Ethical Leadership and the Psychology of Decision

Ethical Leadership and the Psychology of DecisionMaking

Most discussions of ethical conflict within a business organization are dominated by the assumption that executives are constantly faced with a tradeoff between ethics and profits. The discussions almost seem to assume that ethical behavior is unprofitable and that executives will always be torn between doing the ethical thing and the profitable thing.

The focus of this study is quite different. It is the contention here that most unethical behavior in organizations emerges from psychological tendencies. These psychological tendencies influence executive decisionmaking and lead to unethical behavior. The foundation article for this study is an article by Messick and Bazerman (1996) in which they contend that our theories about the world, other people, and ourselves shape our decisionmaking process. According to the authors, understanding our own personal belief systems in these areas can help us to make better, more ethical decisions.

The three different domains that Messick and Bazerman (1996) focus on are the world, other people, and ourselves. It is our theories about each one of these which comprise our belief system. People make decisions, including ethical decisions, based on their belief systems.

Theories about the world include an understanding of how the world operates, an understanding of consequences, the judgment of risk, the perception of causes, and a focus on peo

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for shareholders strips away that part of ourselves that needs to thrive. . . I will show how Tom's of Maine fits its commitment to the common good into its business strategy without undermining profits. If you nurture the soul of your business, not only can you compete with the biggest players in the game, you will add meaning to your work and make a real contribution to society (Chappell, 1993, p. Xv). It is apparent that this is a statement about an underlying belief system. There are several assumptions, and statements, in here that relate to a particular view of the world and ethical decisionmaking. For example, he notes that he "believes" that a profit focus is inadequate. He defines a new position which includes both the "common good" and "profits." Finally, he asserts that nurturing morality, and ethical decisionmaking in business will make an individual even more competitive, while adding personal meaning and contributing to society. Assumptions about Others It seems like the primary assumptions about the world that influence our decisionmaking are those about the nature of the world and about the nature of other people. Attribution theories focus on helping us understand how people make attributions and how t

Category: Psychology - E