DEJ 11

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The concept described in the quote, “Another factor that may exaggerate the impact of moral intensity on moral judgment and behavior is the tendency of people to utilize simplifying heuristic principles to evaluate the likelihood of uncertain events.” The quote’s idea—that humans assess uncertain situations using simple heuristics—is extremely applicable to real-world decision-making, especially in high-stakes sectors. Many decision-makers in the banking and investing industries, for instance, relied on oversimplified models and presumptions on market risk and stability during the 2008 financial crisis. Because of these heuristics, they failed to consider the ethical and practical ramifications of authorizing dangerous financial products like subprime mortgages. These short cuts reduced the “moral intensity” of their choices by abstracting the real-world repercussions—foreclosures, job losses, and economic instability—into statistics and probabilities. This situation reflects the concept in the text: moral judgment can become distorted when heuristic reasoning lowers the anticipated chance of unfavorable events. Heuristics are both a useful tool and a possible ethical hazard since real-world judgments are confounded by ambiguity and time constraints, unlike the controlled environment of theoretical ethics. A significant distinction, though, is the scope of the impact: although the moral failings of an individual may have an impact on a small group of people, corporate actions based on simplistic assessments may have a significant impact on millions of people, highlighting the necessity of moral leadership.

https://moodle-courses2425.wolfware.ncsu.edu/pluginfile.php/654253/mod_resource/content/1/Ethical_DM_Individuals_Organizations.pdf