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CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence

In resolving a workplace ethical dilemma, a finance head first identifies the facts, then lists the stakeholders affected, generates alternative actions, and tests each against the company's code of conduct and laws before choosing and later reviewing the result. Which feature of this approach is most important for it to be considered a sound ethical decision-making process?

The key feature is evaluating each alternative against ethical values, laws, the code of conduct and the impact on all stakeholders before deciding. Profit maximisation or deference to seniority does not ensure an ethical outcome.

  1. AEvaluating alternatives against values, rules and stakeholder impact before decidingCorrect
  2. BChoosing the alternative that gives the highest short-term profit
  3. CFollowing whatever the senior-most person suggests
  4. DAvoiding documentation so that the matter stays confidential

Explanation

Sound ethical decision-making weighs options against ethical principles, laws, the code of conduct and impact on stakeholders. Profit alone or mere obedience to seniority does not make a decision ethical, and skipping documentation reduces accountability.

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