Ethics is a critical element of business success. Operating with integrity at every level of the organization helps companies develop strategies that prioritize the well-being of their employees and communities. This can have a positive impact on an organization’s public reputation and even its profitability.
Companies that engage in unethical practices may achieve short-term success, but they risk long-term downfall.
Consider the case of Enron, once the largest seller of natural gas in North America, which declared bankruptcy after its fraudulent accounting practices were exposed. This scandal also led to the downfall of Arthur Andersen, one of the world’s largest accounting firms.
Running a moral business requires business leaders with ethical decision-making skills, which can be developed in the course of earning a business degree. Implementing these skills successfully takes experience and a commitment to doing the right thing. Those interested in pursuing a career in business leadership should understand how to make ethical business decisions and why it’s so important.
What Is Ethical Decision-Making?
Ethical decision-making is the process of striving to resolve issues using moral principles as a guide. This involves evaluating the options, considering the moral ramifications of each, and making choices based on one’s values and standards.
This decision-making process can be based on any of a number of philosophical theories, such as:
- Deontological Ethics: Deontological ethics focuses on adhering to moral principles, such as following laws or avoiding harm, regardless of the outcome.
- Virtue Ethics: Virtue ethics emphasizes the importance of moral character and virtues like compassion and honesty in guiding actions.
- Consequentialism: Consequentialism judges the morality of decisions based on their outcomes, prioritizing results that benefit the greater good.
While each of these theories takes a different approach to decision-making, they all focus on being guided by ideals that are bigger than short-term gain. Applying them to business contexts can help a business leader make ethically driven decisions.
Why Is Ethical Decision-Making Important for Business Leaders?
Ethical decision-making in business is tied directly to business success, as it keeps businesses from engaging in practices that can be detrimental to their long-term health. Ethical decision-making can have several positive impacts on a business.
For instance, when leadership is committed to making ethical decisions, this can have a trickle-down effect, as employees are likely to emulate the ethical behaviors they witness at the company’s top level. This can have several positive residual outcomes, such as better employee performance and increased company loyalty. These elements can allow the company to reach its growth and stability goals with greater efficiency.
An ethically run company built on moral decision-making can also benefit from becoming known as an organization with an exceptional reputation. This can help the company build trust with its potential customers, and it could make the company more attractive to potential investors considering stock purchases.
Most importantly, making business decisions based on ethical standards follows the essential principle of doing good in the world and doing right by others.
Ethical Decision-Making Examples in Business
Ethical decision-making in business requires a combination of fundamental business skills and integrity. Skills like clear communication and leadership need to be complemented by ethical considerations such as transparency, responsibility, and empathy. Ethical business decisions can enhance an organization’s reputation with both its employees and the community.
For instance, deciding to pay its employees a higher-than-average wage can convey a sense of fairness and respect that helps an organization retain its existing employees and attract top talent. Deciding to pay employees a higher-than-average wage demonstrates a commitment to fairness and respect, helping to retain talent and enhance the company’s appeal to prospective employees.
Investing in sustainability and social responsibility initiatives signals a company’s commitment to broader societal values, which can attract customers and partners who share similar priorities.
How Can Earning a Business Degree Help Develop Ethical Decision-Making Skills?
Ethical decision-making is driven by personal integrity, but integrity alone, without the right educational background and expertise, can still lead to poor decisions. A specialized business degree program that integrates Christian principles can prepare students to become servant leaders who balance profitability with ethical considerations—professionals who strive to do what is right, not just what is profitable.
There are several different types of business degrees to choose from, depending on where a person is in their academic or professional journey. Some degrees to consider are:
- Bachelor of Business Administration (BBA): This undergraduate degree offers a foundation in business concepts. A BBA program that emphasizes faith and ethics helps students combine business skills like communication and decision-making with a strong set of principles. Some BBA degrees even feature a management ethics concentration or emphasis.
- Master of Business Administration (MBA): This graduate degree prepares students for advanced business leadership roles, where making ethical decisions can have a significant impact on the company, its employees, and the wider community. Individuals may benefit from looking for an MBA program that focuses on leadership development with an emphasis on ethical decision-making. Some MBA programs offer concentrations in specific areas of business, such as international business, human resources, or accounting.
- Master of Arts (MA) in Leadership: This graduate degree provides an intense focus on developing the leadership skills needed to succeed in business, public administration, and nonprofit industries. An MA in Leadership program founded on Christian principles emphasizes moral leadership, with coursework that can include topics such as ethical leadership in public administration and the integration of leadership and ministry.
Prepare to Lead with Integrity
Building a business on ethical decision-making is not only the right thing to do, but also a crucial component of both immediate and long-term success. By making decisions based on integrity, organizations send a clear signal to their employees, customers, and community about what matters most to them.
Enrolling in one of Mid-America Christian University’s business degree programs can help you establish your career on a solid foundation of ethical integrity. Our BBA, MBA, MA in Leadership, and certificate programs integrate Bible-based principles into key contemporary business concepts, allowing you to cultivate knowledge and skills that you can use to make a positive impact in your career.
Discover how MACU can equip you to lead with integrity and make a meaningful impact in the business world.
Recommended Readings
Business Administration vs. Business Management: Differences in Career Paths
Careers in Education: Teaching and Beyond
Cybersecurity vs. Data Analytics: Comparing Degrees and Careers
Sources:
Britannica, Consequentialism
Britannica, Deontological Ethics
Britannica, Virtue Ethics
Forbes, “Three Key Principles to Guide Ethical Decision-Making in the Digital Era”
Indeed, “How to Make Ethical Decisions (A Guide for Professionals)”
Investopedia, “Enron Scandal and Accounting Fraud: What Happened?”
Investopedia, “Social Responsibility in Business: Meaning, Types, Examples, and Criticism”
Investopedia, “Why Are Business Ethics Important? A Guide”
Strategic Finance, “Ethical Decision Making: From Dilemmas to Solutions”