Leader Ethical Decision-Making in Organizations: Strategies for Sensemaking

Organizational leaders face environmental challenges and pressures that are subject to moral hazards. Given the dynamics of modern organizations, this moral hazard is very strict. The traditional ethical decision model (EDM) is an inappropriate framework to understand how leaders can deal with ethical dilemmas under uncertainty and ambiguity. The perceptual model shows the leader EDM more accurately and explains the personal, social and environmental constraints. To form a conceptual model of the leader EDM, use the semantic formulation method as the basis for modifying and extending the previous EDM model. In addition, the fundamental elements of the model, ie constraints and strategies, stand out. Four training strategies (emotion adjustment, self-reflection, prediction, and information integration) have been proposed and described to help leaders manage the ethical dilemma within the organization. Empirical testing shows that strategic tactical applications can help leaders understand complex and ambiguous moral dilemmas and promote ethical behavior. Such a remuneration strategy should be at the heart of the organizational ethics initiative at the leadership level.

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Thiel, C. , Bagdasarov, Z .; , Harkrider, L .; , Johnson, J .; & MANFORD, M. (2012). Strategy to raise leaders' moral decision-making awareness in organization Journal of Business Ethics 107 (1), 49-64. DOI: 10.1007 / s 10551-012-1299-1

Complex environments are ongoing challenges in raising awareness within the organization. Permanent ambiguity constantly puts pressure on the organization to modify interaction patterns, information flow, and decision making. The organization strives to resolve unstable situations, ambiguous contradictory explanations, and various cognitive dilemmas. This creates the need for an innovative approach to formulation of meaning. Since agility is required for navigation complexity, we can call these new methods "agile conscious awareness."

Organizational leaders face environmental challenges and pressures that are subject to moral hazards. Given the dynamics of modern organizations, this moral hazard is very strict. The traditional ethical decision model (EDM) is an inappropriate framework to understand how leaders can deal with ethical dilemmas under uncertainty and ambiguity. The perceptual model shows the leader EDM more accurately and explains the personal, social and environmental constraints. To form a conceptual model of the leader EDM, use the semantic formulation method as the basis for modifying and extending the previous EDM model. In addition, the fundamental elements of the model, ie constraints and strategies, stand out. Four training strategies (emotion adjustment, self-reflection, prediction, and information integration) have been proposed and described to help leaders manage the ethical dilemma within the organization.

Using ethical principles while understanding values, ethics and ethics, employers and leaders can formulate a framework for effective decision-making through formal strategies. The intention to add ethical principles to the decision-making structure indicates a desire to promote fairness and to prevent the occurrence of potential moral problems. The Corporate Ethics Program is part of the organization's lives, and organizations can use such meetings to further discuss value, ethics, and ethical implications in the business environment. Organizational ethics should protect individuals and address corporate ethical values ​​in the decision-making process.