Four More Steps for Making Good Ethical Decisions

By Mark Fulton

Humorist Will Rogers once said, “I would rather be the man who bought the Brooklyn Bridge than the one who sold it.” Not everyone feels that way about the importance of ethics in life and business. Sadly, there are plenty of people out there who would not only sell you the Brooklyn Bridge, they’d sell you the Golden Gate Bridge as well––and tell you what a great set of bookends you’d have.

Disreputable businesspeople are as old as commerce itself. The first guy to ever buy a used camel probably got one with more miles on it and a meaner disposition than he’d bargained for.

The first consumer warning was issued in Latin: caveat emptor, or let the buyer beware. And let’s not even talk about what the Indians got for the island of Manhattan. As long as there is money to be made in cutting corners, misrepresenting a product or bilking the consumer, there will be people willing to do so.

But the truly outrageous rip-offs aren’t the big problem. Sooner or later disreputable people get a little too greedy, do something really stupid and get caught.

Instead, it’s the small, seemingly innocuous, slightly improper decisions made every day by decent people that really hurt American business. Businesspeople who make unethical decisions––even in little things––nudge their companies onto a slippery slope that leads to deeper consumer distrust and greater government control.

In my last column I shared four of eight steps for making an ethical decision. The steps were framed as questions to be answered during the decision-making process:

1. What are the facts?
   
2. What are my alternatives?
3. What parties will be affected?
4. What do I owe these parties?
   Here are the remaining steps:
5. What would produce the greatest benefit for all parties?
   
   One way to measure the rightness of a decision is to weigh the benefits for those who will be affected by it.
   
   First, identify and analyze the economic and social costs of a decision. Then subtract the costs from the benefits. If the net result benefits most of the parties affected rather than just a special few, the action is more likely to be ethical. If two possible actions are compared, then the one with the best positive result for the most people is generally preferable.
   
   A cautionary note is in order here. Making a decision that produces the greatest good for the greatest number should not result in severe harm to an individual or to small groups. While the concept of majority rule may work in lawmaking and settling other deliberations, morality dictates that the rights of an individual to be safe and free are paramount.
   
   
6. Am I confident that my decision will be as valid over a long period of time as it seems now?
   Time alters circumstances. What may seem right for today could produce detrimental results in the future. That’s why it’s important to look ahead as much as possible when making an ethical decision.
   
   Corporate value systems are susceptible to erosion because of changes in financial status, external political influences, personnel levels, leadership philosophies and other factors. Ideally, an ethical decision should take into account the possibility of change. Sometimes the decision to endure short-term discomfort for the sake of long-term integrity requires a great deal of rational reasoning––and courage.
   
   
7. Under what conditions would I allow an exception to be made?
   The need for consistency in decision-making is obvious. Nothing will undermine your authority and others’ perceptions of your fairness faster than making a decision that exempts some individuals or groups from compliance.
   
   However, common sense dictates that occasions will arise when the rules of the game may change. Virtually every decision is accompanied by the possibility that unique conditions may require an exception to it. Therefore, you should ask yourself what conflicting principles, circumstances or time constraints would provide a morally acceptable basis for making an exception to your decision. Thinking these possibilities through in advance and planning for them will keep you from having to do some fancy footwork later on.
   
   
8. Would I want to explain my decision on national television?
   Imagine Mike Wallace and a television crew from “60 Minutes” knocking on your office door and inviting you to share your judgement with the world. Whether or not you can stomach the thought of disclosing the details of a decision in the national media is a good measure for the ethical comfort level of your choice. If you cringe at the thought of revealing your decision to Mr. and Ms. America, there may be a reason for going back and doing more soul-searching before making the decision final.
   
   

I believe that the ethically right decision will ultimately prove to be the economically right decision as well. Ignoring the importance of ethical decision-making in your business is akin to sailing a ship without a chart or a compass. You wouldn’t buy the Brooklyn Bridge, but you could wind up sailing into it. IB

Mark Fulton is president of CoachCare, a business-coaching service based in Norfolk. For more information, visit www.coachcare.com or call (757) 533-9650.

Copyright 2000 © Mark S. Fulton