A third ethical criterion is justice.This criterion requires individuals to impose and
enforce rules fairly and impartially so there is an equitable distribution of benefits and
costs. Union members typically favour this criterion. It justifies paying people the same
wage for a given job, regardless of performance differences, and it uses seniority as the
primary determination in making layoff decisions. A focus on justice protects the inter-
ests of the underrepresented and less powerful, but it can encourage a sense of entitle-
ment that reduces risk-taking, innovation, and productivity.
A fourth ethical criterion is care.The ethics of care can be stated as follows: “The
morally correct action is the one that expresses care in protecting the special relationships
that individuals have with each other.”^80 Care as an ethical criterion came out of fem-
inist literature^81 to address the idea that the male-dominated view of ethics was too
impersonal and ignored the relationships among individuals.^82 The care criterion sug-
gests that individuals should be aware of the needs, desires, and well-being of those to
whom they are closely connected. Recent research does not suggest that men and women
differ in their use of justice vs. care in making decisions.^83 However, this criterion does
remind us of the difficulty of being impartial in all decisions.Factors That Influence Ethical Decision-Making Behaviour
What accounts for unethical behaviour in organizations? Is
it immoral individuals or work environments that promote
unethical activity? The answer is both!The evidence indi-
cates that ethical or unethical actions are largely a function
of both the individual’s characteristics and the environment
in which he or she works.^84 The model in Exhibit 9-6 illus-
trates factors affecting ethical decision making and empha-
sizes three factors: stage of moral development, locus of control, and the organizational
environment.Stages of Moral Development
Stages of moral developmentassess a person’s capacity to judge what is morally
right.^85 Research suggests that there are three levels of moral development, and each
level has two stages.^86 The higher one’s moral development, the less dependent he or she
is on outside influences and thus the more he or she will be predisposed to behave
ethically. The first level is the preconventional level, the second is the conventional314 Part 4Sharing the Organizational Vision
Stewart Leibl, president of Perth’s,
a Winnipeg dry-cleaning chain, is
a founding sponsor of the Koats
for Kids program. The company’s
outlets are a drop-off point for no-
longer-needed children’s coats,
which Perth’s cleans free of charge
before distributing them to chil-
dren who have no winter coats.
Leibl is going beyond utilitarian
criteria when he says, “We all
have a responsibility to contribute
to the society that we live in.” He
is also looking at social justice.
Why do some
people make more
ethical decisions
than others?*
stages of moral development
The developmental stages that
explain a person’s capacity to judge
what is morally right.