Ethical test/framework James Rhoton Southern New Hampshire University BUS-206
Ethical Decision Making Having a standard operating procedure for ethical decision-making can benefit businesses both in terms of their reputation in society and legally. Conducting business ethically can also lead to customer retention and loyalty. Studies have shown that over half of U.S. consumers avoid buying from companies they perceive as unethical. Building trust with customers can directly enhance branding and increase sales. The WH Process of Ethical Decision Making is one approach businesses can use to guide their decision-making process. Applying the WH When making business decisions, it's important to consider the stakeholders who will be affected. These may include consumers, owners or investors, management, employees, the community, or future generations. The WH framework can help identify these stakeholders and ensure that decisions are made ethically. Managers can use strategies like public disclosure, universalization, and the Golden Rule to make ethical decisions. (Kubasek, 2021, p. 23) W-Who It's important to identify all stakeholders in the WH framework, especially for larger businesses where decision making affects more people. It's not just the business, CEO, or owner involved in decisions, as there are often other stakeholders such as partner companies. Ignoring important stakeholders is a significant ethical concern in decision making, as stated in Dynamic Business Law (Kubasek, 2020, p. 23). H-How
When it comes to making ethical decisions, the first step is to consider your values. Values are positive ideals that represent what is good or desirable (Kubasek, 2020, p. 24). Businesses use these values to guide their decision-making process and often document them for reference by society. The "Golden Rule" is a widely recognized ethical principle that businesses can apply to make ethical decisions. It suggests treating others the way we want to be treated, which helps businesses maintain their ethical standards within society (Kubasek, 2020, p. 25). Test The WH framework is a powerful tool for testing ethical considerations when making decisions. In our hypothetical scenario, we can apply this framework to decide whether to notify both law enforcement and customers. Taking into account the stakeholders involved, including the business, the owner, customers, Steve, and Carlos, we can determine the best course of action. By considering Mountain Top View's core values of protecting customer data and following the "Golden Rule," we can confidently conclude that notifying both law enforcement and customers of the breach is the ethical choice. Failing to do so would not align with the "Golden Rule," as most people would expect to be informed of such an issue.