Decision Criteria in Ethical Dilemma Situations: Empirical Examples from Austrian Managers

Abstract

Abstract:This paper is the result of an empirical research project analysing the decision behaviour of Austrian managers in ethical dilemma situations. While neoclassical economic theory would suggest a pure economic rational basis for management decisions, the empirical study conducted by the authors put other concepts to a test, thereby analysing their importance for managerial decision making: specific notions of fairness, reciprocal altruism, and commitment. After reviewing some of the theoretical literature dealing with such notions, the paper shows the results of an online survey working with scenarios depicting ethical dilemma situations. By judging such scenarios the respondents showed their preference for the named concepts, though with different degrees of confirmation.The results (with all limitations of an online survey in mind) support the theoretical work on the named concepts: Fairness elements (including Rawlsian principles of justice and an understanding of fairness as conceived by a reference transaction) play a major part in management decisions in ethical dilemma situations. Also, commitment as a behaviour that sticks to rules even if personal welfare is negatively touched, and reciprocal altruism as a cooperative behaviour that expects a reciprocal beneficial action from other persons have been concepts used by Austrian managers when analysing ethical dilemmas. The article also tries to put the results into a comparative perspective by taking into account other studies on ethical decision factors conducted with e.g. medical doctors or journalists, and by discussing intercultural implications of business ethics.

Environmental Initiatives and Disclosures by Large companies: The Views of Investors

“…Most environmental dilemma studies have been undertaken as part of strategic decision-making with special reference to ethics and moral judgement by managers (e.g., Woiceshyn, 2011;Litschka et al, 2011) or in the form of simulation studies (Tanimoto, 2005). Few studies address the investors' dilemma in relation to the mitigation of environmental problems (Aitken, Chapman & McClure, 2011).…”

Sustainable development of small companies: Investors' perspectives

“…This study explores the use of case-based dilemmas to understand the choices investors would make with reference to a hypothetical small mining company. Most environmental dilemma studies have been undertaken as part of strategic decision-making, with particular reference to ethics and moral judgment by managers (Litschka, Suske, & Brandtweiner, 2011;Woiceshyn, 2011) or in the form of simulation studies (Tanimoto, 2005). Few studies address the investors' dilemma in relation to the mitigation of environmental problems (Aitken et al, 2011).…”

Ethical Leadership: The Effect on Employees

“…Executives in organizations have a different view of ethical leadership. Their understanding borders on the angle of simply having "good characters and the right values" (Litschka, Suske, & Brandtweiner, 2011). Such managers admit that by obeying the laws and regulations is the foundation of ethical leadership and thus, it becomes notable that ethical leadership revolves around the primary responsibility of dealing with conflict among employees and demonstrating a guiding platform for instructing them on the right thing to do.…”

“…This approach helps in elevating the moral awareness of the followers leading to a highly motivated workforce, high rate of job satisfaction, self-actualization and increased effective in service delivery. In light of this, the views of Litschka, Suske, and Brandtweiner (2011) demonstrate a critical appreciation of contemporary management placing ethical leadership on the axis that encompass the consistence in an effort to foster ethical behavior. In light of this, Giessner and Quaquebeke (2010) point out that through ethical leadership business and activities in public sector have succeeded in investing into more expanding and hybrid public policy initiatives allowing a high production index.…”