Ethical Decision Making In Organizations

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Ethical decision making is defined as the process of identifying a problem, evaluating it and provide alternatives and choosing alternatives in a manner consistent with ethical principles. In order to make ethical decisions, it is necessary to differentiate between what is good and bad and eliminate unethical alternatives and select the best ethical alternative amongst all the options. Ethical decision making plays an important part in the business environment. This is so due to that fact that at one point or another, employees may start to question his or her morals when a difficult work situation comes along. Moreover, in modern organisations today, employees frequently find themselves facing ethical dilemmas at work. In the society today,…show more content…
However, how exactly does leadership contribute to the development of ethical decision making for modern organisations? Let’s take L'Oréal S.A. for an instance. L'Oréal S.A. is a cosmetic and beauty organisation with its headquarters located in France. L’Oréal has been awarded the world’s most ethical company for six times under the leadership of its Vice President and Chief Ethics Officer. Not only that, L'Oreal was also one of the first companies in France to establish a Code of Business Ethics L’Oréal follows four ethical principles which are: Integrity - because acting with integrity is vital to building and maintaining trust and good relationships. Respect - because what we do has an impact on many people’s lives. Courage - because ethical questions are rarely easy but must be addressed. Transparency - because we must always be truthful, sincere and be able to justify our actions and decisions. ("Our Values: Passionate About Cosmetics, Innovation, A Quest Excellence - L’Oréal…show more content…
L'Oreal's corporate culture gives a second chance to its employees. According to François Dalle, the former chairman of L’Oréal (Fayolle, A., Basso, O. & Legrain, T. 2008) said “Without mistakes, no change is possible, hence no possible evolution or progress” if they made mistake, Instead of reprimanding employees, managers would be there to correct and if they made mistake, instead of reprimanding them, the managers would be there to correct their mistake.This has allow management to build a positive relationship with the
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