MAKERERE UNIVERSITY BUSINESS SCHOOL

BUSINESS ETHICS ASSIGNMENT

COURSE: BBA111

NAME: ACOM MARY GORETTY

REG NO: 14/U/16678/PS

STUDENT NO: 214010041

SUMMARY OF FACTORS INFLUENCING ETHICAL DECISION MAKING

Pre conventional level with stages where individual evaluates ethical issues in the light desire to
avoid punishment or seek personal reward as this is associated with children.
Conventional level with stages where individual assesses ethical issues on the basis of fairness to
others and desire to conform societal rules and expectations hence person looks at him/herself to
determine right or wrong.
The principled level where individual is likely to apply principles to ethical issues in an attempt
to resolve them. According to Kohlberg, a principled person looks inside him/ herself and less
likely to be influenced by situational expectations.
The cognitive moral development framework offers powerful explanation of individual
differences in ethical reasoning.
Situational factors in business ethics affecting decision making include work groups, supervisors,
organizational policies and procedures, organizational codes of conduct, and the overall
organizational culture. Each factor causes a person to reach different conclusions about ethical
issues individually and collectively.
Code of conduct also must contain communication mechanism for dissemination of the
organizational ethical standards and the perceived wrong doing within the organization by
employees, and also ensure that perceived ethical violations are adequately investigated and that
wrong doing is punished.
Ethical culture helps members of the organization to know what is acceptable and not acceptable.
It involves a set of values, beliefs, norms and ways of solving problems shared by the members
of an organization of any size both profit and non-profit.
Corporate culture of organization comprises of all aspects and elements of organization which
influence ethical conduct of its members like behavioral pattern, concepts, values, ceremonies
and rituals that take place in the organization and must become shared values and assumptions of
the organization (following Ferrell Fred rich and Ferrell 2011
Corporate culture affects all aspects of the organization for example productivity level as it
influences employees behaviors, performance, commitment, self-confidence, ethical behavior,
hence organizational culture is a core determinant of organizational success through changing
work behavior.
The organizational culture and productivity enforcement is done when individual comes to the
organization with completely different culture and beliefs from his own, he must internalize

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himself first to either cope with them and organization must put in place adequate motivational
factors to improve their standards of living thus achievement of higher productivity.
Ethical leadership involves both acting and leading ethically over time and all the time. This is
due to reasons like; modeling ethical behavior to the organization and community, building trust,
bringing credibility and respect, leads to collaboration, creation of a good climate in the
organization, to occupy the moral high ground, right way to go and to afford self-respect. The
factor of good leadership in the organization can lead to organizational goals being achieved.
Ethical leadership can be practiced by individual agreeing his ethical framework with
organizations framework, vision and mission and ethics should be a topic of discussion, out in
open and connected to action. The specific components of leadership must also be followed like
treating everyone with fairness, honesty, and respect all the time, treat the organization the same
way you treat other people, collaborate inside and outside the organization, communicate, take
culture sensitivity and competence seriously, work to be inclusive take readership responsibility
seriously and be accountable for fulfilling.
With successful ethics and compliance programs the expected results include; Reduced
observation of any type of misconduct, increased reporting among those who observe
misconduct, increased satisfaction with managements response to reports of misconduct, reduced
exposure to the situations that could results misconduct, reduced pressure to compromise ethics
standard or the law.
Integrating ethics in the organizational decision making involves the consideration of five ethical
perspectives; justice, common good, virtue, utility and rights
In conclusion, the factors influencing ethical decision making include; individual factors,
organizational, and leadership factors among others.

COMPONENTS OF ETHICS INCLUDES THE FOLLOWING

Moral judgment

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This is the ability to come up with moral conclusion on how you conceptualize or standardize the
concept. It can be by deciding which action is right or wrong for example with dilemma of
donating for campaigns of Member of Parliament instead of giving to cancer patients
Moral character
This is a basis of peoples behavior or integrity because where there is character also integrity.
With moral character you can implement what you decided like customer care, charity. And it
involves perseverance courage and others to correct things you know are wrong.
Moral sensitivity
Ability to interpret situations and activities in the consequence of your action. Someone is in the
situation of being quick in analyzing and reacting at the situations and actions at hand. For
example analyzing that cheating in business environment can affect your integrity and good
relationship with those around you.
Moral motivation
Prioritizing moral values and virtues of life to encourage others work towards achieving the set
objectives or goals. Motivation brings about respect, loyalty, and good reputation to the business
and good productivity.
Moral intention
Ability for people in the community to see all issues as ethical one that motivates the lives of
everyone in the community. For example in the organization environment, ability to make every
one work towards achieving organizational goals. Employees in the organization are trained
motivated and rewarded for the good morals portrayed in the organization.
Moral awareness
Ability to recognize that moral issues exist in the organization or community and that ethics
codes are relevant depending on the character of an individual. Moral awareness can be done
through sensitization that is by calling for meetings, trainings and others.

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