Ethical Decision-Making Model
Why Use a Model for Ethical Decision-Making?
Even with a strong understanding of ethical theories, it can be difficult to apply those ideas in the messy, uncertain situations we encounter in business. That’s where a structured decision-making process can help. This section introduces a clear model that supports responsible, well-reasoned ethical decisions.
Real-World Relevance
In business, ethical decisions rarely have clear or simple answers. Pressures from stakeholders, competing priorities, and fast-paced environments can lead to rushed or unclear choices. A structured model helps decision-makers slow down, think clearly, and ensure their actions align with values, responsibilities, and long-term impact. An ethical decision-making model offers a practical framework to help you make consistent, well-reasoned decisions, even in uncertain or high-stakes situations.
Ethical decision-making is not just a theoretical concept; it is a vital skill that every business leader and professional needs to develop. As a third-year commerce student, you are preparing to enter a world where your decisions will affect people, organizations, communities, and even the environment. Ethical challenges are often complex, involving conflicting values, uncertain outcomes, and significant consequences. This is why having a structured approach to ethical decision-making is so important.
This chapter introduces you to an ethical decision-making model designed to guide you through the process of evaluating business dilemmas. Each step encourages you to think critically and empathetically, to consider the broader context of your decisions, and to align your actions with ethical principles. The model is not a rigid formula but a flexible guide that supports reflection and responsible action in real-world business situations.
You will explore how ethical leadership, stakeholder engagement, fairness, and transparency all play a role in making sound ethical choices. Throughout this OER, you’ll apply the model to real-life case studies, develop your moral reasoning, and strengthen your capacity to act with integrity
What Makes This Model Useful?
- It’s comprehensive: You’ll move from initial decision to long-term monitoring.
- It’s flexible: The model works in many contexts: marketing, HR, leadership, sustainability, and more.
- It’s grounded in theory: It draws from ethical reasoning traditions while emphasizing action.
- It’s student-tested: Designed for real-world application in business courses and workplace settings.
What the Model Helps You Do
- Clarify the business decision at hand
- Identify potential ethical problems early
- Understand the people and context involved
- Evaluate realistic options and their consequences
- Make a justifiable decision and follow through responsibly
- Monitor the outcome and reflect for future learning
The Parts of the Process
Each part of the process builds on the one before. You’ll explore each of these on its page, with examples, tools, and prompts to help you apply the process to case studies and workplace decisions. Click on the question marks within each of the sections to learn more about the individual steps.
Tips for Using the Model
Practical Advice
- Be specific. Vague answers lead to vague reasoning.
- Slow down. Ethical clarity comes from moving step-by-step, not jumping to conclusions.
- Think holistically. Good ethical decisions consider more than just profit or compliance.
- Practice. The more you use the model, the more natural it becomes.
Putting the EDM Model into Practice
You will learn the EDM model best by seeing how it applies in a real situation. Throughout this module, you will use the simulated NexaTech case to practice applying the model step-by-step. This will help you move beyond abstract understanding and experience how a structured decision-making process can support ethical leadership in practice.
What is NexaTech?
NexaTech is a Canadian technology company founded in 2008. Over the past 15 years, it has grown from a small start-up into a mid-sized company with more than 1,200 employees across Canada and the United States. The company provides digital services, including software development, IT consulting, and customer support for clients in finance, healthcare, and retail. NexaTech has earned a reputation for innovation and reliability, and it has often highlighted its role in supporting Canadian talent in the global tech sector.
Like many growing companies, NexaTech now faces mounting pressures. Global competition, rising costs, and rapid advances in automation have forced the company to rethink its operations. At the same time, stakeholders expect NexaTech to act responsibly toward its employees, clients, and communities.
The current dilemma involves a proposal to close NexaTech’s rural Nova Scotia customer service center and transition many support services to AI-driven chatbots. While this shift could significantly reduce costs and improve efficiency, it raises serious concerns about job loss, service quality, and the economic impact on the community.
Why are we doing this?
By working with the simulated NexaTech case as you study the EDM model, you will:
- Gain practice applying a structured process to a real organizational dilemma
- See how the EDM model helps balance competing values and long-term impacts
- Develop the skills to identify context, analyze decision-makers and stakeholders, and evaluate alternatives before selecting a course of action
As you move forward, keep NexaTech in mind. The choices it faces reflect the kinds of ethical challenges you will encounter in your own careers, where responsible leadership depends on both clear reasoning and awareness of long-term consequences.
What to Expect in this chapter
- A short explanation of each step of the ethical decision-making process
- Examples from business or leadership practice
- Tools or questions to guide your thinking
You’ll explore this process with a case-based activity that walks you through the entire model.
Let’s Get Started!
Now that you are familiar with the Ethical Decision-Making Model, it’s time to dig deeper into each stage of the process.
Proceed to the first stage of the EDM: STAGE 1: IDENTIFY THE ETHICAL CHALLENGES →
