In a short essay, explain the four-step framework for making ethical decisions. Provide an example of how the framework can help managers resolve ethical dilemmas

What will be an ideal response?

The four-step framework for making ethical decisions proceeds as follows.

1. Recognize an Ethical Problem: The first step is to acknowledge the presence of an ethical problem. Ask questions such as: Is there something wrong? Is an ethical dilemma present? Is there a situation that might harm personnel, customers, the community, or the nation? In international business, recognizing the issue can be tricky because subtleties of the situation may be outside your knowledge or experience. Often, it is best to rely on your instincts — if some action feels wrong, it probably is.
2. Get the Facts: Determine the nature and dimensions of the situation. Have all the relevant persons and groups been consulted? What individuals or groups have a stake in the outcome? How much weight should be given to the interests of each? Do some parties have a greater stake because they are disadvantaged or have a special need?
3. Evaluate Alternative Courses of Action: Identify potential courses of action and evaluate each. Initially, consistent with the pyramid of ethical behavior, you should review any proposed action to ensure it is legal. If it violates host or home country laws, or conflicts with international treaties, it should be rejected. Next, you should review any proposed action to ensure it is acceptable according to company policy, the firm's code of conduct, or its code of ethics. If discrepancies are found, the action should be rejected. Finally, the manager should evaluate each proposed action to assess its consistency with accepted ethical standards, using the five approaches to evaluating ethical dilemmas.
4. Implement and Evaluate Your Decision: Implement your decision. Then evaluate it to see how effective it was. How did it turn out? If you had it to do again, would you do anything differently?

The steps in this framework will help managers arrive at appropriate solutions to ethical dilemmas. As an example, a manager might visit a company factory in Colombia, where he discovers child labor. Without the children's income, their families may go hungry, or the kids may turn to illicit activity, such as street crime. Having recognized the problem, the manager obtains more facts by consulting colleagues both at the plant and headquarters. He seeks information on the status of the employed children, as well as local law and customs on child labor. He then evaluates possible solutions, ensuring they are legal and consistent with company policy. Keeping the five ethical standards in mind, he evaluates each proposed action. Finally, he chooses the best one and acts on it.

Business

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