the organization’s culture; thus, ethics is as much an organizational as a personal issue. It can
be said that both the manager and the organization shape ethical decision making.

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Human factors
Managers bring specific personality and behavioral traits to the job. Personal needs, family
influence, and religious background all shape a manager’s value system. Specific personality
characteristics, such as ego, strength, self-confidence, and a strong sense of independence, may
enable managers to make ethical decisions.
Also, a number of other characteristics affect how managers make decisions about what is right
and what is wrong:

 Maturity. Some people, even as children or teenagers, have more ethical maturity than
others. Maturity is not necessarily related to chronological age.
 Professional experience. The less experience a person has with making ethical decisions,
the more difficult those decisions are—and the more likely some of those decisions will
be wrong.

 The ability to deal with uncertainty. Some people become rattled and cannot think clearly
when the pressure is on; others become very focused, rise to the occasion, and make
good decisions under difficult circumstances.

 Peer Influence and Social Pressure. People may follow the crowd or conform to avoid
conflict or rejection. Example: A student may stay silent about cheating because others
are doing the same.
 Consequences and Risk. Fear of punishment, job loss, or harm to reputation can
influence ethical choices. Example: A whistle blower might hesitate to report
wrongdoing due to fear of retaliation.
 Emotional State. Stress, anger, fear, or empathy can cloud judgment or lead to impulsive
decisions. Example: Acting unethically in the heat of the moment during a crisis.

Organizational factors
The values adopted by an organization are important, especially when we understand that most
people believe their duty is to fulfill obligations and expectations of others. All ethical decisions
are made within the context of our interactions with other people, and the social networks within
an organization play an important role in guiding people’s actions. For example, for most of us,
doing something we know is wrong becomes easier when ‘everyone else is doing it’

In organisations, an important influence on ethical behavior is the norms and values of the team,
department or organization as a whole. Research has shown that these values strongly influence
employee actions and decision making.
Corporate culture is another aspect of an organization that influences ethics. This is because it is
a major force that defines company values. Corporate culture serves to let employees know what
beliefs and behaviours the company supports and those it tolerates. If unethical behavior is
tolerated or even encouraged, it will become a routine. For instance, an investigation of theft and

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kickbacks in an oil company found that the cause was the historical acceptance of theft and
kickbacks. Employees were socializes into such values and adopted them as appropriate. In most
companies, employees believe that if they don’t along with the ethical values expressed, their
jobs will be in jeopardy or they will not fit in.
Other aspects of an organization, such as explicit rules and policies, the reward system, the
extent to which the company cares for its people, the selection system, emphasis on legal and
professional standards and the leadership and decision processes can also have an impact on
ethical values and manager decision making.
Guidelines for Making Ethical Decisions
The following guidelines will not tell you exactly what to do within a given context but will help
you evaluate the situation more clearly by examining your own values and those of your
organization.
The answers to these questions will force you to think hard about the social and ethical
consequences of your behavior.
1. Is the problem/dilemma really what it appears to be? If you are not sure, find out.
2. Is the action you are considering legal? Ethical? If you are not sure, find out.
3. If you do it, how will you feel about yourself?
4. Do you understand the position of those who oppose the action the action you are
considering? Is it reasonable?
5. Who does the action benefit? Harm? How much? How long?
6. Would you be willing to allow everyone to do what you are considering doing?
7. Have you sought the opinion of others who are knowledgeable on the subject and who
would be objective?
8. Would your action be embarrassing to you if it were made known to your family, friends,
co-workers, or superiors?

CODES OF ETHICS
When there is a void of ethical guide lines in a company, employees rely on personal value
systems. Creating a more standardized approach can be accomplished by developing a code of
ethics.
A code of ethics is a formal statement of ethics and values that is designed to guide employee
conduct in a variety of business situations. It is particularly useful for giving employees ways to
deal with conflict of interest, gift giving and receiving, communicating with competitors, and
making political contributions. More than 90% of large US Companies and almost half of
smaller firms have established codes of ethics. Codes are typically published as either corporate
credos or ethical policy statements. Also, many professionals such as Doctors, Lawyers,
Engineers, Literary Agents and College Lecturers have codes of ethics.

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Sources of an organisation’s Code of Ethics
Codes of ethics are formal standard and rules, based on beliefs about right or wrong, that
managers can use to help themselves make appropriate decisions with regard to the interest of
their stakeholders. Ethical standards embody views about abstractions such as justice, freedom
and equity. An organization’s code of ethics derives from three principal sources in the
organizational environment; societal ethics, Professional ethics, and the Individual ethics of the
organization’s managers and employee.

THE ORGANIZATION’S CODE OF ETHICS

SOCIETAL ETHICS The values and standards embodied in a society’s laws, customs,
practices, and norms and values. These are standards that govern
how members of a society deal with each other in matters
involving issues such as fairness, justice, poverty, and the rights
of the individual. Social ethics emanate from a society’s laws,
customs, and practices, and the unwritten attitudes, values, and
norms that influence how people interact with each other.

PROFESSIONAL The values and standards that group of managers and workers
ETHICS use to decide how to behave appropriately.

INDIVIDUAL ETHICS Personal values and standards that result from the influence of
family of family, peers upbringing, and involvement in
significant social institutions.

(George & Jones 2003)