Developing Ethical Solutions in Organizations - Business Decision Making - ثاني ثانوي

Lesson 5 Chapter 6 www.ien.edu.sa Developing Ethical Solutions in Organizations 5-1 Developing Ethical Solutions When Ethics are standards of behavior that direct how people should act. Ethics involves making moral decisions and choosing between right and wrong. applied to problem solving, ethical behavior leads to appropriate decisions, not necessarily the optimal ones. As you work to solve problems, consider the situation from an ethical, as well as practical, perspective. One consequence of concentrating tours in a few areas is that adventure travel can create ecological stresses, such as increased demand on water resources, the destruction of animal habitats, and noise and light pollution. 1. Identify ethical issues Most decisions have an ethical dimension, so you should identify and con- sider the ethics of each decision you make. Could your decision harm some- one else? Should you consider more than simply finding the most efficient solution? What are the long-term implications of your decisions? Consider other people and groups that have a stake in the outcome and keep their perspectives and interests in mind. The Basic Law (in Article One) states that the constitution of Saudi Arabia is "the Holy Qur'an, and the Sunna (Traditions)" of the Islamic prophet Muhammad (Peace be upon him). The country's traditions and customs in government, businesses, and communi- ties as a whole are derived from Islamic guidelines and laws. Following and implementing those laws are very important in establishing a stable and sus- tainable successful economic system. Organizations and employees in Saudi Arabia strive to operate in accordance with Islamic ethics, for instance, by the Zakat, tax, and customs authority imposing Zakat as one pillar of Islam. 2. Compare costs and benefits Your solutions can create both benefits and costs for yourself and others. So-called tough decisions include elements of both. Making decisions involves weighing the pros and cons, and choosing the best trade-offs (see Table 6-4)—in the case of adventure travel, the increase in tours in an area will stimulate the local economy, providing jobs and generating tax 178 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 178 30/06/2023 14:28

وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 179 revenue. Identify the options that produce the most benefit and do the least harm. Many professional organizations develop codes of ethics, which are often available online. For instance, Saudi Basic Industries Corporation (SABIC https://www.sabic.com/en), a chemical manufacturing company, has published its code of ethics (https://www.sabic.com/ar/about/our-com- pliance-culture/sabic-codeof-ethics) on its Web site. Imagine you are trying to improve the environment in your local area. You want to encourage residents to make use of the city's recycling services. You also want to add your achievements to your CV. However, you still have to complete your homework and other responsibilities. There are a number of actions you can take, but each comes with different levels of risk and reward. For instance: • . Design a leaflet that promotes and explains recycling services to the community. This could be very effective, but will take quite a lot of time. You will also need to take time to deliver it to people in the com- munity. Therefore, we can say this option has a high payoff but many drawbacks. Make sure you recycle items in your own home. This is easy to do, but will have a relatively small impact. Research and write a 40-page report about the damaging effects of pollution. This will take a long time to do, and will have a limited impact on the community. Get involved with projects that are already operating to deal with this issue. Volunteer an amount of your free time that still allows you to complete your homework and other responsibilities. You can use a chart to analyze the trade-offs you will need to make, like the one in Table 6-4. TABLE 6-4: Compare payoffs and drawbacks to your plans in a table, showing all the actions you can take High payoff Low payoff Few Get involved with projects that are already Make sure you recycle items in your own drawbacks operating to deal with this issue. home. Many Design a leaflet that promotes and explains drawbacks recycling services to the community. Research and write a 40-page report about the damaging effects of pollution. Decision-Making Processes in Organizations 179 30/06/2023 14:28

QUICK TIP The ideal solution is usually one that benefits everyone involved. QUICK TIP Ask whether your solution simply moves the problem to another area. 3. Consider other people Your decisions frequently affect others in an organization. People will remem- ber how you treat them long after the problem that you are working on has been forgotten. Be sensitive to how your actions affect others—both those within and outside of your immediate workgroup. Make decisions that cause the fewest drawbacks for others. Look beyond your own objectives and consider the organization as a whole. Consider each alternative and the people who would be affected by it. Solutions that serve the interests of a broader group are preferable to those that only benefit certain individuals. Why is it important to con- sider everyone when making big decisions? 180 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 180 DEFINITIONS Business ethics: A collection of principles and rules that define right and wrong conduct for an organization. Benefits: What an organization, its employees, customers, or stakeholders gain from the production of an item or the provision of a service. Costs: The value of what an organization spends, in time, money, or both, to produce an item, provide a service, or carry out an item of work. 30/06/2023 14:28

4. Be true to yourself and your Islamic beliefs When you solve problems, you are contributing to your reputation—either positively or negatively. Not only will you be judged on the success of your solution, but also on the steps you took to accomplish the task. As you make decisions, ask yourself if the option you are considering is consistent with the sort of person you want to be, and your Islamic beliefs. Always assume that other people will be aware of what you are doing. Never compromise your values for some short-term benefit. TABLE 6-5: Ethical solutions do's and don'ts Guidelines Do Identify ethical ⚫Consider whether your decision issues Consider costs and benefits benefits everyone involved • Look for ethical alternatives to the most efficient or practical solution if necessary • Weigh the pros and cons of each decision, including ethical factors • Determine whether the end result justifies the means according to ethical standards • Find options that produce the most good and do the least harm. Consider other Be sensitive to how your actions people affect others inside and outside the organization Serve broad interests Be true to yourself Consider the objectives of the organization as well as your own • Look for solutions that serve the interests of a broad group • Remember that you are judged on the success of your solution and on the steps you took to accomplish the task Don't • Don't make decisions that cause harm to others • Don't forget that others have a stake in the outcome of your decision • Don't select an option that has far more costs than benefits • Don't treat others poorly as you make decisions and solve problems; they are unlikely to forget • Don't make a decision solely on how it benefits you Don't compromise your values for a short-term benefit YOU TRY IT Practice developing ethical solutions by making an ethical decision based on a scenario. Complete the following steps. 1. Read the following description of an ethical dilemma. Ethical dilemma: The Farasan Islands are one of the most popular destina- tions for Specialty Travel customers. The islands are home to breathtaking marine life, vibrant ecosystems, and tropical beaches. However, the more people take the unique underwater trip and explore the islands' colorful marine life and coral reefs, the more they threaten this natural attraction. Decision-Making Processes in Organizations وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 181 181 30/06/2023 14:28

Tourists introduce pollution and disturb the natural ecosystems. Can Specialty Travel ethically continue to offer tours to the Farasan Islands? If so, how? 2. In your notebook, describe how you would make a decision in this scenario and why. REVIEW QUESTIONS 1. Ethical problem solving leads to solutions that: a. produce the most good while doing the least harm b. serve narrow interests c. are perfect d. have more costs than benefits 2. Which of the following is not an example of an ethical dilemma? a. Cut expenses, though many employees will lose their jobs b. Reduce quality, even if it makes a product less safe c. Sell new products abroad, though they are banned in your country d. Increase sales of services, though the services are new 3. Which of the following is an ethical consideration when making a decision: a. how much money will be made b. how it will impact my career c. how it will affect the environment d. what my colleagues will think 4. In your free time, use the Internet to research a Saudi Arabian company's code of ethics, and answer the following questions: a. What is the name of the company? b. What does the company do? c. What does it say about environmental issues? d. What does it say about Islamic business ethics? 182 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 182 30/06/2023 14:28