DEJ 11

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This article discusses the growing focus on ethics within organizations, spurred by scandals like insider trading, defense contractor issues, and high-profile resignations. In response, many corporations have adopted codes of ethics, while academic interest in ethics has led to expanded research and courses, notably in business ethics journals and textbooks. Despite this, theoretical and empirical studies on ethical decision-making within organizations remain limited. The few existing models come primarily from psychology and marketing, with scholars like Trevino (1986), Rest (1986), and Ferrell & Gresham (1985) each offering distinct frameworks. For example: Rest’s Model (1986): A four-component process that includes recognizing a moral issue, making a judgment, setting moral intent, and acting accordingly. This model focuses on individual moral development. Trevino’s Person-Situation Model: Emphasizes that ethical decisions are influenced by a person’s moral reasoning and situational factors, like workplace culture. Ferrell & Gresham’s Marketing Model: Considers how individual factors (values, knowledge) and organizational factors (peer influence, corporate policies) affect ethical decision-making in marketing contexts. The article also introduces an “issue-contingent” model that suggests moral issues vary in intensity, influencing the decision-making process. It posits that moral intensity—the impact a decision has on others—is a significant component in understanding ethical behavior. This discussion is particularly relevant today as organizations and society grapple with complex ethical issues, like corporate accountability, privacy, and social responsibility. With increased public scrutiny, this model underscores the importance of building both ethical awareness and robust ethical frameworks within organizations.