Teleological Actions are judged as ethical or unethical based on their results.

Actions are judged as ethical or unethical based on the consequences to one's self. Egoism Actions that maximize self-interest are preferred. Actions are judged as ethical or unethical based on the consequences to "others." Utilitarianism Actions that maximize the "good" (create the greatest good for the greatest number) are preferred. Actions are judged as ethical or unethical based on the inherent rights of Deontological individual and the intentions of the actor. Individuals are to be treated as means and not ends. It is the action itself that must be judged and not its consequences. Actions are judged as ethical or unethical based on the fairness shown to those Justice affected. Fairness may be determined by distributive, procedural, and/or interactional means. Actions are judged as ethical or unethical based on subjective factors that may Relativism vary from individual to individual, group to group, and culture to culture.

In general, there are three types of influences on ethical decision-making in business: (1) individual difference factors, (2) situational (organizational) factors, and (3) issue-related factors. INDIVIDUAL DIFFERENCE FACTORS. Individual difference factors are personal factors about an individual that may influence their sensitivity to ethical issues, their judgment about such issues, and their related behavior. Research has identified many personal characteristics that impact ethical decision-making. The individual difference factor that has received the most research support is "cognitive moral development." SITUATIONAL (ORGANIZATIONAL) FACTORS. Individuals' ethical issue recognition, judgment, and behavior are affected by contextual factors. In the business ethics context, the organizational factors that affect ethical decision-making include the work group, the supervisor, organizational policies and procedures, organizational codes of conduct, and the overall organizational culture. Each of these factors, individually and collectively, can cause individuals to reach different conclusions about ethical issues than they would have on their own. This section looks at one of these organizational factors, codes of conduct, in more detail. ISSUE-RELATED FACTORS. Conceptual research by Thomas Jones in the 1990s and subsequent empirical studies suggest that ethical issues in business must have a certain level of "moral intensity" before they will trigger ethical decision-making processes. Thus, individual and situational factors are unlikely to influence decision-making for issues considered by the individual to be minor

Issues within the Organisation:

A number of organisational issues can impact on the decision making process. These issues include:
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Policies and procedures Organisational hierarchy Organisational politics

Policies and Procedures Many organisations have formalised policies and procedures which have been developed to resolve common problems and to guide managers when making decisions. For example, many organisations have documented disciplinary procedures which guide managers through a process of resolving issues with staff members. Organisational Hierarchy Organisational hierarchy refers to the management structure of the organisation. Most organisations have different levels of management which carry with them different degrees of authority. The degree of authority directly impacts on the nature of the decisions an individual can make. For example, a Customer Contact Centre Team Leader cannot make decisions about the overall goals of the organisation. However, the Team Leader can make decisions about how their team contributes to the achievement of the organisation's goals. Organisational Politics Organisational politics refers to behaviour displayed by individuals and groups which is designed to influence others. Individuals and teams will often use politics to:
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Advance their careers Advance their interests and ideas Increase their rewards

Organisations are made up of individuals with different beliefs, values and interests. These differences are often the driving forces behind organisational politics. For example, two teams believe they require an extra team member. Unfortunately the organisation can only afford one new employee. The two teams may well use politics in an attempt to influence their manager to allocate the new employee to their team. Issues within the Environment: Environmental issues are the external factors that affect the organisation. The types of external factors that can have an effect on decision making include:
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The market in which the organisation operates The economy Government legislation Customers' reaction to the organisation's products and services

For example, B&B online decided to create a new team, B&B for Busy Bodies because they believed that a corporate market existed for the bed and breakfast industry. Common Decision Making Mistakes: Many of the factors which affect the decision making process can lead to mistakes being made. By being aware of the types of mistakes that can be made and by understanding the reasons for the mistakes a Team Leader is in a better position to avoid making them. Some common mistakes that decision makers should be aware of include:
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Only hearing and seeing what we want. Each individual has their own unique set of preferences or biases which blinker them to certain information. The best way to deal with this problem is to identify your preferences and biases whilst attempting to be open to the information around you. Placing too great a reliance on the information you receive from others. Often we rely on certain individuals to provide support and guidance. This may be a suitable course of action in many cases. However, if the individual is not closely involved in the

problem situation they may not have the necessary information or knowledge to help make the decision. Placing too little emphasis on the information you receive from others. This issue can easily occur in a team situation. In many cases the team members are the people who are most closely involved in a problem situation and they often have the most pertinent information in relation to the problem. The best way to deal with this issue is to ensure that team members are involved in the decision making process. Ignoring your intuition. On many occasions we are actually aware at a subconscious level of the correct course of action. Unfortunately, we often tend to ignore our intuition.