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Organizational Decision to Be Made

Purpose

Every ethical decision begins with a practical business choice. But not every business decision is ethical in nature.

Clearly identify the decision that needs to be made in a business setting.

Key Concepts

Your job at this stage is to define the decision clearly, what action or direction is being considered, and assess whether it may have ethical consequences. A poorly defined decision can lead to confusion, inefficiency, or even unethical outcomes. It’s important to distinguish the decision itself from the issues surrounding it.

When a business faces pressure to grow, reduce costs, or innovate, decisions must still align with values and responsibilities. Clear articulation of the decision helps uncover what is really at stake.

In Practice

Example Scenario

At NexaTech, the leadership team is evaluating a proposal to close its rural Nova Scotia customer service center. The goal is to reduce costs and transition support services to AI chatbots. The decision on the table is: “Should NexaTech replace its rural customer service center with an AI system to reduce operating costs?” While the efficiency gains are tempting, there are early signs that this is not just a financial choice. Employees, community leaders, and some customers have voiced concerns about job loss, service quality, and local economic impact. The leadership team must decide whether to proceed, adapt, or reject the plan.

Tips and Tools

  • Clearly state the business decision in a single sentence.
  • Avoid framing the problem as either/or too early.
  • Ask: What makes this a decision and not just an operational task?
  • Use tools like the 5 Whys to dig into the root of the decision.

Next Step

Now that you’ve defined the decision, you’re ready to explore whether the problem has ethical elements worth deeper analysis.

When you’re ready, continue to the next part of the process.

Proceed to: Potential Problem Identification

 

License

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Acting Responsibly: Ethical Decision-Making in Business Copyright © 2025 by Sobey School of Business, Saint Mary's University is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.