1. Ethical Decision Making and Ethical Leadership
Ethical Decision Making for Business 8e Fraedrich/ Ferrell/Ferrell
C H A P T E R 5
CHAPTER 5
Ethical Decision Making and Ethical Leadership

2. Chapter Objectives
To provide a comprehensive framework for ethical decision making in business
To examine the intensity of ethical issues as an important element influencing the ethical decision making process
To introduce individual factors that may influence ethical decision making in business
To introduce organizational factors that may influence ethical decision making in business

3. Chapter Objectives (cont.)
To explore the role of opportunity in ethical decision making in business
To explain how knowledge about the ethical decision making framework can be used to improve ethical leadership
To provide leadership styles and habits that promote an ethical culture

4. Chapter Outline A Framework for Ethical Decision Making in Business
Using the Ethical Decision Making
Framework to Improve Ethical Decisions
The Role of Leadership in a Corporate Culture
Leadership Styles Influence Ethical Decisions
Habits of Strong Ethical Leaders

5. The Ethical Decision Making Process
In business, people make decisions differently than at home
The ethical decision making process in business includes ethical issue intensity, individual factors, and organizational factors, such as corporate culture and opportunity

6. Framework for Understanding the Ethical Decision Making Process in Business
Ethical-Issue Intensity
Individual Factors
Organizational Factors
Opportunity
Business Ethics Evaluations and Intentions

7. Using the Framework to Improve Ethical Decisions
It is impossible to objectively determine right and wrong
Having a thorough knowledge about how ethical decisions are made will not solve ethical problems
Ethical decision making in business does not rely strictly on the personal values and morals of individuals

8. Leadership in Corporate Culture
Leadership: The ability or authority to guide and direct others toward achievement of a goal
Leadership styles influence organizational behavior

9. Leadership Styles Coercive leaders Authoritative leaders
Affiliative leaders
Democratic leaders
Pacesetting leaders
Coaching leaders
The most successful leaders do not rely on one style of leadership but alternate their technique based on the characteristics of the situation.

10. Types of Leaders
Transactional leaders
Transformational leaders

11. Habits of Strong Ethical Leaders
Ethical Leaders Have Strong Personal Character
Ethical Leaders Have a Passion to Do Right
Ethical Leaders Are Proactive
Ethical Leaders Consider Stakeholders’ Interests
Ethical Leaders Are Role Models for the Organization’s Values
Ethical Leaders Are Transparent and Actively Involved in Organizational Decision Making
Ethical Leaders Are Competent Managers Who Take a Holistic View of the Firm’s Ethical Culture